Details of GST in Income Tax Returns

Posted by Reena More on June 17th, 2019

This year Income Tax (more specifically, the Income Tax Return forms) has seen many changes to it, ranging from detailed salary break-up to more disclosures of income, and so on. The government is trying its best to collect as much information as they can to avoid mismatch at a later stage.

One such addition to the new law is an inclusion of GST while filing your income tax returns. More specifically - from this year onwards you also need to give your GST identification number (GSTIN) along with the turnover while filing ITR-3 & 4.

ITR-4 Form is for those taxpayers, who have opted for the presumptive income scheme of the Income Tax Act. However, the taxpayer will be liable to file the ITR-3 if the turnover of his business exceeds ₹. 2 crores. This form applies if you earn through business income, income from salary, house property, and capital gains.

Either way - if you are a businessman and you are filing ITR-3 or 4, then you have to provide GSTN-IN and GST turnover in the form. Additionally, based on the nature of business - all GST registered businesses have to file GST Returns monthly, quarterly and/or annually.

Let’s learn more in detail about this new addition!

What is GST Return?

A regular income tax return document contains details of books of accounts or income that you have submitted to the income tax department to file every year. However, if you are registered with GST, then you also have to add GST returns of the expenses or income incurred by you. Some of the elements that need to be covered here include:

• Sales
• Output GST (On sales)
• Input Tax Credit (GST paid on purchases)

If you fall under the GST bracket, or if you already have a GST number for your business, then you have to file GST returns every two months and one annual return. This reaches about 26 returns in a year.

Types of GST Returns and their purposes

As per the GST Law, there are different forms for different objectives. Depending on the nature of your business and objective, you need to fill the relevant form. The list below will help you with all the returns that need to be submitted in the way and format that is requested under the GST Law along with the due dates:

Returns filed by regular business:

➔   If your turnover is more than ₹. 1.5 crores and you are filing details of the outwards supplies of taxable goods and/or services, then you need to submit the GSTR-1 form before the 11th of every month.

➔   If you are filing the details of the inward supplies of goods and/or services then you need to submit the GSTR-2 form before the 15th of every month.

➔   If you are filing the final return report that includes the details of inward and outward supplies and supporting it with the payment of the amount of tax, then you need to submit the GSTR-3 form before the 20th of every month.

➔   If you are filing the Annual Return then you need to submit the GSTR-9 form before the 31st of December of every financial year.

➔   If you are filing returns for the months up to March 2019, then you need to submit the GSTR-3B form before the 20th January

Returns filed by dealers who opted for composition scheme

If you are a composition dealer, then unlike many others, you don’t have to file many GST or income tax returns, while paying nominal taxes. Here are some of the returns that you need to file:

➔   If you are filing your tax returns for compounding taxable person, then you need to submit the GSTR-4 form before the 18th of the month succeeding the quarter

➔   And if you want to file the Annual Returns then you need to submit the GSTR-9A form before the 31st of December of the next financial year.

Returns filed by certain specific registered dealers

➔   If you are a non-resident Indian paying your taxes here, then you need to submit the GSTR-5 form before the 20th of every month

➔   If you are a non-resident Indian providing OIDAR services ( online information and database access or retrieval  ), then you have to submit the GSTR-5A form before the 20th of every month.

➔   If you are registered as an Input Service Distributor then you need to submit the GSTR-6 form before the 13th of every month

➔   If you are filing returns for your TDS deductions, then you need to submit the GSTR-7 form before the 10th of every month

➔   If you are an E-commerce operator filing your taxes then you need to submit the GSTR-8 form before the 10th of every month.

➔   If you are looking to submit your Final Return then you can submit GSTR-10 form. Since this is only filled when you’re surrendering your registration or gets canceled - you have to submit the same within 3-months of the date.

➔   If you have a UIN ( a special class of GST registration for foreign diplomatic missions and embassies which are not liable to taxes in the Indian territory, and get the same refunded ) and are filing the details of the inward supplies to claim refund, then you need to submit the GSTR-11 before the 28th of the month following the statement.

Late Fees for not Filing Return on Time

If you fail to file your GST returns on time, then you are liable to pay an interest along with a late fee. Also, if you are late in filing the IGST, then you don’t have to pay any fees.

The late fee applicable is ₹. 100 per day according to the Income Tax Act. This means ₹. 100 per day for CGST and ₹. 100 per day for SGST, making it a total of ₹. 200 per day. The maximum fee that can be incurred is ₹. 5,000.

The interest charged would be at the rate of 18% per annum which will begin from the very next day of the due date. Hence, if you are late in making any such filing, then you will be required to calculate the amount of outstanding tax to be paid, and accordingly, make the payment.