Goods and Service Tax (GST) is an Act which came into force with effective from 01st July 2017. There are various criteria such as Turnover, Nature of services, etc. based on which the entity is required to be registered under GST. Entity can also register themselves voluntarily under the GST Law. GST compliances ensure businesses to follow a certain set of rules and regulations framed under the Act. It includes raising of sales invoice in compliance with the applicable rules, Filing of returns (Monthly, Quarterly or Annually), payment of tax and proper maintenance of records.
- Increase in Business credibility: - Timely compliances will enable the businesses to run smoothly and increase the Business credibility.
- Overall improvement in economy: - Proper compliance in GST enables the Government to receive adequate flow of funds ultimately leads to growth in economy.
- Business Reputation: - GST compliances will enable the business entity to leave a positive impression towards the Banker on availing Business loan as well as to the investors for obtaining more investments towards the business.
- GSTR 1 – This is the return where the Tax payer needs to disclose the details outward invoices raised during the relevant period. The tax payer has the option to choose to file this either Monthly or Quarterly. Various details such as invoices, Debit note, Credit notes, Documents issued, HSN wise summary, etc. needs to be disclosed by the tax payer while filing the returns.
- GSTR 2B – This is the inward statement available for the tax payer towards the inward invoices for which he has paid GST. One of the criteria for claiming ITC is that the invoice must reflect in GSTR 2B failing which the ITC will become ineligible. This reconciliation is mandatory process to be undertaken while filing GSTR 3B.
- GSTR 3B – This is the summary statement of Outward and inward supplies where the Tax payer needs to set off the output tax with that of the input tax and pay the net tax liability to the Government. The tax payment is considered to be paid only when the return for the particular period is filed. Mere payment of tax will not be considered as tax payment since the same will be parked in the Electronic cash ledger.
- The due date prescribed under the law for taking ITC under section 16(4) or amendment/issuance of credit/debit note is 30th November 2024. Since, GSTR-3B return for October 2024?would be due by 20th November 2024, it is suggested that the aforesaid exercise is undertaken on or before 31st October 2024.?
- The due date for ITC reversal shall be 30th September 2024 i.e., same needs to be reversed in GSTR-3B?return to be filed by 20th October 2024
- Amendments in the opening balance will be available till 30th November 2024
- Invoice Management System (IMS) is a new functionality to be introduced on the GSTN portal from 1st October 2024 and shall be available to the taxpayers for taking actions. It?would be an optional facility for accepting, rejecting or keeping ITC as pending.
