Steps after GST Registration – Here’s What You Need to Do Next

Introduction

Obtaining your Goods and Services Tax (GST) registration is a significant milestone for your business in India. It signifies your formal recognition under the GST regime and allows you to legally collect and pay GST. However, the journey doesn’t end with the registration certificate. Several crucial steps and ongoing compliances need your immediate attention to ensure smooth operations and avoid penalties. This detailed article outlines everything you must do after successfully obtaining your GST registration.

Immediate Next Steps After Receiving Your GSTIN

Once your GST registration is approved, you’ll receive your Goods and Services Tax Identification Number (GSTIN). Here’s what you should do right away:

1. Download Your GST Registration Certificate

Visit the official GST portal (www.gst.gov.in).
Log in using your credentials (username and password created during registration).
Navigate to the “Services” tab, then click on “User Services,” and finally “View/Download Certificates.”
Download and save your GST registration certificate (Form GST REG-06). Keep a printed copy handy at your principal place of business.

2. Obtain a Digital Signature Certificate (DSC) (If Applicable)

While not mandatory for all types of businesses, a DSC is essential for certain entities like companies, Limited Liability Partnerships (LLPs), and for verifying certain documents on the GST portal.
If you haven’t already obtained a DSC, do so from a certified certifying authority in India.

3. Display Your GSTIN Prominently at Your Place of Business

According to GST rules, every registered taxable person must display their GSTIN on the name board exhibited at their principal place of business and at any additional places of business mentioned in the registration certificate. This ensures transparency and allows customers and tax authorities to easily identify your GST registration.

4. Update Your Business Stationery and Signage

Ensure your GSTIN is printed on all your business stationery, including:
Invoices
Letterheads
Billbooks
Quotation slips
Delivery challans
Any other documents related to your business transactions.
Update your website and any online platforms with your GSTIN.

5. Inform Your Bank and Other Relevant Stakeholders

Notify your bank about your GST registration and provide them with your GSTIN. This is often required for updating your account details and facilitating GST-related transactions.
Inform your vendors, suppliers, and customers about your GST registration and GSTIN. This will enable them to issue GST-compliant invoices to you and vice versa.

Key Ongoing Compliances Under GST

1. Issuance of GST Compliant Invoices

Every registered taxable person supplying taxable goods or services is required to issue a GST-compliant invoice.
A valid GST invoice must contain specific mandatory fields, including:

• Name, address, and GSTIN of the supplier.
• A consecutive serial number (not exceeding 16 characters, in one or multiple series).
• Date of its issue.
• Name, address, and GSTIN or Unique Identity Number (UIN), if registered, of the recipient.
• Name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is unregistered and the value of taxable supply is ₹50,000 or more.
• HSN code of goods or Accounting Code of services.
• Description of goods or services.
• Quantity in case of goods and unit or Unique Quantity Code thereof.
• Total value of supply of goods or services or both.
• Taxable value of the supply of goods or services or both taking into account discount or abatement.
• Rate of tax (CGST, SGST/UTGST, IGST, and Cess).
• Amount of tax charged in respect of taxable goods or services (CGST, SGST/UTGST, IGST, and Cess).
• Place of supply along with the name of the State, in case of supply in the course of inter-State trade or commerce.
• Whether tax is payable on reverse charge basis.
• Signature or digital signature of the supplier or their authorized representative.

2. Filing GST Returns

Registered taxpayers are required to file various GST returns periodically. The specific returns applicable to you depend on your registration type and business activities. Some of the key GST returns include:

