Types of GST Compliances and Applicability in India
The Goods and Services Tax (GST) revolutionized India's tax regime by subsuming various indirect taxes into one unified system. Since its inception from 1st July 2017, compliance with GST Law has always been a challenging issue for businesses as it requires knowledge on the tax regime as well as expertise on technology, as compliance has become vast, paperless and data-intensive.
Types of GST compliances
GST compliances are mainly clubbed into three categories:
Registration Compliance
Tax Invoice Compliance
Return Filing Compliance
In this article, we shall conduct an investigation into the registration compliance and return filing compliance requirements.
Registration Compliance
The first step towards compliance is the GST registration where the registration must be done based on a business's annual turnover and it can be done online on the website – www.gst.gov.in without any hassle.
Applicability for registration
Businesses that deal with the supply of goods with a turnover exceeding Rs. 40 Lakhs in the previous FY
Businesses that deal with the supply of services and with a turnover exceeding Rs. 20 Lakhs in the previous FY.
Registration is mandatory for businesses that satisfies the above criteria with strict penalties for non-adherence to GST registration.
Return filing compliance
Monthly, quarterly, yearly returns are required to be filed by the businesses where the frequency of returns depends upon the type of business activity. GST council enables users to file all their required returns online on the “Returns section” of the GST site.
Applicability
Returns | Due Date |
GSTR-1 | Monthly, 11th of the succeeding month, Quarterly, 31st of the month succeeding the quarter |
GSTR-3B | Monthly, 20th of the succeeding month |
GSTR-9 | 31st of December of the year following the relevant financial year |
GSTR-1: All sales details of the business are filed with the government in this return. Once this return is filed, no tax has to be paid by the users.
GSTR-3B: It is a self declared monthly return which summaries GST liabilities for a tax period. The summarized return provides details of all outward supplies made, input tax credit claimed, tax liability ascertained, and taxes paid. It is filed by all taxpayers registered under GST.
GSTR-2A: It is a system generated statement of inward supplies for a recipient.
GSTR-9: It is an annual return filed by taxpayers, having turnover of over Rs. 2 Crores in the financial year, containing details of outward sales supplies made, inward purchase supplies received during the previous year and details of taxes payable and paid. It is a consolidation of all the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that year.