How to make your business GST compliant?


Date: 07 May 2021

How to make your business GST compliant?

India was introduced to GST on 1st July 2017, one of the most significant economic benchmarks for Indian businesses. Soon after, many companies were successful in transiting to the new system hassle-free in becoming GST compliant. However, few businesses are still struggling with different compliances that could lure penalties and heavy fines.


The GST committee lays the rules for raising invoices using GST invoice software or manually for maintaining records, reports on sales and purchases, and paying taxes and filing returns. Once your business abides by all these rules, you will attain GST compliance. So, we have simplified the process for you to understand how you will make your business GST compliant and lead your organization to skyrocket.


Let`s find out how to make your business GST compliant.

There are different steps involved that will take you towards GST compliance. Once you get there, you will need to decide whether you will do it manually or use GST billing software to maintain records, bills, invoices, and reports.


But first, let us explore the Steps for making your business GST compliant -

1Know if it is compulsory to register your business under GST.
2. Proceed with your GST registration process.
3. Under GST, Raise GST Invoices.
4. Classify transactions using HSN/SAC
5. File GST returns
Keep a check on your software tools and business processes


Know if it is compulsory to register your business under GST

According to the guidelines of GST registration, if you have an annual turnover exceeding 10 lakhs in specified sectors and 40 lakhs in the rest, you will have to register your business under GST. If your business comes under the below-mentioned categories, you will mandatorily have to get your registration done.

  1. Interstate suppliers
  2. Individuals who pay tax under the basis of reverse charge.
  3. Casual taxable persons
  4. An e-commerce arena where the suppliers can control all the supplies.
  5. Deduction of TDS or TCS (if required) under GST
  6. Taxable non-resident individuals.
  7. Indian individuals or organizations who are not registered but have foreign online service providers.
  8. Distributors following input service
  9. Individuals who supply goods using e-commerce portals and are also liable to TCS.
  10. Agent or entity conducting sales in place of someone else.


Proceed with your GST registration

When you are sure that your business falls under the required parameters for registering under GST, take the next step forward. The taxation laws will define your registration process forward.

Now, you have to follow these steps to register smoothly-

  • By validating your email id and mobile number, you will enroll yourself in GST by accessing it. There is nothing to worry about, the portal is very user-friendly, and your registration process will be over seamlessly. The Form GST REG-25 will be allotted with a provincial registration certificate after the enrollment process is complete.
  • If you register using the same PAN for multiple registrations under GST, you will still get one registration certificate. Suppose you are a supply provider in different states, then you will have to register separately.


Under GST, How to raise invoices

The registered businesses under GST have to generate GST-compliant invoices commonly using GST invoice software. Specified fields have been addressed in the rules of the GST draft, which has to be provided while issuing an invoice.


A total of 16 fields needs to be included; the invoice format and their affix logo can be chosen by the suppliers, as long as the relevant fields are included.


There is a lot of confusion regarding how the invoices should be under GST. On the other hand, you will not have to upload jpegs or PDFs. On the GST portal, a supplier who is registered needs to update invoice issue details. The invoices issued have to be indexed electronically, such as in GST billing software via the common portal.


The seller and buyer information gets stored in the GST portal. The purchases made by the registrants can be auto-populated by GSTN using this information.


By updating the details, you will cross the first critical step to being GST compliant. This links with all the purchases in the buyer's profile, allowing them to claim tax benefits that are paid during purchases against their total tax expenditure.


Classify transactions using HSN/SAC

All your transactions under GST have to be classified under either 'services' or 'goods' using the HSN/SAC code map. The previous VAT or value-added laws did not have some of these classifications. For instance, under VAT laws, restaurants fall under 'goods' classification, but it is considered 'service under GST.'


Moreover, GST has adopted IGST or integrated GST model that classifies all transactions into two topics' intrastate' and 'interstate' transactions. The redefining tax rates, fluctuating tax rates, reclassifying items, and exemptions must be addressed as well.


File GST returns

For securing a good rating, it is essential to file your returns timely as a GST complainant entity. You can file your returns in the following months on an annually/monthly/quarterly basis. If the data remains incomplete, then it might give you returns that are not valid. To avoid this, you can always resort to GST invoice software.


Finally, keep a check on your tools and processes

Check if the software for accounting that you are currently using can provide you with GST compliant documents and if it can be updated as per the present alterations. The laws are suspected of going through multiple alterations before it stands still; therefore you must be attentive towards your GST billing software.


Domains such as supply time and place must be clearly understood by you, as the domains vary depending on location, industry, and commodities. This task could be simplified with solutions such as BUSY Accounting Software.

Final Thoughts

The above-mentioned GST compliance steps will help you get acquainted with the process, and soon you will be able to conduct your business proceedings without any concerns or issues.

Every part of your business operations will likely be affected by the GST laws, not just the taxation. As the leader of your business, you have to understand how important it is to have a system like BUSY Software to assist you and free you from all the worries of GST compliance.


Be the challenger and face non-compliant issues with enthusiasm rather than reacting to those issues; you will be performing better this way.