GST Compliance Services
GST Registration
The Goods and Service Tax (GST) is an indirect tax regime designed to convert the entire nation into a single market. It has replaced multiple taxes—such as VAT, excise duty, services tax, and more—levied by the Central and State Governments.
GST registration is mandatory for companies that supply goods and have an annual turnover of more than Rs 40 lakh. This threshold is Rs 20 lakhs for special category states.
It is also mandatory for any business that offers services and has an annual turnover of more than Rs. 20 lakh. For special category states, the limit is Rs. 10 lakhs.
GST registration is important to claim various benefits, improve the credibility of the business, claim Input Tax Credits (ITC), and other purposes. Without a GST registration, no entity is permitted to take GST from a customer or ask for an input tax credit for the paid GST.
GST is a PAN-based registration, so the total income is calculated based on the PAN. This means that even if a person has several locations of business, GST is calculated based on a single PAN, and they’ll be given one provisional registration under GST.
For GST registration in India, Isha is a reliable and affordable service provider.
Types of GST Returns
There are 13 GST returns, but the number and type of returns a business/professional must file are based on the type of registration
| Title 2 | Purpose |
|---|---|
| GSTR-1 | For reporting sales and outward supplies |
| GSTR-3B | Includes details of both outward and inward supplies, along with the payment of taxes. |
| GSTR-4 | Provides a summary of their turnover and tax liability. It is designed for taxpayers under the Composition Scheme. |
| GSTR-5 | Should be filed by non-resident foreign taxpayers engaged in taxable activities in India. |
| GSTR-5A | Should be filed by online information and database access or retrieval (OIDAR) service providers. |
| GSTR-6 | Meant for Input Service Distributors to report the distribution of input tax credit (ITC) among their units. |
| GSTR-7 | For taxpayers who are required to deduct Tax Deducted at Source (TDS) under GST. |
| GSTR-8 | Should be filed by e-commerce operators to report supplies made through their platform. |
| GSTR-9 | Annual return that provides a consolidated summary of all monthly/quarterly returns filed during the financial year. |
| GSTR-10 | Final return filed when a taxpayer’s GST registration is surrendered or canceled. |
| GSTR-11 | Must be filed by persons having a Unique Identity Number (UIN) to claim a refund of taxes paid on their purchases. |
| CMP-08 | Quarterly return for taxpayers under the Composition Scheme to report their tax liability. |
| ITC-04 | Must be filed by taxpayers who are manufacturers to report the details of goods sent to a job worker and received back. |
| GSTR-2A (dynamic) | Provides a dynamic view of inward supplies as reported by the suppliers. |
| GSTR-2B (static) | Offers a static view of inward supplies based on the supplier’s returns |
Monthly / Quarterly Returns
Filing GST monthly returns is mandatory for businesses with an annual turnover greater than Rs. 5 crore in the previous financial year. Such businesses need to file their GST returns once every month, or 12 times in a financial year, in forms GSTR 1 and GSTR 3B.
The Quarterly Returns Monthly Payment (QRMP) can be opted for by businesses whose annual turnover is less than or equal to Rs. 5 crore. This was introduced to help small businesses reduce the cost of filing GST returns. Businesses that have opted for the QRMP scheme must file GST returns four times a financial year or one in each quarter of a year. These returns can be filed quarterly on GSTR 1 and GSTR 3B forms.
Annual Returns
GSTR 9 is an annual return that needs to be filed by taxpayers registered under GST. It has details of the outward and inward supplies received/made during a financial year under different tax heads such as CGST, HSN, SGST, and IGST codes. This annual return is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, and GSTR-3B) filed in that year.
GST Audit
GST audits are a detailed examination of the books of accounts, records, and other documents of a taxpayer. Companies need to get their accounts audited by a Chartered Accountant in practice.
The audit aims to verify compliance with the provisions of the GST law, including the payment of tax, the correctness of the tax returns filed, and compliance with other provisions of the law.
Departmental Audits
This is a routine audit for GST that is conducted by the tax authorities on a regular basis. The tax authorities have been authorized to conduct an audit of records maintained by the GST-registered businesses to ensure proper calculation and discharge of liability.
Statutory Audits of Companies
If the taxpayer’s aggregate turnover during a financial year exceeds Rs. 2 crore, then they have to get their accounts audited by a trusted CA. A certified copy of these audited accounts and a reconciliation statement need to be submitted in form GSTR 9C.
Special Audit
As per Section 66 and Rule 102 of the GST Audit Rules, an authorized officer (not below the rank of Assistant Commissioner) at any stage of scrutiny, inquiry, or investigation may avail the services of a CA or CMA by considering the nature and complexity of the business and if the authorized officer believes that:
- Value has not been correctly declared; or
- The credit availed is not within the normal limits, the authorized officer shall issue the direction for the audit in Form GST ADT-03, wherein the registered dealer shall be required to get his records, including his books of accounts, examined and audited by the specified professional CA or CMA within ninety (90) days from the day of passing such an order.
Limited scrutiny
This audit is conducted in certain cases where the tax authorities suspect non-compliance with the provisions of the GST law.
Taxpayer-Initiated Audit
This is an audit initiated by the taxpayers themselves to verify compliance with the GST regulations. A qualified CA can help them with this process.
Certifications
The GST certificate has a nine-digit alphanumeric number issued to the registered business/professional. This number is known as the GSTIN (Goods and Services Tax Identification Number). It is unique and is used to identify the taxpayer and their transactions.
The certificate contains the name, address, and type of taxpayer (manufacturer, service provider, etc.). It also includes the details of the taxes paid by the taxpayer, the date of registration, and the date of expiry of the certificate. The certificate is valid for one year from the date of issue and needs to be renewed every year.
Appeals
Any business or taxpayer aggrieved by the decision or order passed against him by an adjudicating authority can appeal to the Appellate Authority (commissioner and joint commissioner) within three months from the date on which the decision or order is communicated to them.
Appealable Orders
- Enforcement Order
- Assessment or Demand Order
- Registration Order
- Refund Order
- Assessment Non-Demand Order
- LUT Order
A reliable CA can guide taxpayers through the appeal process.
