What Are The Compliance Requirements For Businesses Engaged In Both Goods And Services Under GST?

Key GST Compliance Requirements for Businesses Engaged in Goods and Services

Registration:

1. Unified Registration:

Businesses engaged in both goods and services must obtain a single GST registration for all their operations, including the supply of goods and/or services. 

This registration is valid for all locations within the same state or union territory (UT).

2. Threshold Limit:

Businesses with an aggregate turnover exceeding the prescribed threshold limit (currently ?40 lakhs for goods and ?20 lakhs for services) are required to register under GST, irrespective of whether they supply goods, services, or both.

Invoicing and Documentation:

1. Tax Invoices:

Businesses must issue tax invoices for all outward supplies of goods and/or services made to registered recipients. 

The invoice should contain prescribed details such as GSTIN, invoice number, date of issue, description of goods/services, taxable value, and applicable GST rates.

2. Bill of Supply:

In cases where a business is engaged in exempt supplies or supplies under the composition scheme, it must issue a bill of supply instead of a tax invoice. 

The bill of supply should contain specific details as per GST rules.

3. Maintaining Records:

Businesses must maintain proper books of account, invoices, bills of supply, credit/debit notes, and other relevant documents pertaining to their goods and services transactions. 

These records should be retained for the prescribed period as per GST rules.

Return Filing:

1. GSTR-1:

Businesses must file GSTR-1, a monthly or quarterly return, to report details of outward supplies of goods and/or services made during the reporting period. 

This includes invoice-wise details of supplies, taxable value, and GST liability.

2. GSTR-3B:

GSTR-3B is a monthly summary return that businesses must file to declare their summary GST liabilities, input tax credit (ITC) claimed, and make payment of GST dues. 

It is mandatory for all registered businesses, including those engaged in goods and services.

3. Annual Return:

Businesses are required to file an annual return in Form GSTR-9, reconciling the details of outward and inward supplies, input tax credit availed, and tax payments made during the financial year. 

This return consolidates the annual GST compliance for both goods and services.

Input Tax Credit (ITC):

1. Availing ITC:

Businesses can claim input tax credit (ITC) on GST paid on inputs, capital goods, and input services used in the course of business for supplying goods and/or services. 

However, certain conditions and restrictions apply to the availing of ITC under GST rules.

2. Reconciliation of ITC:

Businesses must reconcile the ITC claimed in their GSTR-3B returns with the details available in their purchase invoices and GSTR-2B (auto-drafted input tax credit statement). 

Any discrepancies should be rectified in subsequent returns.

Compliance with E-Way Bill Requirements:

1. Generation of E-Way Bills:

Businesses engaged in the movement of goods, whether for supply or for any other purpose, must generate e-way bills electronically for consignments exceeding the prescribed value threshold and distance limits as per GST rules.