GST Compliance

GST Compliance Meaning

A significant tax reform in the country has been brought about by the implementation of the new GST tax system. The new system combines several local, state, and federal taxes into a single, fungible tax. This much-needed reform has improved administrative paperwork and increased transparency in the framework for collecting taxes. Since its implementation, the new system has benefited the majority of firms, particularly small and medium-sized ones that depend on technology to handle activities like online tax filing and registration.

GST compliance Services

There are three important GST compliance Services which our company SRV Associates provide. Now let’s understand what are those services.

Registering for GST


According to the GST Act, companies must register as regular taxpayers if their annual revenue exceeds Rs. 40 lakh (Rs. 10 lakh for the North Eastern region and hill states).


A casual taxable person, an e-commerce aggregator, a non-resident taxable person, a person paying tax via the reverse charge mechanism, an agent of a supplier, and an input service distributor are examples of enterprises for which registration under GST is required.


Penalties for non-compliance include 10% of the tax amount with a minimum of Rs. 10,000 and include real errors like failing to pay tax or making short payments. However, if willful evasion occurs, the fine will be 100% of the tax amount.


Return of GST

The filing of returns under the GST regime is crucial since failure to comply and delays will result in fines and delay the processing of refunds.


By the 11th and the 20th of the next month, each registered dealer must submit Forms GSTR-1 and GSTR-3B.


A dealer who has registered with the composition scheme must submit GSTR-4 on a quarterly basis.


A monthly return GSTR-6 must be filed by an input service distributor.


Every composition taxpayer must file a GSTR-9A annual return in addition to a GSTR-9 yearly return for registered taxpayers.


Since fines apply for failure to file returns, it is imperative that each taxpayer submits their paperwork on time and by the deadlines.


GST Invoicing 3

For each provision of goods and services, a bill of supply or invoice must be issued in accordance with the GST Act. It is a list of the items sent or the services rendered, together with the payment amount.


Invoices for items must be sent on or before the date of removal or delivery, whereas invoices for services must be submitted within 30 days after the completion of the services.


The classification of the registered person making the supply will determine the type of invoice that will be assigned. Every listed person who purchases goods or services from an unregistered person must produce both a tax invoice and a payment voucher.

If a tax invoice has been produced for the supply and it is later discovered that the value or tax charged is higher or lower than what is actually owed or owed, or if the recipient has returned the items, the supplier may issue a credit note or a debit note, as appropriate.


Benefits of GST Compliance

Enhanced Trust

A high compliance rating has the most influence on improving trust between you, other taxpayers, and businesses. The better your firm is doing, the higher your rating will be. This lets other people know that your company is stable and in capable hands. This increases market trust and makes it easier for customers to evaluate your company quickly.


Better opportunities for business

Compliant businesses will receive greater business from taxpayers. A strong GST rating gives you a competitive edge in the market and greater long-term business chances by ensuring that everything is in order and that your company is operating within the law.


Enhanced Refund Times

Governmental entities will have no trouble reacting fast to trustworthy businesses with prompt refunds for all of their claims and a significant reduction in all delays because a high GST compliance rating evokes trust. All parties involved benefit from enhanced company operations and time savings as a result of the decreased delays.


Market Competition Advantage

Businesses with a high level of governmental trust will be safer to conduct business with than others given the marketplace’s abundance of numerous organisations. Businesses with high GST compliance ratings will benefit from superior advantages and positioning as a result of taxpayers’ ability to identify those companies that are in compliance with the law and those who are not.


Minimized Interference

Legal entities will pay poor performing enterprises more attention and will visit and inspect them more frequently. Because of how time- and labor-intensive this can be, the compliance rating can serve as a powerful disincentive. As well as regular audits, poor GST compliance ratings might be a problem.