As a first task in this article, we would like to thank you for being a part of building the nation by compliance with GST registration laws. GST is a trust-based tax regime in which the administration, tax collection, etc is based on submissions of forms, returns, and other details by the dealer. So in order to implement timely submission of information and data by the dealer, there are various rules which lay down the manner of submission, the time limit for submission of details, etc.
In this article, we explain the important compliance tasks that are required to be followed by every GST-registered dealer after registration and in periodic intervals.
What are the compliance, forms, and other details that are required after approval of the GST registration number?
Steps to create a new username and password, download the GST certificate, and selection of core business activity after approval of GST Online registration.
- Click here for navigation to the new GST login creation page.
- Enter GST no received in e-mail as username and password received in E-mail.
- Once submitted, the option to create a username will be available, create a memorable and easy-to-remember username, this is a one-time option and cannot be changed again.
- Once the username and password are changed, save the same in your email or personal diary.
- Now login to gst.gov.in using login credentials
- You will be prompted to select any one option as the nature of the core business, as MANUFACTURER/ TRADER/ SERVICE PROVIDER and OTHERS.
- Select any one of the options applicable to your business
- Click on your name in the top right corner and navigate to the profile section
- On the left column, click on My Registration certificate, now GST certificate will be downloaded to your system or mobile device.
How to display of GST registration number
Immediately after the GST registration is approved the GST number should be displayed on name boards of the enterprises and business addresses, in the case of a GST registration for composite taxpayer the words “composite taxable person” shall also be displayed along with the GST number.
The certificate of registration shall be displayed at a prominent place in the registered office and all other branches.
In case of the addition of a branch and change of address, the same shall be updated in the GST portal with the required supporting documents.
Quoting of GST number in the delivery note, and other documents is mandatory
Aadhaar’s authentication and addition of bank account details
In case the registration application is not submitted using Aadhaar KYC then it is mandatory to complete Aadhaar KYC within the stipulated time after registration. If you do not have an Aadhaar number, E-KYC can be done by uploading any of the documents such as a driving license, voter ID, bank statement, or passbook first page with a photo, etc.
Bank account details opened in the name of the business shall be added within 45 days from the date of grant of the GST registration certificate. A cancelled cheque having the business name printed on it or the first page of the bank statement shall be uploaded as a supporting document.
Selection of return filing frequency
GST monthly return filing frequency such as QRMP scheme or monthly filing scheme should be selected in case of first-time return filing, by default monthly return filing option will be enabled. During GST return filing for the first month, GST common portal will prompt to select frequency before filing the return.
How to File GST return for compulsory registration
Where GST registration is required to be applied on a compulsory basis depending on threshold criteria and other conditions, the application for registration of GST should be submitted within 30 days from the date of applicability.
For example, compulsory registration is required for dealers in Chennai where the value of taxable supplies exceeds the threshold limit of Rs.40,00,000 for trading and Rs.20,00,000 for a provider of services. Application for Online GST registration in Chennai should be filed within 30 days from the date of exceeding the threshold limit.
In the above case, when registration is applied within the time allowed, there will be a time gap between the liability to apply for GST registration and the date of approval of GST registration. The dealer should include the details of outward supplies, and other details in the first return made during this period. Invoices and other documents issued in the intermediate period shall be revised for enabling the other dealers to utilize the credit.
Setting up a framework for invoicing and maintenance of GST records and others.
- The format of the invoice should contain all the information which is required as per the GST Act 2017, you can also read detailed information on how to prepare a GST invoice.
- Maintenance of details of outward supplies.
- Invoice details of purchases for the purpose of input tax reconciliation and other purposes.
- Implement controls to check the correctness of invoices raised.
- Generate E-way bills wherever required.
- Intimate your GST number to all of your vendors.
- If any binding quotation/purchase order is pending execution, then try to revise the terms to include the additional amount on account of GST payable.
- Set apart estimated GST payable each month, this will help you make payment of GST and file monthly returns on time.
Regular and periodic compliance, which are required after approval of GST registration
GST Act 2017 is tax law, so compliance is critical in order to avoid penalties, action from the department, suspension or cancellation of GST registration, demand notices, etc.
Here, we have tried our level best to include major activities required for a better track record and proper compliance with GST Act 2017.
Important aspects of filing monthly or quarterly GST returns and other periodic return
- In the case of a dealer who had opted for monthly return filing frequency for GST filing, GSTR-1 returns on outward supplies and other invoice-level information, such as credit notes, debit notes, and amendments, shall be filed on or before the 11th day of the succeeding month.
- Monthly returns with consolidated details of outward supplies, reversals, and input tax credits should be filed on or before the 20th of the succeeding month in form GSTR-3B. For example, for the month of July 2023, GSTR-1 returns shall be filed on or before 11 August 2023, and GSTR-3B shall be filed on or before 20 August 2023.
- Similarly, in case of dealers who are opting for the QRMP scheme or composition scheme should pay tax and file returns within respective dates as per the QRMP scheme or composition scheme.
- In case of dealer opts for the QRMP scheme, additional calculations and maintenance of records are important.
- In case of delay in payment of tax, interest at the rate of 18% will be payable.
- Reconciliation of 2B for each month with the purchase data is important to ensure our vendors have filed and paid taxes on time and invoice level details are accurate.
- Ensure data submitted in GSTR-1 match with data submitted in 3B, in case of any mismatch or discrepancies it is requested to rectify before the department commences scrutiny of returns U/s 61 and sends a notice under Rule 99.
- Continuous failure to file GST returns for a period of 6 months will result in cancellation of GST registration by the officer, same as in other cases GST registration will be cancelled if returns for 3 consecutive periods are not filed.
- Any discrepancies in the GST return filed will also result in the cancellation of the GST registration by the officer.
- In case of non-filing of returns, the officer is empowered to issue notice for best judgment assessment for assessing tax payable, in case of the best judgment assessment demand is raised considering the purchase data, and other returns filed for the previous periods, etc.
- Annual returns are required to be filed for every financial tear if turnover before tax exceeds Rs.2 crores in form GSTR-9 and reconciliation statement in form GSTR-9C shall be filed if turnover is above Rs.5 crores.
Dealing with GST notices and communication from the department
- In the majority of cases, notices or communications sent to taxpayers will be forwarded to the registered E-mail ID available, and it will also be displayed on the GST portal dashboard, some notices and communications will not be directly visible in the dashboard, therefore it is suggested to look on to additional notices and notices sections.
- We recommend having a periodical review of the presence of any discrepancies, notices, etc, for notices it is recommended to review at least once in 2 months.
- In order to avoid scrutiny assessment and possible demands due to discrepancies, a brief audit of input tax claimed and available, purchases and reconciliation between GSTR-1 and GSTR-3B shall be completed on a financial year basis.
- When a GST notice is sent to cancel GST registration or suspension of GST registration should be dealt with properly even if we are wishing to cancel, we should not let our GST number be cancelled by the officer because of our defaults.
- If you receive any notices, we should proceed appropriately with the services of GST consultants for GST notices. Priority should be given to replying to notices on time so that further action cannot be taken by the officer based on non-compliance and no response.
- In most cases, the officer has a maximum time of 5–6 years to issue notices, orders of demand, produce the documents, etc. So it is recommended to preserve GST-related documents and data for at least 5–6 years from the end of the financial year.