A new business faces GST decisions before it has a revenue history: whether to register, whether to elect composition, how to design the invoice, how to maintain records and how to file the first return. The decisions made in the first year determine the compliance trajectory. A business that registers correctly, invoices correctly and reconciles monthly avoids the notices that consume the first three years.
The Registration Decision
The threshold is ₹20 lakh for services and ₹40 lakh for goods (₹20 lakh/₹10 lakh in special category states). Inter-state supply, e-commerce supply and reverse-charge liability trigger registration regardless of turnover. Voluntary registration can preserve ITC on setup costs. The decision should be modelled against the expected input tax and the customer’s credit needs.
The Invoice and Record Architecture
The invoice should carry the GSTIN, invoice number and date, HSN/SAC, description, taxable value, rate and tax amount. The purchase register should record the supplier GSTIN and the GSTR-2B status. The records should be retained for 72 months. The business should adopt the invoice and record format before the first sale, not after the first notice.
The First-Year Calendar
The first year requires GSTR-1 and GSTR-3B monthly or quarterly (under the QRMP scheme where eligible), the annual return, and the reconciliation. The business should fix the filing calendar and the reconciliation routine at the outset.
What the Consultant Does
The consultant assists with the registration decision, the invoice architecture, the return calendar and the first-year reconciliation. The value is in the setup that prevents the early notices.
Call to Action: We advise new businesses on GST registration, invoice architecture and first-year compliance. For a new-business setup review, contact office@anujdesaiassociates.com, Ph No. 9619456656, Website https://anujdesaiassociates.com, LinkedIn linkedin.com/in/ca-anuj-desai-122547230.