Checklist for online sellers to be followed for GST Compliance
- GST Registration:
- It is crucial for any business or any online business that is involved in the supply of goods and services to be registered under the GST guidelines and also as a normal taxpayer. A business whose aggregate turnover exceeds Rs.20 lakhs (or Rs.40 lakh for a supplier of goods)in the financial year has to mandatory register under Goods and Services Tax.
- If the aggregate turnover is greater than 40 lakhs registration is required for normal category states and it is exceptional for the states of Kerala and Telangana
- If the aggregate turnover is greater than 20 lakhs registration is required for special category states and it is exceptional for the states of the state of Assam, Himachal Pradesh and Jammu & Kashmir where the threshold limit is Rs 40 lakhs.
- If the aggregate turnover is greater than 20 lakhs registration is required for normal category states.
- Raising invoice under GST: GST registered entities and businesses must be able to issue invoices that are GST compliant. Two types of invoices are issued under GST.
- A tax invoice that can be used as a document to avail GST credit, it is issued when the underlying supplies are taxable under GST law
- Bill of supply is issued when the supply is exempted from GST. When a seller supplies goods there are GST invoices that should be prepared in triplicate
- The original copy being marked as Original for Recipient
- The duplicate copy being marked as Duplicate for Transporter
- The triplicate copy being marked as Triplicate for Supplier
- When a seller supplies services there are GST invoices that should be prepared in duplicate
- The original copy being marked as Original for Recipient
- The duplicate copy being marked as Duplicate for Supplier
- The serial number of invoices issued during a month shall be mentioned in the GSTR-1 which is furnished electronically.
- Charge and collect GST on all taxable sales made: GST-registered taxpayers must keep track of the tax rates and include them in their GST invoice. Start charging GST at the rates provided in the law on any taxable supplies that are affected.
- Maintain proper accounts & records as per GST law: The GST law specifies the preservation of various documents and records that confirm the transactions carried out by a GST-registered entity. Accounts or records for a given financial year must be retained for at least 72 months from the due date of submitting annual returns in GSTR-9 or GSTR-9A for that financial year.
- File GST Returns: GSTR-1 and GSTR-3B or GSTR-4: When applying for GST registration, taxpayers must make a note of the specific GST returns that apply to them. To avoid interest and penalties, they must begin filing it within the specified deadlines. The GST site, which is accessible to all taxpayers in India, can be used to file all GST returns.
16 things Govt has mandated mentioning the following contents in the GST Invoice
- Name, Address & GSTIN No. of the supplier
- A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year.
- Date of its issue
- Name, address, and GSTIN or UIN, if registered of the recipient
- Name and address of the recipient and the address of delivery, along with the name of the state and its code, if such recipient is unregistered and where the value of taxable supplies is Rs. 50,000 or more.
- HSN Code of Goods or Accounting Code of Services.
- Description of Goods or Services.
- Quantity in case of Goods and Unit or Unique Quantity thereof.
- Total Value of supply of goods or services or both.
- Taxable Value of supply of goods or services or both taking into account the discount or abatement (if any).
- Rate of Tax (CGST, SGST, IGST, UTGST).
- Amount of Tax Charged in respect of taxable goods or services (CGST, SGST, IGST, UTGST).
- Place of supply along with the name of State, in case of a supply in the course of inter-state trade or commerce.
- Address of delivery where the same is different from the place of supply.
- Whether the tax is payable on a Reverse Charge basis.
- Signature or Digital Signature of the supplier or his authorized representative.
It is mandatory for any business to register under GST as it also permits them to take advantage of the various benefits provided by the GST Law. One such advantage is to get a seamless input tax credit of the GST paid on your business purchases.
The different types of documents under GST law are:
- Tax invoice
- Bill of supply
- Credit notes
- Debit notes
- Receipt Voucher
- Payment Voucher
- Refund Voucher
- Delivery Challan