GST Compliance Checklist for a Newly Registered Business

Obtaining a GSTIN is only the beginning. A newly registered business must put in place a complete compliance framework from the date of registration. Missing any step can lead to loss of credit, interest, penalties and unnecessary notices.

1. Registration and Display Requirements

• Display the GST registration certificate at the principal place of business and every additional place of business.
• Display the GSTIN on the name board at all business locations.
• Update the GST portal with email address, mobile number and bank account details.
• Confirm that the principal place of business address and additional places are correctly recorded.
• If operating in more than one State, obtain separate registrations and maintain distinct person documentation.

2. Invoice and Document Setup

• Design tax invoice and bill of supply formats as per Rule 46 and Rule 49 of the CGST Rules.
• Ensure invoices contain GSTIN, name and address of supplier and recipient, HSN or SAC, description of goods or services, quantity, unit, value, tax rate, tax amount and place of supply.
• Issue revised invoices for supplies made between the date of liability and the date of registration.
• Issue debit notes and credit notes under Section 34 when needed.
• Use unauthenticated invoices with signature or digital signature as applicable.

3. Classification and Rate Determination

• Classify all goods and services using the correct HSN and SAC codes.
• Apply the correct CGST, SGST, IGST or UTGST rate for each supply.
• Identify exempt, nil-rated, zero-rated and non-taxable supplies separately.
• Determine whether any supply is composite or mixed and apply the correct rate.

4. Reverse Charge and Tax Payment

• Identify all inward supplies covered under reverse charge.
• Maintain a reverse charge register.
• Pay reverse charge tax in the correct month and claim eligible ITC only after payment.
• Reconcile reverse charge liability with GSTR-3B.

5. Input Tax Credit Process

• Verify that every purchase has a proper tax invoice.
• Match purchase register with GSTR-2B every month before filing GSTR-3B.
• Ensure goods or services are received before claiming credit.
• Block ITC on ineligible items under Section 17(5).
• Reverse ITC if payment to supplier is not made within 180 days under Section 16(2).
• Maintain separate accounts for taxable, exempt and common credits under Rules 42 and 43 if making both taxable and exempt supplies.

6. E-Invoicing and E-Way Bill

• Check whether e-invoicing is applicable based on aggregate turnover.
• Generate IRN and QR code for every tax invoice where e-invoicing applies.
• Generate e-way bills for movement of goods above the threshold.
• Reconcile e-invoice and e-way bill data with GSTR-1.

7. Return Filing

• File GSTR-1 on or before the 11th of the following month, or as per QRMP if opted.
• File GSTR-3B and pay tax by the 20th, or as per QRMP timeline.
• File nil returns if there is no activity.
• Reconcile outward supplies, ITC and cash payments before filing.
• File annual return GSTR-9 and reconciliation statement GSTR-9C where applicable.

8. Records and Books

• Maintain books of accounts at the principal place of business under Section 35.
• Keep records of production, inward and outward supplies, stock, input tax credit availed, output tax payable and paid.
• Preserve records for at least eight financial years under Section 36.
• Maintain separate records for distinct persons and related party transactions.

9. Notices and Communication

• Respond to GST notices within the prescribed time.
• Monitor the GST portal for ASMT-10, DRC-01, notices and returns defaults.
• Maintain a compliance tracker for due dates and annual compliances.

How Anuj Desai & Associates Can Help

We help newly registered businesses implement a complete GST compliance calendar, set up invoice templates, review classification, manage ITC and reverse charge, and file all returns accurately and on time.

Contact Anuj Desai & Associates
Email: office@anujdesaiassociates.com
Phone: 9619456656
Website: https://anujdesaiassociates.com
LinkedIn: linkedin.com/in/ca-anuj-desai-122547230