22 Jan

Monthly & Annual GST compliances

Monthly & Annual GST compliances

Business of transportation, hospitality, food production/processing, tools, equipment, etc. The minimum turnover for such goods and services should be INR 40 lakhs (for goods) and INR 20 lakhs (for services) it is mandatory to register yourself in GST. It is the only means by which the Government of India collects indirect taxes under the Central Board of Indirect Taxes (CBIT), which is applicable at every stage of the supply chain. Once, eligible GST taxpayers have registered in GST, they are responsible for fulfilling some GST compliance per financial year, otherwise, they may face legal charges. So, let us know about the major GST compliance that generally applies to goods and services business in India.

Note: Goods and services traders are subject to different GST rules depending on their nature/size/operation/zone etc. and therefore, GST compliance depends on such businesses

Adherence to GST after registration

The GST registered trader has a number of introductory compliance which will be carried out completely and then the trade should be followed till completion of GST registration. Here, we summarize these initial steps:

1. Put GST Registration Details (GSTIN) on the nameplate at the place of business

2. Make proper selection of CGST and SGST / IGST charges for goods/services

3. Issue invoices with GST permission within 1 month from receipt of GST registration certificate

4. Set GST charges on goods for sale/service as per applicable rates prescribed by CBIT

5. File ITC-01 form to claim input tax credit within 30 days from receipt of GST registration

6. You have GSTR-3B p.m. Get input tax credit on purchases after receiving your GST registration in

7. Keep books of GST allowed accounts and records

8. File GST in each financial year applicable after GST registration

While fulfilling its assigned GST duties, the concerned trader should ensure the following:

§  I  If a merchant is supplying intrastate, he is liable under CGST and SGST. Otherwise, for interstate supply, IGST should apply.

§        GST invoice should be issued for each taxable supply. The composition dealer should issue a supply/waiver supply bill. A single invoice-cum-bill should be issued for the supply of taxable/exempt items to an unregistered person.

§        For the supply of goods, a GST tax invoice should be issued at the time of removal of goods. In case of any service, a GST tax invoice should be issued within 30 days from the provision of service.

§       The trader should mention the GST applicable on the goods sold in the GST invoice otherwise penalty may be levied. Except for those for whom a reverse charge under GST is applicable, each supplier should issue such an invoice to the buyer and deposit the required GST tax in the government account within the due date.

§  I  Input tax credit (ITC) is claimed on the basis of GST levied on the purchase of goods/services with rates applicable in the form of CGST and SGST / IGST.

§        Composition dealers are exempt from levying any GST from buyers and are not eligible to claim ITC.

§       According to the GST Act, the registered trader must keep the accounts/records-to-date as per the prescribed guidelines, i.e., a record of at least 72 months per financial year from the date of filing of annual return in GSTR-9 / GSTR-9A. The following are the entries required to maintain GST as part of liability:

Ø     Production of goods

Ø     Outward and inward supply of goods/services

Ø      Output tax payable and paid

Ø      Stock register

Ø      ITC availed

Annual GST compliance per financial year

Once a trader is registered for GST (Goods and Services Tax), he/she must complete mandatory GST compliance in each financial year, such as:

Submit periodic GST returns with outgoing sales details of goods/services, ITC details, invoices, debit/credit notes etc. Summary returns are sent for the purpose of ensuring authenticity.

Tips: Merchants should upload all the required receipts along with their filing. GST provides online provision for review by suppliers and buyers (based on inbound/outbound supply) and modifies these currencies.

Depending on the type of GST registered trader, the filing time varies, such as:

1.    General GST Merchant: Monthly (both return/summary)

2.    Composite Dealers (Annual Turnover up to INR 1.5 Crore): Quarterly

3.    E-commerce Operators (They are responsible for collecting TCS): Monthly

4.    Input Service Distributor: Monthly

5.    Non-Resident Foreign Dealers: Monthly


1.    Preserve accounts and records in strict compliance with GST rules, such as purchase registration, sale registration, stock register, input tax credit record, output tax liability.

2.    Perform GST specific audits by a registered practicing chartered accountant to provide audited financial statements to the GST office for each financial year (mandatory for traders of goods/services whose annual turnover exceeds INR 2 crore in a financial year).

3.    Claim input tax credit through every GST registered, excluding composite dealers

4.    Submit a valid annual return for each GST registered taxpayer

Benefits of annual GST compliance for eligible businesses

o   GST is the only indirect tax option that exempts the taxpayer from many existing state and central level indirect taxes and therefore simplifies the process.

Very simple and profitable GST options are available for small traders, such as:

I. Composite GST

II. Elective GST

o   GST threshold is higher for general taxpayer registration and hence excludes small traders and relieves them from GST compliance.

o   GST registration and filing is an online process that can be updated, reviewed and corrected anywhere, anytime.

o   The number of GST compliance is low as it has now removed various previously valid state and central level indirect taxes.

o   The unorganized sector is regulated under GST and includes e-commerce operators

Returns to the annual GST file by eligible businesses

1) GSTR 1 Periodic Return (General Taxpayer)

2) GSTR 3B Self-declaration of GST summary

3) GSTR 4 CMO 08 Periodic Refund (Composite Dealers)

4) GSTR 5 Periodic Refund (NRI)

5) GSTR 6 Periodic Refund (Input Service Distributor)

6) GSTR 8 Periodic Refund (e-commerce operator)

7) GSTR 9 Annual Refund (All GST registered taxpayers, excluding composition dealers, casual taxable persons, ISD, non-resident taxable persons, persons paying TDS as per CGST Act 51)

8) Annual refund of GSTR 9A by composite dealers

9) GST 9 Registered Taxpayers are required to submit GSTR 9C Certified Reconciliation Statement with turnover in excess of INR 5 crore: With annual accounts audited GSTR-9 by the registered practicing CA.

10) Filing GSTR 10 returns for taxpayers whose GST registration has been cancelled

11) GSTR 11 GST Unique Identification Number (UIN) is issued to taxpayers to get a refund under GST for goods and services purchased in India.

12) GSTR REG 16 De-registration of GST, excluding taxpayers with UIN who are registered as tax deductors / tax collectors.



Santosh Patil (ICA & MBA)


Alliance Tax Experts



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