What after Obtaining GST Number?

Out of ignorance, or out of need, or out of compulsion many businesses obtain GST Registration. Well, that is almost the easy part. Many businessess, especially MSMEs struggle and face lot of compliance issues associated with GST and end up paying huge late fees, penalty and interest.

How to address this? What are the most important things to do after obtaining GST Registration? Let’s take a look at few basic aspects one should take care of with respect to GST

a) Ensure that the invoices you raise are as per the prescribed format

b) Identify the HSN/SAC code of the products and services you deal with, it has become mandatory for all B2B transactions to quote HSN/SAC

c) Identify an accounting software if possible an ERP

d) Keep a proper and accurate data on “Know your customer” and “Know your vendor/supplier”. Especially know their GST Number, Pan Number, Bank Account Details, their Credibility etc

e) Always cross check the Pan number and GST Number of the customer and vendor with GST Database to avoid errors/mistakes in accounting

f) Differentiate clearly the purchases from registered and unregistered vendors/suppliers

g) Avoid non business related purchases i.e. personal purchases through business account by quoting business GST Registration Number

h) Keep proper books of accounts

i) Ensure to file all GST returns on time to avoid huge late fees and interest

j) Make it a point to reconcile your accounts with the figures shown in GSTR2B (i.e. cross checking the bills filed by your supplier with GST Department with your records)

k) Take appropriate and immediate action on findings to avoid department query/notices

l) During movement of goods in the process of sale or otherwise ensure to carry necessary documents namely EWay Bill, Invoice, Delivery Challn, Transfer Note as applicable to avoid penalty

As the saying goes, prevention is better than cure, an extra care and caution would help you to avoid hassles related to GST.

If you need any clarifications related to GST or if you are looking for expert help in filing your GST Returns and maintaining your books of accounts please contact us.