Author: Financial Analyst

What Is Income Tax for a Partnership Firm?

A Partnership Firm is a business entity where two or more partners carry on a business and share profits as per a partnership deed. Under the Income Tax Act, 1961, a partnership firm is treated as a separate taxable entity and must file its Income Tax Return (ITR) every year, irrespective of profit or loss.

Income tax for a partnership firm is calculated on its net taxable profit, after allowing eligible expenses, deductions, and partner remunerations as permitted by law.

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Is Income Tax Filing Mandatory for Partnership Firms?

Yes. Income tax return filing is mandatory for:

• Registered partnership firms
• Unregistered partnership firms
• Firms with or without income
• Firms claiming loss or carrying forward losses

Failure to file ITR may lead to:

• Penalties
• Interest on tax dues
• Loss of carry-forward benefits
• Scrutiny notices

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Tax Rate Applicable to Partnership Firms

• Flat tax rate: 30% on taxable income
• Surcharge: Applicable if income exceeds specified limits
• Health & Education Cess: 4% on total tax

👉 No basic exemption limit is available for partnership firms.

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Documents Required for Income Tax Filing (Partnership Firm)

• PAN of the partnership firm
• Partnership Deed
• Financial statements (P&L, Balance Sheet)
• Bank statements
• Details of partner remuneration & interest
• TDS details (Form 26AS)
• Audit report (if applicable)

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Step-by-Step Process for Filing Income Tax – Partnership Firm

Step 1: Prepare Financial Statements

Prepare:

• Profit & Loss Account
• Balance Sheet

Ensure:

• Partner salary and interest are as per partnership deed
• All business expenses are properly recorded

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Step 2: Check Tax Audit Applicability

Tax audit is required if:

• Turnover exceeds ₹1 crore (business)
• ₹50 lakh (profession)

Higher limits apply for digital transactions.

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Step 3: Calculate Taxable Income

From net profit:

• Add disallowed expenses
• Deduct allowed expenses
• Deduct partner remuneration & interest (within limits)

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Step 4: Choose Correct ITR Form

• ITR-5 is applicable for partnership firms

(ITR-5 is mandatory even if there is no income.)

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Step 5: Login to Income Tax Portal

• Login using the firm’s PAN
• Select “File Income Tax Return”
• Choose relevant Assessment Year

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Step 6: Fill ITR-5 Details

Enter:

• Firm details
• Partner details
• Business income
• Balance sheet & P&L details
• Tax computation

Ensure accuracy to avoid notices.

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Step 7: Pay Tax (If Applicable)

• Pay advance tax or self-assessment tax
• Keep challan details ready

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Step 8: Submit Income Tax Return

• Validate all fields
• Submit ITR-5 online

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Step 9: Verify the ITR

• DSC (Digital Signature Certificate)
• EVC (Electronic Verification Code)

⚠️ ITR is invalid without verification.

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Important Due Dates for Partnership Firm ITR Filing

• 31st July – Non-audit cases
• 31st October – Audit cases
• 30th November – Transfer pricing cases

(Dates may change as per government notifications.)

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Benefits of Filing Income Tax Return for Partnership Firm

• Legal compliance
• Carry forward business losses
• Easy loan & credit approval
• Avoid penalties & interest
• Build financial credibility

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Common Mistakes to Avoid

• Filing wrong ITR form
• Incorrect partner remuneration calculation
• Missing audit requirement
• Not verifying ITR
• Mismatch with Form 26AS

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Why Choose Saving Mantra for Partnership Firm ITR Filing?

• Expert CA-assisted filing
• Accurate tax computation
• Audit & non-audit support
• Error-free ITR-5 filing
• Complete compliance management

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Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. Income tax provisions may change and depend on individual business circumstances. Saving Mantra recommends consulting a qualified tax professional before filing income tax returns for a partnership firm.

What Is Income Tax for a Salaried Individual?

Income Tax is a direct tax charged by the Government of India on the income earned during a financial year. For a salaried individual, income tax is calculated on salary received from an employer after allowing eligible exemptions, deductions, and rebates under the Income Tax Act, 1961.

Although employers deduct TDS (Tax Deducted at Source) every month, filing an Income Tax Return (ITR) is mandatory to:

• Declare actual income
• Claim deductions and exemptions
• Receive refunds (if excess tax is deducted)
• Stay legally compliant

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Who Is Treated as a Salaried Individual?

You are considered a salaried individual if:

• You earn income from an employer–employee relationship
• Salary is paid monthly or periodically
• You receive Form 16 from your employer

This includes:

• Private sector employees
• Government employees
• Contractual employees with salary structure

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Components of Salary Income

Salary income may include:

• Basic Salary
• Dearness Allowance (DA)
• House Rent Allowance (HRA)
• Special Allowances
• Bonus & Incentives
• Perquisites (PF contribution, accommodation, car, etc.)

