GST has taken the financial world by storm, and it is an accepted fact that it has brought a lot of changes in the way businesses to work. It has changed the business environment completely and has ensured that companies have to be updated with tax norms and regulations. Any company now operating in India needs to be GST compliant. If you aren’t sure how to get your business GST compliant, here is a complete guide on how to make your business GST Compliant:
1. Find out if you need to register
You must register your business under GST if the annual turnover of your business exceeds Rs. 10 Lakhs in special category states, and for other states, the threshold is set at Rs. 40 Lakhs. This revenue threshold is the same for both the composition and the normal taxpayers. However, for composition taxpayers, there is a 50% tax payment and quarterly return filing liability in addition to these thresholds.
To know whether you are liable to compulsorily register under GST or not, you need to figure out if your business falls under any of the following supplier categories:
- Casual taxable persons
- Interstate suppliers
- International service providers who offer services to unregistered Indians
- if reverse change basis is applicable
- TDS deduction under GST is required
- A third party making sales on the behalf of someone else.
- Distributors under input service
- If you sell products through an e-commerce
- Non-resident people who are taxable.
In case your business is not liable for GST, then you can enjoy the benefits of input credit and other exemptions. But if you are liable to register under GST, then there are some mandatory steps that you need to follow:
- Access GST portal
- Enrol using mobile number and email id
Once you enrol you can opt for provisional GST certificate download. Also, for multiple states, you need a separate registration
Once you are registered under GST you must raise invoices that are compliant with the norms of GST. From the GST draft rules, you can learn about the mandatory fields in an invoice. Once the invoice is completed you can upload it to the GSTN portal
4. Transaction classification
You can use the HSN/SAC code mapping to classify the transactions. The two categories in which you need to classify your transactions is goods or services. Additionally, as per IGST, you are also required to classify your transactions as either interstate or intrastate transactions. Before doing the classifications you should know about all the exemptions and tax rates to avail all the benefits that you are eligible for..
5. File GST returns
It is mandatory to file returns on a timely basis. Additionally while filing returns you should ensure that you are giving all details for your return to be validated. To make sure your calculations are correct you can use online calculators like the GST late payment interest calculator. You can checkout Khatabook for highly reviewed accurate online finance related calculators.
6. System preparedness
Ensure all the processes and accounting software you use are GST compliant.