{"id":7814,"date":"2017-07-13T11:48:39","date_gmt":"2017-07-13T11:48:39","guid":{"rendered":"https:\/\/legaldesk.com\/?p=7814"},"modified":"2026-10-26T10:57:26","modified_gmt":"2026-10-26T10:57:26","slug":"types-of-gst-compliance-in-india","status":"publish","type":"post","link":"https:\/\/webdemo.d-apps.in\/legaldesk\/types-of-gst-compliance-in-india","title":{"rendered":"Types Of GST Compliance In India"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The largest tax reform of the nation yet, <a href=\"https:\/\/legaldesk.com\/gst\/types-of-taxes-under-gst-in-india\" target=\"_blank\" rel=\"noopener\">the Goods and Service Tax (GST)<\/a> aims to bring the entire Indirect Tax market under one umbrella. With such a major reform introduced, some vital aspects of the transition into the new system, such as large-scale implementation methodologies, strict compliance and audit mechanisms are immensely important in ensuring a successful transition and implementation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">GST Compliance can be branched into two &#8211; Procedural Compliance and Records Compliance.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Procedural Compliance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Procedural Compliance of the GST Ecosystem can be further divided into Audit and Assessment.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Audit<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Audit under GST is the examination of records maintained by the taxable person to verify the correctness of information declared, taxes paid and to assess the compliance with the provisions of GST.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Every <a href=\"https:\/\/legaldesk.com\/gst\/gst-registration-in-india-who-how-and-why\" target=\"_blank\" rel=\"noopener\">registered taxable person<\/a> turnover during a financial year exceeds the prescribed limit [as per the draft rules turnover limit is above Rs 1 crore] must get his accounts audited by a CA or a CMA.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Audit can be done by the taxpayer himself or by the tax authorities (authorised by the Commissioner of CGST\/SGST) or Special audit can be initiated based on the opinion of the tax authorities that the value has not been correctly declared or the wrong credit has been availed.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Assessment<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Assessment means determination of how much tax that is mandated to be paid according to the transactions performed by the taxpayer. In accounting terminology, it is the determination of the tax liability under GST. It covers-<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Self-assessment<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Provisional assessment<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Scrutiny of returns<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Summary assessment<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Best judgment assessment<\/span><\/li>\n<\/ul>\n<h4><b>Self-assessment<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Under GST, every registered taxable person shall assess the taxes payable by them on their own, and furnish a return for each tax period.<\/span><\/p>\n<h4><b>Provisional Assessment<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">An assessee can request the officer for provisional assessment if he is unable to determine value or rate of tax. The proper officer can allow the assessee to pay tax on a provisional basis at a rate or a value specified by him.<\/span><\/p>\n<h4><b>Scrutiny of Returns<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The proper officer can scrutinize the return to verify its correctness. It is a pre-adjudication process. The officer will ask for explanations on any discrepancies noticed in the returns.<\/span><\/p>\n<p><b>Summary Assessment<\/b><\/p>\n<p><span style=\"font-weight: 400;\">When the proper officer has evidence that there might be additional tax liability, he can assess the tax liability on a summarily with the prior permission of Additional \/ Joint Commissioner to protect the interest of the revenue.<\/span><\/p>\n<p><b>Best Judgement Assessment<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In the following two situations, Best Judgement Assessment is possible &#8211;<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Assessment of non-filers of returns<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Assessment of unregistered persons<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Records Compliance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Goods and Service Tax Law asks for the following Records\/Accounts to be maintained &#8211;<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Records<\/b><\/td>\n<td><b>Information Required<\/b><\/td>\n<td><b>By Whom?<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Register of Goods Manufactured<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account should contain detail of goods manufactured in a factory or production house<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Every assessee carrying out manufacturing activity<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Purchase Register<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All the purchases made within a tax period for manufacturing of goods or provision of services<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All Assessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sales Register<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account of all the sales made within a tax period must be maintained<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All Assessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Stock Register<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This register should contain a correct stock of inventory available at any given point of time<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All Assessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Input Tax Credit Availed<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This register should maintain the details of Input Tax Credit availed for a given tax period<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All Assessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Output Tax Liability<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This register should maintain the details of GST liability outstanding to be adjusted against input credit or paid out directly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All Assessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Output Tax Paid<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This register should maintain the details of GST paid for a particular tax period<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All Assessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other Records Specified<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Government can further specify by way of a notification, additional records and accounts to be maintained<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Specific Businesses as notified by the govern<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">In simpler terms, for taxation accounting, these accounts are to be mandatorily maintained(apart from regular records like sales, stock, purchases etc) &#8211;<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Electronic Credit Ledger<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Electronic Liability Ledger<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Electronic Cash Ledger (to be maintained on Government GST portal to pay GST)<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Demand And Recovery<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Since GST is absolutely new and it is payable on self-assessment basis, it is possible that the taxable person may have made some errors. He might not have paid the tax correctly or may not have paid the tax at all. He might have got the wrong refund of tax or input tax credit. In these cases, demand and recovery provisions become applicable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The proper officer will issue a show cause notice along with a demand for payment of tax (also penalty for fraud cases).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Demands can arise in the following cases-<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Demands for unpaid\/short paid tax or wrong refund (without any fraud)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Demands for unpaid\/short paid tax or wrong refund (for fraud cases)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Tax collected but not deposited with the Central or a State Government<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">CGST\/SGST paid when IGST was payable and vice versa<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Recovery Of Tax<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If demand is not paid, the State Tax Departments and the Central Board of Excise and Customs can initiate drastic recovery measures, some of which are &#8211;<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Deducting any amount due to the defaulter by the Government<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Seizing and selling of goods of the defaulter<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Seize movable and immovable property belonging to the defaulter<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>The largest tax reform of the nation yet, the Goods and Service Tax (GST) aims to bring the entire Indirect Tax market under one umbrella. With such a major reform introduced, some vital aspects of the transition into the new system, such as large-scale implementation methodologies, strict compliance and audit mechanisms are immensely important in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17320,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-7814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/posts\/7814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/comments?post=7814"}],"version-history":[{"count":1,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/posts\/7814\/revisions"}],"predecessor-version":[{"id":10946,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/posts\/7814\/revisions\/10946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/media\/17320"}],"wp:attachment":[{"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/media?parent=7814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/categories?post=7814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/webdemo.d-apps.in\/legaldesk\/wp-json\/wp\/v2\/tags?post=7814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}