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Income Tax Regimes for Salaried Individuals

Old Tax Regime

• Allows exemptions and deductions
• Suitable for those with tax-saving investments

Key benefits:

• Standard Deduction
• Section 80C (PF, LIC, ELSS, PPF)
• Section 80D (Health Insurance)
• HRA & LTA benefits

New Tax Regime

• Lower slab rates
• Most exemptions and deductions not allowed

👉 Salaried taxpayers must select the tax regime while filing ITR.

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Step-by-Step Process to File Income Tax Return (Salaried Individual)

Step 1: Gather Required Documents

• PAN Card
• Aadhaar Card
• Form 16 (issued by employer)
• Bank account details
• Investment proofs (if opting old regime)
• Home loan interest certificate (if applicable)

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Step 2: Calculate Your Total Income

Add:

• Salary income
• Income from other sources (interest, dividends, etc.)

Subtract:

• Exempt allowances
• Standard deduction
• Eligible deductions (Old Regime)

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Step 3: Choose the Correct ITR Form

• ITR-1 (Sahaj) – Salary income up to ₹50 lakh
• ITR-2 – Salary income with capital gains

Most salaried individuals file ITR-1.

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Step 4: Login to Income Tax Portal

• Visit the official income tax e-filing portal
• Login using PAN as user ID

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Step 5: Select Assessment Year

• Choose the correct Assessment Year (AY)
• Select “File Income Tax Return”

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Step 6: Fill Income & Deduction Details

• Verify auto-filled salary details
• Match TDS with Form 16 and AIS
• Enter deductions and exemptions carefully

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Step 7: Review Tax Computation

• Check tax payable or refund amount
• Pay self-assessment tax if required

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Step 8: Submit the ITR

• Submit return online
• Select verification mode

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Step 9: E-Verify the Return

• Aadhaar OTP (most common)
• Net banking
• Electronic Verification Code (EVC)

⚠️ ITR is invalid without e-verification

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Important Due Dates for Salaried Individuals

• 31st July – Original return filing
• 31st December – Belated return
• 31st December – Revised return

(Dates may change as per government notifications)

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Benefits of Filing Income Tax Return

• Claim refunds on excess TDS
• Proof of income for loans & visas
• Avoid penalties and notices
• Carry forward losses
• Maintain clean financial records

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Common Mistakes to Avoid

• Not matching Form 16 with AIS
• Selecting the wrong tax regime
• Forgetting to e-verify ITR
• Claiming incorrect deductions
• Using the wrong ITR form

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Why File Income Tax with Saving Mantra?

• Expert-assisted ITR filing
• Regime comparison for maximum savings
• Error-free compliance
• Faster refunds
• Complete digital support

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Income tax laws are subject to change and depend on individual circumstances. Saving Mantra recommends consulting a qualified tax professional before filing your income tax return.

Introduction

Filing Income Tax Return (ITR) for a Private Limited Company is a mandatory annual compliance under the Income Tax Act, irrespective of profit or loss. Even dormant or non-operational companies must file returns within the prescribed due date to avoid penalties, notices, and prosecution.

This Saving Mantra guide explains the step-by-step process for filing Income Tax Return for a Pvt Ltd company, applicable forms, due dates, documents required, audit requirements, and compliance best practices.

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Is ITR Filing Mandatory for Pvt Ltd Companies?

Yes. Every Private Limited Company registered in India must file ITR every year, even if:

• No business activity is carried out
• There is no income
• The company is in loss
• Bank accounts are inactive

Non-filing can lead to heavy penalties and legal consequences.

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Which ITR Form Is Applicable for Pvt Ltd Company?

• ITR-6 is applicable for Private Limited Companies
• Applicable to companies not claiming exemption under Section 11

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Due Date for ITR Filing (Pvt Ltd Company)

Category	Due Date
Company not requiring audit	31st July
Company requiring audit	31st October
Company with transfer pricing	30th November

Late filing attracts penalties and interest.

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Documents Required for ITR Filing

• PAN card of company
• Certificate of Incorporation
• MOA & AOA
• Financial statements (Balance Sheet & P&L)
• Tax Audit Report (if applicable)
• Bank statements
• TDS certificates (Form 16A / 26Q)
• Details of directors and shareholders
• Previous year ITR acknowledgment

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Step-by-Step Process for Filing ITR for Pvt Ltd Company

Step 1: Prepare Financial Statements

Prepare:

• Balance Sheet
• Profit & Loss Account
• Notes to accounts

These must comply with Companies Act and Income Tax Act.

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Step 2: Conduct Tax Audit (If Applicable)

Tax audit is mandatory if:

• Turnover exceeds prescribed limits
• Company opts for specific tax provisions

Audit report must be uploaded before filing ITR.

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Step 3: Calculate Tax Liability

Compute:

• Taxable income
• Applicable corporate tax rate
• MAT (if applicable)
• Surcharge & cess

Adjust advance tax and TDS credits.

