How will filing returns under GST be different from the current process?

In the current structure, if you are a manufacturer who is compliant under Central Excise, Service Tax and VAT, you have to file returns as specified by each state. You would have to handle returns, annexes and registers for Excise, Service Tax and VAT on a monthly, quarterly, half-yearly and yearly basis. With GST, you simply have to file GST returns, irrespective of whether you are a trader, manufacturer, reseller or a service-provider.

How many types of returns does a tax payer have to file under GST regime?

There are various forms (GSTR 1 to GSTR 10) designed for filing returns under GST. A tax-payer would have to fill one or more of these forms depending on his or her profile. All these forms can be filled online.

To view the list of forms, click here.

Which types of tax-payers will be covered under GST?

We have developed a basic test for GST registration/payment of tax. The factors given below describe tax-payers liable for GST registration.

  1. Every person if supplying goods or services worth more than 25 lakh (Rs.10 lakh for North-East states including Sikkim)
  2. If you are required to pay tax under reverse charge
  3. If you are a non-resident taxable person irrespective of the limit mentioned in point 1
  4. Input service distributor
  5. An aggregator who supplies services under his brand name or his trade name irrespective of the limit mentioned in point 1
  6. Every electronic-commerce operator like Snapdeal, irrespective of the limit mentioned in point 1
  7. A person who supplies goods and services through electronic-commerce; in other words, if you want to sell online, then you will need to register yourself first, irrespective of the limit mentioned in point 1
  8. Any person who is required to deduct TDS under GST (not under Income Tax Act, 1961)

For more detailed information, visit the GST portal.

GST Portal

*The guidance provided above is as per the Model GST law (released in November 2016) and draft Rules. Please refer to GST/ CBEC website for further details.