1. GST Registration

• Mandatory Registration: Any business whose turnover exceeds the threshold limit specified by GST laws needs to obtain GST registration.
• Voluntary Registration: A business can also opt for GST registration even if its turnover is below the threshold limit.
• Types of GST Registration:
  • Regular Scheme
  • Composition Scheme
  • GST for Non-Residents

2. Filing GST Returns

Different types of returns need to be filed depending on the type of taxpayer and the nature of the business. Types of GST Returns are

• GSTR-1: Details of outward supplies of goods and services. It needs to be filed monthly or quarterly.
• GSTR-2A: Auto-populated details of inward supplies made by the taxpayer. This is automatically generated based on the GSTR-1 filings of the supplier.
• GSTR-3B: Summary return for self-assessment of tax liabilities, along with payment details. Filed monthly by most businesses.
• GSTR-9: Annual return for GST-registered taxpayers, filed once a year, summarizing all the monthly/quarterly returns.
• GSTR-9C: Reconciliation statement for taxpayers who are required to get their accounts audited.
• GSTR-4: Return for taxpayers under the Composition Scheme, filed quarterly.
• GSTR-5: Return for Non-Resident Taxable Persons who have registered under GST.
• GSTR-6: Return for Input Service Distributors, who distribute credit to other units.
• GSTR-7: Return for persons who are required to deduct TDS.
• GSTR-8: Return for e-commerce operators who collect TCS on behalf of suppliers.

Filing Timeline:

• Monthly Returns: GSTR-1 is generally filed by the 11th of the next month & GSTR-3B must be filed by the 20th of the next month.
• Quarterly Returns: If you are eligible for the Quarterly Return Monthly Payment Scheme (QRMP), GSTR-1 is filed quarterly, and GSTR-3B is filed quarterly with monthly payment of tax.
• Annual Return (GSTR-9): The due date is typically 31st December of the subsequent year.

3. Payment of GST

GST is paid by the taxpayer on a monthly or quarterly basis, depending on their filing frequency. Payments are made online through the GST Portal.

• Output Tax: Tax collected on sales of goods and services.
• Input Tax: Tax paid on purchases.
• Net GST Payable: Net GST payable is the difference between output tax and input tax.

Modes of GST Payment:

• Cash Payment & Input Tax Credit (ITC)

4. GST Invoices and Documentation

Maintaining proper documentation is a key part of GST compliance.

• Tax Invoices
• Credit Notes and Debit Notes
• Delivery Challan
• GST Payment Challan
• Books of Accounts

5. Input Tax Credit (ITC)

ITC is the credit businesses can claim for taxes paid on their purchases, which can be used to offset the GST liability on their sales. Conditions to claim ITC:

• The goods or services must be used for business purposes.
• The taxpayer must be in possession of a valid tax invoice.
• The supplier must have paid the tax and filed the return.
• ITC cannot be claimed for certain goods and services, like motor vehicles (unless used for business purposes such as transport).

6. GST Audit and Reconciliation

• GST Audit: Certain businesses with a turnover exceeding ₹2 crore need to get a GST audit done by a CA or CMA.
• GST Reconciliation: Taxpayers must reconcile their GSTR-3B with the GSTR-1 and GSTR-2A to ensure there is no mismatch between the output and input tax.

7. GST Compliance for E-commerce Sellers

• E-commerce Operators: Businesses that sell through online platforms like Amazon, Flipkart, etc., must comply with additional GST requirements, such as TCS & GST Registration

8. Penalties for Non-Compliance

• Late Filing Fees
• Penalty for Incorrect Invoices
• Non-Payment or Short Payment of Tax
• Failure to Maintain Records.