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Step 4: Login to Income Tax Portal

Visit https://www.incometax.gov.in
Login using company PAN credentials.

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Step 5: Select ITR-6

Go to:
e-File → Income Tax Returns → File Income Tax Return

Select:

• Assessment Year
• ITR-6
• Filing mode (online/offline)

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Step 6: Fill ITR Details

Enter:

• General company information
• Director and shareholding details
• Financial data
• Tax computation
• MAT & depreciation details

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Step 7: Verify and Submit ITR

Verify using:

• Digital Signature Certificate (DSC) (mandatory for companies)

Once submitted, ITR acknowledgment is generated.

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Penalty for Late Filing of ITR

• ₹5,000 if filed after due date but before 31st December
• ₹10,000 if filed after 31st December
• Interest under Section 234A/B/C

Non-filing may lead to prosecution.

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Common Mistakes to Avoid

• Missing due dates
• Incorrect selection of ITR form
• Mismatch in financial statements
• Ignoring MAT provisions
• Filing without DSC
• Not reconciling Form 26AS / AIS

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Benefits of Timely ITR Filing

• Avoid penalties and interest
• Smooth statutory audits
• Better creditworthiness
• Legal compliance
• Hassle-free future funding or closure

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Why Choose Saving Mantra for ITR Filing?

• Expert corporate tax professionals
• Accurate ITR-6 preparation
• Audit and compliance coordination
• DSC and portal handling
• End-to-end tax advisory support

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Frequently Asked Questions (FAQs)

Is ITR filing mandatory for loss-making companies?

Yes, ITR filing is mandatory even if the company incurs losses.

Is DSC compulsory for Pvt Ltd ITR filing?

Yes, Digital Signature Certificate is mandatory.

Can a Pvt Ltd company file ITR without audit?

Yes, if audit provisions are not applicable.

Can ITR be revised after filing?

Yes, revised return can be filed within the prescribed time limit.

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Conclusion

Filing Income Tax Return for a Private Limited Company is a critical statutory obligation. Proper preparation of financials, correct tax computation, and timely filing ensure compliance and protect the company from penalties and legal risks.

Professional handling simplifies the process and ensures complete accuracy.

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Disclaimer

This article is for informational purposes only and does not constitute legal, accounting, or tax advice. Income Tax laws and compliance requirements are subject to change. Readers are advised to consult qualified professionals or contact Saving Mantra before making any tax-related decisions.

Introduction

GST compliance for e-commerce sellers is more complex than regular businesses due to marketplace involvement, TCS (Tax Collected at Source), and multiple return obligations. Whether you sell on platforms like Amazon, Flipkart, Meesho, or your own website, correct and timely GST return filing is essential to avoid mismatches, penalties, and ITC loss.

This Saving Mantra guide explains the step-by-step process for e-commerce seller GST return filing, applicable returns, due dates, and compliance best practices.

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Who Is an E-Commerce Seller Under GST?

An e-commerce seller is a person who supplies goods or services through an electronic commerce operator (ECO). These sellers are mandatorily required to obtain GST registration, irrespective of turnover (except certain service providers as notified).

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GST Registration Requirement for E-Commerce Sellers

GST registration is mandatory if you:

• Sell goods through an e-commerce platform
• Supply through marketplaces collecting TCS
• Make inter-state taxable supplies

Threshold exemption generally does not apply to e-commerce sellers of goods.

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GST Returns Applicable to E-Commerce Sellers

1. GSTR-1

• Details of outward supplies
• Includes B2C and B2B sales
• Filed monthly or quarterly (QRMP)

2. GSTR-3B

• Summary return for tax payment
• Filed monthly or quarterly (QRMP)

3. GSTR-2B (Auto-generated)

• Used for ITC reconciliation
• Reflects purchases and TCS credits

Note:
GSTR-8 is filed by the e-commerce operator, not by the seller.

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Due Dates for E-Commerce Seller Returns

Return	Due Date
GSTR-1 (Monthly)	11th of next month
GSTR-1 (Quarterly)	13th after quarter
GSTR-3B (Monthly)	20th of next month
GSTR-3B (Quarterly)	As notified
TCS Credit Reflection	Via GSTR-2B

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Documents Required for E-Commerce GST Filing

• GSTIN login credentials
• Sales reports from e-commerce portals
• TCS statements provided by marketplace
• Purchase invoices
• ITC details (GSTR-2B)
• Bank statements

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Step-by-Step Process for E-Commerce Seller Return Filing

Step 1: Collect Sales & TCS Data

Download:

• Monthly sales report from marketplace
• TCS deducted details
• Settlement reports

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Step 2: Reconcile Sales with GST Data

Match:

• Portal sales vs books of accounts
• TCS deducted vs GSTR-2B
• Taxable value, GST rate, and tax amount

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Step 3: File GSTR-1

Login to GST portal →
Services → Returns → GSTR-1

Report:

• B2C sales
• B2B sales
• Inter-state supplies
• Nil-rated or exempt supplies

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Step 4: Check ITC in GSTR-2B

Verify:

• Vendor invoices
• TCS credit from e-commerce operator
• Eligible and ineligible ITC

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Step 5: File GSTR-3B

Declare:

• Outward tax liability
• Eligible ITC
• Net tax payable after adjustment

Pay GST through electronic cash or credit ledger.

