The percentage of non-filers of GST returns stood at approximately 28.75% in November 2018, as per data released by the Lok Sabha.
The Central Board of Direct Taxes (CBDT) aims to levy stringent rules against such companies. In adverse cases, this can lead to cancellation of registration of the stipulated business.
Businesses having returns below Rs.1.5 crore annually have to file their returns quarterly, while companies registering revenue higher than Rs.1.5 crore have to submit GSTR-1 forms monthly.
During months of zero sales, nil GSTR has to be duly filled and submitted to avoid paying unnecessary taxes. Due date of filing for such returns are subject to change every month; information regarding the same is available on the official website of GST council.
What happens if you fail to comply GST return process within due date?
GST levied on a manufactured product can be of three types; delays for anyone of them leads to the imposition of late fees.
While Central goods and Services Tax (CGST) and State Goods and Services Tax (SGST) is imposed in intra-state supply, sellers have to pay Integrated Goods and Services Tax (IGST) for inter-state supplies.
Taxpayers must check GST return filing status to ensure their tax liabilities have been paid for accordingly.
Fines for non-payment of GST–
- For delay in such GST return filing, a late fee of Rs.100 per day is imposed under CGST and SGST, respectively.
- For IGST, late fine increases to Rs.200 per day.
Nonetheless, the maximum amount collectible as late fees is capped at Rs.5,000 by the central government, even if the total fine cumulates to a higher charge.
Companies missing out on annual GST return filing process have a maximum cap on the late payment fees at 0.25% of the annual turnover generated.
Fines for non-payment for nil return filers –
- For CGST and SGST, the fine accumulation is Rs.50 per day.
- For IGST, the fine payable is Rs.100 per day
You must learn how to file GST return in India and keep track of all due dates. Register for GST online to avail a GSTIN and file the same.
GST return filing procedure online –
The steps to file GST return online are mentioned below –
Step 1 – Go to the official GST portal.
Step 2 – As per your PAN and state code, a 15-digit GSTIN will be issued.
Step 3 – Upload scanned copies of all relevant business invoices, for a generation of invoice number against each receipt.
Step 4 – Enter collective values of inward, outward and cumulative monthly returns generated by your business.
Step 5 – Forms GST 2A (outward supplies) and GST 2 (inward supplies) will be furnished, which has to be verified by the applicant.
You can henceforth make all due GST payment to avoid any late charges. File GST online to avail several advantages, like lower input tax credits. This increases the average sales volume and subsequent revenue generation of a company, helping them churn out higher profits in the long run.
Nonetheless, adequate production has to be undertaken to pave the way for higher sales, which, in turn, requires higher liquid current assets. Companies can avail short term unsecured business loans for this purpose, offered by renowned financial institutions such as Bajaj Finserv. Such credits come with attractive interest rates and tailor-made repayment tenor, effectively diminishing the cost of borrowing.
Companies can utilize such credits efficiently to increase total profits, through higher and improved quality products manufacture. GST returns to be paid in such cases rises, as well, as tax is imposed on overall sales volume. Nonetheless, companies can manage their finances in compliance with such tax liability for long term growth and development purposes.