GST compliance service aims to help corporates become GST compliant by providing end-to-end return filing solutions, to ensure the businesses remain 100% compliant. Since GST is altogether new, it becomes difficult on the part of firms or companies to handle the compliances themselves as the organizations don’t have the in-house expertise to deal with GST law.
GST compliance consists of:
1. GST Registration
- Under GST Act, businesses whose turnover exceeds Rs.40 Lakh (Rs 10 Lakh for North Eastern and hill states) is required to register as normal taxable person.
- For certain businesses, registration is mandatory under GST compliance like for those registered under the pre-GST Law, a casual taxable person, an E-commerce aggregator, Non- Resident taxable person, a person paying tax under a Reverse charge mechanism, an agent of a supplier, an input service distributor.
- Penalty for non-compliance, in case of genuine errors like non-payment of tax or making short payments the penalty is of 10%of the tax amount subject to a minimum of Rs.10, 000. However, the penalty will be 100% of the tax amount in case of deliberate evasion.
2. GST Return
- Filing of returns under GST compliance is very significant as non-compliance and postponement will cause in penalties and affect timely refunds.
- Every registered dealer is required to file GSTR-1 and GSTR-3B by the 11th and 20th of the next month respectively.
- A dealer registered under the composition scheme is required to file GSTR-4 on a quarterly basis.
- An Input Service Distributor is required to file a monthly return GSTR-6.
- Registered taxpayers are required to file a yearly return as well in form GSTR-9 and every composition taxpayer shall file an annual return GSTR-9A.
- Since non-filing of returns will attract penalties therefore it’s necessary and important for every taxpayer to file it timely within the specified dates.
3. GST Invoicing
- Under GST Act, it is mandatory to issue invoices or bills of supply for every supply of goods & services. It is a list of goods sent or services provided along with the amount due for payment.
- In the case of goods, the invoice must be allotted on/before the date of removal/delivery whereas for services invoices need to be raised within 30 days of the supply of services.
- The type of invoice to be allotted depends upon the classification of the registered person making the supply. Every listed person buying goods or services from an unregistered person requires to raise a payment voucher as well as a tax invoice.
- In the case where a tax invoice has been issued for the supply and subsequently it is found that the value or tax charged in that invoice is more/less than what is actually payable or chargeable or where the recipient has returned the goods the supplier can issue credit/debit note respectively.
4. E-Way Bill
- It is an Electronic waybill issued on the e-way bill portal for the movement of goods worth Rs. 50,000 or more in a vehicle.
- An E-way bill is required to be generated by a registered person, unregistered persons as well a transporter subject to certain conditions.
- There are certain types of supply for which generation of E-way bill is mandatory like the inter-state movement of goods from principal to the job worker or inter-state transport of handicraft goods by dealers exempt from GST registration etc.
How ASC helps?
- The major compliance support that we offer under various parts of GST law is related to returns, which majorly includes the monthly work of preparation and filing of GSTR-1 & 1A, GSTR-2 & 2A, GSTR-3 & 3B & GSTR-6 as well as annual returns i.e. GSTR-9&9A
- Handling all queries on GST law for the parties, regularly updating the company about the continuous changes brought in by the government/department.
- Real-time and constant reconciliation with retailer’s books of accounts using the SmartRec System
- Provide support for any kind of GST Compliance requirement for ex Registration Regularization, amendment-related services, etc., and respond to departmental queries elevated on time to time basis.
- Analyzing whether the generation of an e-way bill is required or not, which type of e-way bill is required by the client, and assisting the client in obtaining the e-way bill on the portal.
- Our Approach is to gather data from the client and do a comprehensive review of the data then the concerned GST team does your work by taking your approval and providing the after-filing support as well.
Frequently Asked Questions
What’s the threshold limit for generating an e-invoice under GST compliance?
Currently, taxpayers with turnover exceeding Rs. 10 crores are required to generate e-invoices as part of their GST compliance. However, beginning from 1st January 2023, this limit will be revised and bought down to Rs. 5 crores. Further, it is being speculated that the limit will be further reduced by the end of the next fiscal year to Rs. 1 crore.
What is the QRMP scheme? Is it beneficial?
Quarterly Returns and Monthly Payments (QRMP) is a scheme for regular small taxpayers whereby they can elect to file their GST returns quarterly. Here, both GSTR-1 and GSTR-3B shall be filed on a quarterly basis. However, the taxpayer is required to auto-calculate tax and if the tax liability arises and ITC is insufficient to meet such tax liability, then the taxpayer shall pay the tax for that particular month irrespective of quarterly returns. Taxpayers with annual turnover up to Rs. 5 crores in a financial year are eligible to opt for the QRMP scheme.
What are all the compliances and related matters associated with GST that a GST professional can help us with?
GST is comprehensive indirect tax law. GST compliance does not end with obtaining GST registration and filing GST returns. Following are the GST services a professional can provide you with:
- GST registration
- GST returns
- GST annual return and reconciliation statement in GSTR-9C
- GST refunds
- GST e-way bill
- GST e-invoicing
- GST assessment, scrutiny, and audit (by the GST department)
- GST search and seizure proceedings
- GST litigation proceedings
- GST advisory and consultancy
How can I claim GST refund for the TCS collected by the e-commerce operator?
In case you are selling through an e-commerce operator, then the e-commerce operator is liable to collect TCS and deposit it with the government. The seller can claim a refund of the TCS so deposited by filing TCS returns online. This will credit the entire TCS amount to the electronic cash ledger. Then a GST refund application can be filed online for claiming a refund of the excess cash balance lying in the electronic cash ledger. GST TCS returns also form part of the GST compliance checklist as, without it, a GST refund application cannot be filed.