{"id":51215,"date":"2022-12-09T11:13:01","date_gmt":"2022-12-09T05:43:01","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=51215"},"modified":"2022-12-09T11:13:03","modified_gmt":"2022-12-09T05:43:03","slug":"gst-compliance-checklist","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-compliance-checklist\/","title":{"rendered":"GST Compliance Checklist- All You Need to Know"},"content":{"rendered":"\n<p>The Goods and\nServices Tax or GST was introduced by the Government of India on 1 July 2017\nwith the aim to put in place a single consistent tax system which is\ndestination based. GST is the tax which is levied on the goods and services\nprovided for in the Indian economy and it was put in place with the aim of\nhaving a uniform tax system in the country. There have been substantial tax\nreforms in the country like a reduction in paperwork and improved transparency\nin the process of tax collection. The GST tax system amalgamates central and\nstate taxes into one combined tax. In this blog, we will discuss GST Compliance Checklist<strong>.<\/strong><\/p>\n\n\n\n<p>Businesses\nare required to adhere to various norms and guidelines laid down by the GST\ncouncil on how to raise invoices and maintain certain records, the manner of\nfiling returns and paying taxes and ways to report sales and purchases. Businesses\nwhich fail to comply with the GST requirements can incur heavy penalties. To\navoid such penalties, businesses should be GST compliant and must be aware of\nthe compliance checklist required to be followed to adhere to for the same.<\/p>\n\n\n\n<p>The GST\nsystem mandates that businesses must be compliant with the GST rules instituted\nby the Government of India. The government rates businesses with a GST\ncompliance rating based on the extent of compliance concerning the rules under\nthe system. There are largely three major heads of compliance rules, and they\nare as follows:<\/p>\n\n\n\n<ul><li>Compliance pertaining to the\nregistration<\/li><li>Compliance pertaining to tax invoice<\/li><li>Compliance pertaining to filing returns<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A Brief on GST Compliance Checklist <\/h2>\n\n\n\n<p>As mentioned above, businesses must comply with the\nrequirements under the GST rules notified by the government. However, becoming\nGST compliant requires following many processes, which can often be confusing\nand taxing without requisite guidelines. Provided below is a GST compliance\nchecklist which can be followed to make one&#8217;s business GST compliant:<\/p>\n\n\n\n<ul><li><strong>Registration-based compliance &#8211; GST Compliance Checklist<\/strong><\/li><\/ul>\n\n\n\n<p>The registration guidelines pertaining to the\nGST mandate that businesses are required to get GST registration depending on\ntheir annual turnover in the previous fiscal year. Businesses dealing with the\nsupply of goods with an annual turnover of more than Rupees 40 Lakh in the\nprevious fiscal year and businesses dealing with the supply of services with an\nannual turnover of more than Rupees 20 Lakh are required to mandatorily obtain <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/gst-registration\">GST registration<\/a><\/strong>.<\/p>\n\n\n\n<p><strong><em>Mandatory registration is also required by those\nfalling under the below mentioned:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Casual\ntaxable persons- This includes people who, in their capacity as either\nprincipal or agent, partake in transactions for the supply of goods or services\nin places where such people have no fixed place of business.<\/li><li>Non-resident\ntaxable person- This includes people who, in their capacity as either principal\nor agent, partake in transactions for the supply of goods or services where\nsuch people have no fixed place of business in India.<\/li><li>Interstate\nsuppliers<\/li><li>Suppliers\nwho supply goods through an operator running an e-commerce platform which is\nrequired to deduct tax at the source<\/li><li>Operators\nrunning E-commerce platforms through which suppliers supply their products<\/li><li>People\nwho are required to deduct TDS under GST<\/li><li>People\nwho are required to deduct TCS under GST<\/li><li>Input\nservice distributors<\/li><li>People\nmaking sale, either in their capacity as principal or agent, on behalf of\nanother<\/li><li>Service\nproviders who provide online service to non-registered persons in India from\noutside India.<\/li><\/ul>\n\n\n\n<p>Businesses can apply for GST registration by visiting\nthe official <strong>GST\nportal<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.gst.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>. After enrolment,\nbusinesses shall be granted a provisional certificate of registration as\nprovided under Form GST REG-25. Within three months of receipt of the\nprovisional certificate of registration, the applicant must submit Form GST REG-24\nalong with requisite documents and other necessary information. If the\ndocuments and information submitted are found accurate, sufficient, and\nsatisfactory, a final certificate of registration shall be granted under Form\nGST REG-26.<\/p>\n\n\n\n<p>Once GST registration is approved, Goods and Services\nTax Identification Number (GSTIN) is generated, which is a 15-digit unique identification\nnumber for business entities for tax purposes.<\/p>\n\n\n\n<ul><li><strong>Tax\ninvoice compliances (<\/strong><strong>GST Compliance Checklist)<\/strong><\/li><\/ul>\n\n\n\n<p>Once a business has been registered under GST,\nit needs to mandatorily follow certain invoice compliances to pass on the input\ntax credit. Businesses offering goods or services must generate invoices and\nsuch invoices must adhere to certain rules of compliance and must include\nspecific information as provided below:<\/p>\n\n\n\n<ul><li>Invoice date and invoice number<\/li><li>Shipping address and billing address<\/li><li>Name of the customer<\/li><li>Place of supply<\/li><li>Customer\u2019s GSTIN<\/li><li>Taxpayer\u2019s GSTIN<\/li><li>Harmonized System of Nomenclature or HSN code or Services Accounting Code or SAC, as applicable.