GST Filing Simplified: A Checklist for Small Businesses and Startups
India’s GST laws are not the most complex in the world, but their compliance is a must for any growing business. First, find out whether you need registration: firms dealing in supply of goods whose annual turnover exceeds ₹40 lakhs and for service providers, an annual limit exceeding ₹20 lakhs or ₹10 lakhs in special category states will have to take GST registration. Even if your turnover is lower than the threshold levels, you can still voluntarily register yourself to claim the Input Tax Credit. Pay GST on all sales and keep detailed records of purchase invoices for claiming ITC on the various expenses of the company.
Key GST Filing Requirements
GST Registration: If your turnover exceeds the limit, then you have to get yourself registered. The limit is ₹40L for goods and ₹20L for services in normal states. The penalty for not registering is 10% of the tax due or at least ₹10,000. Note that even small businesses must get registered mandatorily upon crossing the threshold limit. For example, an interstate supplier will have to get registered irrespective of their turnover.
Documents to be maintained: Copies of purchase invoices, sales invoices, delivery challans, and proofs of payment. Proper bookkeeping allows you to claim eligible ITC and facilitates correct returns.
Quarterly Composition Scheme: It is available for businesses with an aggregate turnover of up to ₹50 lakhs. Such taxpayers have to pay a flat rate, which for a mixed supplier is 6% of the total, and file quarterly returns. Under composition, one cannot avail ITC, but in return, they get simpler compliance and lower rates.
Monthly Returns: The registered shall have to file GSTR-1, pertaining to details of outward supplies, on the 10th of every month and GSTR-3B, a summary return, on the 20th of every month. Late filing attracts ₹100 per day per return (₹50 CGST + ₹50 SGST), hence filing on time saves penalties. For Composition filers: Filing GSTR-4 is done on an annual or quarterly basis depending on the turnover.
Common mistakes to avoid: Do not delay in GST registration for having crossed limits. Its non-filing may attract heavy fines. If deducting taxes, file all TDS/TCS returns on time. Ensure the company secretarial filings (e.g., ROC annual returns) are up to date. Always issue tax invoices for every sale affecting GST. A professional CA can prevent these mistakes.
Remaining updated on the latest GST compliance will not only avoid penalties but also ensure ITC benefits and smoother business operations. The GST services team at GVC will be able to assist in registration, monthly filings, and audits.
In case of any query or need for assistance, please contact our experts in GST Registration and GST Compliance. Contact Gupta Varun & Co. for a consultation today and let us simplify your GST and tax compliance needs.
