Goods and Services Tax (GST) has revolutionized the Indian tax system, bringing simplicity and transparency while unifying various indirect taxes. However, for small businesses, navigating GST compliance requirements can be daunting. In this primer, we’ll provide a comprehensive overview of GST and offer practical tips for small businesses to ensure compliance:

• Understanding GST Registration: Small businesses engaging in the supply of goods or services with aggregate turnover above the threshold limit are required to register under GST. We’ll explain the registration process, eligibility criteria, voluntary registration options, and the implications of GST registration on business operations.
• Filing GST Returns: GST compliance entails timely filing of various returns, including GSTR-1 (outward supplies), GSTR-3B (monthly summary return), and annual return (GSTR-9). We’ll outline the filing frequency, due dates, and procedures for filing GST returns, along with common challenges faced by small businesses and how to overcome them.
• Input Tax Credit (ITC) Management: Claiming and managing Input Tax Credit is crucial for reducing tax liabilities under GST. We’ll discuss the conditions for claiming ITC, documentation requirements, reconciliation of ITC with supplier invoices, and strategies for optimizing ITC utilization while maintaining compliance.
• Compliance with E-Invoicing and E-Way Bill System: The introduction of e-invoicing and the e-way bill system aims to enhance tax administration and curb tax evasion. We’ll provide an overview of these systems, including applicability criteria, generation processes, and compliance requirements for small businesses.
• GST Audit and Assessment: Small businesses may be subject to GST audits or assessments by tax authorities to ensure compliance with GST laws. We’ll outline the audit process, documentation requirements, and proactive measures small businesses can take to prepare for GST audits and assessments.