Issues of Compliance in GST

Overview

Handling all the Goods and Services(GST) compliances is

extremely crucial for businesses. Every business in the
industry needs to take it seriously to avoid interests, fines
and penalties.

Softwares like Tally, Reach GST can help achieve compliance

and ensure accurate and timely accomplishment of all the
GST work.

GST compliance rating

GST compliance rating is a review or ranking of all the

registered taxable individuals.

It helps in understanding if,

 they are good at paying back their returns or not,

 they upload all their documents on time,
 they upload their invoices

The more the rating, the better it is for them.

Importance of GST compliance rating

 Gives a good impression about the taxpayer

 Helps in attracting more customers as well as clients for
the business.
 Helps the taxpayers to take all the necessary steps to
improve their ranking.
 The taxpayers who hold a good rating (more than 5), will
be eligible for a refund of a certain percentage of
amount, they can claim for it.

Drawbacks of the rating system

The rating system has certain disadvantages too

 Competitive
 Challenging for the small business owners to cope up
with other businesses in the industry

Conditions for rating the taxpayers

 Uploading documents on time

 Filing for returns on time
 On time Reconciliations
 Adhering to all the other time limits
 Cooperating with the GST authorities
Compliances for the month of December 2019

 31-12-19 – GSTR 9
The Annual Return / Statement for Financial Year 17-18 by all
registered persons having an income of more than Rs. 2 Crores
or chose to file Annual Return.
 31-12-19 –GSTR-9C
Annual Return for FY 17-18 by registered person whose
income for the Financial Year 17-18 is above Rs. 2 Crores
(Annual Return + Audited Annual Accounts + Reconciliation
Statement in GSTR-9C)
 11-12-19- Date for filing GSTR-1 for m/o Nov 19
Applicable for taxpayers with Annual Income of more than Rs.
1.50 Crore or opted to file monthly Return (Rs. One Crore Fifty
Lacs)
 10-12-19- Date for filing GSTR-8
to be filed by the e-commerce companies required to deduct
TDS under GST for the m/o Nov 2019.
 10-12-19- Due date for filing GSTR-7
filed by the by the person who is required to deduct TDS
under GST under GST for the m/o Nov 2019.
 20-12-19- Due date for filing GSTR-5 & 5A
filed by the Non-Resident taxable person & OIDAR for the m/o
Nov 19.
  13-12-19- Due date for filing GSTR-6
(to be filed by Input Service Distributor for m/o Nov 19.

 20-12-2019- GSTR-3B for the m/o Nov 19.

Pay due Tax till this date.

 RFD-10
Eighteen months after the end of the quarter for which refund
is to be claimed

GST due dates – 2019

GSTR-1

It lists out the details of outward supply

Quarterly GST Return Annual income up to Rs 1.5 crore can
opt for quarterly filing

Quarter Due date

Oct – Dec 2019 31st Jan 2020

GSTR-2 and GSTR-3
Filing currently suspended

GSTR-3B

 GSTR-3B has been extended to June 2019

 All businesses have to file GSTR-3B by 20 of next month
until the month of Sept 2019.

GSTR-5
Non-resident taxpayers have to file GSTR-5 by 20th of next
month.

GSTR-5A
Those taxpayers who are not residents of the country have to
file GSTR-5A by 20th of next month.

GSTR-6
The input service distributors have to file GSTR-6 by the 13th
of next month.

The first step in achieving ‘GST Compliance’ is GST

REGISTRATION. To avoid any issues related to compliance,
the taxpayer is required to register for GST within the
stipulated time.
 Easy Online Registration

GST Registration has become mandatory for all the taxpayers

and it has become less complicated as it can be done online.

Benefits

 Helps in availing input tax credit (ITC).

 Eligible for the benefits under the GST laws.
 GST helps in the improvisation of logistics.
 Proper calculation of tax on the various good as well as
services.

Documents needed for filing for GST?

 Pan Card of the individual who needs to pay tax.
 Identity proof and address of all the advertisers of the
business.
 Photographs of Directors and Partners.
 The proof of the registration of business, or a Partnership
Deed in case the business involves partners and certificates
of registration.
 Address proof of the location of the business.
 Bank account details of the business.
 Digital Signature.
 Letter of Authorization from the Board of Directors and
Partners.

Cost
Rs 1499 /-
Which includes,
Online document submission,
Application Tracking
&
GST Registration Certificate

Issues regarding compliance

The possibility of issues is high if the taxpayer neglects or fails

to register for GST or if the laws are not understood in a
proper way.

 Absence of proper information to the taxpayers

The registered individuals need to understand about their

duty as a taxpayer and the different laws, rules and
regulations regarding it.

 Appropriate upload of Invoices

It is extremely important that the necessary invoices are

uploaded whenever required. The supplier uploads the
invoices on a facility provided, GST ANX-1. The invoices can
be uploaded in GST ANX-1 which is then automatically shown
in GST ANX-2 of the recipient.

 Inaccurate Invoice tracking

It is important for the supplier to upload the invoices on the

GST portal. It is the responsibility of the recipient to keep a
track of these invoices and if the supplier fails to upload the
invoices, the recipient must report it to him.

 Vendor miscommunication

All the parties’ vendors involved must concentrate on the

accounts receivable and accounts payable because accounts
receivable will define the sales. Hence ITC is claimed and
accounts payable will define the purchases and tax liability.

 Document Mismatch

If the supplier does not upload the invoices as per the rules,
there are chances of certain tax liabilities not matching which
would further result in a lot of issues.

Summary

To conclude, the issues regarding GST compliance cannot be

neglected and it is an important task for the taxpayers to
take it into consideration in order to avoid bigger issues at a
later stage.

The more GST compliance related issues are avoided and

eliminated, the better it is for the organizations.