GST is the single indirect tax that is levied on the supply of goods and services between different entities. GST returns are the tax return forms that are required to be filed by these entities with the Income Tax authorities of India. This is used by tax authorities to calculate tax liability.
As per GST rule, any business whose annual turnover is more than the prescribed limit shall get a GST Identification Number, which is a 15-digit alpha-numeric, PAN-Based and State Specific unique number.
Input tax credits paid at each stage will be made available in the following stage of value addition. GST is basically a tax levied on value addition at each stage. Therefore, the consumer has to pay only the GST charged by the last dealer or supplier in the supply chain.
This can be done by filing online returns. GST Returns are the Goods and Services Tax Return forms that taxpayers of all types have to file with the income tax authorities of India under the new GST rules.

Individual taxpayers will be using 4 forms for filing their returns such as:

• Return for supplies,
• Return for purchases,
• Monthly returns, and
• Annual return. 

• 1. File the outward supply returns in GSTR-1 form through the information section at the GST Common Portal (GSTN) on or before 10th of the following month.
• 2. Details of outward supplies furnished by the supplier will be made available in GSTR-2A to the recipient.
• 3. Recipient has to verify, validate, and modify the details of outward supplies, and also file details of credit or debit notes.
• 4. Recipient has to furnish the details of inward supplies of taxable goods and services in GSTR-2 form.
• 5. The supplier can either accept or reject the modifications of the details of inward supplies made available by the recipient in GSTR-1A.
• 6. Taxpayers will have the option to do reconciliation of inward supplies with suppliers during the next 7 days by following up with their counter-party taxpayers for any missing supply invoices in the GSTR-1 of the suppliers.
• 7. Taxpayers will finalize their GSTR-1 and GSTR-2 return.
• 8. Taxpayers will pay the amount as shown in the draft GSTR-3 (Monthly return other than compounding taxpayer and ISD) return generated automatically generated at the online Portal Post Finalization of activities mentioned above in Step 6.
• 9. Taxpayer will debit the both ITC, cash ledger, and mention the debit entry number in the GSTR-3 return and would submit the same.

Objective of CGST Act 2017

Under erstwhile taxation laws, Central Government levied taxes on, manufacture of certain goods in the form of Central Excise duty, provision of certain services in the form of service tax, inter-State sale of goods in the form of Central Sales tax.
Similarly, the State Governments levied taxes on retail sales in the form of value added tax, entry of goods in the State in the form of entry tax, luxury tax and purchase tax, etc.
So any tax which were levied by the Central Government or the State Governments on the supply of goods or services has now been converged in goods and services tax, which is a dual levy where the Central Government will levy and collect tax in the form of central goods and services tax (CGST Act 2017) and the State Government will levy and collect tax in the form of state goods and services tax (SGST Act 2017) on intra-State supply of goods or services or both.
This implies that both the Central and the State governments will agree on combining their levies with an appropriate proportion for revenue sharing between them. However, it is clearly mentioned in Section 8 of the GST Act that the taxes be levied on all Intra-State supplies of goods and/or services but the rate of tax shall not be exceeding 14%, each.

Key Features of CGST Act 2017

The features of Central Goods and Services Tax Act, 2017, are as follows:

• To broaden the base of the input tax credit by making it available in respect of taxes paid on supply of goods or services or both used or intended to be used in the course or furtherance of business
• To provide for self-assessment of the taxes payable by the registered person;
• To provide for conduct of audit of registered persons in order to verify compliance with the provisions of the Act;
• To provide for recovery of arrears of tax using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person;
• To provide for powers of inspection, search, seizure and arrest to the officers;
• To establish the Goods and Services Tax Appellate Tribunal by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority;
• To make provision for penalties for contravention of the provisions of the proposed Legislation;
• To provide for an anti-profiteering clause in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers

SGST falls under State Goods and Service Tax Act 2017.

The scope of IGST Model gives meaning to the GST Act of which IGST is one of the components. The IGST Act clarifies that Centre would levy IGST which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services.
The seller making supply outside the state will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. And the exporting State will transfer to the Centre the credit of SGST used in payment of IGST.
On the other hand, the Importing dealer will claim credit of IGST while discharging his output tax liability in his own State. The Centre will then transfer to the importing State the credit of IGST used in payment of SGST.
The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds.

Key Features of IGST Act 2017

• Continuance of uninterrupted ITC chain on inter-State transactions.
• No requirement to pay tax upfront or substantial blockage of funds for the inter-State seller or buyer.
• No claim of refund of taxes paid in exporting State, as ITC is used up while paying the tax.
• It is Self-monitoring model.
• Activity of streamlining is limited to inter-State dealers and Central and State Governments should be able to streamline their processes expeditiously.
• As Dealers making inter- state supplies will be e registered and correspondence with them will be by e mail, the compliance level will improve substantially.
• The IGST Model can take ‘Business to Business’ as well as ‘Business to Consumer’ transactions into account.

All goods and services transacted in India under GST are classified under the HSN code system or SAC Code system. Where services are classified under SAC Code and goods are classified under HSN Code.

Services Accounting Code also called as SAC Code is a classification system for services developed by the Service Tax Department of India. Using GST SAC code, the GST rates for services are fixed in five slabs namely 0%, 5%, 12%, 18% and 28%.
Note: If a service is not exempted from GST or if the GST rates are not provided, then the default GST rate for services of 18% would be applicable.