Checklist for businesses to be GST compliant
Registration to GST:
Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh/10 lakh (as applicable) will be required to register as a normal taxable person under the GST regime. If you sell or are planning to sell on Amazon.in, GST registration is mandatory (except for GST-exempt categories).
If you require assistance, you can follow the process mentioned in our How to Register for GST article. GST registration is critical because it may be mandatory for your business and also it will enable you to avail various benefits that are available under the GST regime. You can also avail ClearTax’s services, to register your business under GST.
One such benefit is to avail seamless input tax credit. If you have a VAT/CST registration and have not migrated to GST, please contact your CA/Tax Consultant immediately for migration to GST.
Raise invoices under GST:
GST Act along with GST Rules have defined the invoicing rules and formats. An invoice or a bill provides a list of goods sold, along with the amount due for payment. A person registered under GST must issue GST compliant invoices. There are two types of invoice that are issued under GST.
1. The taxable invoice which is issued to pass /avail GST credit.
2. Bill of supply, which is issued when the supply is exempted or no GST credit is passed on / availed.
A tax invoice is issued to charge the tax and pass on the input tax credit. A GST compliant tax invoice needs to have following the mandatory information -
1. Name, address and GSTN of the supplier
2. Invoice number
3. Invoice date
4. Name, address and GSTN of the recipient (if registered)
5. Address of delivery where the same is different from the place of supply
6. Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
7. HSN Code
8. Description of the goods/services
9. Quantity of goods
10. Taxable value of goods/services or both (after discount/abatement)
11. Rate and amount of GST
12. Total value of supply of goods/ services or both
13. Whether the tax is payable on reverse charge basis
14. Signature or digital signature
Various Invoices & Supporting Documents under GST:
The different types of invoices and supporting documents under GST are-
>Tax invoice
>Bill of supply
>Credit notes
>Debit notes
>Advance receipts
>Refund vouchers
>Delivery challan
GST Returns and timelines:
Under the new GST regime, sellers need to file their returns on a monthly basis. By the 10th of the month, sellers need to file GSTR-1 form on the GST portal, which contains details of their taxable supply of goods/services for the previous month. Between the 11th and 15th of the same month, sellers need to update their input tax components (purchases details of taxable goods/service) and other details regarding their input tax supplies in GSTR-2 form. The GSTN portal will then auto-populate GSTR-3 form, which the seller needs to validate and make the necessary payments by the 20th of the same month. Annual returns for a financial year need to be filed in GSTR-9 form by December 31 of the next financial year.
It should be noted that there is no mechanism of filing revised returns. The rectification of errors/omissions is allowed only in the subsequent returns.
Amazon.in sellers can avail a special offer from ClearTax Biz to help them file their GST returns. An added benefit of this service is their seamless integration with Amazon.in account, enabling faster return filing. You can read more about this offer here. By using ClearTax Biz, you agree that the product /solution is provided by Defmacro Software Private Limited, to the complete exclusion of Amazon Seller Services Private Limited ("Amazon"). Amazon disclaims all liability and assumes no responsibility for consequences resulting from your use of or reliance on the ClearTax Biz product/solution. One should note that failing to furnish form GSTR-1, GSTR-2, GSTR-3 or Final Return within the due dates attracts late fee of Rs. 100 per day, subject to a maximum of Rs. 5,000.
We hope this article will help you be GST compliant and run your business smoothly.
Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh/10 lakh (as applicable) will be required to register as a normal taxable person under the GST regime. If you sell or are planning to sell on Amazon.in, GST registration is mandatory (except for GST-exempt categories).
If you require assistance, you can follow the process mentioned in our How to Register for GST article. GST registration is critical because it may be mandatory for your business and also it will enable you to avail various benefits that are available under the GST regime. You can also avail ClearTax’s services, to register your business under GST.
One such benefit is to avail seamless input tax credit. If you have a VAT/CST registration and have not migrated to GST, please contact your CA/Tax Consultant immediately for migration to GST.
