GST Compliance Checklist for Small Businesses in India

Goods and Services Tax (GST) compliance is crucial for small businesses in India to avoid penalties and ensure smooth operations. Understanding and adhering to GST regulations can help businesses maintain financial health and credibility. Heres a comprehensive checklist to keep your business GST-compliant.

1. GST Registration

• Ensure your business is registered under GST if your turnover exceeds the prescribed threshold (currently ?40 lakh for goods and ?20 lakh for services in most states).

• Obtain your GST Identification Number (GSTIN).

• Display your GSTIN prominently on invoices, websites, and business premises.

2. Invoicing & Record-Keeping

• Issue GST-compliant invoices with mandatory details such as GSTIN, invoice number, date, taxable value, and applicable tax rates (CGST, SGST, IGST).

• Maintain purchase records, sales invoices, expense records, and tax paid on inputs.

• Ensure invoices are generated on time, including e-invoicing for applicable businesses (mandatory for businesses with a turnover above ?5 crore).

3. GST Returns Filing

• File GST returns on time as per the prescribed schedule:

  • GSTR-1 (outward supplies)  Monthly/Quarterly

  • GSTR-3B (summary return)  Monthly

  • GSTR-9 (annual return)  Yearly (if applicable)

• Ensure accurate reconciliation of sales and purchases to avoid mismatches.

• Keep track of deadlines to avoid late fees and penalties.