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Published on:
February 25, 2023
By
Harshini

GST Checklist: All That You Need to Be GST Ready

GST or Goods and Services Tax was introduced in India on July 1st, 2017. Since then, it has become mandatory for all businesses to register under GST and comply with its regulations. GST has brought about a significant change in the taxation system of India, making it more transparent and seamless. However, preparing for GST compliance can be a daunting task, especially for small and medium businesses. In this article, we will provide you with a comprehensive checklist that will help you become GST ready.

Register for GST

The first step towards GST compliance is registering for GST. Businesses with an annual turnover of more than Rs. 40 lakhs (Rs. 20 lakhs for north-eastern states) are required to register for GST. The registration process is simple and can be done online through the GST portal. You will require your business PAN, bank account details, and other documents to complete the registration process.

Get Your Invoices Right

Under GST, all invoices must comply with certain rules and regulations. Invoices must contain the GSTIN of the supplier and recipient, invoice number, date, description of the goods or services, quantity, value, and applicable tax rates. In addition, invoices must be generated in triplicate, with one copy being retained by the supplier, one copy being given to the recipient, and one copy being retained for the supplier's records.

Classify Your Goods and Services

Under GST, all goods and services are classified under the Harmonized System of Nomenclature (HSN) or the Service Accounting Code (SAC). It is important to classify your goods and services accurately to determine the applicable tax rates. You can find the HSN and SAC codes for your goods and services on the GST portal.

File Your Returns on Time

Under GST, businesses are required to file monthly, quarterly or annual returns depending on their turnover. It is important to file your returns on time to avoid penalties and interest. Returns can be filed online through the GST portal. You will require your GSTIN, username, and password to log in to the portal.

Keep Your Books of Accounts in Order

Under GST, businesses are required to maintain books of accounts in a prescribed format. Books of accounts must contain details of all invoices, receipts, payments, and other transactions. It is important to maintain accurate books of accounts to avoid penalties and interest. You can use accounting software or hire a professional to maintain your books of accounts.

Conclusion

Becoming GST ready can be a challenging task, especially for small and medium businesses. However, by following this comprehensive checklist, you can ensure that your business is compliant with GST regulations. Register for GST, get your invoices right, classify your goods and services accurately, file your returns on time, and keep your books of accounts in order to ensure GST compliance.

Preparing for GST compliance can be a daunting task, especially for small and medium businesses. In this article, we will provide you with a comprehensive checklist that will help you become GST ready. Register for GST, get your invoices right, classify your goods and services accurately, file your returns on time, and keep your books of accounts in order to ensure GST compliance.BusinessFinanceGST-checklist-all-that-you-need-to-be-gst-ready

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Updated on:
March 16, 2024