Since the Goods and Services Tax (GST) was introduced, businesses across the country have been required to report their GST-related transactions through periodic GST returns. These returns provide details of business transactions and the tax payable by the taxpayer.
The GST liability can vary from one business to another depending on its income and applicable tax category. Therefore, businesses need to understand which GST return applies to them and the relevant filing schedule.
GSTR-1 and GSTR-3B: Which Return Do You Need to File?
GST returns are filed under different categories, with GSTR-1 and GSTR-3B being among the key returns for regular taxpayers. The applicable return and filing frequency depend on the taxpayer’s business circumstances and turnover.
Businesses may have to submit monthly as well as annual GST returns. Understanding the applicable category is important because it determines which return needs to be filed and when.
GSTR-1 is used to report outward supplies, while GSTR-3B is used for reporting GST liabilities and making the applicable tax payment. Taxpayers should ensure that the information entered in their returns matches their business records.
How to File GST Returns Online
GST returns can be filed online through the official GST portal. The general process involves the following steps:
First, visit the GST portal at www.gst.gov.in and complete the required login or registration process. PAN details and the state code are used during GST registration, after which a 15-digit GST number is issued.
Once the required process is completed, the challan can be uploaded. A unique number is generated for each challan. If an upload fails, the challan can be uploaded again.
After this, taxpayers can file their outward supply details through the GSTR-1 form on the GST portal. Depending on the applicable requirements, taxpayers may also need to file GSTR-3B.
The required supply information must be entered carefully in the relevant form. Through GSTR-1A, taxpayers can also accept or reject information provided by the recipient.
How to File a Nil GSTR-1 Through SMS
Taxpayers eligible to file a nil GSTR-1 can also use the SMS facility. To initiate the process, the tax period needs to be entered in the specified format:
GSTINMMYYYY
The message should then be sent to 14409. Taxpayers need to follow the prescribed format carefully and provide the required details to complete the process.
GSTR-1 vs GSTR-3B Filing Rates
Regular GST taxpayers generally file both GSTR-1 and GSTR-3B. According to the figures provided, the national average filing rate for GSTR-3B is around 95 per cent, while Bihar’s average is also approximately 95 per cent.
The filing rate for GSTR-1 is considerably lower. The national average is reported to be between 66 per cent and 68 per cent, while Bihar’s average stands at around 38 per cent to 40 per cent.
The difference has highlighted the need for simpler GST filing procedures. The government is taking measures to improve compliance and make it easier for taxpayers to complete GSTR-1 filing from their homes.