Why does GST return compliance matter?

Filing GST returns is essential as non-compliance and delay will end in fines and affect the compliance rating and convenient returns. GST Return Compliance is a report comprising of details of income which a taxpayer is obligated to file with the tax administrative authorities. This is handled by tax authorities to determine the tax obligation.

Under GST, a certified dealer must file GST returns that cover:

• Purchases
• Sales
• Output GST (On selling)
• Input tax credit (GST gave on shopping)

To file GST returns compliance, GST compliant business receipts are needed.

Importance of GST returns compliance

When you have a low rating, other prospective business partners may not want to enter into a business relationship with you. This may lead to a missed opportunity. For example, a dealer who is considering a purchase from two different vendors will definitely favour the one who has a higher rating as they could incur more expenses in the long run, when dealing with a vendor who has a low rating.

When you enjoy a good GST returns compliance rating, your refund claims may be meritoriously processed faster. Therefore, you won’t have to worry about a delayed refund. Another important benefit is that, your business is less likely to be pulled up for scrutiny when your rating is higher. On the other hand, a business that has a lower rating will reflect compliance issues and will warrant a second look by the concerned tax authorities.

Given the above reasons, it is best to get in touch with a tax lawyer at the earliest in order to benefit from all the advantages of a higher compliance rating. Not only will they help with all the paperwork and scheduling but will also be able to provide timely advice that will prevent further problems in the long run.