Hello Auditor

What are the obligations of taxpayers?

Registration and Updates

  • Businesses crossing threshold turnover must register under GST
  • Details like business name, address, and bank accounts must be updated regularly
  • Multiple registrations required for branches in different states
  • Cancellation of registration must be initiated when eligibility ends
  • Timely amendment of core and non-core fields is mandatory

Return Filing and Payment

  • Taxpayers must file monthly or quarterly returns depending on scheme
  • GSTR-1 (sales), GSTR-3B (summary), and annual returns like GSTR-9 are compulsory
  • Tax must be paid by the due date to avoid interest and penalty
  • Late filing attracts late fees and interest under law
  • Separate returns apply for composition scheme taxpayers

Invoice and Documentation

  • Taxpayers must issue GST-compliant invoices for all taxable supplies
  • Include HSN/SAC codes, GSTIN, tax rate, and supply details
  • Maintain books of accounts, purchase and sales registers, and stock records
  • E-way bill generation required for goods movement above ₹50,000
  • Preserve records for minimum six years for audit or inspection

Input Tax Credit Management

  • Claim credit only for eligible goods or services used for business
  • Reverse ITC when conditions are not met or goods are used for exempt supply
  • Match GSTR-2B with inward supply to confirm eligibility
  • Maintain separate ITC ledger in books and reconcile monthly
  • Avoid blocked credits under Section 17(5) (e.g., food, travel, etc.)

Responding to Notices and Audits

  • Timely response to notices, assessments, and audit queries is mandatory
  • Cooperate with GST officers during inspection or investigation
  • Submit correct documents and explanations when required
  • Avoid suppression of facts or misrepresentation
  • Non-compliance may lead to penalties, interest, or prosecution

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