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Step 6: Maintain Records

Keep:

• Sales invoices
• TCS certificates
• GST returns and challans
• Reconciliation working papers

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TCS Impact on E-Commerce Sellers

• E-commerce operator collects TCS (usually 1%)
• TCS reflects in seller’s GSTR-2B
• Seller can claim TCS as ITC
• Mismatch may cause ITC blockage

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Common Mistakes to Avoid

• Not reconciling marketplace data with GST returns
• Missing TCS credit claim
• Reporting incorrect GST rates
• Filing returns without settlement reconciliation
• Ignoring GST notices for mismatch

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Benefits of Timely GST Filing for E-Commerce Sellers

• Avoid penalties and interest
• Smooth settlement from marketplaces
• Correct ITC utilization
• Better compliance rating
• Reduced risk of GST scrutiny

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Why Choose Saving Mantra for E-Commerce GST Filing?

• Specialized e-commerce GST experts
• Marketplace-wise reconciliation
• TCS and ITC accuracy assurance
• Notice and mismatch handling
• End-to-end GST compliance support

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Frequently Asked Questions (FAQs)

Is GST mandatory for e-commerce sellers?

Yes, GST registration is mandatory for most e-commerce sellers.

Do e-commerce sellers file GSTR-8?

No, GSTR-8 is filed by the e-commerce operator, not the seller.

Can TCS be claimed as ITC?

Yes, TCS reflected in GSTR-2B can be claimed as ITC.

Can e-commerce sellers opt for QRMP scheme?

Yes, if eligible and not restricted by GST rules.

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Conclusion

GST return filing for e-commerce sellers requires accurate reconciliation, correct reporting of sales, and proper handling of TCS credits. A small mismatch can lead to notices, blocked ITC, or financial loss.

Professional assistance ensures error-free compliance and smooth marketplace operations.

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. GST provisions, TCS rules, and compliance procedures are subject to change. Readers are advised to consult qualified GST professionals or contact Saving Mantra before taking any compliance-related decisions.

Introduction

GST interest payment becomes applicable when a taxpayer fails to pay GST dues on time, delays return filing, or short-pays tax liability. Understanding how GST interest is calculated and paid is crucial to avoid notices, penalties, and unnecessary financial burden.

This Saving Mantra guide explains the step-by-step process for GST interest payment, applicable interest rates, calculation method, payment procedure on the GST portal, and compliance tips.

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What Is GST Interest?

GST interest is a statutory charge levied on taxpayers for delayed payment of tax, excess ITC claims, or late filing of GST returns. Interest is calculated on a daily basis and must be paid before filing the return.

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When Is GST Interest Applicable?

GST interest is applicable in the following cases:

• Delay in payment of GST tax
• Late filing of GSTR-3B
• Excess claim of Input Tax Credit (ITC)
• Short payment of tax liability
• Wrong utilization of ITC

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GST Interest Rates

Situation	Interest Rate
Delay in tax payment	18% per annum
Excess ITC claim or undue ITC utilization	24% per annum

Interest is calculated from the due date till the actual date of payment.

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How Is GST Interest Calculated?

GST Interest Formula:
Interest = Tax Amount × Interest Rate × Number of Days / 365

Example

• Tax payable: ₹50,000
• Delay: 20 days
• Interest rate: 18%

Interest = 50,000 × 18% × 20 / 365 = ₹493 (approx.)

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Documents & Details Required

• GSTIN and login credentials
• Tax liability details
• Delay period (number of days)
• Electronic cash ledger balance
• Bank account details (for payment)

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Step-by-Step Process for GST Interest Payment

Step 1: Login to GST Portal

Visit https://www.gst.gov.in and log in using your GST credentials.

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Step 2: Compute Interest Liability

Calculate interest manually or use GST computation tools based on:

• Tax payable
• Delay period
• Applicable interest rate

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Step 3: Create Challan (PMT-06 / PMT-07)

Go to:
Services → Payments → Create Challan

Select:

• Interest head (CGST, SGST, IGST)
• Enter calculated interest amount

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Step 4: Make Payment

Pay interest using:

• Net banking
• Debit/credit card
• NEFT/RTGS

The amount gets credited to the Electronic Cash Ledger.

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Step 5: Offset Interest Liability

While filing GSTR-3B, offset the interest amount using the cash ledger.

