In India’s Goods and Services Tax (GST) regime, return filing is a crucial compliance requirement for every registered business. The process involves the reporting of sales, purchases, input tax credit (ITC), and tax liability to the government. For many businesses, especially small and medium enterprises (SMEs), the GST filing process can be complex. That’s where accountants and GST practitioners play an essential role.
This guide explains everything you need to know about GST return filing by an accountant – from the types of returns, responsibilities of the accountant, process, documents required, and benefits of professional help.
What is GST Return Filing?
A GST return is a document that contains details of all income, sales, purchases, and taxes paid or collected by a taxpayer. It must be filed online on the GST portal (www.gst.gov.in) regularly, depending on the type and size of the business.
There are various types of GST returns, and different businesses are required to file different returns monthly, quarterly, or annually.
Role of an Accountant in GST Return Filing
An accountant or GST practitioner assists businesses in managing their GST compliance effectively. Their role includes:
- Registering the business under GST
- Classifying goods/services as per HSN/SAC codes
- Preparing and reconciling data for GST returns
- Filing monthly/quarterly/annual GST returns
- Claiming and managing Input Tax Credit (ITC)
- Maintaining books of accounts
- Responding to notices from GST authorities
- Avoiding late fees and penalties
Hiring a professional ensures accuracy, legal compliance, and peace of mind, especially when rules are frequently updated.
Types of GST Returns Filed by Accountants
An accountant usually handles the following GST returns on behalf of businesses:
1. GSTR-1 (Monthly or Quarterly)
- Contains details of outward supplies (sales).
- Must be filed by the 11th of every month (for monthly filers).
- For QRMP scheme users, filed quarterly.
2. GSTR-3B (Monthly or Quarterly)
- Summary return of sales, purchases, and ITC.
- Filed by the 20th of the following month.
3. GSTR-4 (Annually)
- For composition scheme taxpayers.
- Filed once a year on or before 30th April.
4. GSTR-9 (Annually)
- Annual return for regular taxpayers.
- Due by 31st December following the financial year.
5. GSTR-9C
- Reconciliation statement for businesses with turnover above ₹5 crores.
- Requires audit and certification by a Chartered Accountant.
6. GSTR-7 and GSTR-8
- Filed by TDS deductors and e-commerce operators, respectively.
GST Return Filing Process by an Accountant
Step 1: Data Collection
The accountant collects the following from the client:
- Sales invoices
- Purchase bills
- Expense receipts
- Debit/credit notes
- Bank statements
- Previous month’s return (if applicable)
Step 2: Data Reconciliation
This step involves matching:
- Sales data with invoices
- Purchases with supplier filings (GSTR-2A/2B)
- ITC claims with actual eligible credits
Step 3: Preparing Returns
The accountant prepares the applicable return(s) based on the turnover and business type.
Step 4: Client Review
The draft return is shared with the business owner for confirmation before final submission.
Step 5: Filing Returns
Returns are filed on the GST portal using the client’s login credentials and Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Step 6: Acknowledgment and Payment
Once filed, a confirmation is received along with a Challan (GST PMT-06) if tax payment is required.
Documents Required for GST Return Filing
To file GST returns accurately, the following documents are typically required:
- Sales invoices (B2B and B2C)
- Purchase invoices
- Expense vouchers
- Credit and debit notes
- HSN/SAC code list
- Bank statements
- TDS/TCS certificates
- E-way bills (if applicable)
- Input tax credit register
- Previous returns filed
Accountants may use this data to prepare ledgers and match it with returns to ensure there are no mismatches.
Benefits of Hiring an Accountant for GST Return Filing
1. Expertise
An experienced accountant is well-versed in changing GST laws and knows how to apply the correct rules, tax rates, and exemptions.
2. Error-Free Filing
Mistakes in GST filing can lead to notices, penalties, and even denial of ITC. An accountant reduces this risk.
3. Timely Compliance
Late filing attracts heavy penalties. Accountants ensure all returns are filed on or before due dates.
4. Better ITC Management
Proper reconciliation ensures the business gets the maximum eligible Input Tax Credit without rejection.
5. Responding to GST Notices
Accountants can represent the business and reply to any GST department inquiries or notices efficiently.
6. Record Maintenance
Books of accounts, ledgers, and tax documents are maintained systematically, aiding in audits or assessments.
Penalties for Non-Compliance
Late or incorrect return filing attracts:
- Late Fee: ₹50/day (₹20/day for NIL returns), up to ₹5,000.
- Interest: 18% p.a. on outstanding tax.
- Penalty for wrong ITC claims: Up to 100% of ITC.
- Cancellation of GST Registration: In case of prolonged non-filing.
An accountant helps avoid these penalties by ensuring continuous compliance.
Cost of Hiring an Accountant for GST Filing
Fees vary based on:
- Nature and size of the business
- Number of returns filed
- Complexity of transactions
- Region (metro or non-metro)
Typical monthly charges:
- Small business: ₹1,000 – ₹3,000
- Medium business: ₹3,000 – ₹8,000
- Large enterprises or audited entities: ₹10,000+
Annual packages, discounts, and bundled services (like TDS filing, ITR, ROC compliance) may also be available.
Choosing the Right Accountant or GST Consultant
When selecting a professional for GST filing, ensure they:
- Have updated knowledge of GST laws
- Are a qualified CA, accountant, or GST practitioner
- Offer timely service and transparent pricing
- Use GST software or automation tools
- Maintain data confidentiality and integrity
You can also verify the credentials of a GST practitioner on the GST portal.
Conclusion
GST return filing is a core compliance activity that businesses cannot afford to neglect. With increasing digitization and strict penalties for non-compliance, having an accountant to manage your GST returns ensures peace of mind, accuracy, and time savings. Whether you’re a startup, trader, service provider, or manufacturer, professional help in return filing can save you from unnecessary financial and legal troubles.
By delegating GST tasks to a competent accountant, you can focus more on your business growth while staying 100% compliant with the Indian tax system.