• GSTR-1 (Return of Outward Supplies): Filed monthly (or quarterly for small taxpayers with turnover up to ₹5 crore) by the 11th of the following month (or last day of the month following the quarter). This return contains details of all your outward supplies (sales).
• GSTR-3B (Summary of Outward Supplies and Input Tax Credit): A monthly summary return filed by the 20th of the following month (for most taxpayers). It contains details of outward supplies and input tax credit claimed.
• GSTR-2 (Return of Inward Supplies): This return was intended to capture details of inward supplies (purchases). However, its filing has been currently suspended. Keep an eye on official notifications for any future updates regarding its implementation.
• GSTR-4 (Annual Return for Composition Scheme): Taxpayers who have opted for the Composition Scheme need to file this annual return by the 30th of April following the financial year. They also need to file quarterly statements in Form CMP-08.
• GSTR-9 (Annual Return): All registered taxpayers (except those under the Composition Scheme, Input Service Distributors, Casual Taxable Persons, Non-Resident Taxable Persons, and OIDAR service providers) are required to file an annual return by the 31st of December following the financial year.
• GSTR-9C (Reconciliation Statement): Taxpayers with an aggregate turnover exceeding ₹5 crore during a financial year are required to file a reconciliation statement in Form GSTR-9C, reconciling the figures reported in GSTR-9 with their audited annual financial statements.

It is crucial to adhere to the due dates for filing GST returns to avoid late fees and penalties.

3. Payment of GST

As a registered taxpayer, you are liable to pay GST on your outward supplies of goods and services.
The GST liability needs to be paid by the due date, which is generally the 20th of the following month for monthly filers.
You can pay GST online through the GST portal using various methods like net banking, credit/debit cards, or through NEFT/RTGS. You can also generate a challan (Form GST PMT-06) and pay offline at authorized banks.
Ensure you understand your tax liability correctly and make timely payments to avoid interest charges.

4. Maintenance of Books and Records

GST law mandates that every registered person must maintain proper books of accounts and records at their principal place of business. These records should be kept for a period of at least 72 months from the due date of filing the annual return for the relevant year.

• Records of all inward and outward supplies.
• Stock records.
• Input tax credit availed.
• Output tax payable and paid.
• Tax invoices, credit notes, debit notes, and e-way bills.
• Ledgers, cash books, and other financial records.

5. Claiming Input Tax Credit (ITC)

One of the key benefits of GST is the ability to claim Input Tax Credit (ITC) on the GST paid on your purchases of goods and services that are used in the course or furtherance of your business.

• You must be in possession of a valid tax invoice or debit note.
• The supplier must have actually paid the tax to the government.
• You must have received the goods or services.
• You must have filed your GST returns.
• It’s important to reconcile your purchase invoices with the details uploaded by your suppliers in their GSTR-1 to ensure you can claim the correct ITC.

6. E-way Bill Generation (If Applicable)

If you are involved in the transportation of goods (excluding certain exempted categories) with a consignment value exceeding ₹50,000, you are required to generate an e-way bill electronically on the e-way bill portal (www.ewaybillgst.gov.in).
The e-way bill contains details of the goods being transported, the consignor, the consignee, and the transporter. It is essential for the movement of goods across state lines and sometimes within the same state, depending on the rules.

Other Important Aspects to Keep in Mind

• Reverse Charge Mechanism (RCM): Understand if your business is liable to pay tax under the reverse charge mechanism for certain notified categories of goods or services.
• Composition Scheme (If Opted For): If you have opted for the Composition Scheme, be aware of the specific rules and restrictions applicable to you, such as restrictions on claiming ITC and making inter-state supplies.
• Regular Updates and Notifications from the GST Portal: Stay updated with the latest notifications, circulars, and press releases issued by the GST department. Regularly check the GST portal for any changes in rules, procedures, or tax rates.
• Importance of Professional Guidance: Consider seeking guidance from a qualified tax professional or consultant to ensure you understand and comply with all the GST regulations relevant to your business.

Conclusion

Obtaining GST registration is just the beginning. The real work lies in ensuring continuous compliance with the GST laws. By diligently following the steps outlined in this article, including timely filing of returns, making tax payments, issuing compliant invoices, and maintaining proper records, you can ensure smooth business operations under the GST regime and avoid potential penalties. Remember that GST is an evolving law, so staying informed about the latest updates is crucial for long-term compliance and success.