Key Compliance Steps After GST Registration

The ruler’s who are one side of coin has brought GST into the implementation as Good and Simple Tax from 1/7/2017 by conducting special parliament sessions on the night of 30/6/2017 off-course they are having sleepless night on that day only. For followers RTP and Consultants not having sleepless nights after that day who are the other side of coin. GST is not at all Good and simple tax it is very difficult to follow by complying day to day changes. For non-compliance they are heavy penalties in chapter XIX of CGST Act,2017. To avoid them we have tried to explain the important act and rules in lucid way which are useful in day-to-day implementation.

Registration:

1. Entity needs to include Bank Account details in GST website within 45 days from the date of GST Registration or within the first GST Return filing.

2. GST Registration certificate with Number should be maintained in two places at PPOB/POB

• Billing counter
• Any other prominent place

3. Display of registration certificate and Goods and Services Tax Identification Number on the name board (Rule18)

4. Services received for Freight, rent from unregistered person tax should be paid under RCM (Reverse Charge Mechanism)

• RCM applies only for Specified Goods/Services (for more information seek advice from auditor)

Books Maintenance:

• Bill Books are to be maintained with GST number mentioned on it and invoices to be serially numbered.
• Every year bill book serially numbered starting from 01 recommendatory.
• Books should be maintained 5 years from the date of GSTR 9 due date (not from the date of return filed by the entity)
• Books of Accounts will include invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers, accounts of Stock (Quantity), input tax credit availed
• Books of Accounts should be maintained at PPOB (Not at consultant office or any other place) (PPOB-Principal Place of Business)
• Sale invoice exceeding total ₹ 50,000/- per invoice where movement has happened waybill should be generated compulsorily either by Buyer/seller.
• Any sale value exceeding ₹ 200/-, bill should be generated compulsorily
• HSN code(6digits) should be mentioned clearly in every bill
• for executing works contract they shall keep separate accounts for works contract
• Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.
• On advance received for services the RTP has to raise the voucher and has to pay tax for pertaining to the month. Whereas advance received for goods is not applicable.
• A GST Credit Note should be issued by RTP 13^th of November of that previous F.Y For example RTP can issue Credit note for the F.Y 2024-25 by 13/11/2025.

Composite scheme:

1. Turnover below 1.5 crore of sale of goods can opt for composition scheme where tax shall be calculated 1 % on total turnover with some limitation as specified in Sec10 of CGST Act,2017

2. Tax to be paid on every 18^th of completing of quarter (say for Q-1 on 18^th of July) and within June-30^h GST-4(Annual Return) return should be filed.

3. Composite scheme shall not apply to some specific business as per section 10 of CGST Act,2017.

4. Composition scheme can apply to Service Sector also where ATO (Aggregate Total Turnover) has not exceeded Rs50 lakhs for further clarification you can refer 10(2A) of CGST Act,2017

Visiting by GST Officer:

GST officer may inspect PPOB/POB only in 3 situations:

• Search & Seizure of Goods (Sec 67 with authorization without prior intimation)
• Physical verification of business premises in certain cases. After verification in the portal of concerned RTP will be reflected physical verification is done (Rule 25)
• During Audit (Sec 65 with prior information)

Other than these GST officer cannot inspect the PPOB/POB .

Return Filing:

Every Regular RTP (Registered Taxable Person) has to file GST returns namely GSTR-1 & GSTR-3B

For this returns Late fees and Interest will be calculated automatically except for GSTR-2B and GSTR-1.

Input Tax Credit:

1) Every RTP can avail input which is reflected in GSTR-2B and possessing invoice from 1/1/2022 is a statutory right. But it is not right as per constitution as per Article 300A.

2) ITC can be availed on inputs, input services and capital goods with certain limitation as specified in Section 17(5) of CGST Act,2017 like  gift, goods stolen, destroyed, restaurant services,  beauty treatment, health services, cosmetic and plastic surgery membership fees of clubs, Passenger Motor vehicles of below capacity of 14 members and related services to vehicle(Owner owned vehicles nothing but white board), for self-consumption, Any tax paid u/s 74 of CGST Act,2017, Goods/Services/Works Contract used for construction of immovable property.

3) Regular RTP has to make payment to buyers/vendors from whom he has taken ITC with in 180 days. Otherwise, we have to temporary reverse ITC with interest (Rule 37).

4) Taxpayer has to pay 1% through cash ledger for discharge of output tax liability remaining amount can be used from ITC if available provided their sale turnover per month exceeds 50 lakhs. Example if a RTP has to pay Rs.5 lakhs as output tax liability then he has to discharge the at least Rs.5000 from cash ledger remaining from credit ledger.(Rule 86B)

5) RTP having both exempted and taxable supplies availing common ITC then he has to take proportionately as per Rule 42 & 43 including capital goods.