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

For certain businesses, registration is mandatory under GST compliance like for those registered under the pre-GST Law, a casual taxable person, an E-commerce aggregator, Non- Resident taxable person, a person paying tax under a Reverse charge mechanism, an agent of a supplier, an input service distributor.

Compliance with GST regulations is crucial to avoid penalties, and we understand that businesses may make genuine errors or face challenges while complying with the rules. In case of non-payment or short payment of taxes due to such errors, the penalty is 10% of the tax amount, subject to a minimum of Rs. 10,000. However, deliberate evasion of taxes can result in much higher penalties, with a penalty of 100% of the tax amount being levied in such cases.

2. GST Return

The importance of filing returns for GST compliance cannot be overstated because failure to comply and delays will result in fines and delayed refunds.

GSTR-1 and GSTR-3B must be submitted by all registered dealers by the 11th and 20th of the following month, respectively.

A dealer who has registered for the composition program must submit GSTR-4 every three months.

An Input Service Distributor is required to file a monthly return GSTR-6. 

Every composition taxpayer must file an annual return in form GSTR-9A, and registered taxpayers are also obliged to file a yearly return in form GSTR-9.

Since fines apply for failure to submit returns, it is essential and crucial for every taxpayer to do so on time and by the deadlines.

3. GST Invoicing 

According to the GST Act, invoices or bills of supply must be issued for each supply of goods and services. It is a list of the items sent or the services rendered, together with the payment amount.

Invoices for products must be issued on or before the date of removal or delivery, whereas invoices for services must be issued within 30 days after the provision of services.

The categorization of the registered person making the supply determines 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.

The supplier may issue a credit note or a debit note in the event that a tax invoice has been issued for the supply and it is later discovered that the value or tax charged therein is greater or lower than what is actually payable or chargeable, or in the event that the recipient has returned the goods.

4. E-Way Bill

It is an electronic waybill that is published on the e-way bill portal for the transportation of goods in a vehicle valued at at least Rs. 50,000.

A registered person, an unregistered person, and a transporter must all produce an E-way bill under certain circumstances.

There are several supply types for which the creation of an E-way bill is required, such as the interstate transportation of products by dealers who are exempt from GST registration or the interstate transfer of commodities from the principal to the employee.