GST compliance is monthly and unforgiving: returns, credits that must be matched, and classification decisions that are revisited years later by an officer with the benefit of hindsight.
This describes the subject in general terms and is not advice; what applies depends on the facts, and the law changes.
Understanding the service
GST is levied under the Central GST Act, the Integrated GST Act and the State GST Acts. Whether registration is required turns on the nature of the supply, the states involved and aggregate turnover, with some categories required to register irrespective of turnover.
Registered persons file periodic returns, commonly GSTR-1 for outward supplies and GSTR-3B as the summary return, and an annual return where applicable. Input tax credit is subject to conditions, including that the supplier has reported the supply, so reconciliation with the auto-drafted statement is a recurring exercise.
Classification and place of supply decide the rate and which tax applies. They are the usual subjects of dispute.
Rates, classification and procedure are notified by the government on the recommendations of the GST Council and are revised from time to time. The notification in force for the period governs.
When it becomes relevant
- Deciding whether, and in which states, registration is required
- Monthly or quarterly returns and the annual return
- Credit that does not match the supplier's filings
- Refunds, including on exports and on an inverted duty structure
- A notice, audit or show-cause notice from the department
- Classification of a new product or service
What the work usually covers
- Registration and amendments
- Preparation and filing of returns
- Reconciliation of books, returns and input tax credit
- Classification and place-of-supply analysis
- Refund applications and follow-up
- Review of notices, replies and representation before the authorities
Framework and sources
The law and professional standards this work is carried out under. Links open the official site.
How the work runs
- ReviewUnderstand the supplies, registrations and current position.
- ReconcileMatch books with returns and with the credit statement.
- FilePrepare and file returns within the due dates the law prescribes.
- ClaimPrepare refund applications where available.
- RespondReview notices, prepare replies and appear as required.
A general sequence. Engagements differ, and the scope of each is agreed in writing.
Common questions
Why do our books and GST returns never agree?
Timing differences, suppliers who have not reported a supply, classification differences and credit reversals are the usual causes. Monthly reconciliation keeps the gap small.
Can credit be denied because of a supplier's default?
Credit is subject to conditions, including reporting by the supplier. This is why reconciliation and follow-up with suppliers matter.
Are GST rates settled?
No. Rates and classification are revised by notification. The position for the relevant period must be checked.