GST Filing for Large Corporations: Best Practices

Posted In | Finance | Accounting Software | India Accounting Tax

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. This tax has replaced many indirect taxes in India. For large corporations, the GST filing process can be complex and time-consuming. However, the process can be simplified by following best practices.
 

Understanding the Basics

Before diving into the GST filing process, it is essential for corporations to understand the basics of GST. The GST is a tax that is imposed on the supply of goods and services. It is divided into three types: Central GST (CGST), State GST (SGST), and Integrated GST (IGST).
 

Registration

Large corporations with a turnover of more than Rs. 20 lakhs (Rs. 10 lakhs for NE and hill states) are required to register as a normal taxable person. This process of registration is called GST registration.
 

Monthly GST Returns

Every business registered under the GST Act has to periodically furnish the details of sales, purchases and the tax paid and collected thereon by filing online returns. Large corporations are required to file three monthly returns.
 

Use of Technology

Large corporations can benefit greatly from using GST software for filing returns. Such software can automatically calculate GST, generate invoices, and file returns. Most of these software solutions are also integrated with accounting and ERP systems, which makes the entire process seamless.
 

Regular Updates

The GST rules are subject to changes based on decisions taken in the GST Council meetings. Therefore, it is essential for corporations to stay updated with the latest changes and ensure compliance.
 

Avail Professional Help

Given the complexity of GST laws and the high risk of penalties for non-compliance, it is advisable for large corporations to avail professional help for GST filing. Professional GST consultants can provide expert advice, ensure timely compliance, and help avoid penalties.
 

Record Keeping

Large corporations must maintain accurate records of all transactions related to goods and services. This includes invoices, credit and debit notes, delivery challans, etc. These records are essential for filing accurate GST returns and for future references in case of any disputes or audits.
 

GST filing for large corporations can be an intricate task, but with a clear understanding of the GST laws and the right systems in place, it can be managed efficiently. By following these best practices, corporations can ensure timely and accurate GST filing, thereby avoiding penalties and contributing to the nation's economy.