Are you a curious business mind? Do you think about How does the government account for the huge pile of taxes collected by businesses? It is really like one of those gigantic jigsaw puzzles and each piece of that puzzle forms a GST return.
GST or Good and Services Tax, is imposed on almost everything we buy or sell. Thus, businesses basically act as "tax collectors" they add in GST to all their goods sold and services bought, then "report" or file GST return to the Government on how much tax they actually collected and then paid.
One can consider GST returns to be like reporting back to the government, as it is doing one's homework. They show the government that the business is following all the rules and paying the correct amount of taxes.
The GST Return Family: A Mixed Bag
And just like there are all kinds of cookies, there are all kinds of GST returns. Each is for a specific use and has specific application, depending on the business.
Here are some of the most common returns you will come across:
GSTR-1: The Sales Star: This is the return filed by most businesses that have to report their outward supplies, which means their sales. It is kind of a detailed record of everything they sold.
GSTR-3B: The Monthly Check-in: This return sums up the sales and purchases of a business and where they pay their GST liability. It can be considered like their monthly check-in with the tax authorities.
GSTR-4: The Composition Companion: This is the return particularly designed for those businesses that have opted for Composition Scheme. A composition scheme is a simplified scheme for small taxpayers, and this is filed quarterly.
GSTR-9: Annual Return and Annual Reconciliation: The Giant of them all! This is furnished once a year where it delivers the annual picture of all GST activities done under that business, during the very same fiscal.
Learn about GSTR-7 now
GSTR-7: The TDS Sleuth
GSTR-7 is a particular return filed by people with TDS deducted under GST. TDS is a prepayment of part of your tax. A person paying some amount to any business house deducts a certain percentage of amount as TDS and directly remits to the government half of that business house.
Who need to file GSTR-7?
If you are a government agency or an identified person, who is deducting TDS under GST then GSTR 7 is your responsibility. It's the way you would be reporting to the government regarding the TDS deducted by you.
What do I find inside the GSTR-7 return?
This is a monthly return and it has information like:
The GSTIN allocated to you, i.e., unique identification of GST system.
The total amount of TDS that you have deducted.
The parties from whom you have deducted TDS.
GSTR-7 Filing Online or Offline
You can file GSTR-7 through the GST portal. You may also use the TDS offline utility to prepare your return offline and then upload it on the portal. While working on your return, ensure that you're using the latest TDS utility so that you do not commit mistakes and suffer compliance issues.
Why GSTR-7?
GSTR-7 makes the GST system completely transparent and accountable. Government now closely monitors TDS deductions while also enabling the businesses to get credit for TDS deducted from payments.
StartupFlora as a GST Navigator
We understand that it can be pretty tough to navigate through the GST world and all its returns. That is exactly why StartupFlora is here to help you navigate through the process. We will walk you through the different kinds of GST returns, so that your returns would be just right and above all, it would keep you in good standing regarding your GST compliance. Let's make GST easy for you by reaching us today!
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