GST Compliances for a New Regular Taxpayer

1. Display of GST Registration

• Display the GSTIN on your name board at the business premises.

• Print the GSTIN on all invoices and bills.

2. Issue Correct Tax Invoices

• Issue a tax invoice for every taxable supply.

• Must mention:

  • GSTIN of the supplier

  • Serial number

  • Date

  • Customer details (name, address, GSTIN if registered)

  • Description of goods/services

  • HSN/SAC code

  • Quantity, rate, taxable value

  • CGST, SGST, IGST separately

  • Total invoice value

3. Maintain Proper Books and Records

• Keep detailed records of:

  • Purchases and sales

  • Input tax credit availed

  • Output tax payable

  • Stock records

• Books must be preserved for 6 years from the due date of filing Annual Return.

4. File Periodic Returns

You must file:

Small taxpayers under QRMP (Quarterly Return Monthly Payment) scheme can file quarterly.

5. Pay Tax Timely

• Pay GST collected on sales minus eligible Input Tax Credit (ITC) through GSTR-3B.

• Pay through electronic cash or credit ledger.

6. Claim Input Tax Credit (ITC) Properly

• Claim ITC only on eligible purchases (goods/services used in business).

• Vendor’s invoice must match in GSTR-2B.

• ITC must be claimed within the due date of September month return following the financial year or date of Annual Return filing, whichever is earlier.

7. E-Way Bill Compliance

• Generate E-Way Bills for transportation of goods if value > ₹50,000.

• Update vehicle details if goods are moving beyond a certain distance.

8. E-Invoicing (If Applicable)

• Mandatory if turnover exceeds thresholds (₹5 crore from 1st August 2024).

• Generate invoices through Invoice Registration Portal (IRP).

9. Respond to GST Notices

• Reply promptly to any notices from GST Department.

• Late or wrong filing can attract penalties and interest.

10. Annual Reconciliation

• Reconcile all sales, purchases, ITC, tax paid before filing Annual Return.

11. Other Important Compliance

• Amendments: Update registration details (business address, contact, etc.) timely on GST portal.

• Stock Transfer: Maintain documents for stock transferred between branches with separate GSTINs.

• Audit (if turnover > ₹5 crore): Under GST law, books must be audited by a Chartered Accountant.

? Note:

• Late Fee and Interest are applicable if returns are filed late.

• Continuous non-compliance can lead to cancellation of GST registration.

Practical Tips for GST Compliance

1. Use Technology:

   • Adopt GST software (e.g., Tally, ClearTax, Zoho Books) to automate invoicing, return filing, and ITC reconciliation.

   • Use GSTR-2B for ITC matching with supplier data.

2. Stay Updated:

   • Follow CBIC notifications (www.cbic.gov.in) for changes in rates, thresholds, or compliance rules.

   • Check GST Council meeting updates (e.g., e-invoicing limits, return formats).

3. Hire Professionals:

   • Engage a CA or GST practitioner for complex cases (e.g., exports, audits).

   • Outsource return filing if you lack in-house expertise.

4. Reconcile Regularly:

   • Match GSTR-1 with GSTR-3B monthly.

   • Cross-check GSTR-2B with purchase records to claim accurate ITC.

5. Maintain Records:

   • Keep invoices, e-way bills, ledgers, and GST returns for 5 years.

   • Store digitally (e.g., Google Drive) for easy access during audits.

6. Leverage QRMP Scheme:

   • If turnover ≤ ₹5 crore, opt for the Quarterly Returns with Monthly Payment (QRMP) scheme to reduce filing frequency.

   • Pay 35% of previous quarter’s tax liability monthly via challan or ITC.

Common Challenges and Solutions

• Challenge: ITC mismatches due to supplier non-compliance.

  • Solution: Follow up with suppliers to upload invoices in GSTR-1; use GSTR-2B for reconciliation.

• Challenge: Late filing penalties.

  • Solution: Set calendar reminders for due dates (11th, 20th, 13th); automate filing via software.

• Challenge: Complexity of e-invoicing.

  • Solution: Use IRP-integrated software or consult a GST practitioner for setup.

• Challenge: Notices for discrepancies.

  • Solution: Respond within 30 days with proper documents (invoices, GSTR-2B, ledgers).

Resources for Regular Taxpayers

• GST Portal: www.gst.gov.in for registration, returns, and payments.

• E-Way Bill Portal: www.ewaybillgst.gov.in for generating e-way bills.

• CBIC Website: www.cbic.gov.in for notifications, circulars, and FAQs.

• GST Helpline: 1800-120-2323 for queries.

• GST Suvidha Kendra: Local centers for filing assistance.

• Trade Portals: www.indiantradeportal.in for export-related GST rules.

Conclusion

GST compliance for a regular taxpayer involves timely registration, accurate invoicing, regular return filing (GSTR-1, GSTR-3B, GSTR-9), ITC claims, e-way bill generation, and record-keeping. By leveraging technology, staying updated, and reconciling data, you can avoid penalties, claim rightful ITC, and focus on growing your business. Whether you’re a manufacturer, trader, or service provider, mastering these compliances ensures you stay on the right side of the law while maximizing GST benefits.