GST Registration

Before filing Annual Return ie. GSTR9 a taxpayer has to know about the discrepancy between his books of accounts and GST Returns. This is done through GST Reconciliation.

It helps to rectify the mismatches either by communicating with the supplier or doing changes in your books of accounts.

A Taxpayer should carry out the GST Reconciliation process in a regular interval of time. It helps to avoid any consequences and penalties due to mismatches and the scrutiny from the tax authority in case it is of higher amount.

Necessity of GST Reconciliation
 

• To claim ITC as per 2A data or vendor data. Taxpayers will now need to do a reconciliation wherever the ITC as per their purchase register and 2A data is not matching.


• Finally, after the financial year gets over, Annual returns ( GSTR 9) must be filed before the 31st December of subsequent FY from the consolidation of GST returns filed monthly or quarterly basis. The taxpayer must reconcile the data to ensure the correctness of the declaration made and to avoid duplications.


• Certain deadlines are stipulated in the GST laws for making amendments to GST returns data or to claim ITC.
  
  Mismatches under GST Reconciliation


• Mismatches in Invoice DetailsMismatches for wrong invoice number, invoice date or/and invoice value.
• Human error
• Wrong punching of GSTIN. This may conflict while claiming ITC.
  
  Kinds of GST Reconciliation
• Inward supplies and GSTR2A Reconciliation


• GSTR 3B and the GSTR 2A Reconciliation


• GSTR 3B and GSTR 1 ReconciliationA Show Cause notice may be issued by GST authority in case of any mismatches noticed between these returns
• GST Registration and Certificate
  
  In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory.
  
  After registration under GST, a certificate called GST Certificate is issued to the registered persons. They have to display the registration certificate prominently at their place of business.
  
  Who Should Register for GST?
• Any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs for North Eastern and hill states).For SMEs, the threshold limit is Rs 40 lakhs from 1.4.19
• Note: If your turnover is supply of only exempted goods/services which are exempt under GST, this clause does not apply.
   
• Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too.


• When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.


• Anyone who drives inter-state supply of goods


• Casual taxable person (see below)


• Non-Resident taxable person (see below)


• Agents of a supplier


• Those paying tax under the reverse charge mechanism


• Input service distributor (see below)


• E-commerce operator or aggregator*


• Person who supplies via e-commerce aggregator


• Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
• **e-commerce sellers/aggregators need not register if total sales is less than Rs. 20 lakh. Notification No. 65/2017 – Central Tax dated 15.11.2017
  
  
  Penalty for not registering under GST
  
  There is no such special provision but there is a general rule if the taxable person gets caught by the GST authorities for applying late for the GST registration penalty will be levied. The quantum of penalty applicable in this case will be:
  
  10,000 INR or amount of tax evaded whichever is higher.