Whether it is a small dealer or a large corporate, everyone is keen to understand the kind of GST returns one will be expected to file from the month of August 2017. Under GST regime, a taxpayer will be required to furnish three returns on monthly basis and one return on annual basis. Similarly, there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS). To simplify this GreenGST brings to you the simplistic understanding of the types of returns for all shape and form of businesses.
Business 1: Buyer- Supplier transactions
This is the most common form of transaction happening across the markets, where there is a supplier and there is a buyer who transact to exchange goods, services and money. The returns required to be filed in this arrangement are as follows:
Business 2: Composite Tax Payer
Composite Tax payers are typically small tax payers who are exempted from collecting outward tax and can’t claim input tax credit as well. Since these dealers, can not avail the input tax credit, the government has given them a special privilege to pay taxes only on a certain pre-defined percentage of the turnover.
Business 3: Foreign Tax Payer
If you are a foreign tax payer, GST regime has got a single form GSTR-5 to be filed on monthly basis
Business 4: Input Service Distributor
Nowadays, it is a common phenomenon to find businesses with distributed units in the same or different state. For example, Minda Services Pvt Ltd., has its Branch Office (BO) in Gurgaon, Head Office in (Mumbai), and manufacturing unit in Delhi. This system of operating from different locations leads to accumulation of input tax credit paid on common inward supplies which are used by each branch unit of Minda Steel Pvt Ltd. To avoid this scenario, it is ideal to centralize invoices for procurement of common services to HO that will further distribute the input tax credit to each unit. This efficient operations process is known as ‘Input Service Distributor,’ and the HO, which does the centralized billing for procurement of common services is termed as the ‘Input Service Distributor’. If you are an Input service Distributor, following GST returns are relevant to you:
Business 5: Tax Deductor
If you are a company that is procuring services from external agencies and freelancers and deducting their TDS while making payments, following GSTR forms are relevant for you.
Business 6: E-commerce Players
For all the new age e-commerce sellers like Amazon, Flipkart, Myntra, Moglix, Snapdeal etc who have been offering us amazing deals and bringing amazing products at our doorsteps, the relevant return will be GSTR-8 which needs to be filed on monthly basis.
In addition to the returns spoken about above, all businesses will be expected to file GSTR-9 as annual returns.
GreenGST to simplify tax filing for all Businesses
No matter whether you are a Buyer or supplier, GreenGST helps you file and reconcile taxes with absolute ease. GreenGST.com gives you a state of the art user interface where a buyer can file his GSTR2 and Supplier can file GSTR1 and GSTR3. Any discrepancy of input or output credit in the buyer-supplier invoices is automatically detected by the system and Mismatch report is generated in the system. The same is done basis the parameters advised by GSTN such as Invoice Number, Invoice Date, Taxable amount, Invoice Quantity and HSN codes. While working on thousands of invoices with strict timelines of 10th, 15th and 20th each month, GreenGST makes lives of Finance and accounting teams very serene, very green.