Are you a business executive in Mumbai and confused about which GST Filing Company to choose for your business? In this article, we will understand Why GST filing is important, the consequences of late filing of GST, and the GST filing services in Mumbai.

Why it is Important to File GST?

In a world where the government is trying to weed out corruption and black money, GST has come as a boon. It is a tool that will increase transparency in the economy. The economy will become more integrated and efficient. Here are 8 top benefits of filing GST.

1. Ease of doing business:

The biggest benefit of filing GST: A common market is a big step towards ease of doing business. It will make it much easier for companies to do business in India because they will no longer have to deal with the various taxes levied by each state. The cost of compliance will decrease significantly, thus saving time and money for businesses.

2. Increased tax revenues:

The increased tax revenues from GST will enable the government to spend more money on infrastructure and development projects that are so desperately needed in India.

3. Reduced corruption:

GST will reduce tax evasion and, hence, corruption as well. As more people file their taxes, there will be less scope for corruption in the system.

4. Increased GDP:

The GDP of India to grow by at least 2% after filing GST returns because it will simplify trade across states and remove the cascading effect of multiple taxes levied by different states on goods and services

5. Reduce your costs:

By removing all indirect taxes from price and allowing you to claim input tax credits on all purchases, GST enables you to reduce costs significantly.

6. Increase cash flow

Since they subsumed all indirect taxes are subsumed into one becomes streamlined and easier. Also, since GST is input-credit based, your cash flow will be better as you won’t have athan blocked credits

.

7. Simplify your processes:

With GST being technology-driven, filing returns and making payments will be seamless. You no longer have to worry about collecting various forms like C Forms or F Forms, etc., as these are no longer required under GST.

8. Reduces the cost of compliance:

Filing multiple returns under different tax slabs and forms results in a huge compliance cost for any business owner. But on implementation of GST, businesses need not worry about that as they can easily file their return online within a few minutes with the help of GSTN software and other third-party applications. This significantly reduces the compliance cost to the business owner.

Consequences of late filing of GST

The GST, being an indirect tax levied on consumption, is paid by the end consumer. However, it is the responsibility of each GST registered business to collect and remit these taxes to the government. Therefore, it is important for all GST registered businesses to file their GST returns regularly.

The consequences of late filing of GST return are:

Late fee: If you cannot file your GSTR-1 by the due date, pay a late fee of Rs. 100 per day under CGST Act and Rs. 100 per day under SGST Act. The maximum late fee you would have to pay is Rs. 5,000 under CGST Act and Rs. 5,000 under SGST Act ( total late fee is capped at Rs. 10,000).

Interest: You will also have to pay interest at 18% p.a. on net tax liability from the next day onwards till the date of payment of tax with debt in an electronic cash ledger (i.e., from 1st-day post the due date till the date of payment).

Additional Fees: If you cannot file your GSTR-1 even after 6 months from the due date, then an additional fee of Rs. 50/- per day will be charged.

Why choose a company to file GST?

The most important advantage of filing GST through a company is the ease of doing business. A company has to have a GST registration, whether it provides services or goods, and it also makes it easy for businesses to do online transactions. With the GST registration, companies can get their taxes paid by banks and other financial institutions in time.

Another advantage of filing GST through a corporation is that it allows businesses to avoid double taxation on their products. The company does not have to pay tax on its own income and so the government does not double-tax the business with the income tax return.

Besides this, a corporation can use the services of a professional accountant who can help with accounting and bookkeeping as well as prepare your taxes. If you are looking at filing GST through a corporation, you find it will be easier to file your taxes because you don't have to worry about paying tax on your own income.

Companies also get benefits like exemption from paying sales tax in certain states and they can also apply for exemptions under certain circumstances such as bankruptcy or tax evasion. This means that you will reduce your tax liability incurring no penalties and if you want to take advantage of these benefits, then you should GST through a corporation.

Types of GST Filing Services in Mumbai

There are many companies that provide GST Filing in Mumbai. These companies allow the businesses to file their GST returns with no hassles. Here are some of the common GST filing services for businesses:

GST Returns

GST Returns, as the name suggests, involve the preparation, calculation, and filing of returns. It is a process that is done at regular intervals (monthly or yearly) as mandated by law.

GST Refund Filing & Processing

A refund is when the tax paid is more than what was due. In such cases, a refund can be claimed from the respective tax authority. This process involves the preparation and submission of refunds where applicable and also processing them until it is received from the authority.

GST Registration Services

These services include applying for GST registration, getting a provisional registration certificate, and finally getting the regular registration certificate from the authorities.

GST Input Tax Credit Reconciliation Services

GST input credit reconciliation/matching involves matching invoices with ITC eligibility status, which is available on the GST portal in form GSTR-2A. Only after verifying all details, ITC can be availed on the purchase invoice for subsequent GST return filing purposes.