GST Compliance Guide for Businesses in India

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GST Compliance Guide for Businesses in India – Everything You Must Know

Since the introduction of the Goods and Services Tax (GST), businesses in India have had to follow a unified tax system that impacts almost every transaction. Whether you are a startup, SME, or established enterprise, GST compliance is crucial to avoid penalties and ensure smooth business operations.

In this blog, we’ll cover a complete GST compliance checklist for businesses and share key insights every entrepreneur must know.

🔑 What is GST?

GST (Goods and Services Tax) is a destination-based indirect tax applicable on the supply of goods and services. It has replaced multiple indirect taxes like VAT, Service Tax, and Excise Duty, making the system more transparent and business-friendly.

✅ GST Compliance Checklist for Businesses

1. GST Registration

  • Mandatory if turnover exceeds ₹40 lakhs (goods) or ₹20 lakhs (services).

  • Compulsory for inter-state suppliers, e-commerce sellers, and exporters.

  • Voluntary registration is also available for startups to claim input tax credit (ITC).

2. GST Invoicing Rules

  • Issue tax invoices with GSTIN, HSN/SAC codes, and rate of tax.

  • Maintain proper serial numbering and invoice records.

  • For exports: issue a GST-compliant export invoice.

3. Input Tax Credit (ITC) Compliance

  • Claim ITC only on eligible goods/services.

  • Match purchase invoices with GSTR-2B for accuracy.

  • Reverse ITC if payment is not made to the supplier within 180 days.

4. GST Returns Filing

  • GSTR-1: Monthly/Quarterly outward supplies.

  • GSTR-3B: Monthly self-declared summary return.

  • GSTR-9/9C: Annual return and audit (if applicable).

  • Late filing attracts interest @18% p.a. and penalties.

5. E-Way Bill Compliance

  • Mandatory for movement of goods above ₹50,000.

  • Generate through the GST portal before movement.

6. Record-Keeping

  • Maintain books of accounts, GST invoices, debit/credit notes, and returns for 6 years.

  • Ensure reconciliation of books with GST portal data.

7. GST Audit & Assessment

  • Businesses with turnover above ₹5 crores must undergo GST audit.

  • Authorities may conduct assessments and scrutiny, so records must be accurate.

⚠️ Common GST Mistakes to Avoid

  • Missing due dates for GSTR filings.

  • Claiming ITC on ineligible expenses (e.g., personal expenses, blocked credits).

  • Incorrect HSN/SAC codes.

  • Not reconciling GSTR-2B with purchase records.

🌟 Benefits of Staying GST Compliant

  • Avoids penalties and legal disputes.

  • Builds trust with suppliers, customers, and investors.

  • Enables seamless ITC claims.

  • Creates eligibility for government tenders and funding.

📌 Final Thoughts

GST compliance is not just about filing returns – it’s about building credibility and ensuring long-term sustainability. Businesses that follow GST rules diligently can save costs, attract investors, and grow without disruptions.

At M A Ashraf & Co., Chartered Accountants, we assist startups, SMEs, and enterprises with GST registration, monthly return filing, reconciliation, and audits to keep your business 100% compliant.

M A Ashraf & Co. – Chartered Accountants
Specialising in GST, Income Tax, and Startup Advisory
📍 Serving PAN India | 💼 camdayazashraf.blogspot.com

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