The GST is now a reality as it has been implemented from 1st July 2018 while the registration will be handled at par but the compliance issue still stuck within the parameters of the government bodies. There are rules and regulations which are been notified regarding the invoice raising, purchase returns and tax filings but how much one understands this terminology in a practical way. In a brief view, understand some of the major points related to GST to better manage the upcoming tax scheme on your own.
How to Upload Invoice under GST
GST compliant invoice is to raised by the registered entities under the GST while it is also given that GST draft rules must be specified at the time of issuing of the invoice. As according to the formats, there are 16 of them available for the taxpayer to fill along and with the logo to make it a separate entity. The doubts also prevail on the invoice as the confusion is that is the invoice needs to be uploaded, however, there is no need to upload the pdf or jpeg. Hence, it was learned that the serial number of the invoice must be inserted electronically in a common portal.
Soon after an invoice is raised over the GST portal, the information is stored of the seller and the buyer. And along with the said information, the GSTN than auto-populates the purchases done by the registrants. The first step is considered significant as the details are being provided on the invoice issued is compliance of GST and the purchases indicated in the buyer’s space is linked to allow the claim of tax benefits which are paid on the purchases of the total outgoing tax.
Filing Returns Process and Due Dates under GST
The significant aspect of the GST compliance is the timely filing of returns and even though the business doesn’t record any activity for that particular return period along with online filing. After the filing, the mentioned details cannot be revised, but changes are allowed in subsequent filings.
On the 10th of every month, a supplier has to provide details of each and every supply made by the business in the previous month in return form GSTR-1. Till 15th of the month, all the details of purchases done by business unit must be provided in GSTR-2. Now after the submission of GSTR-1, the GSTR-2 form is auto-populated for the taxpayer to fill out. So the concept is clear, as Sales done by any business unit is recorded as purchases by another business unit.
But at the time, some mismatches may arise in these GST due dates of tax returns for the reason of goods in transit or if any goods get damaged or returned. For the correction of these mistaken transactions, they can be presented online and must be accepted by both parties indulged. As from surfaced view, GSTR-2 is an important return and on the basis of it, thus credit for taxes paid on inputs is allowed on it.
Rating Mechanism In Check
The GST has also included compliance as its significant part and to keep in check all the transactions. The rating mechanism introduced by the government will depend on the criteria like timely returns, timely payment of tax, and fewer reconciliations done to the filings. This will create a portfolio of the business unit which can be reviewed anytime by the dealer to whom it has been doing transactions. It will also give a fair idea of the business unit to deal with it or not, as an assistance of future compatibility.
ASP (Application Suvidha Provider) Compliance GST Software
Numerous returns and filings must be done accurately with no error subjected to the completion of returns are a major compliance demanded by the GST. And according to the tendency of human error, it seems extremely difficult to execute this task without any error. So, the easiest way to narrow down the mistakes, it is highly recommended that to use a simple and easy UI software which can do your filing with proper assistance. Command and alert you every time it perceives any human error. It is also suggested that use the GST software from pre-established organizations who are working in the taxation field from a long time which will ensure no conceptual and basic error.
Major Points to Build GST Compliant Business
To design a system where a buyer can take the credit for the paid taxes from the supplier is a critical one and has to be seen from an analytical viewpoint. Here are some of the important points to be taken care of while becoming fully GST compliant taxpayer:
- Format must be same in all the cases and in all the business industries
- There must be continuous uploading of invoices breaking the barriers of connectivity and server issues, and through a category of timely user interface
- Buyers must be given facility to accept the invoice according to the time and frequency of their choice
- There must be multiple uploading channels of invoice according to the convenience of taxpayers i.e. web portal, mobile devices, spreadsheet-based offline tools
- Buyers must encourage sellers to upload invoices as soon as possible, to claim uninterrupted ITC
- A direct informative window should be there to notify supplier in case it misses the invoice uploading
Drawbacks of Not Registering under GST
Q. Do all online business units required to register under GST even if the business is less than 20 lakh? Is it required or not?
Yes, the registration is mandatory under GST even if the online business is less than the threshold limit as under the Section 19 r/w Schedule-III of the Model GST Laws, every form of online business needs to be registered under GST, irrespective of a number of revenues generated.
Q. What will be the consequences if someone doesn’t register its business intentionally?
There will be a huge loss to the business and its rating. As the government of India has introduced new feature referred as the Compliance Rating Score (CRS) which will be open to the public in general along with every business unit and vendors dealers and suppliers. This thing will hamper your business and will declare your tax compliance very poor to all your vendors and suppliers making your vendors alerted and ultimately they will not try to deal with you.
Q. If a business unit avails exemption but still don’t get registered under the GST?
Every business must be dealing with lots of dealers vendors and suppliers and they must be registered with GST in probable chances. So, if in case a business is not registered for GST, the opposite party will have to pay GST on behalf of the unregistered business unit. This thing will not adjust for long and ultimately a business unit will lose its market with all the registered dealers and vendors.
