How To Check If Vendor Has Filed GST Return Or Not?

The implementation of Goods and Services Tax (GST) has aimed to uniform taxation and, as a result, transformed the indirect taxation structure of India. For businesses to ensure compliance, they not only need to file timely returns but also verify that vendors are compliant.

If the vendor fails to file GST returns, it can lead to penalties and charges. In this blog, we will discuss the significance of tracking GST return filing status, the methods, and other important aspects.

Comprehending GST Return Filing

Under the Goods and Services Tax or GST regime, businesses must report their purchases, sales transactions, and tax liabilities through returns like Form GSTR-1, GSTR-3B, GSTR-4, GSTR-9, and Form GSTR-9C. These GST returns vary depending on the business's nature and category of registration—monthly, quarterly, or annually.

You must ensure that you file returns timely. This will help you avoid penalties, legal consequences and applicable interests. Late filing can lead to interest on deferred tax liabilities, financial penalties and even interruption of certain tax facilities.

It is necessary to file tax returns depending on the nature of your business. The key types of GST returns are:

1. GSTR-1: GSTR-1 is filed monthly or quarterly for small taxpayers to report outward supplies of goods and services.
2. GSTR-3B: It is a monthly summary return for taxpayers to report summary GST liabilities for a specific tax period and discharge the liabilities. A normal taxpayer needs to file GSTR-3B returns every month.
3. GSTR- 4: Every taxpayer under the composition scheme or every composite taxpayer needs to file this return annually. This return form contains all the details of the inward and outward supplies of a composite taxable person.
4. GSTR-9: GSTR-9 is an annual return or annual GST return that a taxpayer, SEZ units and developers need to file once for each tax period. The return furnishes details of sales, purchases, input tax credit (ITC) claimed refund, etc.

Each return is for a specific purchase and every taxpayer must file these returns to avoid non-compliance or penalties.

Need of Tracking Return Status

Tracking the return status for vendors is essential for the following reasons:

1. Timely Rectification: Tracking return status allows businesses to identify rejected and defective returns. This enables rectification of errors, discrepancies or omissions and further reduces non-compliance risks.
2. Compliance Monitoring: The primary advantage of monitoring return filing status is that it is beneficial for businesses in the identification of overdue returns or pending returns. In addition to this, this helps in business compliance with GST regulations.
3. Avoiding Interests and Penalties: If you fail to file returns or do not file returns timely, you may have to incur heavy penalties and interest amount charges by the GST authorities. By tracking filing returns status, businesses can ensure to meet the set deadlines and avoid unnecessary penalties and financial liabilities.
4. Reducing Audit Risks: During audits, the tax authorities may scrutinise discrepancies or mismatches. This may lead to non-availment of Input Tax Credit (ITC) or incurring of penalties. Hence, regular tracking of filing status reduces the risk of such errors and ensures the accuracy of GST filings.

Methods To Track GST Return Filing Status

Here are some of the methods by which you can track GST return filing status:

1. Through ARN: Application Reference Number (ARN) is one of the methods by which you can track GST return filing status. ARN, a 15-digit unique alphanumeric code, is assigned to every taxable person during the filing of returns and the taxpayers receive the number on their registered email address or phone number. Here are the steps by which you can track your return filing status through ARN:

●    Visit www.gst.gov.in to access the official GST portal.

●    Sign in by using your valid login credentials on the page.

●    Take your cursor to the section 'Service' and select 'Returns'. Then, move to select the option 'Track Return Status'.

●    In the field that is designated to ARN, enter your Application Reference Number.

●    Tap on the 'Search' button to proceed to track GST return filing status.

• GST Helpdesk: If a business is experiencing some issues or waiting for pending updates on its return status, it is advisable to contact the Goods and Services Tax or GST Helpdesk. This helpdesk can provide the required information and professional guidance to help you track your return filing status.
• Government Portal: If you wish to check the status of a GST return based on the filing period through the GSTN portal, you are required to access your account. Once you access your account, you need to follow these steps to proceed:

●    Visit the official portal of GST.

●    Provide your valid credentials to sign in.

●    Go to the 'Service' tab first, then navigate to 'Returns' and select the option 'Track Return Status'.

• GST Suvidha Providers: Intermediaries like GST Suvidha Providers (GSPs) provide various services for tracking the status of return filing. If a business already used the service of a GST Suvidha Provider, they can avail the service of filing status tracking through the platform of GSP.
• Return Filing Period: Follow the steps below to track GST return status by return filing period:

●    Visit the portal of GST and sign in to your account.

●    Tap on 'Services' and select 'Returns'.

●    From the drop-down menu, tap on the 'Track Return Status'.

●    Select 'Return Filing Period'.

●    Provide the start and end date of the return period that you need to track in the format 'DD/MM/YY'.

●    Tap on 'Search' which will display the required return status.

Why Should You Know the Status of GST Return Filing?

One of the primary reasons why it is important to know the status of GST return filing is that timely return filings help you avoid unnecessary interest and penalties. In addition to this, by regularly tracking GST return status, you can ensure GST compliance, prevent financial and legal risks and improve operational efficiency.

Conclusion

Tracking the GST return filing status of your vendors protects your businesses from financial risks, disallowance of ITC and more. By using the ARN, availing the services of GST Suvidha Providers or contacting GST helpdesks, you can easily monitor and ensure operational efficiency.