The Indian economy underwent the greatest tax restructuring with the introduction of GST (or Goods and Services Tax), which is more or less a destination-based tax reporting structure. According to the most recent policies introduced in India’s economic backdrop, small-scale businesses can now increase their realms by capitalizing on the prospects of GST. Gone are those days when small and medium-sized businesses were compelled to file multiple taxations; today, with the implementation of the composition scheme, the burden that was so long hanging over the businessmen’s mind has now been eliminated. This implies that filing of a GST return for small business is inevitably compulsory, and every business, irrespective of its size and sales must submit its report in due time(if no sales or purchases were made, there will be a NIL report).

While filing GST return, the registered business requires the below mentioned information for the concerned period:

Total Sales
Total Purchases
GST paid by the consumers
GST paid by the business on purchases.

After filing, a registered business can check the status of GST return filing online and abide by other requirements.

Who Should File Online GST Return?

All the business owners who are eligible under the provisions of the Goods and Services Tax Act of 2016 are required to file GST return. GST return filing is based on the nature of the business. GST return has to be filed by business entities having a turnover of INR 40 lakhs or more and in the hilly regions and North-eastern states having a turnover of more than INR 20 lakhs.

Documents Required for Filing GST Return for small business

Following are the documents necessary for filing GST Return for small business -

List of Invoices (B2C Services, B2B Services)
Customer GSTIN
Invoice Number
GST Rate
Place of Supply
Type of Invoice
Applicable amount of GST Cess, IGST, SGST and CGST.
Taxable Value
HSN wise summary details.
Consolidated inter-state and intra-state sales.
Details regarding essential documents such as Credit and Debit Note.

Procedure for Filing GST Return for Small Business

Filing GST return for small business on the online platform is an ample process that includes three indispensable steps that every taxpayer must follow.

STEP 1: Collecting Invoices and Documents

All the GST taxpayers in India have to collect the necessary invoices and documents for uploading annual return invoices on the official GST online portal. All the required invoices and documents have to be maintained electronically.

Step 2: Preparation for Online GST Return Filing

The taxpayers have to prepare all the fundamental documents and required information for GST returns. The taxpayers can maintain the invoice records by themselves or the expert selected by them and by the month end, the tax payer can file the GST returns on the official GST online portal without any complexity.

STEP 3: Pre-Compliances before Online GST Return Filing

The major step prior to GST return filing is to re-examine the GST returns and records ahead of final submission.
The second step is to substantiate the documents, records and invoices to substantiate that they are good to go.
Once the documents are substantiated, the taxpayers can file the GST returns on the official GST portal.
After fruitfully filing the GST return, the ARN number will be generated immediately.

Penalty for Filing late GST Return for small business

Filing Late GST Return may have a detrimental effect on the taxpayers business which can direct to extensive fines and punishment. If GST return is not filed within the prescribed time frame, then the taxpayers have to pay a late fee and interests on the unpaid amount. Moreover, the taxpayer has to pay an interest of 18% per annum. However, the taxpayers can calculate the interest on the amount of due tax to be paid. The fine for filing late GST return is INR 100 per day as stated in the concerned Act, currently it is INR 100 under SGS & INR 100 under CGST, in total, and it amounts to INR 200 per day. The utmost sum of fine for late GST return filing can go up to INR 5000.

Conclusion

All the business owners eligible under the provisions of the Goods and Services Tax Act, 2016, need to file GST return. Online GST return filing depends on the nature of the business.GST return filing is used by the authorities to conclude tax liability on a taxpayer. The taxpayer, along with GST return, has to submit details such as activity of the enterprise, disclosure of tax liability, tax payment, and other information as prescribed by the government. It can be filed on the online GST portal.