Goods and Services Tax (GST) return filing is important for several reasons:
- Compliance with the law: GST return filing is a legal requirement under the GST law in India and failure to file returns on time can result in penalties and interest.
- Tracking of GST compliance: GST return filing helps taxpayers track their compliance with the GST law, including the payment of taxes and the availing of input tax credit. It also helps the GST authorities to verify the accuracy of the tax paid and claimed by the taxpayer.
- Claiming input tax credit: GST return filing is necessary for taxpayers to claim input tax credit, which is the credit that a taxpayer is entitled to for the GST paid on inputs (goods or services) used in the course of making taxable supplies. Input tax credit can be claimed only if the GST return is filed on time.
- Maintaining records: GST return filing helps taxpayers maintain accurate records of their GST compliance, which can be useful in case of an audit or any other scrutiny by the GST authoritie
- Ease of doing business: GST return filing helps to improve the ease of doing business in India by simplifying the tax compliance process and reducing the burden on taxpayers.
Overall, GST return filing is an important compliance requirement for taxpayers registered under the GST in India and failure to file returns on time can have serious consequences.
