What is Difference Between GST Return and ITR?

Goods and Services Tax (GST) and Income Tax Return (ITR) are two crucial terms related to taxation in India. While both these terms have a common objective, i.e., to collect tax revenue, they are quite distinct from each other. In this blog, we will discuss the difference between GST Return and ITR and why it is essential to understand the same.

GST is a value-added tax that is levied on the supply of goods and services in India. GST Return is a document that a registered taxpayer has to file with the GST department. It contains the details of all the sales and purchases made during a specific period. A taxpayer needs to file a GST return if the annual turnover exceeds Rs. 20 lakhs. GST returns are filed monthly or quarterly, depending on the turnover of the taxpayer.

ITR is a statement of income earned by an individual or a business entity in a financial year. It is a document that every taxpayer has to file with the Income Tax Department. The ITR contains information on the income earned, tax paid, deductions claimed, and other relevant details. It helps the government to assess the tax liability of an individual or business entity. Every individual or business entity that earns income above the specified threshold limit has to file an ITR.

The primary difference between GST Return and ITR is that GST Return is filed by registered taxpayers who have a GST registration number, while ITR is filed by every individual or business entity that earns income above the specified threshold limit. The purpose of filing a GST return is to report the sales and purchases made during a specific period and calculate the tax liability, while the purpose of filing an ITR is to report the income earned and calculate the tax liability.

In conclusion, GST Return and ITR are two different documents that serve different purposes. While GST Return is related to the sales and purchases made by a registered taxpayer, ITR is related to the income earned by an individual or business entity. It is essential to understand the difference between the two to avoid any confusion while filing tax returns.