As a small business, there are a lot of things that one needs to take care of. There is inventory management, dealing with the vendors, billing and accounting, dealing with the customers, sales and marketing and other ten thousand things that come in the way on a day-to-day basis. Apart from this, there’s another big task that requires a lot of time and attention which is monthly/quarterly GST return filing. It is important that you, as a taxpayer, keep a tab on all the latest GST updates and file the GST returns timely following all the rules or else there are high chances that your GSTIN may possibly get cancelled.
Reasons for GSTIN cancellation
An Authorised GST officer can cancel the GST registration of a taxpayer if,
- GSTR 3B Non-filing: A taxpayer who failed to file returns for more than six consecutive months or you are a composite taxpayer who has not furnished returns for three consecutive tax periods;
- Wrongful ITC Claim: Avails input tax credit in violation of section 16 of the Act or the rules
- Violation of Rule 86B: Utilization of ITC from electronic credit ledger to discharge more than 99% of the tax liability for specified taxpayers violating Rule 86B – with the total taxable value of supplies exceeding Rs.50 lakh in the month, with some exceptions.
- Mis-reporting of Sales: While uncommon, there are several cases where the registered person was not aware of invoices issued without any supply of Goods and/or Services. This may happen in case of goods returned and still, the transaction is kept recorded in the books; OR where registered person supplies goods or services without issue of any invoice
- Violation of Anti-Profiteering Provisions: The GST Registration can also be cancelled for registered persons violating anti-profiteering provisions. This may happen if you miss passing on the benefits of GST rate reductions to your customers.
- Not started business: The voluntarily registered person has not started the business within 6 months from the date of registration
Suppression of facts: Registration has been obtained by means of fraud/willful misstatement or suppression of facts.
- Anomalous Values in GST Returns: Suspension is attracted in case ‘Significant Anomalies’ observed between the values of
- Outward supplies reported in GSTR3B vs declared in GSTR1
- ITC Value declared in GSTR 3B vs values available in GSTR 2B
Delayed or late filing of GST Return
Due to the pandemic, several due dates got pushed ahead and COVID relief measures are being given to small taxpayers. It happened in 2020 and the same pattern is being repeated now in 2021 too.
Most of the small businesses choose to outsource the task of taxation to a Chartered Accountant because it gets hard to manage everything on their own as there are penalties for late filings. However, it creates a lot of dependency and many times, you tend to lose track of things. This may lead to delayed or late filing of GST Returns.
How IRIS Peridot can help you save from GST Cancellation
GST Returns are typically filed on a monthly basis and in some cases quarterly. Hence, at times it becomes difficult to keep track of things. IRIS Peridot 5.0 not only notifies you of all the GST return filing due dates but also sends notifications regarding the latest GST news updates and changes. The timely notifications help you file your returns on time thus saving you from heavy penalties.
With the introduction of GSTR 2A and 2B. Your ITC Credit is also hugely dependent on the return filing status of vendors. With IRIS Peridot 5.0 you can check if a vendor is supposed to file returns on a Monthly/Quarterly basis. You can also explore GSTR 2A – 2B Reco on daily basis to identify the major reasons for the difference between the two and maximise your ITC.
Additionally, In IRIS Peridot 5.0, you get a consolidated view of your own sales and purchases for an extended period of 6 months. This readily available data gives you a trend of your transactions over a period of time and thus helps you make crucial business decisions as well as get the pulse of your performance. IRIS Peridot provides a lot of insights and reports from the latest GST filed returns.
With such information at your fingertips, as a small business owner, you can easily monitor your return filing with less dependability on an outsourced third-party. Not only this, but the app also helps you with vendor management, ITC maximization, Nil Return Filing and so on.
Peridot’s ‘easy share option’ helps you to share your monthly sales and purchase data with interested stakeholders like banks for audit purposes or with your CA or even with your customers and vendors.
Apart from this, it has QR Code Scanner to validate your E-invoices and E-way Bills too!
IRIS Peridot 5.0 is here to make your lives easy as we bring GST to your fingertips! We at IRIS GST are committed to making your everyday transactions even more convenient. Thus, Peridot’s 5.0 version is everything that a business owner needs in order to take care of their monthly/quarterly GST.
Here’s what IRIS Peridot 5.0 has to offer:
Insights based on GST Data
- Maximize your ITC with these insights,
- The insights will give you an idea on settling of tax liability; you can find out how much ITC is utilized, how much cash-trends for the last 6 months.
- Find out vendors who are not filing returns that affect your ITC
- Nudge late filers to complete GST filing on time
- Share it with your network
Easy Share Option
- This option helps you to share your monthly sales and purchase data with interested stakeholders (banks/for audit purposes/with your CA/ even to your customer/to your vendor)
Set filing preferences for QRMP scheme
Secure and Confidential data handling
- Your data is only visible to you,
- Your portal password is yours to keep, we don’t need them
- Your data is fully secure
Nil Return Filing
Download the app today to experience the world of possibilities!
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