Module No.
5: GST Procedures
Registration under GST
GST Registration is the process by which a taxpayer gets registered under the Goods and
Services Tax (GST) law and obtains a GST Identification Number (GSTIN).
Persons Liable for Registration
Businesses whose aggregate turnover exceeds the prescribed threshold limit.
Inter-State suppliers.
Casual taxable persons.
Non-resident taxable persons.
E-commerce operators.
Persons liable to pay tax under Reverse Charge Mechanism (RCM).
GSTIN is a 15-digit number:
First 2 digits – State Code
Next 10 digits – PAN Number
13th digit – Entity Number
14th digit – Default alphabet "Z"
15th digit – Check Code
Benefits of Registration
Legal recognition as a supplier.
Ability to collect GST from customers.
Eligibility to claim Input Tax Credit (ITC).
Improved business credibility.
Tax Invoice under GST
A Tax Invoice is a document issued by a registered supplier containing details of goods/services
supplied and the GST charged.
Contents of Tax Invoice
Name, address and GSTIN of supplier.
Invoice number and date.
Name and address of recipient.
Description of goods/services.
Quantity and value.
Taxable value.
Rate and amount of CGST, SGST, IGST.
Place of supply (for inter-state transactions).
Signature of supplier.
Time Limit for Issuing Invoice
Goods - Before or at the time of removal/delivery of goods.
Services - Within 30 days from the date of supply of services.
Levy and Collection of GST
Levy means imposition of tax and collection means recovery of tax by the Government.
Types of GST
1. CGST (Central GST) – Collected by Central Government.
2. SGST (State GST) – Collected by State Government.
3. IGST (Integrated GST) – Collected on inter-state transactions.
Example
Intra-State Supply
Sale Value = ₹10,000
GST Rate = 18%
CGST = ₹900
SGST = ₹900
Inter-State Supply
Sale Value = ₹10,000
IGST = ₹1,800
Composition Scheme
A simplified scheme for small taxpayers to reduce compliance burden.
Eligibility
Small taxpayers with turnover up to prescribed limits.
Not engaged in inter-state supply of goods.
Not supplying through e-commerce operators liable to collect TCS.
Features
Pay tax at a fixed percentage of turnover.
Simple record keeping.
Quarterly return filing.
Cannot collect GST from customers.
Cannot claim Input Tax Credit.
Advantages
Reduced compliance burden.
Easy tax calculation.
Lower accounting costs.
Disadvantages
No Input Tax Credit.
Limited business expansion.
Not suitable for inter-state businesses.
Due Dates for Payment of GST
Regular Taxpayer - GST payment is generally made while filing monthly returns.
Composition Dealer - GST payment is made quarterly.
Modes of Payment
Internet Banking
Debit/Credit Card
NEFT/RTGS
UPI and other prescribed methods
Accounting Records under GST
Every registered person must maintain:
Purchase Register - Contains all purchases made.
Sales Register - Contains all sales transactions.
Stock Register - Records inventory movement.
Input Tax Credit Register - Tracks eligible ITC.
Output Tax Register - Records GST collected on sales.
Electronic Records - Records may be maintained electronically and preserved for the
prescribed period.
Features of GST in Tally Package
GST Configuration
Enable GST in company features.
Set GST details.
GST Masters
Creation of GST ledgers.
GST classifications.
GST Transactions
Recording purchases and sales.
Debit Notes and Credit Notes.
GST Reports
GSTR Reports.
Tax liability reports.
Input Tax Credit reports.
GST computation reports.
Advantages
Automatic tax calculation.
Error reduction.
Easy return preparation.
Quick compliance management.
GST Returns
GST Return is a document containing details of income, purchases, sales, output tax, and input
tax credit.
Types of GST Returns
GSTR-1 - Details of outward supplies (sales).
GSTR-3B - Summary return and tax payment.
CMP-08 - For composition taxpayers.
GSTR-4 - Annual return for composition dealers.
GSTR-9 - Annual return.
GSTR-10 - Final return.
Monthly Returns
GSTR-1 Contains:
B2B supplies
B2C supplies
Credit notes
Debit notes
GSTR-3B Contains:
Taxable supplies
Input Tax Credit
Tax liability
Tax payment
Annual Return
GSTR-9 - Annual statement consolidating details of:
Sales
Purchases
Taxes paid
ITC claimed
Importance
Ensures reconciliation of accounts.
Improves compliance.
Helps detect errors.
Final Return
GSTR-10 - Filed when GST registration is cancelled or surrendered.
Purpose
To ensure all tax liabilities are settled before closure of registration.
Due Dates for Filing GST Returns
Return Purpose Due Date
GSTR-1 Outward Supplies Monthly/Quarterly as prescribed
GSTR-3B Summary Return Monthly
CMP-08 Composition Tax Payment Quarterly
GSTR-4 Annual Return for Composition Dealer Annually
GSTR-9 Annual Return Annually
GSTR-10 Final Return Within 3 months of cancellation order/date
Final Assessment under GST
Assessment refers to determination of tax liability.
Types of Assessment
1. Self-Assessment
2. Provisional Assessment
3. Scrutiny Assessment
4. Best Judgment Assessment
5. Summary Assessment
Final Assessment
When provisional assessment is completed and the actual tax liability is determined by the tax
authorities.
Importance
Correct determination of tax.
Settlement of tax dues.
Avoidance of disputes.
Accounts under GST
Records to be Maintained
Production records
Purchase records
Sales records
Stock records
Input Tax Credit records
Tax payment records
Place of Maintenance
Principal place of business.
Additional places of business if required.
Retention Period
Books and records must generally be preserved for the prescribed statutory period.
Audit under GST
Audit is the examination of records, returns, and documents to verify correctness of turnover, tax
paid, refund claimed, and ITC availed.
Objectives of GST Audit
Verify tax compliance.
Detect tax evasion.
Ensure proper maintenance of records.
Verify correctness of GST returns.
Types of Audit
1. Departmental Audit by GST Authorities.
2. Special Audit ordered by tax authorities in specific cases.
Benefits of Audit
Better compliance.
Accurate tax reporting.
Reduced litigation.
Improved financial discipline.
Conclusion
GST has simplified India's indirect tax system through a unified tax structure. Proper
registration, invoicing, maintenance of accounts, filing of returns, assessment, and audit help
businesses comply with GST laws efficiently. Software such as TallyPrime makes GST
accounting, tax computation, and return filing easier and more accurate.