GST is a value-added tax levied at all points in the supply chain, with credit for tax paid on input acquired for use in making the supply. It apply to both goods and services in a comprehensive manner. On a macro note it may be said that GST is a mechanism which supports self-compliance where in the assessees assess the taxes payable by them. To ensure the correctness and veracity of the reported information, annual returns and GST audit are required. It becomes essential to have counter checks and balances to ensure that there is no seepage of exchequer’s revenue. GST principles embrace information technology and reduce the interaction with the tax administrators.

All entities having GST registration are required to file GST annual return for every financial year irrespective of their turnover during the return filing period. Hence, even a dormant business that obtained GST registration must file GST return.