Do We Need a Chartered Accountant (CA) to File Monthly GST Returns in India?

Overview of GST Returns

The Goods and Services Tax (GST) is a significant reform in the Indian tax system that aims to consolidate multiple indirect taxes into a single comprehensive tax. Small, medium, and large enterprises need to comply with GST regulations by filing regular returns. Understanding the intricacies of this tax system can be challenging, but fortunately, there are various options available to businesses for filing their GST returns.

Self-Filing GST Returns

Businesses can choose to file their monthly GST returns themselves, especially if they have a good understanding of the regulations and are comfortable with the paperwork. The government encourages small businesses to self-file, which is made easier with the provision of simplified return forms such as GSTR-3B. This form allows businesses with a turnover below Rs. 5 crore (approximately $650,000 USD) to file their returns more easily.

Professional Support for Complex Transactions

However, for businesses with larger turnovers and more complex transactional activities, it is recommended to seek professional help. Chartered Accountants (CAs) offer a range of bundled services that can be beneficial, including quarterly e-TDS returns, advising on advance taxes, auditing annual accounts, and filing income tax returns. These services are especially useful for micro, small, and medium enterprises (MSMEs).

Decision Factors for Hiring a Chartered Accountant

The decision to hire a Chartered Accountant ultimately depends on the complexity of your business transactions and your comfort level with the GST filing process. Here are some key factors to consider:

Business Turnover: If your annual turnover is below Rs. 5 crore, you can file your GST returns yourself. However, if it exceeds Rs. 5 crore, you must get your annual return audited by a CA. Monthly returns can still be filed by yourself in such cases. Transaction Complexity: Businesses with frequent and diverse transactions, particularly those involving different Harmonized System (HSN) products and In-Transit Credit (ITC), may benefit from professional assistance. Knowledge of GST Regulations: If you come from a finance background and have sufficient knowledge of GST regulations, you might be able to file returns yourself. However, it is generally advisable to prefer professional help for accuracy and compliance.

Conclusion

While it is possible to file monthly GST returns on your own, seeking the assistance of a Chartered Accountant can provide several benefits, especially for businesses with larger turnovers and more complex transactions. Professional help can ensure compliance, provide guidance, and help avoid errors. Ultimately, the best course of action depends on the specific needs and circumstances of your business.