Raise invoices under GST:
GST Act along with GST Rules have defined the invoicing rules and formats. An invoice or a bill provides a list of goods sold, along with the amount due for payment. A person registered under GST must issue GST compliant invoices. There are two types of invoice that are issued under GST.
1. The taxable invoice which is issued to pass /avail GST credit.
2. Bill of supply, which is issued when the supply is exempted or no GST credit is passed on / availed.
A tax invoice is issued to charge the tax and pass on the input tax credit. A GST compliant tax invoice needs to have following the mandatory information -
1. Name, address and GSTN of the supplier
2. Invoice number
3. Invoice date
4. Name, address and GSTN of the recipient (if registered)
5. Address of delivery where the same is different from the place of supply
6. Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
7. HSN Code
8. Description of the goods/services
9. Quantity of goods
10. Taxable value of goods/services or both (after discount/abatement)
11. Rate and amount of GST
12. Total value of supply of goods/ services or both
13. Whether the tax is payable on reverse charge basis
14. Signature or digital signature
Various Invoices & Supporting Documents under GST:
The different types of invoices and supporting documents under GST are-
>Tax invoice
>Bill of supply
>Credit notes
>Debit notes
>Advance receipts
>Refund vouchers
>Delivery challan
GST Returns and timelines:
Under the new GST regime, sellers need to file their returns on a monthly basis. By the 10th of the month, sellers need to file GSTR-1 form on the GST portal, which contains details of their taxable supply of goods/services for the previous month. Between the 11th and 15th of the same month, sellers need to update their input tax components (purchases details of taxable goods/service) and other details regarding their input tax supplies in GSTR-2 form. The GSTN portal will then auto-populate GSTR-3 form, which the seller needs to validate and make the necessary payments by the 20th of the same month. Annual returns for a financial year need to be filed in GSTR-9 form by December 31 of the next financial year.
It should be noted that there is no mechanism of filing revised returns. The rectification of errors/omissions is allowed only in the subsequent returns.
Amazon.in sellers can avail a special offer from ClearTax Biz to help them file their GST returns. An added benefit of this service is their seamless integration with Amazon.in account, enabling faster return filing. You can read more about this offer here. By using ClearTax Biz, you agree that the product /solution is provided by Defmacro Software Private Limited, to the complete exclusion of Amazon Seller Services Private Limited ("Amazon"). Amazon disclaims all liability and assumes no responsibility for consequences resulting from your use of or reliance on the ClearTax Biz product/solution. One should note that failing to furnish form GSTR-1, GSTR-2, GSTR-3 or Final Return within the due dates attracts late fee of Rs. 100 per day, subject to a maximum of Rs. 5,000.
We hope this article will help you be GST compliant and run your business smoothly.
DISCLAIMER:
Whilst Amazon Seller Services Private Limited ("Amazon") has used reasonable endeavors in compiling the information, steps and process provided above, there is no assurance as to the accuracy, completeness or usefulness of the information or that such information is error-free. The steps or process described above and in the presentation are indicative and may change at any time. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated by Amazon at any time, without prior notice, and at Amazon's sole discretion. Any copying, redistribution or republication of the information, or the content thereof by the seller, without prior written consent of Amazon is strictly prohibited. By proceeding to use the information, steps or the process described above, you do so at its own risk and expressly waives any and all claims, rights of action and/or remedies (under law or otherwise) that the seller may have against Amazon arising out of or in connection with the use of or reliance upon such information.
Whilst Amazon Seller Services Private Limited ("Amazon") has used reasonable endeavors in compiling the information, steps and process provided above, there is no assurance as to the accuracy, completeness or usefulness of the information or that such information is error-free. The steps or process described above and in the presentation are indicative and may change at any time. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated by Amazon at any time, without prior notice, and at Amazon's sole discretion. Any copying, redistribution or republication of the information, or the content thereof by the seller, without prior written consent of Amazon is strictly prohibited. By proceeding to use the information, steps or the process described above, you do so at its own risk and expressly waives any and all claims, rights of action and/or remedies (under law or otherwise) that the seller may have against Amazon arising out of or in connection with the use of or reliance upon such information.
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