How Does GST Filing And Payment Work?

Understanding GST Filing and Payment in India

Steps for GST Filing

1. Maintain Accurate Records:

Keep detailed records of all sales, purchases, input tax credits (ITC), and GST paid on purchases.

2. Generate GST-Compliant Invoices:

Issue invoices that comply with GST regulations, including details such as GSTIN, invoice number, date, taxable value, GST rate, and amount.

3. Log in to the GST Portal:

Access the GST portal at [GST Portal](https://www.gst.gov.in/).

4. Prepare GST Returns:

GSTR-1: Monthly or quarterly return for outward supplies (sales). It captures details of all sales transactions and must be filed by the 11th of the subsequent month.

GSTR-3B: Monthly summary return of outward and inward supplies, including tax liability and ITC. It must be filed by the 20th of the subsequent month.

GSTR-2A & GSTR-2B: Auto-drafted returns that provide details of inward supplies (purchases). These are not filed but used for reconciliation.

GSTR-9: Annual return summarizing the monthly/quarterly returns filed during the financial year. It must be filed by December 31st of the subsequent financial year.

GSTR-4: Quarterly return for composition scheme taxpayers.

Other Returns: Specific returns like GSTR-5, GSTR-6, GSTR-7, etc., for non-resident taxable persons, input service distributors, and tax deductors/collectors respectively.

5. Upload Return Data:

Upload the prepared data on the GST portal. Use offline tools provided by the portal if required.

6. Reconcile Data:

Reconcile data in GSTR-2A/GSTR-2B with purchase records to ensure accurate ITC claims.

7. Submit Returns:

Submit the returns after verifying the data. The submission process includes a digital signature or EVC (Electronic Verification Code) for authentication.

Steps for GST Payment

1. Calculate Tax Liability:

Determine the tax liability after considering the input tax credit. 

The liability is the net amount payable after adjusting ITC against the output tax (tax on sales).

2. Generate Challan:

Generate a payment challan on the GST portal using Form PMT-06. 

This form allows you to make payments towards IGST, CGST, SGST/UTGST, and cess.

3. Make Payment:

Payment can be made through various modes:

Online: Net banking, credit/debit card, UPI.

Offline: Over the counter (OTC) at authorized banks or via NEFT/RTGS.

4. Confirm Payment:

After making the payment, the details will be reflected in the electronic cash ledger on the GST portal.

5. File Returns with Payment Details:

Ensure that the returns (GSTR-3B, GSTR-1, etc.) include the payment details. 

This completes the filing process for the respective period.

Deadlines for GST Filing and Payment

GSTR-1:

Monthly: By the 11th of the subsequent month.

Quarterly: By the 13th of the month following the quarter.

GSTR-3B:

Monthly: By the 20th of the subsequent month.

GSTR-4:

Quarterly: By the 18th of the month following the quarter.

GSTR-9:

Annually: By December 31st of the subsequent financial year.

Penalties for Non-Compliance

Late Filing Fee:

?50 per day (?25 CGST + ?25 SGST) for regular taxpayers.

?20 per day (?10 CGST + ?10 SGST) for nil return filers.

Interest on Late Payment:

18% per annum on the outstanding tax amount.