<\/li><li>Taxable discounts and values<\/li><li>Details of item like, inter alia, description, value, unit, quantity<\/li><li>Amount and rate of taxes<\/li><li>Whether GST is payable on a reverse charge basis or not<\/li><li>Supplier\u2019s signature<\/li><\/ul>\n\n\n\n<ul><li><strong>HSN Code Requirements<\/strong><\/li><\/ul>\n\n\n\n<p>The Harmonized System of Nomenclature or HSN was developed\nby the World Customs Organization for the systemic classification of global\ncommodities. HSN code is used to determine the tax rate in a jurisdiction, and\nthe number of products exported and imported and helps in assessing the\nmovement of products globally. The Government of India has mandated that\nbusinesses have to mandatorily mention a 4-digit or 6-digit HSN code in GSTR-1\u2019s\nTable 12 and tax invoices. Businesses with a turnover of up to Rupees 5 Crore in\nthe previous fiscal year are required to report 4-digit HSN code in their\nGSTR-1 and businesses with a turnover of more than Rupees 5 Crore are required\nto report a 6 digit HSN code in their GSTRN-1. Businesses engaging in import\nand export are required to mention an 8-digit HSN code.<\/p>\n\n\n\n<ul><li><strong>E-Invoice\nRequirements<\/strong><\/li><\/ul>\n\n\n\n<p>According to the GST notification released on 24\nFebruary 2022, entities with an annual turnover of more than Rupees 20 Crore in\naggregate in financial years from 2017-2018 onwards are required to generate\ne-invoices and this mandate also applies to the vendors of such entities and if\nsuch vendors do not follow the requisite mandate, the input tax credit of such\nentity shall get affected. Earlier, the threshold for e-invoicing was Rupees 50\nCrore or more of annual turnover, which was applicable from April 2021. Prior\nto that, the threshold was Rupees 100 Crore or more of annual turnover, which\nwas to be applicable from January 2021. Without e-invoicing, the purchaser\nshall not be able to claim the income tax credit.<\/p>\n\n\n\n<p>Businesses with an annual turnover of Rupees 500 Crore\nare required to affix QR codes on B2C supply invoices. <\/p>\n\n\n\n<p>When filing GSTR 1, a unique series of invoices must\nbe raised, and the GST portal must not have repetitive invoices on it in the\nsame fiscal year.<\/p>\n\n\n\n<p>Non-compliance with invoice requirements can lead to\npenalties of up to Rupees 10000\/- or 100% of tax which is due to be paid for non-issuance\nof an invoice, whichever among the two is the larger sum and for erroneous\ninvoice generation, the penalty shall be up to Rupees 25000.<\/p>\n\n\n\n<ul><li><strong>GST\nReturn Compliance (<\/strong><strong>GST Compliance Checklist)<\/strong><\/li><\/ul>\n\n\n\n<p>All businesses registered under the GST system are\nrequired to file monthly or quarterly or annual returns based on the kind of\nactivity of the business. GST returns are required to be filed online on the\nofficial GST portal under the \u2018returns\u2019 section. The following forms are\nrequired to be filled out while filing returns:<\/p>\n\n\n\n<ul><li>GSTR-1:\nit is a return where details of the sale are reported to the government. One\nneed not pay any tax after filing this return.<\/li><li>GSTR-3B:\nit is a self-declaratory monthly return required to be filed by all taxpayers\nregistered under GST to disclose GST liabilities by delineating outward\nsupplies made, tax liability determined, and taxes paid, input tax credit claimed.<\/li><li>GSTR-9:\nthis return is filed by entities with an annual turnover of more than Rupees 2\nCrore in a fiscal year and must be filed annually. It contains information\npertaining to inward supplies which have been received and outward sale supplies\nwhich have been made in the last year and details of tax which is payable and\ntax which is paid. GSTR-9 is an amalgamation of various quarterly or monthly\nreturns filed in a particular year, like GSTR-3B, GSTR-2A and GSTR-1.<\/li><\/ul>\n\n\n\n<ul><li><strong>GST\non Reverse Charge<\/strong><\/li><\/ul>\n\n\n\n<p>GST is paid to the suppliers of goods and\nservices by collecting it from the recipient of such goods and services and paying\nthe consolidated tax to the government. However, in some cases, the recipient\nis the one who is required to pay the GST. This is called Reverse Charge on GST\nand it is imperative to pay such reverse charge to claim input tax credit from\nthe government.<\/p>\n\n\n\n<ul><li><strong>Apply\nLetter of Undertaking for Exports<\/strong><\/li><\/ul>\n\n\n\n<p>Registered persons supplying goods and services\nfor export purposes without furnishing payment of IGST are required to submit a\nletter of undertaking under Form GST RFD-11 as per Rule 96-A of CGST Rules,\n2017.<\/p>\n\n\n\n<ul><li><strong>Quarterly\nReturn Monthly Payment<\/strong><\/li><\/ul>\n\n\n\n<p>Quarterly Return Monthly Payment was introduced\nby the Government of India with a view to simplifying compliances to be\nfollowed by taxpayers. Under the QMRP scheme, businesses with an annual\nturnover of up to Rupees 5 Crore are qualified to file GST returns quarterly\nwith monthly payments. Businesses can choose to opt-in or opt-out of the QMRP\nscheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Businesses dealing with the supply of goods and services are required to be aware of the compliances to be followed under the GST system, and it is imperative that such businesses comply with GST norms and guidelines to avoid tax penalties, fines and other losses. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-gst-registration-in-india\/\">GST Registration Documents: A Complete Checklist<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and Services Tax or GST was introduced by the Government of India on 1 July 2017 with the aim to put in place a single consistent tax system which is destination based. GST is the tax which is levied on the goods and services provided for in the Indian economy and it was [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":51216,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[2943],"acf":{"service_id":"334"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":4200,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51215"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=51215"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51215\/revisions"}],"predecessor-version":[{"id":51218,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51215\/revisions\/51218"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/51216"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=51215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=51215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=51215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}