Who is required to file for GST return and who are exempted from filing it?

The GST, Goods and Service Tax, which have been levied by the Indian government in 2017, has made it mandatory for all the business to register them under it. It is essential for all business to register themselves for the GST returns. But, the requirement for the GST, returns varies from the kind of business you are involved in, along with the structure of your business and a few other factors. But, should you register your business for GST returns? What are the rules that make it mandatory for any business to register themselves for the GST?

Should you register your business for GST return?

If you are sole proprietor, then there is no need for you to file for GST return, which is the thumb rule that has been followed for years. But, if you have a partnership firm, public or private company or an LLP, then it is essential for you to register your business for GST return. But one should not confuse regular business registration with GST registration as they differ from multiple aspects. As being declared in 2017 under the GST regime, if you have an annual turnover of more than twenty lakhs, then it is vital for you to register your business for the GST return. But, the benchmark also differs from one state to another. For instance, if you have a business registered under any of the northeastern states, then the threshold is ten lakhs.

The registration number for GST

Once you are done registering your business for GST, you will receive a fifteen-digit GST code which is essential as you will need it to obtain your GST return. The first two number of the code consist of the state code which is being followed by the ten-digit permanent account number and the last three digits is an additional number.

Filing for the monthly GST returns

After you are done registering your business, you will need to file three-month returns on various dates as the dates of these monthly returns are staggered. For the first return, you will need to file your business name along with the GST identification number, the dates which are related to the return, issued invoices, your paid GST taxes along with the all the advances that you have received on behalf of the all the future sales.

The returns are due after ten days of each of the tax period, which eventually leads to the tenth of every month. After the first tax return, the next tax return, which is the second tax return is due after fifteen days of the tax period, and for that, you won’t need to fill any forms. Rather, this form is already prefilled with all the details which include the entire list of purchase that you have made with your vendor along with the entire list of taxes which you have paid if any. All that you will need to do during the second GST form is check out the complete details which are being provided on the form and rectify if there is any mistake with the details that are being provided in the form.

The third GST form is an accumulation of the entire details from your first and second returns, which is later on assessed for your total tax liability. There you need to input all the credits which are referred to the GST which you have paid to the other businesses. And to access the third GST, you will need to visit the GST portal as it won’t be mailed to you.

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