Goods and Services Tax (GST) registration:-
Goods and Services Tax (GST) registration is mandatory for businesses that have an annual turnover of Rs. 20 lakhs or more (Rs. 10 lakhs or more for businesses in special category states). Here are some key points to keep in mind about GST registration and monthly filings:
1. GST registration: Businesses can register for GST by visiting the GST portal (www.gst.gov.in) and providing the required information, including business name, address, PAN number, and bank account details. Once registered, the business will receive a GST registration certificate.
2. GSTIN: After registration, the business will be assigned a unique Goods and Services Tax Identification Number (GSTIN). This number must be displayed on all invoices and other relevant documents.
3. Monthly filings: Registered businesses are required to file monthly GST returns, which include details of all sales and purchases made during the month, and the amount of GST payable or receivable. The returns must be filed online through the GST portal by the 20th of the following month.
4. Late fees and penalties: Late filing of GST returns can result in penalties and interest charges. The late fee is Rs. 50 per day (Rs. 20 per day for businesses with no taxable sales), and the maximum penalty is Rs. 5,000.
5. Input tax credit: Businesses can claim input tax credit (ITC) for the GST paid on purchases made for business purposes. However, ITC can only be claimed for purchases that are supported by valid invoices and other documents.
6. Annual return: In addition to monthly filings, businesses are also required to file an annual GST return by December 31st of the following year. The annual return includes a summary of all sales and purchases made during the financial year.
Overall, GST registration and monthly filings are important requirements for businesses in India, and compliance with these regulations can help businesses avoid penalties and ensure smooth operations.