GST Annual Return in Delhi: Everything You Need to Know

The Goods and Services Tax (GST) came into effect, and it’s been the subject of much debate ever since. Besides introducing a single tax rate across the country, one of the biggest changes that the GST brought in was the requirement to file annual returns online. These forms are available on the GST portal, which you can use to find out everything you need to know about GST filing in Delhi as well as to complete your annual return and pay taxes if applicable.

What is the Goods and Services Tax (GST)?

The GST is a tax assessable on the supply of goods and services in India. It was introduced by the Indian government in 2017. The GST is a single tax that replaces several indirect taxes that were previously levied on goods and services. The GST is levied on the value of the good or service supplied. The GST is collected by the Central Government and then distributed to the state governments. The GST has four slabs- 5%, 12%, 18% and 28%. As per this structure, a five percent slab covers supplies of items priced below Rs 20,000 while a 12% slab covers supplies of items priced between Rs 20,000 and Rs 40,000. 18% slab covers supplies of items priced between Rs 40,000 and Rs 80,000 whereas 28% slab covers supplies of items priced above Rs 80,000. All traders are required to pay VAT (Value Added Tax) every month for goods sold at the end of each month for the previous month’s sale.

Who needs to file?

Any business with a GST registration in Delhi is required to file an annual return, regardless of whether or not they have conducted any business activity during the year. This includes businesses that may have closed during the year, as well as those that have been inactive. The return must be filed by the 31st of December following the end of the financial year. A late filing penalty of Rs. 10,000 will apply for every month or part thereof for which there is a delay. Businesses are advised to register their GSTR-3B and GSTR-1 form before filing their annual return so that their refund status can be updated on GSTN’s portal automatically.

What happens if I don't submit my tax filings? Non-compliance with tax obligations can lead to penalties being imposed, interest charges, and also ultimately prosecution proceedings against you under the Income Tax Act 1961 and Prevention of Money Laundering Act 2002. For instance, if you fail to submit your returns timely then a penalty would apply at the rate of Rs 100 per day up to a maximum of Rs 20,000 per day

What are the Changes in GSTR-1, GSTR-2, GSTR-3, and GSTR-4 from Pre July 2022 Period?

Since the implementation of GST, the way businesses file their taxes has changed. Earlier, businesses had to file multiple returns for different taxes like VAT, service tax, etc. But now, with GST in place, businesses have to file only one return called the GST return. The government has made four types of GST returns which are GSTR-1, GSTR-2, GSTR-3, and GSTR-4. The first three types are used to calculate an individual’s liability and remittance details whereas the fourth type is filed by an employer who is withholding any amount from the salaries that he pays his employees on behalf of his company.

Important Points about Payment of TDS/TCS on Input Tax Credit (ITC) availed under GST.

The due date for filing the GST annual return in Delhi is December 31. Businesses with a revenue of more than Rs. 2 crores must file their return electronically, while businesses with a turnover of less than Rs. 2 crores can file their return either electronically or offline. If you are unsure whether your business falls under this category, it’s best to speak to your accountant before December 31st and make arrangements accordingly.

In addition, as per recent updates from the Income Tax Department (ITD), TDS/TCS on ITC availed under GST should be paid by 30th November 2022 if you are an individual trader and by 20th November 2022 if you are an organization with a turnover of more than Rs. 10 lakh.

If I have not done my Sales Tax Compliance, what can happen?

The GST annual return is a report of your GST compliance for the year. If you have not filed your return, you may be subject to a late filing penalty. Additionally, you may be audited by the government, and/or your business registration may be suspended. Filing your GST annual return in Delhi is an important part of being a responsible business owner, so make sure to do it on time! The government has made this easier than ever with its online portal which lets you file 24 hours a day, 7 days a week.