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1) Return Compliances

GST has increased the burden of compliance on businessmen by almost twice, as they have to file at least 25 returns annually that is, 2 returns per month compulsorily on the 10th and 20th of every month along with one annual return. The business will have to upload all tax invoices raised during the previous months as well as reconcile all their sales and purchases. The reconciliation is necessary to avoid penalties and effectively manage the business working capital.

2) Reconciliation

Under GST the business has to ensure reconciliation is completed on time, so as to avoid show-cause notices from the GST department. This becomes tedious for a person if he/she has to manage it along with the regular day-to-day business operations. Some of the reconciliation needed are,

• a) Reconciliation of GSTR 1 with GSTR 3B.
• b) Reconciliation between Input claim in GSTR1 with Input available in GSTR 2.
• c) Matching of outward supply reflected in E-Way bill portal with supply shown in GSTR-1. The reconciliation of E-Way raised on us is also important.
• d) GSTR 1/3B match with MIS-3 & MIS-4.
• e) Matching of Debit Note & Credit Note with GSTR1/3B.

3) Documentation

As GST mainly focuses on self-assessment, the compliance verification by the department is done through documentary checks rather than physical control. Sec.35 of the CGST Act clearly mentions that taxpayers have to maintain true and correct accounting records at their principal place of business as mentioned in their certificate of registration for a period of 72 months i.e. 6 years.

A list of General Documents that are not maintained by most of the businessmen are as follows-

• a) Monthly Production account showing quantitative details of raw material or services used in the manufacture along with quantitative details of the goods manufactured including the waste and byproducts.
• b) Account showing quantitative details of the goods used in the provision of services, details of input service utilized and services supplied.
• c) Detailed relevant documents of supplies attracting Reverse Charge such as invoices, bill of supply, delivery challan, credit note, debit note receipt vouchers, and payment vouchers.
• d) Account of stock in respect of goods supplied or received by the business along with the particulars of opening balances, goods lost, stolen, destroyed, write off or disposed of by way of gift or free samples and balance of stocks including raw material, finished goods, scrap and wastages.

4) ANTI-PROFITEERING MEASURES

Sec 171 in CGST Act mentions that “Any reduction in the rate of tax on any supply of goods or services or the benefit of the input tax credit shall be passed on to the recipient by way of commensurate reduction in price”, this leads to an increase in litigation cases as the taxpayer has to prove that GST benefit has been passed on to the consumers.

This section also demands the taxpayer to maintain proper cost sheet records, to calculate the profits arising from input tax credits and reduction in tax rate which is quite impossible without the help of experts.

5) GST ASSESSMENT PROCEDURE

Assessment simply means the determination of Tax liability. Under GST, the Tax liability is computed by multiplying the Rate of Tax with the value of supply. Both the component are complex as various industries have different valuation requirements which attract different rates. So to avoid any interest on Short payment of Taxes or to avoid extra payment of taxes you require expert advice.

GST Act also has provisions for Scrutiny Assessment under sec 61 and Summary Assessment under sec 64. Failing to provide satisfactory explanations under these assessments shall initiate appropriate actions such as an Audit of the registered person, inspection and search of a place of business of the registered business which further leads to initiating demand and recovery provisions.

6) Other Measures that Require Expert's Point of View

i) Refund Claim – In order to claim a refund under various circumstances taxpayer has to maintain proper document records and has to file various forms accurately.

ii) Drafting and Pleading under GST - Under GST, the taxpayer is given the opportunity to be heard before any order is passed against them. It becomes important for the taxpayer to present his/her reply to the GST department in strict compliance with the rules and regulations.

iii) Constant Amendments - GST is vast and is continuously amended in order to keep up with the trends and the dynamic environment. A business needs to be updated with any changes that will impact his/her business.