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What is the difference between ITR filing and GST filing?

What is the difference between ITR filing and GST filing?

Introduction

Direct and indirect taxes are the two categories into which taxes fall. While indirect taxes are levied indirectly on consumers of goods and services, direct taxes are those that are assessed directly on your income and wealth. An indirect tax is the GST. In a nutshell, you owe income tax in your position as an individual, and you owe GST in your duty as a consumer. 

What is GST Filling?

Regular enterprises with an annual aggregate revenue of more than Rs. 5 crore (as well as taxpayers who did not choose the QRMP plan) are required to file two monthly returns and one yearly return under the GST system. Each year, this results in 25 returns. The QRMP plan allows taxpayers with a revenue of up to Rs. 5 crores to file returns. Each year, QRMP filers must submit nine GSTR files, which include four GSTR-1 and three GSTR-3B forms as well as an annual return. It should be noted that even if QRMP filers submit their returns on a quarterly basis, they must pay tax on a monthly basis.

The GST is regarded as a thorough, multistage, and destination-based tax. Because it has combined multiple indirect taxes into a single form, it is known as comprehensive. Indirect taxes including the central excise duty, services tax, additional customs charge, and several types of value-added tax have been substituted by it.

How many GST returns are there?

Under GST, there are 13 returns. The GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04 are those documents. All results, however, do not extend to every taxpayer. Depending on the kind of taxpayer/type of registration acquired, taxpayers file returns.

A self-certified balance report in Form GSTR-9C must also be submitted by eligible taxpayers, defined as those with revenue exceeding Rs. 5 crores. The GSTR-2A (dynamic) and GSTR-2B declarations of input tax credit are provided to taxpayers in addition to the GST returns that must be filed (static). Small taxpayers who are recognized under the QRMP program may also use an invoice furnishing facility (IFF) to submit their business-to-business (B2B) transactions for the first two months of the quarterly. These small taxpayers will continue to submit Form PMT-06 each month to pay their taxes.

In India, GST is charged on the majority of consumable goods and services. GST India has five tax brackets for various categories of supplies: 0%, 5%, 12%, 18%, and 28%. Some goods, including gasoline and fuel, are exempt from the GST.

What is ITR Filling?

ITR includes details on the individual's earnings and the yearly taxes owed. The information included in an ITR must be specific to a fiscal year that begins on April 1 and ends on March 31 of the following year. This form contains details on the person's income and the amount of tax that must be paid on it within a specific fiscal year, from 1 April of the current year that is 2023 to 31 March of the next year that 2024. Because the taxpayer, whether an individual or a business, may file their ITR online from the ease of their own home, the process has become straightforward.

Income Tax is a tax levied by the government on income. It is one of the major sources of revenue for the federal government. The revenue from taxes is invested in the growth of the nation. A person's tax burden directly relates to their income, so the more they make, the higher their tax burden will be. Both residents and non-residents who earn a living in India must pay income tax. Income derived from a wage, from any other source, from a home or other property, from capital gains, from a business, or from any other profession is subject to income tax.

Different ITR Form Types

The taxpayer should choose his ITR form with extreme caution. There are seven different ITR form types available, and the taxpayer must submit his ITR in the appropriate format according to his circumstances. Depending on the taxpayer's category and income level, different applications fall under different categories. ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 Sugam, ITR-5, ITR-6, and ITR-7 are the seven various ITR forms.

 

GST

Income Tax

Meaning 

 It is assessed on the purchase and use of goods and services. 

 It is assessed against a person's income for a specific year.

Type

 Indirect tax paid to the government.

Direct tax paid to the government.

Filling

GST If the annual turnover exceeds 40 lakh rupees, registration is necessary. 

If a person's annual income exceeds 2.5 lakh rupees, income tax must be paid.

Payment standards 

The Final customer may be made responsible for paying the tax.

 The individual cannot shift the cost to another person because he is responsible for paying his own taxes if his income exceeds 2.5 lakh rupees.

Government site

GST return is filled through -www.gst.gov.in 

 ITR is filled through- https://incometaxindia.gov.in

Heads of Tax

GST is assessed on the products bought and the services rendered. 

Salary, real estate, capital gains, and other types of income are all subject to income tax.

Coverage

Since taxes are levied on every member of society, it has a broad scope.

It is only applicable to a taxpayer who is an individual or a corporation.

Transferability

It is transmittable from one individual to another.

It is only applicable to a taxpayer who is an individual or a corporation.

Penalty  

For each day that you are in default on filing the GST returns that are required by law, late fees will be assessed. Additionally, if any taxes are owed, interest will be charged on the tax amount at a rate of 18% annually.

According to the Income Tax Rules, failing to submit an ITR by the deadline may result in a 10,000 fine and other penalties. Interest on the tax due by Section 234A of the Income Tax Act of 1961 may also result from a delay in filing an ITR.

 

Conclusion

Every citizen of our country has a yearly duty to file tax returns out of moral and social responsibility. This is a way for the government to calculate how much and how the citizens spend their money. It also gives the assessor a chance to request refunds and other types of tax relief that are appropriate now. The government has enacted various laws requiring its residents to pay taxes on time and in the correct amount. Income tax is a direct tax, whereas GST is an indirect tax. This is the main distinction between the two taxes. The government needs both forms of taxes to fund projects like infrastructure development and other goals. While GST is paid by everyone when they buy products and use services, income tax is only payable if they fall under a specified salary range.

eStartIndia is one of the leading cloud-based platforms that help you to file your ITR (Income tax returnwithout any hassle at an affordable cost.

Author:

Archita Sharma
Kanpur
Archita Sharma, IV year BA.LLB (Hons.) student from PSIT College of Law


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