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Step 6: File GST Return

Submit the return after clearing:

• Tax dues
• Interest
• Late fees (if applicable)

ARN is generated after successful filing.

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Time Limit for GST Interest Payment

• Interest must be paid before filing the delayed return
• Non-payment may result in GST notices or recovery action

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Late Fees vs Interest Under GST

Particulars	Interest	Late Fee
Nature	Compensation for delayed tax	Penalty for delayed return
Rate	18% / 24%	₹20–₹50 per day
Calculation	Daily basis	Fixed per day

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Common Mistakes to Avoid

• Ignoring interest liability while filing returns
• Incorrect calculation of delay period
• Using ITC to pay interest (not allowed)
• Not clearing interest before filing GSTR-3B
• Delaying payment after receiving GST notice

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Benefits of Timely GST Interest Payment

• Avoid GST notices and recovery actions
• Maintain clean compliance record
• Prevent compounding liabilities
• Smooth return filing process
• Better business credibility

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Why Choose Saving Mantra for GST Compliance?

• Expert GST calculation & advisory
• Accurate interest computation
• Portal handling & payment support
• Notice & demand management
• End-to-end GST compliance services

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Frequently Asked Questions (FAQs)

Is GST interest auto-calculated by the portal?

Interest is partially system-calculated but responsibility lies with the taxpayer.

Can GST interest be paid using ITC?

No, GST interest must be paid only through the cash ledger.

Is interest applicable even if return is filed late but tax is paid?

Yes, interest applies until the actual date of tax payment.

Can interest be waived?

Interest waiver is allowed only through specific government notifications.

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Conclusion

GST interest payment is a mandatory compliance that cannot be ignored. Correct calculation, timely payment, and proper return filing help businesses avoid penalties, notices, and legal complications.

Professional assistance ensures accuracy, peace of mind, and uninterrupted GST compliance.

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. GST laws and interest provisions may change from time to time. Readers are advised to consult qualified GST professionals or contact Saving Mantra before making any compliance-related decisions.

Introduction

The QRMP Scheme (Quarterly Return Monthly Payment) was introduced under GST to ease the compliance burden of small and medium businesses. Under this scheme, eligible taxpayers can file GST returns quarterly while paying taxes monthly using PMT-06, and optionally report invoices through IFF.

This Saving Mantra guide explains what the QRMP scheme is, how PMT-06 and IFF function, who can opt for it, due dates, benefits, and key compliance points.

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What Is the QRMP Scheme?

The QRMP Scheme allows eligible GST-registered taxpayers to:

• File GSTR-1 and GSTR-3B quarterly
• Pay GST tax monthly
• Reduce return filing frequency without delaying tax payments

The scheme is designed to simplify GST compliance while ensuring steady tax collection for the government.

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Eligibility for QRMP Scheme

You can opt for the QRMP scheme if:

• Aggregate annual turnover is up to ₹5 crore
• You are a regular GST taxpayer
• Previous GSTR-3B has been filed

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Who Cannot Opt for QRMP Scheme?

• Composition scheme taxpayers
• Non-resident taxable persons
• Casual taxable persons
• Input Service Distributors (ISD)

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What Is PMT-06?

PMT-06 is a monthly challan-cum-statement used to pay GST tax under the QRMP scheme for the first two months of a quarter.

Purpose of PMT-06

• Deposit monthly GST liability
• Avoid interest and late fees
• Ensure timely tax payment

PMT-06 Due Date

• 25th of the following month
  • Example: April tax → Pay by 25th May

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Methods of Tax Payment Under PMT-06

1. Fixed Sum Method

• Auto-generated challan based on last GSTR-3B
• Suitable for businesses with stable turnover

2. Self-Assessment Method

• Taxpayer calculates actual liability
• Ideal for fluctuating sales businesses

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What Is IFF (Invoice Furnishing Facility)?

IFF allows QRMP taxpayers to upload B2B invoices monthly, even though GSTR-1 is filed quarterly.

Key Features of IFF

• Optional facility
• Helps buyers claim Input Tax Credit (ITC) on time
• Available for the first two months of the quarter

IFF Due Date

• 13th of the following month

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How QRMP, PMT-06 & IFF Work Together

Component	Purpose	Frequency
QRMP Scheme	Quarterly GST returns	Quarterly
PMT-06	Monthly tax payment	Monthly
IFF	Monthly B2B invoice upload	Optional

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Step-by-Step Working of QRMP Scheme

Step 1: Opt for QRMP Scheme

Login to GST portal → Services → Returns → Opt-in for QRMP.

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Step 2: Pay Monthly Tax via PMT-06

Pay tax for Month 1 and Month 2 of the quarter by the 25th.

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Step 3: Upload Invoices via IFF (Optional)

Upload B2B invoices by the 13th to pass ITC to customers.

