GST or the Goods and Services Tax is a statute implemented on 1st July 2017 with the motive to have a nationwide single tax structure governing the transactions connected to goods and services wherein, taking a revolutionary move, the introduction of GST as an indirect tax replaced pretty much all the central and state indirect taxes, such as VAT, Service tax, Excise duty, and so on.
GST compliances and procedures
GST needs common compliances and procedures to be followed by these coming below its ambit.
The procedures to be followed listed down inclusively as under:
- Enrollment connected compliances
- Invoicing connected compliances
- Returns connected compliances
- Other compliances
Registration compliances:
The registration portion is the foremost compliance below GST is registration. It is a turnover based compliance wherein, any particular person who has a turnover exceeding Rs 40 lakh in goods and Rs 20 lakh in services in the prior economic year wants to get registered in the GST regime and therefore, start off following other compliances as a registered supplier.
Invoicing connected compliances:
Any particular person registered in GST wants to then adhere to other compliances in which one of the everyday procedures is invoicing.
Every registered dealer below GST wants to be compliant with specific information when issuing a tax invoice which lists down as below:
- Invoice quantity and date
- Customer name
- Shipping and billing address
- Customer and taxpayer’s GSTIN (if registered)**
- Place of provide
- HSN code/ SAC code
- Item information i.e. description, quantity, unit, the total worth
- Taxable worth and discounts
- Rate and quantity of taxes
- Whether GST is payable on a reverse charge basis
- Signature of the supplier
The above information are mandatory in a GST invoice to make certain compliance.
Returns connected compliances
The filing of return is one of the most crucial issues in compliance below the GST. GST law registered dealer, wants to file a statement of the transactions of the company i.e. returns on a month-to-month/quarterly/annual basis (As applicable on the dealer registration nature).
The main types of these returns and applicability are:
- GSTR-1 is the return to be furnished for reporting information of all outward supplies of goods and services created.
- GSTR-3B is a month-to-month self-declaration to be filed, for furnishing summarized information of all outward supplies created, input tax credit claimed, tax liability ascertained and taxes paid. It is filed by all taxpayers registered below GST.
- GSTR-9 return is filed annually by taxpayers below GST getting turnover of more than Rs 2 crores in the economic year, containing information of outward sales supplies created, inward buy supplies received in the course of the prior year below numerous tax heads along with information of taxes payable and paid. It is a consolidation of all the month-to-month or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in the course of that year.
- GSTR 9C is proposed for abolishment in the Finance Budget for 2021. It was a reconciliation statement among the returns filed and the economic statements of the registered dealer getting a turnover of more than Rs 5 crore.
Other compliances below GST – Some other compliances followed according to the nature of their company are:
EWay Bill- It is an Electronic Waybill for the movement of goods. A GST registered particular person can not transport goods in a automobile whose worth exceeds Rs 50,000 (Single Invoice) with no the cover of an e-way bill.
Payment of tax- A particular person who has a liability to spend tax on his outward supplies/sales wants to spend the taxes when filing the return GSTR3B month-to-month or quarterly as applicable.
By Lionel Charles, CEO, IndiaFilings