GST Compliance Explained: Registration, Returns, Penalties & Benefits

You can check GST Compliance through a simple monthly review:

• Login to the GST portal and verify whether GSTR-1 / GSTR-3B for the month are filed and submitted.

• Check Electronic Cash Ledger and Electronic Liability Ledger to confirm taxes are paid and liability is cleared.

• Review GSTR-2B to ensure your ITC eligibility is reflected and reconcile with purchase invoices.

• Confirm there are no pending notices (Dashboard/Notices & Orders section).

• If applicable, verify e-way bills, invoice series, and HSN/SAC correctness.

For GST Compliance Rating-related checks, the GST portal user guide indicates that a taxpayer’s “GST Compliance Rating” can be viewed/used while searching taxpayers.

GST non-compliance means not following mandatory GST requirements, such as:

1. Not taking GST registration when required
2. Issuing incorrect invoices (wrong GST rate/HSN, missing GSTIN details)
3. Late or non-filing of returns (even Nil returns)
4. Not paying GST collected or payable within due dates
5. Claiming ineligible ITC or claiming ITC without GSTR-2B support

GST Compliance becomes mandatory once you are required to register under GST or you voluntarily register. Common threshold guidance is:

• Goods: ₹40 lakh (in many states)

• Services: ₹20 lakh
  Certain categories (for example, some inter-state supply and e-commerce cases) may require registration irrespective of turnover, depending on facts and category.

(Threshold overview references commonly used limits.)

Practically, people mean: What is the penalty for non-compliance under GST?
Key consequences include:

• Late fee for delayed return filing: typically ₹50/day (₹25 CGST + ₹25 SGST) and ₹20/day for Nil returns (₹10 + ₹10).

• Interest on delayed tax payment: the law permits interest up to 18% as notified; interest commonly applies on delayed payment of tax.

• ITC impact: mismatch with GSTR-2B can lead to ITC denial/reversal and follow-up notices.

• Operational impact: blocked filing after prolonged default and higher scrutiny risk.

A practical GST Compliance framework has five pillars:

1. Registration compliance (correct registration, timely amendments)

2. Invoice compliance (proper tax invoice, HSN/SAC, rate, place of supply, series control)

3. Return filing compliance (GSTR-1, GSTR-3B, annual return where applicable; QRMP as applicable)

4. Tax payment compliance (correct tax computation, timely payment, interest if any)

5. Record maintenance compliance (purchase/sales registers, e-invoices/e-way bills, reconciliation workings)

The GST law provides for a GST Compliance Rating so that registered persons may be assigned a score based on compliance behaviour and such rating may be placed in the public domain.
In practice, the purpose is to:

• Promote disciplined filing and timely tax payments

• Help buyers evaluate suppliers’ compliance behaviour before doing business

• Reduce friction in vendor onboarding and due diligence

The GST portal tutorial also describes the rating concept and scale in its user guide context.

In our professional handling of GST matters, the most frequent practical issue is ITC claimed without matching GSTR-2B (vendor did not file, filed late, or invoice is reported incorrectly). This often triggers:

• ITC differences during reconciliation

• Notices for mismatch

• Working capital blockage until vendor correction or alternative documentation is arranged

In many cases, yes. If you are registered under GST, Nil returns may still be required for the period to stay GST compliant and avoid late fee exposure.

A practical approach:

1. Monthly reconcile Sales Register vs GSTR-1 vs GSTR-3B
2. Monthly reconcile Purchase Register vs GSTR-2B
3. Keep invoice series disciplined and correct HSN/GST rates
4. Track due dates and pay liability before filing
5. Respond to portal notices promptly with documentation

Yes. CharteredHelp (Noida) provides complete GST Compliance support including registration, amendments, returns (monthly/QRMP), ITC reconciliation, and notice handling.
Call/WhatsApp: +91-9266685656 (Noida)