How to stay GST compliant without it consuming your finance team

GST compliance for a growing Indian company involves more than just filing returns. The companies that get into trouble are almost always those where compliance has become reactive — they file to avoid penalties, but they've never built a systematic process.

The minimum GST compliance calendar: GSTR-1 (outward supplies) — 11th of every month. GSTR-3B (summary return and payment) — 20th of every month. GSTR-2B reconciliation — do this by the 14th, before you file GSTR-3B. Annual return GSTR-9 — December 31st. If you're under ₹5Cr turnover, you're on quarterly returns for GSTR-1 (QRMP scheme).

GSTR-2B reconciliation is where most companies lose money. This is the auto-generated statement of your input tax credit (ITC) available from your vendors. Match it to your purchase register every month. If your vendor hasn't filed their GSTR-1, you can't claim ITC — and you may need to follow up with them.

E-invoicing is mandatory above ₹5Cr turnover as of 2024. If you're above this threshold and not generating e-invoices through the IRP (Invoice Registration Portal), you're non-compliant and your buyers can't claim ITC on your invoices.

HSN code classification matters. Using the wrong HSN code for your services can result in incorrect tax rates and notices. Have your CA verify your HSN codes for all revenue streams.

Build a monthly close checklist: reconcile sales register to GSTR-1, reconcile GSTR-2B to purchase register, identify unclaimed ITC and follow up with vendors, compute tax liability, and file by due dates. Assign ownership to one person.

TBC's finance team helps companies build GST compliance processes and clean up historical ITC issues. If your GST compliance is reactive and manual, we can make it systematic.

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