Is getting GST registration enough?

I have observed many individuals, businessmen, professionals approaching for GST registration related matters. But having registered is not the only thing to do, you need to follow much more to be more compliant with the GST law. Please read below

If you are reading this you are an individual who needs GST registration and here is a guide/checklist for you on various matters you should be concerned about after registration.

1.      Banks cannot demand GST certificate to open current account:- If you are a business, it’s obvious that you require current account to accommodate a number of transactions, hence you approach a Bank to open a current account. As soon as you approach bank they ask for GST certificate without even understanding what kind of business you do and what is your turnover or what is your supply. Do not fall for it, just do a Shops and Commercial Establishment registration and Udyam Aadhar, a business seal, submit your Aadhar, PAN copies and Bank will be able to create a current account for you.

2.      Become aware of Turnover limits:- Moreover as soon as you start a business you do not need GST, but once you cross a turnover of Rs.40 Lakhs as a trader and Rs.20 Lakh as service provider you are required to register under GST and comply. Also, let’s say in any financial year if your turnover is less than Rs.40 Lakhs even in subsequent year until you make another Rs.40 lakh turnover you do not need GST registration for traders.

3.      Monthly filing:- Once you register under GST make an arrangement with your auditor to do monthly returns filing, reporting B2B sales etc., without filing monthly due returns you may end up paying late filing fee, penalties and interest later.

4.      GST KYC:- Share your Business details like name, address especially your GST number with all of your suppliers, so that you not lose any GST ITC creditable to you on your purchases.

5.      Correct category of SAC and HSN:- Ensure you disclose your HSN /SAC codes on the invoice also cross check if your supplier is correctly mentioning on his invoices.

6.      Billing mechanism:- Its advisable to use a software for billing, simple mobile applications like #Vyapar is good enough to maintain your billing. As a good practice of maintaining books of accounts you may choose the option of going for #TallyERP #Quickbooks kind of tools too. Later even for Audit purposes these tools helps a lot.

7.      Expense tracking for ITC:- Keep tracking your GSTR2A for input tax credits (ITC), some suppliers do not extend credits, loosing ITC is loosing cash flow, you must know which supplier is not giving ITC so that you may hold their next payments or charge ITC in cash to them.

8.      GSTIN in name board at business place:- You need to display your GSTIN on name board where you conduct business operations or at your registered address, if you fail to do so may attract vigilance officers to levy fine up to Rs.50k.