GST Advisory & Compliance

The GST Council has laid down rules and regulations for regular compliances by a GST registered person. These generally cover the following areas for compliance needs:

• Maintaining Books of accounts and keeping of other relevant documents
• Issue of invoices
• Reporting of Sales and Purchases
• Payment of Tax Liability

Filing of GST returns

Technically, adherence to rules and regulations in the above areas is what constitutes the compliance under GST. Being non-compliant, for a business can cost heavily. However, some entities are yet to adopt the right process to become GST compliant. If you are looking for a GST compliance service provider in Delhi,Ajay D Kumar & Associates is a best option for your business. 

Let us discuss some essential compliance areas where a GST registered person should focus on dressing his organisation GST ready.

1. Find out whether you are liable to register under GST compulsorily

As per section 22 of CGST/SGST Act 2017, every supplier who makes a taxable supply which is leviable to tax in GST, and whose aggregate turnover (ATO) in a financial year exceeds the threshold limit of Rs 20 lakh shall be liable to register himself in the state or UT from where he makes the taxable supply.

In the case of 4 special category states (SCS) namely, Nagaland, Manipur, Tripura, Mizoram the threshold limit is Rs 10 lakh.

However, in terms of Sec 23(2) of CGST Act read with N/N 10/2019, w.e.f. 1st April 2019, a supplier of goods (exclusive supplier of goods) can consider taking registration only when his ATO in the FY crosses 40 lakh. This relaxation is not applicable if:

(a) persons required to take registration under section 24 compulsorily;

(b) persons engaged in making supplies of following goods;

(i) Ice Cream and other edible ice;
(ii) Pan Masala;
(iii) Tobacco and manufactured tobacco substitutes;

(c) persons engaged in making intra-state supplies in special category states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and

(d) persons opting for voluntary registration or already registered persons who want to continue with its registration

The following categories of persons are required compulsorily irrespective of the threshold limit:

i) persons making inter-state taxable supplies, exceptions:

• • inter-state supply of certain handicraft or craftsman’s goods if ATO is up to 20 lakh (10 lakh in 4 SCS)
  • inter-state supply of services if ATO is up to 20 lakh ( 10 lakh in 4 SCS)

ii) Casual taxable persons making taxable supply;
iii) non-resident taxable person (NRTP) making taxable supply
iv) persons required to pay tax under the reverse charge mechanism
v) persons required to pay tax under section 9(5) (i.e. ECO liable to pay GST in case of 3 notified services)
vi) persons who supply goods/services, other than supplies specified under section 9(5), through such e-commerce operator (ECO) who are required to collect tax at source under section 52 (i.e. ECO receiving payment from buyers and handling over to connected supplier; in between, ECO is liable to pay TCS @ 1%). exception:

• • Supplier of services supplying through ECO if his ATO is up to Rs 20 lakh (10 lakh in 4 SCS)

vii) persons required to deduct TDS under section 51
viii) every ECO who is required to collect tax u/s 52
ix) persons who make taxable supply of goods or services on behalf of other taxable persons whether as an agent or otherwise
x) Input service distributor (ISD)
xi) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person (i.e. overseas supplier of OIDAR services to unregistered Indian person)
xii) Notified persons or class of persons