Over 20,000 GST & VAT notices involving a tax demand of over ₹80,000 crore were issued. These notices were primarily due to discrepancies in reported input tax credit (ITC) claims and shortfalls in tax payments.
Do you know why?
Businesses need help reconciling their accounting records with GST & VAT as per the laws. First, the GST laws are complex and difficult to understand without expert help. Second, extensive data needs to be collated and processed for GST.
The result?
Significant discrepancies in GST filing lead to notices from the department and sometimes hefty fines. The penalty for tax fraud or non-compliance is 100% of the tax value or Rs. 10,000, whichever is higher. Along with this, the legal proceedings make the situation worse for businesses.
That is why companies must adhere to the GST laws and ensure 100% compliance. In the blog, we have discussed the top 8 tips for businesses to ensure their GST compliance.
How Can Businesses Stay GST & VAT-Compliant?
Here are 8 tips for businesses to consider while filing GST to avoid penalties and notices.
-
Understanding GST Regulations
GST is not a constant taxation system. You need to understand that, unlike other laws, GST keeps changing to adapt to the dynamics of the economy in every financial year. So, staying up-to-date with the new laws is necessary for compliance. Plus, you will have to align your processes to the updated compliance requirements.
-
Staying Updated
Keeping yourself informed about the revised GST regulations isn’t hectic. All you need to do is follow credible sources and read the issued document attentively. Government portals regularly publish notifications and circulars on GST changes. You can also subscribe to GST newsletters and bulletins from trusted websites reputed for publishing correct facts.
-
Review Business Processes
After you understand the new GST laws, you must review your processes to ensure they align with current needs.
We recommend you audit your documentation and tax processes and make necessary changes to optimize them as per the latest regulations. Identify the areas that will be affected by the GST rule changes and optimize them for compliance.
-
Get Help From Tax Experts
Filing GST DIY style can be penalizing and stressful. Getting help from GST experts who stay up-to-date with the revised GST regulations and help you calculate, file, and save taxes while staying compliant is better.
You can hire GST experts from Indian Muneem, a reputed accounting firm known to help businesses manage their GST with 100% accuracy. Our tax experts provide customized guidance based on the specific nature of your business. This ensures that adaptations to regulatory changes are tailored to your industry and operational requirements.
-
Employee Training & Awareness
It is not only you who should be up-to-date with the revised GST regulations. Your employees should also be on the same page to work efficiently and be productive.
Ensure that the employees track and understand changes in the GST regulations. This will enable them to optimize their everyday tasks for improved operational efficiency and a smoother transition to the updated processes.
-
Get Top-Notch Technology
Integrate your tax processes with trusted GST software that tracks and analyzes your financial records and helps you calculate and file GST as per the authorized format.
There are several accounting software in the market that you can integrate with your existing systems. This can automate calculations, facilitate return filing, and streamline reconciliation processes.
Indian Muneem offers cutting-edge GST software solutions that simplify your GST calculation and filing process. Learn more about our GST tools and how they can automate your GST filing here.
-
File Returns on Time
Never miss your GST deadlines. This is a non-negotiable rule you should never break, or you will have to adhere to penalties.
Adhere to the filing deadlines for monthly, quarterly, and annual GST returns. Set reminders or use automated systems to ensure timely submissions to avoid late fees.
Get rid of maintaining GST deadlines. At Indian Muneem, we offer proactive GST filing solutions without ever missing a deadline. Get in touch with us to avoid late submission penalties and notices.2
-
Maintain Accurate Records
Accurate records will lead to accurate tax filing. Even a small error or anomaly in the records or balance sheet can lead to financial disputes, loss of trust, or non-compliance issues.
Keep detailed records of all transactions, including invoices, receipts, and contracts. This documentation is essential for accurate GST reporting and claiming Input Tax Credit (ITC).
How Indian Muneem Can Help You With GST Compliance?
Indian Muneem is a trusted accounting and tax firm that can significantly assist businesses in India with their GST & VAT compliance. Our experts can handle the complex process of filing GSTR-1, GSTR-3B, GSTR-9, and other returns, minimizing errors and late penalties. Additionally, our team can accurately calculate GST liability, input tax credit, and other tax-related figures, ensuring compliance with GST rules.
By partnering with Indian Muneem, you can ensure your business is GST-compliant, reducing the risk of penalties and legal issues. Our expertise and technology-driven approach can help you focus on your core business activities while we handle the complexities of GST.
