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GST Compliance for Small Businesses in India

GST Compliance for Small Businesses in India

GST Compliance for Small Businesses in India

India has been using the Goods and Services Tax (GST) since July 2017 as an indirect tax. GST was created to replace different taxes imposed by the federal and state governments in order to streamline the taxation structure. GST requirements in India must be followed by small enterprises, and failing to do so could result in costly fines and penalties. We will talk about how NeuSource Startup Minds India Ltd. can assist small businesses in India with their GST compliances in this blog article.

Registration under GST

Small businesses with an annual turnover of over Rs. 20 lakhs are required to register under GST. Businesses involved in inter-state transactions, irrespective of their turnover, also need to register under GST. The registration process is simple and can be completed online. Once registered, a GST identification number (GSTIN) will be issued to the business. This GSTIN is used to file GST returns and to claim input tax credits.

Invoicing under GST

Businesses must produce GST-compliant invoices for every transaction under the GST law. The invoice should include information like the supplier's name, address, and GSTIN, the recipient's name and address, a special invoice number, the date it was created, a description of the goods or services that were provided, the quantity of those goods or services, their taxable value, and the applicable GST rate. Penalties and fines may apply if a GST-compliant invoice is not sent.

GST returns filing

on their annual revenue, registered businesses must submit monthly or quarterly GST filings. Small firms with yearly sales of up to Rs. 1.5 crores might choose to file their GST filings quarterly. The GST returns must be submitted.The GST returns should be filed online through the GST portal. The GST returns include the details of the outward supplies (sales), inward supplies (purchases), and the amount of tax payable or refundable. It is important to file the GST returns within the due date to avoid late fees and penalties.

Payment of GST

Small businesses registered under GST are required to pay GST on their outward supplies (sales) and claim the input tax credit on their inward supplies (purchases). GST payments can be made online through the GST portal using the GSTIN. The due date for payment of GST is the 20th of the following month for monthly filers and the last day of the month following the end of the quarter for quarterly filers.

Maintaining records

Small businesses registered under GST are required to maintain proper records of all transactions, including invoices, bills of supply, credit and debit notes, delivery challans, and payment vouchers. These records should be maintained for a period of six years from the end of the financial year. Maintaining proper records is important for filing accurate GST returns and for GST audits.

GST audits

Small businesses registered under GST are subject to GST audits. The GST audit is conducted by a GST officer to verify the accuracy of the GST returns filed by the business. The GST officer may ask for the production of books of accounts, records, and other documents relating to the business. Failure to comply with the GST audit can result in penalties and fines.


How NeuSource Startup Minds India Ltd. can help

NeuSource Startup Minds India Ltd. is a leading business advisory firm that specializes in providing a range of services to small and medium-sized businesses. We have a team of experienced professionals who can help small businesses comply with GST regulations. Our GST compliance services include:

  • GST registration: We can help small businesses register under GST and obtain a GSTIN.
  • Invoicing under GST: We can help small businesses issue GST-compliant invoices for all transactions.
  • Filing GST returns: We can help small businesses file GST returns accurately and within the due date.
  • Payment Payment of GST: We can help small businesses calculate their GST liability and make GST payments on time.
  • Record keeping: We can help small businesses maintain proper records of all transactions in compliance with GST regulations.
  • GST audit assistance: We can provide assistance to small businesses during GST audits and help them comply with the GST officer's requests.


In addition to GST compliance services, NeuSource Startup Minds India Ltd. also provides a range of other services to small businesses, including business registration, accounting and bookkeeping, tax compliance, and business consulting. Our team of experts has years of experience working with small businesses and can provide customized solutions to meet their unique needs.

In order to avoid penalties and fines, GST compliance is crucial for small enterprises in India. Small firms are required to register for GST, create invoices that are GST compliant, submit GST returns on time, pay GST, keep accurate records, and submit to GST audits. Small businesses can work with NeuSource Startup Minds India Ltd. to achieve their GST compliance requirements while maintaining their primary business objectives. Get in touch with us right now to find out more about our GST compliance services and how we can help your small business succeed in India's dynamic business environment.

13 Jun

Santosh Dantani
Santosh Dantani

To start a new business is easy, but to make it successful is difficult . So For success, choose the best." Be compliant and proactive from the beginning and choose NEUSOURCE as your guidance partner.

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