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Step 4: File Quarterly Returns

• File GSTR-1 quarterly
• File GSTR-3B quarterly

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Benefits of the QRMP Scheme

• Reduced compliance burden
• Fewer return filings
• Better cash flow planning
• Timely ITC for customers
• Suitable for small businesses

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Common Mistakes to Avoid

• Missing PMT-06 payment deadlines
• Assuming IFF is mandatory
• Not filing quarterly GSTR-3B on time
• Incorrect tax calculation
• Ignoring GST notices under QRMP

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Why Choose Saving Mantra for QRMP Compliance?

• Expert GST compliance professionals
• PMT-06 calculation & filing support
• IFF invoice management
• Quarterly return accuracy
• GST notice handling & advisory

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Frequently Asked Questions (FAQs)

Is QRMP Scheme compulsory?

No, it is optional for eligible taxpayers.

Is PMT-06 mandatory?

Yes, monthly tax payment through PMT-06 is compulsory under QRMP.

Is IFF mandatory?

No, IFF is optional and mainly used to enable timely ITC for buyers.

Can I opt out of QRMP Scheme?

Yes, eligible taxpayers can switch back to monthly filing as per GST rules.

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Conclusion

The QRMP Scheme is a taxpayer-friendly GST initiative that balances compliance ease with timely tax payments. Understanding PMT-06 and IFF is essential to avoid interest, penalties, and ITC issues.

With proper planning and professional support, QRMP can significantly simplify GST compliance for small businesses.

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. GST laws and procedures are subject to change. Readers are advised to consult qualified GST professionals or contact Saving Mantra before taking any compliance-related decisions.

Introduction

The QRMP Scheme (Quarterly Return Monthly Payment) was introduced under GST to reduce compliance burden for small taxpayers. It allows eligible businesses to file GST returns quarterly while paying tax monthly using PMT-06 and optionally reporting invoices through IFF.

This Saving Mantra guide explains what the QRMP scheme is, how PMT-06 and IFF work, eligibility, due dates, benefits, and compliance best practices.

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What Is the QRMP Scheme?

The QRMP Scheme allows eligible GST-registered taxpayers to:

• File GSTR-1 and GSTR-3B quarterly
• Pay tax monthly using PMT-06
• Upload B2B invoices monthly through IFF (optional)

This scheme is designed for small businesses to reduce return filing frequency while maintaining regular tax payments.

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Who Is Eligible for the QRMP Scheme?

You can opt for the QRMP scheme if:

• Aggregate annual turnover is up to ₹5 crore
• You are a regular GST taxpayer
• GSTR-3B for the previous tax period has been filed

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Who Is Not Eligible?

• Composition scheme taxpayers
• Non-resident taxable persons
• Input Service Distributors (ISD)
• Casual taxable persons

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What Is PMT-06?

PMT-06 is a monthly challan-cum-statement used to pay GST tax under the QRMP scheme.

Purpose of PMT-06

• Deposit GST liability for the first two months of the quarter
• Avoid interest and late fees
• Maintain tax payment discipline

PMT-06 Due Date

• 25th of the following month
  • Example: April tax → Pay by 25th May

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Methods of Tax Payment Under PMT-06

1. Fixed Sum Method

• Auto-generated challan based on last filed GSTR-3B
• Ideal for businesses with stable turnover

2. Self-Assessment Method

• Taxpayer calculates actual tax liability
• Suitable for variable turnover businesses

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What Is IFF (Invoice Furnishing Facility)?

IFF allows QRMP taxpayers to upload B2B invoices monthly instead of waiting for quarterly GSTR-1.

Key Features of IFF

• Optional facility
• Helps recipients claim Input Tax Credit (ITC) on time
• Available for first two months of the quarter

IFF Due Date

• 13th of the following month
  • Example: April invoices → Upload by 13th May

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Relationship Between QRMP, PMT-06 & IFF

Component	Purpose	Frequency
QRMP Scheme	Quarterly returns	Quarterly
PMT-06	Monthly tax payment	Monthly
IFF	Monthly B2B invoice reporting	Optional

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Step-by-Step Working of QRMP Scheme

Step 1: Opt for QRMP Scheme

Login to GST portal → Services → Returns → Opt-in for QRMP.

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Step 2: Pay Monthly Tax via PMT-06

Pay tax for Month 1 and Month 2 using PMT-06 by the 25th.

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Step 3: Upload B2B Invoices via IFF (Optional)

Upload invoices by the 13th of next month to enable ITC for buyers.

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Step 4: File Quarterly Returns

• File GSTR-1 quarterly
• File GSTR-3B quarterly

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Benefits of QRMP Scheme

• Reduced return filing frequency
• Better cash flow management
• Lower compliance burden
• Timely ITC for customers using IFF
• Ideal for small and medium businesses

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Common Mistakes to Avoid

• Missing PMT-06 payment deadline
• Assuming IFF is mandatory
• Not filing quarterly GSTR-3B on time
• Incorrect tax calculation under self-assessment
• Ignoring GST notices under QRMP

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Why Choose Saving Mantra for QRMP Compliance?

