We list the GST compliance requirements under the CGST Act, 2017,
steps to ease the burden on taxpayers, and penalty provisions under
the GST regime for non-compliance. Foreign investors should also
pay attention to the provision of Advance Ruling, a mechanism
introduced to bring in tax certainty.
Following the introduction of the Central Goods and Services
(CGST) Act, 2017, India’s tax authorities have adopted various steps
to facilitate and ease compliance among taxpayers.
At the same time, the CGST Act has also prescribed strict provisions
to ensure compliance and enforcement across various areas of GST
such as GST registration, filing GST returns, and correct entry of
GST COMPLIANCE REQUIREMENTS
It is a turnover based compliance wherein, any
person who has a turnover exceeding INR 4
million in goods and INR 2 million in services in
the previous financial year needs to get
registered in the GST regime and thus, start
following other compliances as a registered
Every registered dealer under GST needs to be compliant with certain
details while issuing a tax invoice, which lists down as under:
– Invoice number and date;
– Customer name;
– Shipping and billing address;
– Customer and taxpayer’s GSTIN (if registered);
– Place of supply;
– HSN code/ SAC code;
– Item details i.e., description, quantity, unit, the total value;
– Taxable value and discounts;
– Rate and amount of taxes;
– Whether GST is payable on a reverse charge basis; and
– Signature of the supplier.
The above details are mandatory in a GST invoice to ensure compliance .
INVOICING RELATED COMPLIANCE
The filing of return is one of the most important
things in compliance under the GST.
RETURNS RELATED COMPLIANCE
E-way bill: It is an Electronic Waybill for the
movement of goods. A GST registered person cannot
transport goods in a vehicle whose value exceeds
INR 50,000 (Single Invoice) without the cover of an
Payment of taxes: A person who has a liability to pay
tax on his outward supplies/sales needs to pay the
taxes while filing the return GSTR-3B monthly or
quarterly as applicable.
In case a taxpayer fails to fulfill these GST
compliance requirements, they will be considered an
offender under the Act and will be liable for penalty,
Section 122 to section 128 and section 132 of the
CGST Act enlist provisions for 21 such activities,
which are classified as offenses under the Act, as
well as the consequent penalties applicable in case
of commission or omission of the given offenses.