GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words, Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a complete, multi-stage, destination-based tax that is levied on every value addition. GST is a sole domestic indirect tax law for the whole country.
The GST compliance rating is a record given by the government to a business so that other businesses can see how compliant they are with the tax department. This score will be calculated based on parameters such as timely filing of monthly and annual returns, providing details of input credits used, taxes paid, etc.
These scores will be renewed at periodic intervals, and their details will be published in a public domain that all businesses can access. This will allow small businesses to choose the most GST-compliant vendor for their business endeavours.
Why do we require to stay GST compliant and earn a high rating?
According to the GST law, if buyers wish to claim input credit for the goods they purchased, they will have to mention all the transactions in which they paid GST to their vendors.
It only takes the non-compliance of one business to affect–and disrupt–an entire supply chain.
With the GST-compliance rating in position, buyers will be able to see which vendors have the best track record of paying their dues on time, and they’ll be able to choose a more compliant vendor right at the beginning so that they don’t have to suffer the consequences of vendor negligence later. The higher a vendor’s compliance score, the better the buyer’s chances to claim the input tax credit.
100% Satisfaction Guaranteed.
Our years of experience have many satisfied clients and retainers to our credit for our various services.
GST filing, GST compliances, Income Tax Returns, TDS, Tax and Loan Settlements, Insurance Claims, and many more.
Benefits of the GST Compliance Rating
If you’re a business owner, you may ask yourself: “What perk will I get if I’m compliant with the tax department?” The answer – trust. When your business has a more dependable compliance score, you not only have a better chance of earning the government’s trust, but you also are more likely to earn the trust of clients you could be doing business with in the future. This may seem like a small step in the beginning but reflect on the impact that thousands of businesses can have on the GST network if they all collectively work towards GST compliance. If individual business owners work to follow tax laws, then they will help the entire GST ecosystem to stay compliant.
3 Levels to Maintain GST Compliance
As a business owner, you must recognise the importance of being GST compliant.
File your GSTR-1 and GSTR-2 on time Firms should include all their outward and inward supply deals on their monthly GSTR-1 and GSTR-2. They should file their GSTR-1 and GSTR-2 for a particular month by the 10th and 15th individually of the following month.
Pay your tax dues
Before filing their succeeding tax returns, firms should first guarantee that they’ve paid all their tax dues. According to section 27(3) of the GST legislation, filing a GST return with existing tax dues would make the next return invalid. This would diminish a company’s compliance rating score and could even trigger a series reaction along the supply chain, making it difficult for their buyers to claim the input tax credit.
Submit Annual Return
Apart from filing the GSTR-1 and GSTR-2 every month, firms should also submit a consolidated annual return called the GSTR-9.
OUR SERVICES
• GST Impact Analysis & Treatment
• Supply chain Impact Assessment
• Planning GST Transition
• GST Implementation
• Accounting & Reporting
• Training Managers & Staff
• Technology Updates & Support
• GST Compliance Framework & Standard Operating Procedures
• Post Transition Review
• GST Outsourcing
• Knowledge updates and support in various domains of GST like Interstate Taxable Supply, Exemption and Exclusion, Meaning of Supply, Place of Supply of Goods and Services, Time of Supply
Some of Useful Links
ABOUT
Alpheus Associates is a full-time Financial, Legal and Taxation consultancy firm. Founded by experienced Chartered Accountants and Advocates; Alpheus Associates has gained its recognition and prestige by providing trustworthy and high-quality financial, legal and taxation services such as Income Tax services, GST compliances, Loan Settlements, Insurance Claims etc.
CONTACT US
Phone: 91370 52009
Email: info@alpheusassociates.com