In this blog, we’ll walk you through the crucial actions to undertake after getting your GSTIN (GST Identification Number) from Easy IT Returns, your trusted Income Tax Consultant in Ahmedabad.

Follow these steps after getting the GST Number

STEP 1: Make a Display of your GST Registration in Your Place of Business

One of the first things you should do after receiving your GST number is to prominently display it at your place of business. This helps to build trust among your customers and signifies your commitment to transparency. Failure to display your GSTIN can result in penalties, so it’s crucial to adhere to this requirement.

STEP 2: Determine whether to Charge CGST, SGST Or IGST at the Point of Supply

GST is a dual tax system in India, which means it comprises both Central GST (CGST) and State GST (SGST). The specific tax you need to charge depends on whether the supply is intra-state (within the same state) or inter-state (between different states). If it’s an intra-state supply, you’ll need to charge both CGST and SGST, while for inter-state supplies, Integrated GST (IGST) is applicable. Accurate tax determination is vital to avoid compliance issues.

STEP 3: Make GST-Compliant Invoices

Creating GST-compliant invoices is a critical aspect of GST compliance. Your invoices must contain specific details, including:

● Your business name, address, and GSTIN
● Invoice number and date
● Customer’s name and address
● HSN (Harmonized System of Nomenclature) or SAC (Service Accounting Code) codes for goods or services
● Description of the goods or services
● Quantity and unit of measurement
● Total value and taxable value
● Applicable GST rates (CGST, SGST, IGST)
● Place of supply
● Signature of the supplier

Ensuring that your invoices adhere to these guidelines will save you from potential issues during GST return filing.

STEP 4: Collect and Charge GST on all Taxable Sales

Once you’ve determined the correct GST rates for your products or services, make sure to charge and collect GST from your customers. Failure to do so can result in financial penalties and legal consequences. It’s also essential to issue a proper tax invoice to the recipient, as this document is crucial for both parties’ compliance records.

STEP 5: Complete Form ITC-01 to receive an Input Tax Credit

The input tax credit (ITC) is a significant advantage of the GST system. You can claim a credit for the GST you’ve paid on your inputs, which reduces your overall tax liability. To claim ITC, you’ll need to fill out Form ITC-01. It’s essential to maintain accurate records of your purchases and expenses to claim ITC correctly.

Also read: What is GST Registration? and Key Benefits

STEP 6: File GST Returns on a Regular Basis

One of the most crucial aspects of GST compliance is filing regular GST returns. You are required to file GST returns on a monthly or quarterly basis, depending on your turnover. The returns include GSTR-1 (for outward supplies), GSTR-3B (a summary return), and GSTR-2A (auto-generated by the GST portal). Timely and accurate filing of these returns is crucial to avoiding late fees and penalties.

STEP 7: Seek Professional Assistance

Navigating the complexities of GST compliance can be challenging, especially for businesses dealing with various types of transactions and large volumes. Seeking professional assistance from experts like Easy IT Returns can streamline the process, ensure accurate filing, and help you make the most of GST benefits.

Conclusion

Obtaining a GST number is just the first step in your journey toward GST compliance and reaping its benefits. By following the steps outlined above and seeking professional guidance from Easy IT Returns, you can ensure that your business operates smoothly within the GST framework. Remember that accurate record-keeping, timely filing, and adherence to GST rules are key to a successful GST journey. So, get started, and make the most of the opportunities GST brings to your business in Ahmedabad, India.