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  • GST returns
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Facts, Provisions and law, Analysis, Conclusion.

  • GST Mandatory Registration: Threshold and Triggers
    Facts
    Registration is the foundation of GST compliance. Miss the threshold, delay beyond 30 days, or supply inter-state without registration, penalty is 100% of tax or ₹10,000. Most small business owners discover the obligation only after a notice.
    Provisions and law
    Sec 22(1); Sec 24; Sec 29(2); Sec 122(1); Rule 8, 9
    Analysis
    Aggregate turnover definition: All taxable + exempt + zero-rated + nil-rated supplies on PAN-India basis. Excludes inward supplies under reverse charge. Includes multiple GSTINs under same PAN. A single person with businesses in Delhi and Mumbai: add both states' turnover for threshold check. Special category states (lower threshold): Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Arunachal Pradesh, Uttarakhand, Himachal Pradesh, J&K: ₹10L for services, ₹20L for goods. Inter-state, no threshold: The moment a supplier makes even ONE inter-state supply, say a Delhi freelancer invoices a client in Mumbai, registration is mandatory regardless of annual turnover. This is the most commonly missed trigger. Selling on Amazon to customers in another state = inter-state.
    Conclusion
    • Calculate aggregate turnover for current FY: all supplies across all states, all businesses under same PAN
    • Check: any inter-state supply made? (Even one invoice to another state = registration mandatory)
    • Check: are you selling on Amazon/Flipkart/Meesho? (E-commerce aggregator = mandatory registration)
    • Check: do you purchase from unregistered suppliers above ₹5,000/day? (RCM may apply)
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  • GSTR-1: Outward Supplies Return (Due 11th)
    Facts
    GSTR-1 is the source of truth for the GST system. It feeds your customers' GSTR-2B, which they use to claim ITC. File it wrong or late, your customers lose ITC credit, they call you, you lose the client. Every B2B invoice must be declared invoice-by-invoice.
    Provisions and law
    Sec 37; Rule 59; Sec 37(3); Rule 59(6); Notification 89/2020
    Analysis
    What goes in GSTR-1 table by table: Table 4A: B2B invoices (every invoice to a GSTIN holder, must have buyer's GSTIN, invoice number, date, taxable value, GST amount). Table 5: B2C interstate invoices above ₹2.5L (state-wise). Table 6: Exports, type of export, shipping bill number if zero-rated. Table 7: B2C supplies (domestic, below ₹2.5L interstate or any intrastate). Table 8: Nil-rated/exempt/non-GST supplies. Table 9/10: Amendments to previous months' invoices. Table 11: Advances received. HSN summary (Table 12): If turnover above ₹5Cr: 6-digit HSN mandatory. ₹1.5Cr to ₹5Cr: 4-digit HSN. Below ₹1.5Cr: 2-digit HSN. From FY 2021-22: all B2B invoices must carry HSN/SAC code. Wrong HSN = input GSTR-2B data for buyer is wrong → buyer's ITC is blocked. Why GSTR-1 accuracy matters for your client: Every B2B invoice you declare in GSTR-1 flows into your buyer's GSTR-2B automatically.
    Conclusion
    • Compile all outward invoices for the month: B2B (with buyer GSTIN), B2C, exports, debit/credit notes
    • Verify every B2B invoice has: correct buyer GSTIN, correct invoice number/date, correct HSN/SAC, correct tax amount
    • Check: any amendments needed to previous months' invoices? Declare in Table 9/10
    • Check: any exports in the month? Attach shipping bill number and Bill of Lading details
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  • Who Must Pay Advance Tax
    Facts
    Advance tax is pay-as-you-earn for non-salaried income. Missing it costs 1% per month in interest. Most freelancers, investors, and business owners are unaware until they face a ₹20,000 to 80,000 interest bill at filing.
    Provisions and law
    Sec 207; Sec 208; Sec 209; Sec 424 (old 234B); Sec 425 (old 234C)
    Analysis
    Who is exempt: Senior citizens (60+ years) with NO business income are fully exempt from advance tax. Their entire liability is paid as self-assessment tax at filing. Important: senior citizen with rental income from property + business = NOT exempt. Salaried with only salary income: Employer deducts TDS monthly. If estimated TDS equals full liability, no advance tax needed. But if you have FD interest, MF dividends, or freelance income on the side, check if advance tax applies. Presumptive taxpayers (Sec 58, Income-tax Act 2025, old Sec 44AD/44ADA): Pay entire advance tax in ONE instalment by March 15. Skip quarterly, just one payment by March 15. LTCG/STCG, special rule: Capital gains arising after March 15, pay entire tax by March 31, no Sec 425 (old Sec 234C) interest. Capital gains arising in Q3? Pay tax in Q4 instalment, not retrospectively in Q3.
    Conclusion
    • Estimate total income from all sources for the financial year (April to March)
    • Reduce standard deduction (₹75K salaried) and all eligible deductions (Sec 123, 126 (old Sec 80C, 80D), etc.)
    • Compute tax on estimated taxable income using applicable regime and slabs
    • Deduct expected TDS for the year from this tax figure
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  • The 7 patterns that generate 80% of all notices
    Facts
    1. AIS not reconciled before filing: Annual Information Statement has 50+ data categories. Any item in AIS not in your ITR = guaranteed notice. Download AIS before filing every year.
    Provisions and law
    AIS (Sec 285BB, now 510) | SFT (Sec 285BA) | GSTR-2B | 26AS (now Form 168)
    Analysis
    2. TDS mismatch: Your Form 16 (now Form 130) shows ₹2L TDS but 26AS (now Form 168) shows ₹1.9L deposited. File ITR with 26AS (now Form 168) figures, not Form 16 (now Form 130), and follow up with employer to correct the mismatch. 3. High-value cash deposits: ₹10L+ in savings account in a year gets reported via SFT. If you can't explain the source with documented income, you'll get a notice. 4. GSTR-2B not reconciled: Claiming more ITC than GSTR-2B shows = ITC reversal notice + 18% interest. 5. Capital gains not reported: MF redemptions, stock sales, property sale, all reported via SFT. Missing these = notice. Include all in Schedule CG. 6. Rental income not declared: Bank SFT now catches rent payments above ₹50K/month. Tenants' AIS shows rent paid. Your AIS shows rent received. If it's not in your ITR, you get a notice. 7. Cash transactions above ₹2L: Sec 269ST. Receiver of ₹2L+ cash in one transaction faces 100% penalty on the amount.
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