Next Steps After GST Registration: Filing Returns and Compliance

After you receive your GST registration certificate (GSTIN), you must immediately start complying with the GST law. The first step is to display your GSTIN on your business premises and on all tax invoices. You must also begin issuing tax invoices in the prescribed format for all supplies made.

Under the CGST Act, 2017, every registered person must file returns electronically through the GST portal. The type of return depends on your business turnover and the scheme you opt for. For most regular taxpayers, the key returns are GSTR-1 (outward supplies) and GSTR-3B (summary return with payment). You must also maintain books of accounts for at least 72 months from the due date of filing the annual return.

The frequency of GST return filing depends on your turnover and the composition scheme. Regular taxpayers with turnover up to Rs. 5 crore can file GSTR-1 quarterly, while those above Rs. 5 crore must file it monthly. GSTR-3B must be filed monthly for all regular taxpayers, regardless of turnover.

Composition scheme dealers file GSTR-4 annually, with quarterly payment challans. The due dates are:

• GSTR-1 (monthly): 11th of the following month
• GSTR-1 (quarterly): 13th of the month following the quarter
• GSTR-3B (monthly): 20th of the following month
• GSTR-4 (annual): 30th April of the following financial year

Missing these deadlines attracts late fees of Rs. 50 per day (Rs. 25 each under CGST and SGST) and interest at 18% per annum on the tax amount.

You must maintain all records related to your business transactions for at least 72 months from the due date of filing the annual return. This includes tax invoices, credit notes, debit notes, payment vouchers, and delivery challans. The records can be maintained electronically or in physical form.

Every tax invoice must contain specific details: your GSTIN, the recipient's GSTIN (if registered), a unique invoice number, date, description of goods/services, quantity, value, tax rate, and the amount of tax charged. For B2C supplies, you need not mention the recipient's GSTIN. You must also issue a consolidated credit/debit note for each financial year.

If you are a composition dealer, you must issue a bill of supply instead of a tax invoice, as you cannot charge GST to your customers.

Yes, you can claim Input Tax Credit (ITC) on purchases made after the date of registration, provided you have valid tax invoices from registered suppliers. However, ITC is available only for goods or services used in the course of business or for making taxable supplies.

Under Section 16 of the CGST Act, you must ensure that:

• You possess a tax invoice or debit note
• You have received the goods or services
• The supplier has filed the return and paid the tax
• The supplier has furnished the details in GSTR-1

ITC cannot be claimed for goods or services used for personal consumption, or for supplies that are exempt or used for making exempt supplies. You must reverse ITC if you opt for the composition scheme or if you cancel your registration.

Failure to file GST returns leads to several consequences. First, you will be liable to pay late fees and interest. Second, your GST registration may be suspended or cancelled by the tax authorities. Third, you will not be able to file future returns until the pending returns are filed.

Under Section 29 of the CGST Act, the proper officer can cancel your registration if you fail to file returns for six consecutive months (for monthly filers) or two consecutive quarters (for quarterly filers). Cancellation means you cannot issue tax invoices or claim ITC. You must also pay back any ITC claimed on inputs held in stock.

Additionally, non-filing affects your ability to claim ITC, as the supplier's return must be filed for you to claim credit. The GST portal also blocks the filing of GSTR-1 if GSTR-3B for the previous period is not filed.

Set up a compliance calendar with all GST return due dates and ensure you have the necessary software or professional help to file returns on time. If you are unsure about any aspect of GST compliance, consult a qualified chartered accountant or GST practitioner who can guide you through the process.

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This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.