GST Registration, Return Filing, and Compliance in India

Introduction to GST Registration

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Every business that crosses a certain turnover threshold must register for GST to comply with the law and continue its operations without penalties.

Who Needs GST Registration?

Businesses must register for GST if they meet any of the following criteria:

• Turnover-Based Registration: Businesses with an annual turnover exceeding ₹40 lakh (₹20 lakh for service providers) must register.
• Compulsory Registration: Certain businesses, such as interstate suppliers, e-commerce operators, and those dealing in taxable supplies, must register regardless of turnover.
• Voluntary Registration: Businesses that want to avail of Input Tax Credit (ITC) benefits may also register voluntarily.

Documents Required for GST Registration

1. PAN Card of the applicant
2. Aadhaar Card
3. Business registration proof (Partnership Deed, Incorporation Certificate, etc.)
4. Address proof of business premises (Rent Agreement, Electricity Bill, etc.)
5. Bank account details
6. Digital signature (for companies and LLPs)

Types of GST in India

GST is classified into three types:

• Central GST (CGST): Levied by the Central Government on intra-state transactions.
• State GST (SGST): Levied by State Governments on intra-state transactions.
• Integrated GST (IGST): Levied by the Central Government on inter-state transactions and imports/exports.

GST Rates in India

GST rates vary based on the type of goods and services. The common slabs are:

• 0% GST: Essential items like fresh vegetables, fruits, milk, and healthcare services.
• 5% GST: Household essentials, small restaurants, railway tickets, etc.
• 12% GST: Processed food, telecom services, business-class airfare.
• 18% GST: Most consumer goods, restaurants, and IT services.
• 28% GST: Luxury items, tobacco, high-end vehicles.

GST Return Filing Process

GST-registered businesses must file periodic returns to report their sales, purchases, and tax payments. The process involves:

Types of GST Returns and Their Due Dates

Form	Purpose	Frequency	Due Date
GSTR-1	Details of outward supplies	Monthly/Quarterly	11th of the next month (monthly) / 13th of the month following the quarter (quarterly)
GSTR-3B	Summary return of sales and tax paid	Monthly	20th of the next month
GSTR-4	Return for composition dealers	Quarterly	18th of the month following the quarter
GSTR-9	Annual return	Annually	31st December of the next financial year
GSTR-9C	Reconciliation Statement (for turnover above ₹5 crores)	Annually	31st December of the next financial year

Steps to File GST Returns

1. Log in to the GST portal (www.gst.gov.in).
2. Navigate to the “Returns Dashboard.”
3. Select the relevant GST return form.
4. Enter sales and purchase details.
5. Verify tax liability and Input Tax Credit.
6. Pay tax (if applicable) and submit the return.

Interstate GST and Export of Goods and Services

• Interstate GST (IGST): If goods/services are sold across different states, IGST is charged and collected by the Central Government.
• Export of Goods and Services: Exports are considered zero-rated supplies, meaning businesses can claim refunds on input tax credits for taxes paid on inputs used for exports.

Letter of Undertaking (LUT) for Exporters

Businesses exporting goods and services can file a Letter of Undertaking (LUT) to export without paying IGST. LUT is a self-declaration that the exporter will comply with GST laws and pay taxes if required later. Filing an LUT helps exporters avoid unnecessary tax payments and enhances cash flow.

Steps to Apply for LUT

1. Log in to the GST portal.
2. Navigate to Services > User Services > Furnish Letter of Undertaking (LUT).
3. Fill in the required details and upload relevant documents.
4. Submit the form and download the acknowledgment.

GST Compliance and Latest Updates

Key GST Compliance Requirements

• Timely Filing of Returns: Avoid penalties by submitting returns on time.
• Maintaining Proper Records: Businesses must keep invoices, e-way bills, and transaction records for at least 5 years.
• Reconciliation of ITC: Ensure that ITC claimed matches the details in GSTR-2B.
• E-Invoicing: Mandatory for businesses with a turnover above ₹5 crore.

Latest GST Updates

• Introduction of biometric authentication for high-risk GST registrations.
• E-invoicing mandatory for businesses with turnover above ₹5 crores from August 2023.
• GST rates revised for certain goods and services in the latest GST council meeting.

GST Notices and Scrutiny

Businesses may receive GST notices due to non-compliance, mismatch in ITC claims, or delayed filings. Common types of notices include:

• Notice for Mismatch in Returns (GST ASMT-10)
• Demand Notices for Tax Shortfall (GST DRC-01)
• Show Cause Notices for Registration Cancellation (GST REG-17)

If you receive a GST notice, consult a professional Advocate for GST Notices to ensure a proper response and avoid penalties.

FAQs on GST Registration and Compliance

1. What is the penalty for late GST return filing?

A late fee of ₹50 per day (₹25 for CGST and ₹25 for SGST) is applicable, with a maximum cap depending on the type of return.

2. Can I register for GST voluntarily?

Yes, businesses can register voluntarily to avail of Input Tax Credit (ITC) benefits.

3. How can I check my GST registration status?

You can check your GST status on the GST portal using your ARN (Application Reference Number).

4. What happens if I do not register for GST?

Non-registration can lead to penalties, with fines up to 10% of the tax due or ₹10,000, whichever is higher.

5. Can I file GST returns myself?

Yes, you can file returns through the GST portal, but it is advisable to consult a CA for GST Filing for accuracy and compliance.

6. What is the due date for GST return filing for composition dealers?

Composition dealers must file GSTR-4 quarterly by the 18th of the month following the quarter.

7. Is GST registration required for freelancers?

Yes, freelancers providing services beyond ₹20 lakh per annum must register for GST.

8. How is Input Tax Credit (ITC) claimed?

ITC can be claimed by matching purchase invoices with GSTR-2B data and filing GSTR-3B accordingly.

9. What is the validity of GST registration?

GST registration remains valid unless canceled voluntarily or revoked by authorities.

10. Can I cancel my GST registration?

Yes, businesses can apply for cancellation through the GST portal if they no longer meet the registration criteria.

Conclusion

GST compliance is a critical aspect of running a business in India. Timely GST registration, return filing, and adherence to regulations help avoid penalties and ensure seamless operations. Consulting a Chartered Accountant (CA) for GST Registration, CA for GST Filing, and Advocates for GST Notices can ensure accuracy and compliance with the latest updates. Need assistance? Contact us today!