Introduction

Indian businesses face the challenge of complying with both Goods and Services Tax (GST) and Registrar of Companies (ROC) regulations, each involving separate reporting processes. This can be especially complex for new and small businesses, increasing the risk of significant penalties and operational disruptions.

A GST and ROC Combined Compliance Package provides a single solution to manage both sets of filing requirements. This integrated approach helps businesses stay compliant and ensures they do not miss crucial deadlines.

What is GST Compliance?

Tax on goods and services in India is mostly charged as GST and later paid by the companies when the goods are sold. GST replaced earlier taxes such as VAT, service tax, and excise duty. The GST regime requires businesses to comply with regular filing, reporting, and payment requirements.

Key components of GST compliance include:

• GST Registration: Mandatory for businesses with a turnover exceeding the prescribed threshold (Rs. 20 lakhs for most states, Rs. 10 lakhs for special category states).

• GST Returns: Businesses must file periodic GST returns (e.g., GSTR-1, GSTR-3B, GSTR-9, etc.) with the Goods and Services Tax Network (GSTN). These returns provide details of sales, purchases, input tax credit, and taxes payable.

• GST Payment: Businesses must pay the GST collected from their customers to the government by the 20th of the following month.

• GST Audit (for large taxpayers): Certain businesses are required to undergo a GST audit, ensuring that the financial records are in accordance with GST laws.

What is ROC Compliance?

Under the Ministry of Corporate Affairs, the Registrar of Companies (ROC) manages the procedure for forming and closing companies in India. Ensuring that a company is ROC compliance is important to ensure it complies with necessary laws and statutes.

Key ROC filings include:

• Annual Filing of Financial Statements (Form AOC-4): Within 30 days following the Annual General Meeting (AGM), companies should send in their audited financial statements to the relevant authorities.

• Annual Return (Form MGT-7): Users of the company must annually submit a return with information about shareholders, directors, and other important factors to the ROC.

• Changes in Directors or Shareholding: Any change in directors, address of a registered office, or the number of shares must be reported to the ROC within a given timeframe.

• Other Statutory Filings: Future changes in the capital make-up, the introduction of liabilities, or the company being dissolved should be reported to the ROC.

If a company does not meet the ROC’s standards, they can face penalties, have their directors put out of office, or be removed from the register.

The advantages of using a combined GST and ROC compliance package

• Simplified Compliance Management:

1. Having a combined GST and ROC compliance package means you only have to manage one set of filing dates, paperwork, and payments.

2. With the new rules, companies no longer need to manage two different schedules for GST and ROC.

• Cost-Efficiency:

1. Companies can save money by picking a package of different compliance services, since the cost for each service is lower than when bought separately.

2. Since the same professionals handle both GST and ROC, it helps to save a lot of money.

• Reduced Risk of Penalties and Interest:

1. Thanks to automated reminders and integrated services, companies can prevent missing their GST and ROC submissions and avoid the fines that go along with it.

2. There is less chance for mistakes, and businesses usually fulfill their commitments by the deadlines.

• Expert Support for Both Areas:

1. People using the combined service can expect help on both GST and ROC issues, whether they are registering, filing their taxes, or dealing with communications from the authorities.

2. Making sure that a business gets professional guidance ensures it complies with the processes of both GST and ROC.

• Streamlined Document Management:

1. The package often includes document management tools that help businesses maintain a digital record of all important filings and correspondences with authorities, making audits and inspections easier to manage.

Key Features of a GST and ROC Combined Compliance Package

• GST Registration and Compliance:

1. GST Registration: Ensuring businesses, whether new or existing, can register for GST services.
2. Return Filing: You have to file your GST returns every quarter and ensure that the sales, purchases, and taxes are correctly stated.
3. GST Payments: Swift payment of GST dues helps to avoid interest and other penalties.
4. GST Reconciliation: Check that the input tax credit matches the amount you need to pay in GST.
5. GST Audit Assistance: Ensuring that large taxpayers comply with the rules during GST audits by offering support.

• ROC Filing and Compliance:

1. Annual Filings (AOC-4 & MGT-7): Handing in the necessary papers including accounts and Yearly Returns to the Register of Companies.
2. Director and Shareholder Changes: Updated director, shareholder, and registered office address information needs to be notified to the authorities.
3. Company Incorporation & Alterations: Services include helping new companies get registered and making updates to current organizations such as adding more shares, renaming a company, or altering its documents.
4. Board Resolutions & Minutes: Creating and filing board resolutions, along with maintaining required registers.

• Comprehensive Compliance Dashboard:

1. A dashboard that handles compliance for ROC and GST information.
2. A notification goes out prior to any upcoming payment to ensure it’s not forgotten.

• Professional Support:

1. Being able to rely on a team of Chartered Accountants (CAs), Company Secretaries (CSs), and other experts for support with GST and ROC.
2. Recommendations for creating your business in the best possible way for tax purposes and the rules.

• Audit and Penalty Management:

1. Helping to deal with audits by the authorities overseeing GST or tax authority.
2. Helping you handle penalties or notices, including working to reduce the penalties involved.

• Periodic Reports:

1. Regular statements that summarize where the company stands with filing GST and ROC taxes, including the status of all pending and planned filings.
2. Gives businesses the ability to comply with all the required laws.

How a GST and ROC Combined Compliance Package Works

• Initial Setup:

1. First, the business gives the necessary paperwork for GST registration and ROC forms. The service provider checks the documents to confirm that everything is correct.
2. The compliance team prepares and submits the initial profiles for GSTN and MCA on behalf of the business, making sure all data is correct.

• Ongoing Compliance Management:

1. The service provider makes sure to keep an eye on when GST returns are due (monthly or quarterly) and when other annual ROC filings, like returns and financial statements, have to be submitted.
2. Periodic reminders are sent to the business to make sure they follow the rules.
3. Experts from the service provider help fill out and submit the paperwork to make sure everything is done right and on schedule.

• Penalty and Interest Management:

1. If the business fails to submit the filing on time, the compliance provider will notify them and suggest ways to minimize any penalties.
2. Should the business submit its taxes late, they will help to pay the charges and submit the forms required for compliance.

• Audit Support:

1. Should the business be chosen for an audit by the GST or ROC officials, the compliance team will take care of everything and ensure it is prepared for the inspection.

Conclusion

A combined GST and ROC compliance package streamlines regulatory adherence for businesses. This integrated approach helps companies avoid penalties, maintain legal compliance, and reduce expenses. Regardless of business size, the package simplifies complex regulations, allowing greater focus on core operations and growth.

The package offers regular reminders, expert assistance, and a unified system for GST and ROC filings. This ensures businesses remain informed about relevant tax and corporate regulations.

Disclaimer

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.

Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.