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Understanding The Concept Of GST And GST Returns

GST or Goods and Services Tax can rightly be dubbed the nation’s biggest indirect tax change ever since 1947. GST background in India dates back to 2006 when the proposal to incorporate it was introduced by the then minister of finance. The updated tax system officially came into effect on 1 July 2017. The government has suggested GST as a more straightforward, self-policing tax system that is simpler to enforce and will also improve the nation’s financial development.

The Goods And Services Act

GST is an important indirect tax to be applied to the selling, production, and usage of products and services. It is a single tax that applies to the delivery of products to the customer from the manufacturing company. It is a GST tax that only applies to added value at each level. With the adoption of the latest law, India steadily has become a single economy with one indirect tax.

GST has proven to be a major benefit for customers because it reduces the cascading impact of the outdated tax system and opens the doors for a unified national economy. Therefore, the total tax load would be decreased, and an emphasis on transparency has also been established.

Types Of GST

Listed below are different types of GST. For more information and details, make sure that you visit the government-approved GST website.

  • CGST – Central Goods And Service Tax
  • IGST – Integrated Goods and Services Tax
  • SGST – State Goods and Services Tax
  • UTGST – Union Territories Goods and Services Tax

Understanding The Concept Of GST Returns

In order to effectively update invoices, Indian citizens and business organizations/owners must file specific returns with the authorities. Such returns must be filed on a mandatory basis, as any failure to comply with them may contribute to the refusal of input tax credits, besides the levying of interest and penalties, etc. Proper reporting of records and forwarding it in returns is an essential procedure for the seamless transfer of credit to the previous receiver.

The returns were structured in such a manner that all exchanges are in alignment with one another and no exchange is left unsupervised between both the sellers and the buyers. All information is recorded in GSTN, which can also be accessed through the internet by customers/taxpayers at any given point of time.

GST Return Form

GST Returns form is a report which includes information on all transactions, sales, production GST (on sales), and input tax credit (GST paid on transactions) for calculating the GST liability of an assessed individual over a given tax period. Actually, GST returns may be submitted on a weekly, semiannual or yearly basis, based on the relevant specific factors.

Types Of GST Returns

Listed below are the types of GST returns, for more information and details on it you can visit the authorized GST portal.


Intended for returns on outward supplies.


Intended for returns on inward supplies


It is a read-only document


Brief description of outward and inward supplies


Intended for returns on composition dealers


Intended for returns on a non-resident taxable individuals


Intended for returns on Input service distributors


Intended for returns in taxpayers deducting TDS


Intended for returns on E-commerce operators collecting TCS


Annual returns for the normal registered taxpayer under the GST act


Intended for annual returns on composition dealers


Intended for annual returns on E-commerce operators collecting TCS


Intended for returns on “Registered persons getting accounts audited”


Intended for returns on “Registered person whose GST gets canceled”


Intended for returns on Unique Identification Numbers (UIN)

Who Is Required To File GST Returns?

All business organizations and owners enrolled under the GST regime are supposed to declare their GST returns, and GST filing can be done via offline or online methods, using relevant forms.

Normally, a standard business will have to file 2 returns on a monthly basis (GSTR-1 & GSTR-3B) and 1 yearly return (GSTR-9), resulting in a total of 25 GST returns every year. Also, composition dealers are expected to send GST through various forms.

For further clarification and for more information you can always contact the GST helpline or use the official GST portal for the same.

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