GST compliance checklist

People are usually worried about GST compliance. For running business GST compliant today we have provided GST compliance checklist for business to avoid any mistake in GST.We have tried to cover all major things to avoid mistake by business entities and thus to avoid penalty,interest or late fees in .

GST compliance checklist
GST compliance checklist
Following is the GST compliance checklist :
  • Business entities should display GST number at business premises. 
  • Business entity should register their own contact details like mobile number and Email id.
  • GSTR-1 and GSTR-3B should be reconciled monthly
  • Reconciling input tax credit in GST with GSTR-2A
  • Filing of timely GST returns even if NIL return
  • Filing both GSTR-1 and GSTR-3B
  • Issue invoice in case of RCM
  • Paying GST on receipt of insurance claim/gift/sample/write off/personal consumption or reversing ITC credits
  • Paying GST under RCM
  • Generation of Eway bill for job work
  • Claiming eligible input tax credit under GST
  • Charging applicable correct GST rate
  • Verifying authenticity of  GST notice
  • Uploading invoice wise data in GSTR-1
  • Paying GST under correct head
  • Mentioning HSN code in GST
  • In case of exports filing Letter of Undertaking
  • Showing additional places in GST registration
  • Understanding zero and NIL rated supplies
  • Correct choosing of GST invoice format and tax calculations
Below we have discussed GST compliance checklist each of above point in detail.
 
  • Business entities should display GST number at business premises:Every business owners registered under business should display their GST number on name board as it signifies that seller is authorized to collect tax from buyer.Non display of GST number on name board can lead to penalty.Also business owners are required to display GST certificate inside business premises.Business owner registered under composition scheme are also required to mention that they are not authorized to collect tax along with registration certificate.
  • Business entity should register their own contact details like mobile number and Email id:Business owners should always register their own mobile number and Email id with GST department as if mobile number or email id of practitioner or authorized signatory is submitted it may cause problem for business owners if they miss any update sent by GST department which if failed to be communicated by practitioner or authorized signatory.
  • GSTR-1 and GSTR-3B should be reconciled monthly:Registered business owners should reconcile their monthly GSTR-1 and GSTR-3B to avoid any mistake in filing of returns.
  • Reconciling input tax credit in GST with GSTR-2A: Non reconciliation of  GSTR-2A and input tax credit can lead to penalty,interest or GST notices hence it is advisable to reconcile GSTR-2A and input tax credit. GSTR-2A is auto populated from the returns supplied by suppliers hence input tax credit as claimed in books of accounts should be tallied with GSTR-2A.
  •  Filing of timely GST returns even if NIL return: It is necessary to file all returns timely to avoid any penalty,fees or interes for non filing. Some taxpayer may have misconception that if there are no transaction in the tax period returns need not be filed,but even if there are no transactions in any tax period NIL returns are required to be filed.
  •  Filing both GSTR-1 and GSTR-3B: Some tax payer may have misconception that only GSTR-3B or GSTR-1 is required to be filed but is necessary to file both returns.
  • Issue invoice in case of RCM: If any registered tax payer wants to claim input tax credit for tax paid on reverse charge mechanism it is required to issue invoice to self without which credit should not be claimed.
  • Paying GST on receipt of insurance claim/gift/sample/write off/personal consumption or reversing ITC credits:It is required to reverse input tax credit or pay GST on receipt of insurance claim/gift/sample/write off/personal consumption.
  • Paying GST under RCM: There are several provisions under GST to pay GST under RCM hence it should be properly complied by paying GST on reverse charge mechanism. 
  • Generation of Eway bill for job work:Generation of Eway bill is mandatory in case of jobwork.Non generation of Eway bill can lead to penalty and even confiscation of goods or vehicle.
  • Claiming eligible input tax credit under GST:There are provision under GST under which input tax credit is not eligible for few inputs.Taking ineligible input tax credit can attract penalty,interest or any other action by department.
  • Charging applicable correct GST rate
  • Verifying authenticity of  GST notice
  • Uploading invoice wise data in GSTR-1
  • Paying GST under correct head
  • Mentioning HSN code in GST
  • In case of exports filing Letter of Undertaking
  • Showing additional places in GST registration
  • Understanding zero and NIL rated supplies
  • Correct choosing of GST invoice format and tax calculations

Thus above is GST compliance checklist for business.

Owner of this information can be reached at K M GATECHA & CO LLP.

 

Important note: This does not lead to legal advice or legal opinion and is personal view and for information purpose only. It is prepared on  the basis of facts available and applicable law.It is suggested to go through applicable provisions of law,latest regulations,judicial announcements, circulars, notifications and clarifications  etc before taking any action based on above content.You agree here by that for any action taken on basis of above information in any manner writer or K M GATECHA & CO LLP is not responsible or liable for  any omission,reliability,accuracy,completeness,errors or authenticity.This work by professional is just for knowledge purpose and does not constitute any kind of  solicitation of work or advertisement.

 

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