18/08/2020
STEPS TO BE TAKEN IMMEDIATELY AFTER TAKING GST REGISTRATION:
Many times taxpayers take GST number but he doesn’t know what to do after GST registration.
GST registration comes with following responsibilities:-
1. Display of registration certificate and GST Number on the name board
a.The first step after taking GST registration, every registered person must display the GST Registration certificate at a prominent location at his principal place of business and at every additional place of business.
b.In case of Composition dealer, the registered person must mention the words “composition taxable person” on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place of business.
Penalty for not displaying the registration certificate and goods and service tax identification number on the board: Any amount up to Rs. 25,000/-
2. Start issuing the valid GST invoices
The buyer claims the input tax credit on the basis of the GST invoice. After obtaining GST registration, the taxpayer must start issuing the valid invoice that is complying all the invoicing rules. GST invoice is issued in case of taxable supplies whereas the bill of supply is issued for exempt supplies. A single Invoice cm bill of supply may be issued in case of the supply of both taxable and exempt supplies to an unregistered person.
Invoice issued by the registered person must contain the particulars as prescribed in CGST rules
In the case of composition dealer, a bill of supply is issued by him. He must be mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply.
In the case of goods, a tax invoice must be issued at the time of removal of goods and in case of services, it must be issued within 30 days from the service is rendered.
A registered person may not issue a tax invoice if the value of supply is less than Rs. 200 and subject to the following conditions:
Recipient is not a registered person
Recipient does not require such invoice
However, a consolidated tax invoice for such supplies shall be issued at the close of each day in respect of all such supplies.
Offences related to tax invoice
As per the CGST Act, the following are the offences related to tax invoice:
Supplies any goods or services or both without any invoice.
Issues a false invoice for supply of any goods or services or both.
Issues any invoice or bill without supply of goods or services or both in violation of the provisions of GST Act or Rules.
Issues any invoice or document using the registration number of another registered person.
All the above offences are subject to penalty provisions of section 122 of CGST Act and the amount of penalty is higher of the following:
100% of the tax due
10, 000/-
3. Charge, collect and deposit the GST
After obtaining the registration, the registered person is liable to charge GST on all taxable supplies and declare the same in GST invoice raised by them. Every goods have a separate GST rate and HSN code.
GST collected by the supplier from the buyer is to be deposited to the government on or before filing the GSTR-3B. The supplier can deposit the GST to the government by online or through bank counter.
Composition dealer is not eligible to charge GST. He shall be liable to pay GST on aggregate turnover.
Offences related to the collection of tax
Not paying tax collected to the government beyond a period of three months
The penalty amount for the above offence is the higher of the following:
10,000
The amount equivalent to the tax evaded or fraudulently obtained as refund or availed as credit.
4. Maintain proper accounts & records
As per the GST Act, every registered person shall keep and maintain at his registered place of business, a true and correct account of –
Production of goods
Inward and outward supply of goods or services or both
Stock of goods
Input tax credit availed
Output tax payable and paid
Goods or services exported or imported
supplies attracting payment of tax on reverse charge
For a financial year, accounts maintained by the registered person supply shall be preserved for a period of 72 months from the due date of filing of annual return in GSTR-9 or GSTR-9A for such a financial year.
The records may be maintained in electronic modes like Tally, ERP, and SAP.
Penalty for failure to keep, maintain or retain books of accounts and other documents in the manner specified in the Act/Rules: Rs. 10,000/-
5. File GST Returns
After obtaining GST registration, taxpayers should know about the applicable GST returns on them. Returns should be filed on time to avoid late fees and penalties. All GST returns can be filed on the GST portal, common for all taxpayers across India.
Normal taxpayers must file GSTR-1 for sales details and GSTR-3B returns for reporting a summary of sales and ITC. Pay tax and then file GSTR-3B.
GSTR-4 is for composition dealers.
