GST or Goods and Services Tax is an indirect tax that people pay when they purchase any product or service in India. The Goods and Services Tax (GST) regime has taken effect in Australia from 1 July 2015 and is currently being phased in over three years.
Since it is a new tax system, many businesses might be wondering what are the advantages of filling GST returns are and how they work or what is the correct gstr2 format? So to begin understanding about GST return and clarify the picture let us find out the most important benefits of filing the GST returns:
1. Claiming Input Tax Credit
The main benefit of filing GST returns is claiming input tax credit on your business expenses. The input tax credit is the difference between the amount paid to a supplier and the amount you paid to purchase goods or services, subject to GST. You can claim input tax credit only if you have made a valid declaration in your GST return. This means that you can claim the value of the goods and services purchased or consumed in your business against your taxable income. This will help you reduce your tax liability and avoid levies of interest.
2. Avoid levy of interest
If you do not file your GST returns on time, you will be charged interest at 18% per annum from the due date till the date of payment of your outstanding dues by the Commissioner of Central Excise and Customs (CEC). However, for instance, if you learn the gstr4 meaning and file GST returns, no such interest will be levied on late filing of returns as long as there are no other defaults in submitting them.
3. Avoid late fees
If you file your GST return on time and pay the taxes, you will not have to pay any late fees or interest. However, if you fail to file it before or on time, you will be responsible for paying late fees and/or interest on the amount due for filing. In addition, there is no guarantee that the tax credit will be granted if you paid GST on time but filing the return was delayed.
4. Avoid GST Cancellation
If your tax payment is rejected by your bank account because of non-sufficient funds, then you may lose your chance at getting a refund of the GST paid and the value-added tax credit that should have been applied to your purchases. This can be avoided by ensuring that you have enough money in your bank account before making payments so that they reach their destination without any problems.
5. Avoid notice of defaults from the GST Department
The GST Department has several methods through which it can issue a notice to you when they find out that you have not filed your return or have not submitted all the details required on time. Most of these notices come with a penalty attached to them, which can range from a few hundred rupees up to thousands of rupees depending on the nature of your default and how long it has been pending. But with the help of GST returns, you can avoid this. For instance, by filing GSTR-1 online, you will avoid this situation altogether and save yourself from getting slapped with these penalties. #KhabarLive #hydnews #hydlive