File GST Returns using Sandbox APIs
What are GST Returns?
A GST return is a document that will contain all the details of sales, tax collected on sales (output tax), and tax paid on purchases (input tax).
Who files GST returns?
Anyone who has registered themselves under the GST system must file GST returns.
What happens if GST Returns are not filed?
Filing GST Returns is an important part of GST Compliance. Failure to file returns prevents claiming of GST Input Tax Credits by the businesses you have traded with.
To illustrate further: let’s say you are an Apple Vendor, and you sell your apples to an apple juice maker. You deduct GST from the sale of apples, however, you forget to file your GSTRs.
Usually, the juice maker would have reduced his GST Liability by the amount of GST paid to sellers like you. However, because you did not file the GSTRs, the juice maker won’t be able to deduct the GST paid. You see the problem here!
What can businesses do to reduce such failures?
Sandbox can help you figure out whether the businesses you are working with have regularly filed their GST Returns or not. This step makes sure that you work with businesses that are GST compliant.
You can use the Sandbox — Track GSTR API to do so. The API accepts GSTIN and a financial year. It then returns the status of all the GST returns filed by the respective GST entity in the particular financial year.
If the GSTR has not been filed then you can ask the vendor to file the GSTRs. Moreover, by integrating the GSTR workflow onto your platform, you can also help your vendors to automatically file GSTRs!
So how can you file GSTRs using Sandbox?
You need to access the Sandbox GST Tax Payer APIs to file GST Returns.
And, here are the 5 - steps on how to file GSTRs using Sandbox:
1. User Authentication
This step is required to create a connection to the GST Taxpayer’s GST Portal. The user authentication is a two-step process:
a. Enable API access on the GST Portal
The particular GSTIN Taxpayer has to log in to their GST Portal account and under ‘Manage API access’ enable API requests.
The Taxpayer can allow API access for up to 30 days.
b. OTP Verification
After the GST taxpayer has enabled API access, you can then proceed with OTP verification.
- First, the Generate One Time Password API is called.
This API takes in the GSTIN & Username as per GST Portal. And then sends OTP to the phone number and email id of the GST Taxpayer. - Second, the Verify One Time Password API is called. This API takes in the GSTIN, Username, and the OTP to verify the taxpayer. Through this step, the GST Taxpayer is authenticating the particular workflow to initiate the connection with the GST Portal.
2. Upload GSTR-1
Once the Taxpayer is authenticated, the taxpayer through the Upload GSTR-1 API can upload his GSTR-1. The API takes in GSTIN, year, and month for which the GSTR-1 one is being filed.
Also, a JSON file with the details pertaining to GSTR-1 is taken in as input.
3. Submit GSTR-1
After uploading the GSTR-1, the Submit GSTR-1 API needs to be called. This API will submit the uploaded GSTR-1 onto the GST Portal. However, remember, this is not the end. You need to file the submitted GSTR-1!
4. Generate EVC OTP
GSTR-1 is filed using what is called the EVC. When filing GSTR using the EVC an EVC OTP will be required.
The Generate EVC One Time Password API is called and OTP will then be sent to the registered phone number & e-mail address registered to the respective GSTIN.
5. File GSTR-1
Call the File GSTR-1 to finally file the GSTR-1. Here, you need to input the EVC OTP received in the last step, along with GSTIN, year & month.
You have now successfully filed the GSTR-1!
You can repeat the process for GSTR 3B & 4!
We have also created a recipe that will allow you to plug and play the above sequence. Check it out!
