Practical GST Manual For Startups To Avoid Legal Issues

The Indian government has however  come up with a plethora of reforms, in a move in order  to eradicate the  corruption from the market and also add transparency to its operations. We have thus ushered in a new era of a transparent and simple indirect taxation regime thus with the implementation of Goods and Services Tax (GST) with effect from July 1, 2017.

It has however resulted in replacing a plethora of the existing indirect taxes in the form of Central Excise, Service Tax, VAT, Entertainment Tax, Luxury tax etc. No reform which is in the recent past has however generated as much buzz as which is the Goods and Services Tax (GST).

Amongst the buzz which the goods and services tax has created, there are organizations that have taken an initiative to decrease the intensity of confusion. With its range of services which it provides, it aims to make this journey of GST simple and smooth for the entrepreneurs and everyone else who is bound to pay the goods and services tax.

Thus, as the country is abuzz with however the coming of Goods and Services Tax (GST), the over explosion of information has however bewildered a lot of entrepreneurs and also the  SMEs as to how to make a business compliant to GST.

The organizations today are however driven by the specialised processes which are at times unique to their business.  In order to support and also control these processes, organizations have thus implemented enterprise-wide business softwares or the ERPs which however streamline their entire workflow.

A GST Software would however help to provide the following benefits :

  1. Reconciliation: The government software doesn’t really allow you in order to reconcile supplier data with your purchases. You will thus have to manually reconcile each purchase one by one. It is however literally impossible in order to reconcile ‘one by one’ if you have 100+ invoices.
  2. Simplifying taxes for you: We have however broken down the complex process of the GST return into a series of tabs/window. Our software thus also places help tooltips / videos making it a less confusing and also time saving solution for GST fling.
  3. User Friendly: It also has a clean excel-like interface with a step by step process which is thus also letting one easily navigate back and forth unlike the cluttered and the confusing government system.
  4. Data Import: You can also however import directly form excel or your ERP solution (Tally, SAP, Busy etc). This is thus not possible via the government utility.

2. GST Registration/Migration

Every business which is however carrying out a taxable supply of the  goods or services under the GST regime and also whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as it is  applicable will however  be required in order to register as a normal taxable person. This process is of registration is however  referred as GST registration.

GST registration is however  critical because it will enable one in order  to avail the various benefits that are however  available under the GST regime. One such benefit is thus to avail the seamless input tax credit. Multiple taxes are however  being clubbed under GST and thus the cascading of taxes that is however prevailing currently will no longer be the case.

Also, timely registration will also help one to also  avoid any kind of interface with the tax authorities.

Also, All existing Central Excise and the  Service Tax assessees and the VAT dealers will thus  be migrated to GST. In order to migrate to GST, assessees would however be provided a Provisional ID and also a  Password by the  CBEC/State Commercial Tax Departments.

Provisional IDs would thus be issued to only those assessees who however  have a valid PAN associated with their registration. An assessee may thus also  not be provided a Provisional ID in the following cases:

  1. The PAN which is associated with the registration is not valid
  2. The PAN is however registered with a State Tax authority and also a  Provisional ID has been supplied by the said State Tax authority.
  3. There are however multiple CE/ST registrations on the same PAN in a State. In this case, only 1 Provisional ID would thus  be issued for the 1st registration also  in the alphabetical order which is thus provided any of the above 2 conditions are not met.

The assessees also are required to use this Provisional ID and Password to login to the GST Common Portal where they however  would also be required to fill and then submit the Form 20 along with the  necessary supporting documents.

Thus some of the Penalties for Not Registering Under GST are that

An offender who is thus  not paying tax or either making the short payments thus also has to pay a penalty of 10% of the tax amount which is thus  due subject to a minimum of Rs.10,000. The penalty will thus also be high at 100% of the tax amount when the offender has however evaded i.e., where there is thus  a deliberate fraud.

However, for the  other genuine errors, the penalty is however 10% of the tax due.

Also, A person with the  multiple business verticals in a state may thus also  obtain a separate registration for thus  each business vertical.

PAN is thus also mandatory in order to apply for the GST registration (except for a non-resident person who thus  can get GST registration on the basis of the other documents).

A registration which however  has also  been rejected under the CGST Act/SGST Act shall thus also stand rejected for the purpose of SGST/CGST act.

One may thus also do the registration via the GST portal own, for which one thus needs  to take the following steps:

Step 1 : Firstly, one is required to go to the Government GST Portal ( and is required to look for the Registration Tab

Step 2: Then, Fill PAN, Mobile No., E-mail ID and also State in Part-A of Form GST REG-01 of GST Registration

Step 3: One will then receive a temporary reference number on the Mobile and also via E-mail after the OTP verification.

Step 4: One will then be needed to fill Part-B of Form GST REG-01 which should be duly signed (by DSC or EVC) and is then required to  upload the required documents which are specified according to the business type.

Step 5: An acknowledgement with the Application Reference Number (ARN) will thus then be generated in Form GST REG-02.

