Reasonableness of GST Return Filing Fees in India: A Comprehensive Analysis
When a certified accountant (CA) in India asks for Rs. 24,000 for 37 GST returns, it is often a source of confusion. In this article, we will break down the reasons behind such charges and help you understand if it is reasonable. Additionally, we will discuss alternative strategies to manage GST return filings without incurring high costs.
Cost Breakdown per Return
The first step in evaluating the reasonableness of the fee is to break it down per return. This can be calculated as follows:
Cost per Return: Rs. 24,000 รท 37 returns approximately Rs. 648.65 per return
Market Rates for GST Return Filings
While the cost might seem high, it is crucial to consider the market rates for GST return filings. The cost can vary based on several factors, including the complexity of returns, the expertise of the service provider, and the region. Generally, fees can range from Rs. 500 to Rs. 2000 per return.
Factors Influencing Cost
Several factors can influence the cost of filing GST returns:
1. Complexity of Returns
If the returns involve multiple transactions or if there are discrepancies to resolve, the cost might be justified.
2. Experience of the CA
A more experienced CA might charge higher fees due to their expertise and the assurance of accurate filings.
3. Additional Services
If the fee includes additional services such as consultations, audits, or filing assistance, it may be reasonable.
Alternatives to Traditional GST Filing Services
Before opting for a traditional CA service, consider the following alternatives:
1. Online Consultancies
If you have had a negative experience with online consultations like Gststar, consider using reputable online platforms that provide GST return preparation and consultation without the high costs. Many online services offer competitive rates and ease of use with detailed guides and video tutorials to help you familiarize yourself with the process.
2. Learning Through Online Resources
Learning how to file GST returns on your own can be a cost-effective and efficient solution. Various online platforms and YouTube videos can help you understand the GST process and compile the necessary data for your returns. A common misconception is that filing GST returns requires extensive knowledge, but with the right resources, you can handle it yourself.
3. Professional CAs with Experience
If you decide to go with a professional CA, consider those with more than 10 years of experience. Their services can be more expensive but may be justified given the wide range of services they offer, including 4 VAT returns, 1 annual VAT return, 2 service tax returns, 1 annual return, and the merging of other services. CAs are making substantial efforts to ensure your business runs smoothly by learning and adapting to all GST procedures.
Conclusion
While Rs. 24,000 for 37 GST returns might seem high, it can be reasonable if the filing process includes complex transactions, multiple returns, or additional services. For straightforward returns, you might find the cost to be higher than necessary. Consider the comparison with other CAs, get a detailed breakdown of the services, and explore online alternatives to manage your GST return filings effectively and cost-effectively.
By taking a strategic and informed approach, you can ensure that your GST returns are filed correctly and in a manner that aligns with your business needs, without incurring unnecessary expenses.