GST Returns: A Comprehensive Guide

January 11, 2023

“A good taxation system should be like a good shirt – simple, comfortable, and not noticeable.”
– Joe Hockey

What is GST?

GST stands for Goods and Services Tax, and it is a type of tax that is applied to most goods and services that are purchased in Australia. It is a form of indirect tax, which means that it is paid by the consumer when they purchase a product or service, and not by the business that is providing it.

The GST rate is currently set at 10%, and this rate applies to most goods and services purchased in Australia. GST is collected by the Australian government, and is used to help fund services and infrastructure for Australians.

GST is an important part of the Australian taxation system, and it helps to ensure that businesses are collecting the correct amount of tax.

What is GST Returns?

GST Returns are the documents filed with the tax authorities to declare the taxes paid by the taxpayer. It covers details such as sales, purchases, input tax credit, and output tax liability. It is important to file GST returns as this helps in keeping a record of the taxes paid and can be used to avail input tax credit. By filing GST returns on time, a business can avoid penalties imposed by the authorities.

7 Most Important Facts to Remember While Filing GST Returns

1• Ensure all taxable sales and purchases are included in the return

Ensuring that all taxable sales and purchases are included in the return is an essential part of filing taxes. It is important to keep track of all taxable items and include them in the return in order to ensure accuracy and avoid any penalties or fees. It is also important to keep records of all sales and purchases to make sure nothing is left out when filing. Keeping track of all taxable items will help ensure that taxes are filed correctly and any deductions or credits are taken advantage of.

2• Ensure all relevant documents are included in the filing

Before submitting the filing, make sure to review all of the documents one last time to ensure everything is accurate and complete. Check to make sure all of the relevant documents are included, that all of the forms are filled out correctly, and that any required signatures are present. Once you are confident that everything is in order, submit the filing and keep a copy of the documents for your records.

3• Make sure all GSTINs are entered correctly

• Double-check to make sure the invoice numbers are unique and do not match any other invoices. Additionally, ensure that the dates of invoices are accurate and are not overlapping. Finally, make sure that the HSN/SAC codes are entered correctly and that the GST rates are applied correctly.

4• Ensure all GST rates are declared accurately

• Monitor changes in GST regulations and alert the appropriate personnel
• Keep track of GST credits and report the same on returns
• Provide support to the accounts team in filing the GST returns
• Reconcile the GST accounts periodically and check for any discrepancies
• Identify any potential areas for GST savings
• Assist auditors in GST related queries

5• Make sure all the HSN/SAC codes are accurate

and that the goods or services being supplied are correctly classified. Ensure that the GST/VAT rate is also correct, and that the invoice contains any other information required by law. Make sure that all the necessary details are included in the invoice, such as the customer’s full name and address, the date of supply, the transaction value, and the appropriate taxes. Finally, make sure to review the invoice for accuracy and completeness before sending it.

6• Make sure the filing is done within the due date

Follow the filing guidelines provided by the state or federal government and make sure to check for updates when necessary. Double-check all paperwork before submitting to ensure accuracy. Pay attention to any deadlines and make sure to take note of all relevant documentation that needs to be filed with the paperwork.

7• Make sure to include all the applicable taxes in the filing.

Failure to include all necessary taxes in the filing can result in penalties and other financial penalties. It is important to be sure to include all the applicable taxes when filing taxes. Additionally, it is important to make sure all necessary documents are included in the filing. This includes receipts, invoices, and other records that are related to the filing.

What is the process of filing GST returns?

The process of filing GST returns involves the following steps:
1. Logging in to the GST portal with the credentials provided.
2. Uploading the relevant invoices and other information.
3. Calculating the tax payable and inputting the figures into the GST return form.
4. Filing the GST return form and submitting it to the GST portal.
5. Receiving the acknowledgement of the GST return form from the GST portal.
6. Making the payment for the GST due, if any.
7. Filing the GSTR-3B form for the relevant tax period.

What are the different types of GST returns?

The different types of GST returns are GSTR-1 (Outward Supplies), GSTR-2 (Inward Supplies), GSTR-3 (Monthly Return), GSTR-4 (Composition Scheme), GSTR-5 (Non-Resident Taxable Person), GSTR-6 (Input Service Distributor), GSTR-7 (TDS Returns), GSTR-8 (E-Commerce Operator), GSTR-9 (Annual Return) and GSTR-10 (Final Return).

What documents do I need to file GST returns?

To file your GST returns, you will need to provide supporting documents such as your GST registration certificate, invoices for all your sales and purchases, and other documents that may be required by the GST department. You may also need to provide documents related to any input tax credit claimed, such as bills of supply, tax invoices, and other related documents. Lastly, you will also need to provide your bank statements to verify the payments made and received.

What happens if I miss the deadline for filing GST returns?

If you miss the deadline for filing GST returns, you may be liable to pay a late fee and, in some cases, additional fines. The exact amount of the fee and fines depends on the state in which you are filing. Furthermore, if you fail to submit your returns for more than six months, your GST registration may be cancelled. Therefore, it is important to ensure that you file your GST returns on time to avoid these penalties.

What are the penalties for not filing GST returns?

Penalties for not filing GST returns vary depending on the country, but can generally include fines, interest, and late payment fees. In some countries, non-compliance may also lead to criminal liability or other legal action. In India, for example, failing to file returns on time can lead to a penalty of up to 10% of the tax due or a minimum of Rs. 10,000, whichever is higher. Additionally, late filing can lead to disqualification from certain benefits and may result in prosecution.

What are the different types of GST exemptions?

One type of GST exemption is for certain goods and services that are considered basic necessities. This includes items such as food and medicine. Other exemptions include certain educational expenses, certain medical and healthcare expenses, certain charitable donations, certain housing rentals, and certain public transport expenses. In some cases, certain services may also be exempt from GST. For example, certain legal or professional services may be exempt from GST.

How are GST credits claimed?

GST credits are claimed when businesses lodge their Business Activity Statement (BAS). The BAS is the document businesses use to report and pay their GST, PAYG instalments, and other taxes and superannuation. When businesses complete their BAS, they can enter any GST credits they have received during the period and offset them against the GST they have collected. If the credits exceed the GST collected, the business will receive a refund.

What records should I keep for GST returns?

You should keep records such as invoices, receipts, bills, and other documents that contain information about your sales, purchases, and other business activities. You should also keep records of your GST/HST payments, adjustments, and refunds. Other records that should be kept include your GST/HST registration documents, records of your GST/HST returns, and records of any other information related to your business activities.

What technology is available to assist with filing GST returns?

There are a number of technology-driven solutions available to assist with filing GST returns. From cloud-based accounting software to automated tax filing services, businesses can access a range of tools to make the process of filing GST returns simpler and more efficient. Many of these solutions are available online and are accessible anywhere, making it easier to manage accounting tasks on the go.