GST Compliance

GSTR-1 is the outward supplies (sales) return. You upload invoice-level data — B2B invoices (with customer GSTIN), B2C invoices, credit/debit notes, and exports. Filed by 11th of the next month for monthly filers. GSTR-3B is the monthly self-assessment return where you declare summary totals: taxable value, CGST/SGST/IGST charged, ITC claimed, and net GST payable after ITC. Filed and paid by 20th. GSTR-9 is the annual return filed by December 31 — a consolidated view of the entire year's GSTR-1 and GSTR-3B data. If your turnover exceeds ₹5 crore, GSTR-9C (auditor-certified reconciliation) is also required. GSTR-9 reconciles all figures and any annual differences must be adjusted via GSTR-3B.

Input Tax Credit (ITC) allows you to offset the GST you paid on purchases against the GST you collect on sales. For example: if you charged ₹18,000 GST on sales and paid ₹10,000 GST on purchases, your net liability is only ₹8,000. To claim ITC: (1) The supplier must have filed their GSTR-1 and the invoice must appear in your GSTR-2B; (2) You must have the original tax invoice; (3) The goods/services must be used for taxable business purposes; (4) Payment must be made to the supplier within 180 days. ITC cannot be claimed on personal expenses, car purchases (unless you're in car trading/rental), food/beverages, or employee welfare expenses. Maximizing ITC requires monthly GSTR-2B reconciliation — we do this every month for you.

GST registration is mandatory if: (1) Goods supplier: annual turnover exceeds ₹40 lakhs (₹20 lakhs for special category states — NE states, Uttarakhand, Himachal Pradesh, J&K); (2) Service provider: annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states); (3) Interstate supply: regardless of turnover; (4) E-commerce seller: regardless of turnover; (5) Liable to pay under Reverse Charge Mechanism; (6) Agent of a registered supplier; (7) Input Service Distributor (ISD). Voluntary registration below threshold is beneficial if your clients are GST-registered businesses (they can claim ITC on your invoices). Once registered, nil returns must be filed even in months with no transactions.

The Quarterly Return Monthly Payment (QRMP) scheme allows taxpayers with turnover up to ₹5 crore to file GSTR-1 and GSTR-3B quarterly (instead of monthly). However, GST must be paid monthly via a fixed payment (using the previous quarter's paid tax as a base, or self-assessment). Benefits: reduced filing frequency (from 24 returns/year to 8). Drawback: your B2B customers only see your invoices in GSTR-2B quarterly (not monthly), which may delay their ITC claims. Invoice Furnishing Facility (IFF) allows upload of key B2B invoices monthly within QRMP. Suitable for: small businesses with mostly B2C sales, or where B2B customers are comfortable with quarterly ITC. Our recommendation: most growing B2B businesses should stay on monthly filing for better cash flow management and customer ITC access.

GSTR-9 is an annual reconciliation of all monthly GSTR-1 and GSTR-3B returns. Common mismatches: (1) Invoices reported in GSTR-1 but not in GSTR-3B (or vice versa); (2) ITC claimed in GSTR-3B that doesn't match GSTR-2A/2B; (3) Tax computed on advances in one month, invoice raised in another; (4) Credit/debit notes timing differences. Consequences of mismatches: GSTN may issue a notice (ASMT-10) seeking clarification. If additional tax is payable after annual reconciliation, it can be paid via GSTR-3B (Table 9 of GSTR-9 allows reporting of additional liability). ITC missed in monthly returns can be reclaimed in GSTR-9 (up to deadline). Mismatches that can't be explained may attract demand notices under Section 73 (non-fraud) or Section 74 (fraud).