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What are common mistakes to avoid when registering for GST?

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Last Updated on June 13, 2023 by Kanakkupillai

What are common mistakes to avoid when registering for GST?

The minimum turnover amount that determines whether a business must register for GST is known as the GST registration threshold. In India, the minimum threshold for suppliers of products is typically Rs. 40 lakhs, and for providers of services, Rs. 20 lakhs, while certain states have a lower threshold of Rs. 10 lakhs for suppliers of commodities.

GST Registration types typically include

  • Regular registration
  • Composition Scheme Registration
  • Voluntary Registration
  • No registration

Regular registration is required for businesses that exceed the GST threshold. Small enterprises with lesser turnover may decide to use the Composition Scheme, whilst those looking for advantages such as input tax credits should register voluntarily. Business owners who don’t meet the registration requirements are not required to register.

KEY TAKEAWAYS

  • Throughout this guide, we’ll shed light on the most prevalent GST registration mistakes that even seasoned professionals tend to make.
  • Choosing the Correct Registration Type – Select the correct GST registration type, When registering under GST in India, it is crucial to select the correct GST registration type based on your business nature and requirements.
  • When registering for GST in India, you need to choose between the regular and composition scheme based on your business requirements.
  • Respond to GST officer queries promptly – When interacting with GST officers, it is important to respond to their queries promptly.
  • Being prepared with the required documentation ensures a smooth and timely registration process.

Consider your annual turnover to check the eligibility for GST registration. Registration is usually required if it exceeds the limit imposed by the tax authorities. As it affects the registration need based on turnover, take into account the nature of your company, as whether it supplies goods or services domestically or internationally.

Providing Accurate Information

To register for GST, the information provided must be accurate. Make sure all of the details regarding your business are correct and up to date. This contains details about your company’s name, address, phone number, and legal entity type. Any mistakes or false information might hinder or delay the registration process. You may simplify and remove any further barriers to registration by making sure the information about your company is accurate.

Providing accurate bank account information is just as crucial as providing business information. This includes giving the precise branch name, IFSC code, and bank account number. By checking this data, you can make sure that any tax refunds, payments, or input tax credits may be processed easily and transferred into the right bank account.

Verifying your PAN (Permanent Account Number) and Aadhaar information is also crucial. Aadhaar is a biometric identification system used in India, while PAN acts as a unique identification number for taxpayers. Making sure that these details are accurate aids in proving your identity and connecting them to your GST registration. This verification procedure offers a trustworthy and open method for tax administration by assisting in the prevention of any errors or anomalies in your tax filings.

Choosing the Correct Registration Type

It is crucial to select the right registration type for GST registration based on the needs of your company. Factors including turnover, interstate supply, and eligibility for input tax credits are necessary.

You must choose between the Regular and composition scheme. Regular registration permits input tax credit claims and is appropriate for companies with higher turnover. The composition scheme, which offers simpler tax payments but no input tax credit, is for small enterprises with lesser turnover.

You can register all of your businesses at once if they have the same PAN, which will make compliance easier. However, every company is required to keep unique books of accounts and submit GST reports on its own.

Filing for GST promptly

To avoid any penalties or delays when submitting for GST, it is essential to submit your application before the due date. Following the scheduled timeline makes sure that your application is processed promptly and lowers the possibility of non-compliance.

You must schedule your GST registration appointment promptly. The tax authorities will schedule an appointment for document verification and other required procedures once you have filed your application. To guarantee a seamless registration process, it is essential to quickly plan and show up for this appointment.

The GST officers may have questions or need further information during the registration process. To prevent any difficulties or delays, it is essential to swiftly answer these queries and provide the necessary information.

Ensuring Adequate Documentation

A smooth GST registration process depends on having sufficient documents. To ensure that the information you submit during registration is accurate, have all relevant documents in hand, including identification and address proof. To identify the location of your firm, provide genuine address proof, such as utility bills or rental agreements. Provide all necessary business documents, such as a partnership agreement or memorandum of association as confirmation of your company’s legitimacy, in addition to your application. The registration procedure is streamlined by having these documents readily available.

Maintaining Consistency in Details

A seamless GST registration process depends on maintaining consistency in the details. Keep the same information, such as the company name, address, and contact details, consistent throughout all documents. Give accurate information about your bank account to facilitate seamless transactions and prevent errors. To ensure consistency and prevent confusion throughout the registration process, it is essential that the same registered address appears on all documents. Accuracy, a reduction in errors, and a simplified GST registration process are all made possible by consistent details.

Avoiding Common Mistakes

When it comes to GST registration and compliance, it’s essential to avoid common mistakes. First and foremost, it’s crucial to avoid having duplicate GST registrations for the same company since this can cause confusion and issues. Make sure you only register once and update your registration information as necessary.

Second, always verify the details before submitting your GST registration form. To avoid any mistakes or discrepancies, make sure the information is accurate and thorough. Check that your company’s information, contacts, and supporting records adhere to the specifications.

Finally, it is crucial to make sure that your accountant regularly files your GST returns. To meet tax responsibilities and prevent penalties, GST returns must be filed accurately and on time. To guarantee a seamless GST return filing, keep open lines of communication with your accountant and make sure they have all the required information and documents.

Seeking Professional Assistance

When handling GST registration and compliance, it can be beneficial to seek professional assistance. They may assist in overcoming any potential obstacles and make sure that the required documentation is in place.

It is wise to get legal guidance if the registration process is complicated or if you have particular legal issues. A knowledgeable attorney can offer specific guidance, ensuring that you comply with all legal requirements and addressing any potential obstacles.

Engaging a chartered accountant can be quite beneficial for GST tax filing. They have the skills and knowledge required to manage the complexities of GST compliance. They can assist you stay in compliance with GST requirements by aiding in the preparation of accurate tax returns, keeping accurate records, and guaranteeing timely filing of returns.

Keeping Track of GST Changes

When it comes to staying informed about GST changes, relying on a reputable source like Kanakkupillai can be highly beneficial. Prioritize staying up to date with the most recent GST regulations. As a dependable source of information, Kanakkupillai can give you frequent updates on any modifications or additions to the GST laws, ensuring that you stay in compliance with the rules at all times.

Checking for GST rate updates is also crucial. The government may occasionally change the GST rates. To correctly calculate your company’s tax liabilities, it’s essential to keep track of these changes. Kanakkupillai can provide reliable data on the most recent GST rates, assisting you in making decisions about your pricing, taxes, and compliance.

Keeping up with GST-related news and circulars is also essential. You can stay informed about significant news, notifications, and circulars released by the tax authorities by following Kanakkupillai. You can modify your business operations properly and prevent any fines or non-compliance problems by staying informed of any modifications, deadlines, or new regulations.

FAQ on GST Registering Common Mistakes

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