• Expert GST advisory & compliance support
• PMT-06 tax calculation & filing
• IFF invoice management
• Quarterly return filing accuracy
• Notice handling & reconciliation support

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Frequently Asked Questions (FAQs)

Is QRMP scheme mandatory?

No, it is optional for eligible taxpayers.

Is PMT-06 compulsory under QRMP?

Yes, monthly tax payment using PMT-06 is mandatory.

Is IFF compulsory?

No, IFF is optional and used mainly to pass ITC to buyers.

Can I switch back to monthly filing?

Yes, eligible taxpayers can opt out as per GST rules.

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Conclusion

The QRMP scheme simplifies GST compliance for small businesses by reducing return filing frequency while ensuring regular tax payments through PMT-06 and flexible invoice reporting through IFF. Proper understanding and timely compliance are essential to avoid interest, penalties, and ITC issues.

Professional support ensures smooth implementation and stress-free GST compliance.

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. GST provisions and procedures are subject to change. Readers are advised to consult qualified GST professionals or contact Saving Mantra before taking any compliance-related decisions.

Introduction

GSTR-4 is a mandatory annual GST return for taxpayers registered under the Composition Scheme. Filing GSTR-4 correctly and on time is essential to remain compliant, avoid penalties, and continue enjoying the benefits of reduced tax rates under the scheme.

This Saving Mantra guide explains the step-by-step GSTR-4 filing process, eligibility, due dates, documents required, and practical tips to ensure smooth GST compliance.

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What Is GSTR-4?

GSTR-4 is an annual GST return filed by composition dealers declaring:

• Summary of outward supplies
• Tax payable and paid
• Inward supplies attracting reverse charge
• Import of services, if any

It replaces the earlier quarterly GSTR-4 return and is now filed once every financial year.

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Who Is Required to File GSTR-4?

GSTR-4 must be filed by:

• Taxpayers registered under the GST Composition Scheme
• Businesses opting for fixed tax rates under GST
• Eligible traders, manufacturers, and restaurants (non-alcohol)

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Who Is Not Required to File GSTR-4?

• Normal GST taxpayers
• Input Service Distributors (ISD)
• Casual taxable persons
• Non-resident taxable persons
• Taxpayers who opted out of the composition scheme during the year

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Due Date for GSTR-4 Filing

• 30th April following the end of the financial year
  (Example: FY 2024–25 → Due date 30 April 2025)

Late filing attracts penalties.

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Documents Required for GSTR-4 Filing

• GSTIN and GST portal login credentials
• Summary of outward supplies
• Purchase details under reverse charge
• Import of service details (if applicable)
• Tax payment details
• Bank statements (for reconciliation)

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Step-by-Step Process for Filing GSTR-4

Step 1: Login to GST Portal

Visit https://www.gst.gov.in and log in using your GST credentials.

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Step 2: Navigate to GSTR-4

Go to:
Services → Returns → Annual Return → GSTR-4

Select the relevant financial year.

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Step 3: Review Auto-Populated Details

Check details auto-filled from:

• CMP-08 statements
• GST payment records
• Registration profile

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Step 4: Enter Outward Supply Details

Declare:

• Total turnover
• Taxable outward supplies
• Exempt supplies (if any)

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Step 5: Declare Reverse Charge & Imports

Provide details of:

• Inward supplies under reverse charge
• Import of services (if applicable)

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Step 6: Tax Calculation & Payment

Verify tax liability:

• Composition tax payable
• Interest or late fees (if applicable)

Pay any pending dues through electronic cash ledger.

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Step 7: File GSTR-4

Submit the return using:

• DSC (for companies/LLPs)
• EVC (for proprietors/partnerships)

Once filed, an ARN is generated.

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Late Fees & Penalty for GSTR-4

• ₹200 per day (₹100 CGST + ₹100 SGST)
• Maximum late fee capped as per GST rules
• Interest applicable on delayed tax payment

Timely filing helps avoid unnecessary costs.

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Common Mistakes to Avoid

• Missing the annual due date
• Incorrect turnover declaration
• Ignoring reverse charge transactions
• Filing without reconciling CMP-08
• Not clearing tax dues before filing

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Benefits of Timely GSTR-4 Filing

• Continued eligibility for composition scheme
• Avoidance of penalties and notices
• Clean GST compliance record
• Smooth business operations
• Reduced scrutiny from GST authorities

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Why Choose Saving Mantra for GSTR-4 Filing?

• Expert GST compliance professionals
• Accurate annual return preparation
• CMP-08 and tax reconciliation support
• Notice handling assistance
• Affordable and transparent pricing

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Frequently Asked Questions (FAQs)

Is GSTR-4 mandatory for composition dealers?

