10 GST compliance to save you from penalty

10 GST compliance to save you from penalty:

Here we have compiled a list of  10 GST compliance to save you from penalty

1. Take registration in every state where it is required

It is important to understand that in GST registration is required in each state from where taxpayer is making a taxable supply. It may or may not be a place of business. In some cases even in case of a fixed establishment registration may be required. 

2. Calculate your tax liability in Reverse charge:

In GST liability of tax in case of some supplies is required to be discharged by buyer. This is called GST in revere charge mechanism. It is important to take care of that. Prepare a list of inward supplies liable for RCM and pay the tax on purchase of those supplies.

3. Pay the tax in correct head

It is very important to pay the tax in correct head. In GST IGST balance cant be used for payment of CGST/SGST and vice versa. In case the tax in deposited in wrong head it will become a working capital blockage.

4. File your returns: In GST filing of returns can be divided into four parts:

• GSTR 3B: Every taxpayer is required to file GSTR 3b monthly except composition dealer, ISD, TDS and TCS deducter.
• GSTR 1: Taxpayers having the turnover of less than 1.5 Crore are required to file GSTR 1 quarterly. In case of taxoayers having turnover of more than 1.5 crore GSTR 1 will be filed monthly.
• GSTR 2 & 3: These returns are on hold. 

5. E-way Bill: 

With every movement of Goods e-way bill is required. It is important to understand the provisions related to E-way bill. At this time two type of E-way bills are in operation. State run E-way bill and central E-way bill.Although their applicability is postponed for a future date but state wise e-way bills are still in operation.

6. GSTIN on signboard:

It is compulsory to show your GSTIN on the signboard. In case of default a penalty of Rs. 20000 can be levied.

7. GST registration certificate at place of business: 

It is also compulsory to display the copy of GST registration certificate at prominent place in business premise.Ignoring this may land you in trouble. A penalty will be there for such a minor default.Update your GSTIn on all communication and signboard.

8. GST on export supplies:

In case of export supplies provisions of section 16 of IGST Act are applicable. A taxpayer is required to take care of those provisions. In case of export without payment of IGST it is compulsory to take an LUT. In both cases exporter will also be eligible for refund of tax paid/ITC as the case may be.You need to apply for LUT and for refund. Thus both options will need some compliance.

9. GST Audit:

In GST an audit is required in case the turnover exceeds Rs. 2 Crore in a financial year. Taxpayers having liability of GST audit are required to get their books audited by a CA or CS.You need to work on your accounting from starting of GST for this audit. In case you are filing annual return of GST full compilation of yearly data will be required.

10. GST anti profiteering provisions:

GST enable the anti profiteering provisions. Any benefit received in GST is required to be passed on to the consumer. In case of default a complaint can be filed against taxpayer and they will have to bear the consequences.You need to calculate this amount and pass on the benefit. Also show it on the face of invoice if possible.

Thus a taxpayer is required to take care of these aspects. These were the 10 GST compliance to save you from penalty. Hope they were useful for all taxpayers.We can help you in further GST compliance. You can mail us for any GST requirement. 

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