As a small or large-scale business owner, understanding GST regulations will help simplify taxes. Your company has to be GST compliant, which means documenting purchases and paying taxes properly.
However, lacking clarity about GST can lead to heavy fines or penalties.
That’s why it’s essential to know the different compliance steps. These include business registration, tax return filing, and raising invoices. Curious to know more? This GST compliance checklist will tell you all about it.
The first compliance step is determining if your business is liable for compulsory registration.
You need to maintain GST regulations according to your annual turnover. Generally, most businesses providing goods or services with a turnover of INR 40 lakhs require GST registration. Companies with an annual turnover of INR 20 lakhs are liable for the process.
The annual income of the previous fiscal year is applicable here. You also must register your business under GST if you belong to any of the following categories –
After you know the business’s GST compliance eligibility, move forward with the registration.
You can complete this online process by visiting the official website of GST. So, head to the platform to provide details like PAN card number, mobile number and official email address. You also have to mention the place of registration in the GST REG-01 Form A.
After the platform verifies all the details, submit the necessary identification documents through your TRN number. A digital signature will be required for these documents. Then, the associated authorities will examine all your details.
Follow the instructions and enter details correctly to avoid getting rejected by the department.
After 3 to 7 days, you will receive your GST registration certificate with your unique GSTIN (Goods and Services Tax Identification Number).
After business registration, you have to focus on tax compliance regulations. You are required to submit a tax invoice for every transaction. This invoice must have the following details to be GST-compliant –
All these details must be carefully included in the invoice. Otherwise, you may suffer penalties up to INR 25,000.
You must file your GST returns on time monthly, yearly, or quarterly. Most importantly, you need to file returns even if you did not have any business transactions during the period.
The entire process will take place online which will include these forms –
After understanding the GST compliance meaning and associated rules, follow them strictly. This will keep you away from GST fines and administrative hassles. Plus, you’ll manage your business processes and finances better. Speaking of better financial management, there's no better platform to help you achieve this than Fi.
Fi, the AI-powered money management platform, can simplify your tax decisions by providing a comprehensive view of your finances. With Fi's Analyser, you can track your expenses by merchants/brands, categories such as food or entertainment, and daily/monthly time frames, which can help you identify potential tax deductions and credits. Additionally, Fi can offer helpful nudges to maximise your savings and investments, ultimately leading to greater tax savings. The Insights Hub on Fi's Analyser can also provide your credit score, which can be a valuable factor in tax planning. By utilising Fi's platform, you can easily make informed tax decisions.
GST compliance involves registration, tax invoice generation, invoice submission, and filing of GST returns timely.
Before the government's point of view, your business must remain completely transparent regarding GST compliance, including aspects like business transactions and turnover.