Yes, all composition taxpayers must file GSTR-4 annually.

Can GSTR-4 be revised?

No, GSTR-4 cannot be revised once filed.

Is CMP-08 different from GSTR-4?

Yes, CMP-08 is a quarterly statement, while GSTR-4 is an annual return.

What happens if GSTR-4 is not filed?

Late fees, interest, and GST notices may be issued.

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Conclusion

GSTR-4 filing is a critical annual compliance for composition scheme taxpayers. Accurate reporting, timely filing, and proper reconciliation ensure continued benefits under the scheme and protect your business from penalties.

Professional assistance can simplify the process and ensure full compliance.

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. GST laws and compliance requirements may change from time to time. Readers are advised to consult qualified GST professionals or contact Saving Mantra before taking any action.

Introduction

Letter of Undertaking (LUT) is a crucial compliance requirement for exporters under GST. Filing an Annual LUT Bond allows eligible taxpayers to export goods or services without payment of IGST, ensuring smooth cash flow and compliance with GST laws.

This Saving Mantra guide explains the step-by-step LUT bond annual filing process, eligibility conditions, documents required, validity period, and common mistakes to help exporters remain fully compliant.

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What Is LUT Bond Under GST?

A Letter of Undertaking (LUT) is a declaration filed by exporters stating that they will comply with GST laws while exporting goods or services without paying IGST.

LUT is filed annually and is valid for the entire financial year.

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Who Is Eligible to File LUT?

You are eligible to file LUT if:

• You export goods or services without payment of IGST
• You supply to SEZ units or developers
• You have not been prosecuted for tax evasion exceeding ₹2.5 crore
• You are a regular GST registered taxpayer

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Who Is Not Eligible for LUT?

• Taxpayers prosecuted for serious GST offences
• Businesses with repeated non-compliance
• Taxpayers opting for export without LUT or bond approval

Such taxpayers must file a GST Bond with bank guarantee instead.

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Validity of LUT Bond

• Valid for one financial year
• Must be filed every year before making exports
• New LUT required even if previous year LUT was approved

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Documents Required for LUT Filing

• GST login credentials
• Valid GSTIN
• Authorized signatory details
• IEC (Import Export Code)
• Previous LUT details (if any)
• Digital Signature (DSC) or EVC access

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Step-by-Step Process for Annual LUT Bond Filing

Step 1: Login to GST Portal

Visit https://www.gst.gov.in and log in using your GST credentials.

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Step 2: Navigate to LUT Application

Go to:
Services → User Services → Furnish Letter of Undertaking (LUT)

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Step 3: Select Financial Year

Choose the relevant financial year for which LUT is being filed.

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Step 4: Fill LUT Declaration

Confirm the declaration stating:

• Exports will be completed within prescribed time
• GST laws will be complied with
• Tax liability will be paid if conditions are violated

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Step 5: Enter Witness Details

Provide:

• Name and address of two witnesses
• Place of filing

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Step 6: Verification & Submission

Submit the application using:

• DSC (mandatory for companies/LLPs)
• EVC (for proprietors/partnerships)

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Step 7: LUT Acknowledgement

Once submitted successfully:

• LUT is approved instantly
• ARN is generated
• LUT certificate can be downloaded from the portal

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Time Limit for Filing LUT

• Should be filed before making any export
• Recommended to file at the start of the financial year
• Delay may result in IGST payment requirement

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Post-LUT Compliance Requirements

After filing LUT, exporters must:

• File GST returns on time (GSTR-1, GSTR-3B)
• Realize export proceeds within allowed time
• Maintain export documentation
• Avoid GST defaults during the year

Failure may result in LUT withdrawal.

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Common Mistakes to Avoid

• Not filing LUT at the beginning of the year
• Entering incorrect financial year
• Using expired DSC
• Ignoring pending GST returns
• Proceeding with exports before LUT approval

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Benefits of Filing LUT Bond

• Export without IGST payment
• Improved cash flow
• Faster refunds
• Reduced compliance burden
• Smooth international trade operations

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Why Choose Saving Mantra for LUT Filing?

• Expert GST compliance team
• Error-free annual LUT filing
• Export advisory support
• DSC & portal handling
• End-to-end GST compliance assistance

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Frequently Asked Questions (FAQs)

Is LUT required every year?

Yes, LUT must be filed separately for each financial year.

Is LUT filing online or offline?

LUT filing is completely online through the GST portal.

Is bank guarantee required for LUT?

No, LUT does not require a bank guarantee.

Can LUT be filed after export?

No, LUT should be filed before making exports.

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Conclusion

Annual LUT bond filing is a mandatory compliance for exporters under GST to continue exporting without IGST payment. Timely and accurate LUT filing ensures uninterrupted exports, better liquidity, and legal compliance.

Professional handling helps avoid errors, rejections, and unnecessary tax payments.