Step 6: In case of any information which is sought from you and is thus intimated to you in Form GST REG-03, one may thus be required to visit the department and then clarify or produce the documents within 7 working days in Form GST REG-04

Step 7: The office may however also reject the application if they find any errors. You will thus be informed about this in Form GST REG-05

Step 8: Finally, a certificate of registration in the Form GST REG-06 will be however be issued to you by the department after the verification and approval

3. GST Return

  • A return is a statement of specified particulars relating to the business activity or any other profession undertaken by the taxable person with income tax department of India at the end of every financial year. People working as self-employed, co-owners of the business, working professionals or salaried employees file returns at the end of the financial year.
  • Similarly, the working professionals, business owners, and sellers that offer goods, or services file GST as per the government requirements. The return filed with the income gets collected by the authorized government organizations and reported to the central government.
  • The GST is a much-awaited reform that aims are monitoring illegal and unfair transactions and acts as a control measure in making business transactions smooth speedy avoiding the trouble of multiple filing done by the purchaser, seller or manufacturer with multiple state level taxation authorities.
  • Every person registered under GST Act has to periodically furnish the details of sales, purchases and tax paid and collected there on by filing return with GST Authorities.

Before filing any return payment of tax due is pre requisite otherwise such return will be invalid.

Who is required to file return under model GST Law?

  • Every registered person is required to follow the rules and need to file the return in the limited period as mentioned by the department. If no transaction or activity has been conducted, still NILL return needs to be filed during the said tax period of return.
  • Persons exclusively dealing in exempted / Nil rated / non – There is no necessity to get registration for Goods and Services or required to file returns under the GST law.

Which return to file?

Categories / Types of returns under GST Law Return / Form


 Frequency Due Date

GSTR – 1 Outward supplies made by taxpayer. Monthly 10th of succeeding month.
GSTR – 2 Inward supplies received by a taxpayer. Monthly 15th of succeeding month.
GSTR- 3 Monthly return along with the payment of amount of tax. Monthly 20th of succeeding month.
GSTR-4 Quarterly return for compounding taxpayer. Quarterly 18th of the month succeeding quarter.
GSTR-5 Periodic return by Non-Resident foreign taxpayer. Monthly 20th of the next month.
GSTR-6 Return for Input Service Distributor (ISD). Monthly 15th of the next month.
GSTR-7 Return for Tax Deducted at Source Monthly 10th of the next month.
GSTR-8 Supplies effected through e-commerce operator and the amount of tax collected Monthly 10th of the next month.
GSTR-9 Annual Return Annually 31st December of next financial year.
GSTR-10 Final Return (For taxable person whose registration has been surrendered or cancelled )


Monthly Within three months of the date of cancellation or date of

Cancellation order, whichever is later.

GSTR-11 Details of inward supplies for UIN.


Monthly 28th of the month following the month for which statement is filed.

Steps for Filing GST Return?

One can thus also file their GST returns with LegalRaasta. Some of the benefits for filing the returns with us are :

  1. We have an easy HSC/SAC code finder
  2. We handle multiple GSTINS
  3. We have 100% accuracy in auto reconcilliation
  4. We also define user access rights
  5. We import data from ERP
  6. We also help in status tracking

For the purpose of filing your GST returns , the following steps are to be followed :

Step 1: One is firstly required in order to file GSTR 1 for the sales which one has made and the due date for that is 10th of the next month

Step 2: The buyer thus views the sales which are made by one in GSTR 2A

Step 3: The buyer then approves the sales which are made and files GSTR 2

Step 4: If the buyer however modifies the sales which are marked by one , one can thus see that in GSTR 1A and can then either approve or disapprove

Step 5: When the buyer and the seller approve, GSTR 3 is thus generated with the payment of taxes for which the due date is 20th of the next month

4. GST Return Filing Assistance For E-Commerce Sellers

Filing your return through us will give you the following benefits:

  1. An easy, fast and intuitive process
  2. 100% accuracy
  3. Guided filing
  4. Status tracking
  5. We auto verify and also validate
  6. We have a refund tracking policy

Thus the steps to be followed for this process are :

Step 1: Monthly Details of the outward sales is to be filled  by seller in FORM GSTR-1 by the 10th of next month.

Step 2: Monthly Details of the purchase which is made by the seller in FORM GSTR-2 by the 15th of next month.

Step 3: Then one is required to monthly file the return along with the payment of the  amount of tax in the FORM GSTR-3 by the 20th of next month.

Step 4: Then one is required to monthly File the  GST return of the E-commerce operator in the FORM GSTR-8 by the 10th of next month.

Step 5: Then one is supposed to do annual Filing of the Return in FORM GSTR-9 by 31st December of next financial year.

Also Read: Things You Should Know Before Buying GST Software

(Disclaimer: This is a guest post submitted on Techstory. All the contents and images in the article have been provided to Techstory by the authors of the article. Techstory is not responsible or liable for any content in this article.)

About The Author:

This article has been contributed by Simran Setia, Content Manager, LegalRaasta- an online platform for GST SoftwareGST Return Filing.