Congratulations on successfully registering your business under GST! This marks an important milestone in your entrepreneurial journey, but it also brings new responsibilities. After GST registration, there are several essential steps you need to take to ensure compliance with GST laws and smooth business operations. This comprehensive guide will walk you through everything you need to do after GST registration.
List of what to do after getting GST Registration
- Opening a Current Account
- Sales Invoice Format
- Issuing Sales Invoices
- Credit Notes/Debit Notes: Adjusting Sales Invoices
- Handling Purchase and Expenses Invoices
- Generating E-way Bills
- Filing GST Returns and Avoiding Penalties
- Exporting Goods and Services Under GST
- Record Keeping for GST Compliance
- Managing Payments Received and Made
- Loan Transactions and GST Rules
1. Opening a Current Account
Once you have your GST registration, the next step is to open a Current Account in the name of your business. A dedicated bank account:
- Helps streamline financial transactions.
- Is mandatory for availing Input Tax Credit (ITC).
- Simplifies filing GST returns and financial audits.
2. Sales Invoice Format
Your sales invoice must comply with GST rules. Include the following details:
- Business name, address, and GSTIN.
- Customer name, address, and GSTIN (if registered).
- Invoice number and date.
- HSN/SAC codes for goods/services.
- Taxable value, tax rate, and amount.
- Total invoice value with GST breakup.
Using accounting software ensures accuracy and compliance in invoice generation.
3. Issuing Sales Invoices
When issuing invoices, ensure they are in the correct format as per GST laws. Key points to remember:
- B2B Invoices: Include the buyer’s GSTIN.
- B2C Invoices: Mention the total value and GST applied.
- Issue invoices within 30 days for services or before goods are transported.
4. Credit Notes/Debit Notes: Adjusting Sales Invoices
Credit Notes are issued for scenarios such as:
- A decrease in the taxable value of goods/services.
- Discounts offered after invoice issuance.
Debit Notes are issued when:
- There’s an increase in the taxable value of goods/services.
Maintain proper records of these adjustments for GST filing.
5. Handling Purchase and Expenses Invoices
Every expense and purchase made for your business must have proper invoices. Key points:
- Include the supplier’s GSTIN, invoice number, and date.
- Ensure the invoices reflect the correct GST rates for claiming Input Tax Credit.
- Maintain a separate ledger for purchases.
6. Generating E-way Bills
If your business involves transporting goods worth more than ₹50,000:
- Generate an E-way Bill through the GST portal.
- Include details like invoice number, transporter ID, and vehicle number.
- Retain a copy of the E-way Bill during transit.
Failure to generate an E-way Bill can result in penalties or detention of goods.
7. Filing GST Returns and Avoiding Penalties
As a GST-registered business, you are required to file returns regularly. The types of returns include:
- GSTR-1: Details of outward supplies (monthly/quarterly).
- GSTR-3B: Summary of sales, ITC claimed, and tax payable (monthly).
- Annual Return: A summary of all GST transactions for the year.
Missing deadlines attracts penalties:
- ₹50/day for nil returns.
- ₹100/day for other returns.
8. Exporting Goods and Services Under GST
Exports are considered zero-rated under GST. Important points:
- File Letter of Undertaking (LUT) to export without paying IGST.
- If you pay IGST, claim a refund.
- Maintain detailed records of export invoices and shipping bills.
9. Record Keeping for GST Compliance
Maintain accurate records of all GST transactions for at least six years. This includes:
- Invoices (sales, purchases, and expenses).
- E-way Bills and shipping documents.
- Payment receipts and ITC claims.
Organized records will help you during GST audits and inspections.
10. Managing Payments Received and Made
- Record all payments received, including GST.
- Issue receipts with GST details for services.
- For expenses, ensure GST invoices are obtained for claiming ITC.
Timely recording and reconciliation ensure accuracy in returns.
11. Loan Transactions and GST Rules
While loans themselves are not subject to GST, charges like processing fees and foreclosure penalties attract GST. Key points:
- Maintain proper records of loan-related expenses.
- Include these in your GST returns under expense categories.
FAQ's
Yes, a Current Account is essential for separating business transactions and availing Input Tax Credit.
Ensure you have GST-compliant purchase invoices and file the appropriate GST returns.
Late filing results in penalties and interest on unpaid taxes.
Yes, you must file NIL returns to avoid penalties.
No, exports are zero-rated, but proper documentation is required for claiming benefits.
Goods may be detained, and a penalty equal to the tax amount can be levied.
The GST registration process typically takes 7–10 working days, provided all the necessary documents are submitted correctly.
- After applying on the GST portal, you will receive an Acknowledgment Reference Number (ARN) immediately.
- The application is verified, and the GST certificate is issued electronically if all details are in order.
After receiving your GST number, follow these steps:
- Inform Stakeholders: Update your GSTIN with clients, suppliers, and business associates.
- Activate GST Login: Log in to the GST portal and verify all details.
- Prepare for Compliance: Learn about GST rules, tax rates, and Input Tax Credit eligibility.
- Maintain Records: Keep a record of sales, purchases, invoices, and other financial documents.
- Conduct Training (if required): Educate employees about GST-compliant processes, especially for issuing invoices and filing returns.
The process after GST registration includes:
- Verification of GST Certificate: Ensure all information in your certificate is accurate.
- System Configuration: Update your accounting or ERP system with GST-compliant invoice templates.
- Claiming ITC: Track input tax credit based on GST-compliant purchase invoices.
- GST Return Filing Setup: Register for GST return filing on the portal or engage a tax consultant for the same.
- Stay Updated: Keep up with notifications and updates from the GST council or portal.
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Conclusion
Understanding what to do after GST registration is crucial for maintaining compliance and streamlining your business operations. By following the steps outlined in this guide, you can ensure your business thrives under the GST regime.
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