GST GST compliance

GST checklist for traders

Most GST trouble for traders starts at the billing counter: a wrong GSTIN, a missing HSN, a sale entered in the wrong state. This checklist splits the work into what to do daily, monthly and yearly.

Updated 2026-11-054 min read

Who this is for

GST-registered traders
Wholesalers and distributors
Retailers with B2B sales
Billing staff
Accountants handling returns

On this page 12

Before you bill: masters

Party masters: GSTIN verified on the portal, state, registration type (regular, composition, unregistered). See how to check GSTIN validity.
Item masters: HSN code, GST rate with effective date, unit of measure matching the GST unit list.
Ledgers: separate output and input ledgers for IGST, CGST and SGST; freight and packing ledgers set to be included in taxable value.
Invoice series: one series per counter or branch, unique for the year.

Daily

Every sale on a tax invoice or bill of supply, never on a plain slip.
Buyer GSTIN entered for every B2B sale; inter-state sales billed with IGST and the buyer's state.
E-way bill generated for consignments above the limit before goods leave; see e-way bill basics.
Goods sent on approval or for repair on delivery challans, not invoices.
Purchase bills entered the day they arrive, with supplier GSTIN and bill number as printed.
Cash sales cross-checked with the cash book at close.

Monthly

Step	Check
Close the books	All sales, returns, purchases and expenses entered
Review GSTR-1 data	No uncertain or incomplete entries; B2B vs B2C right; HSN summary matches
File GSTR-1	By the due date, earlier if possible
Match GSTR-2B	Purchases vs GSTR-2B; follow up suppliers who have not filed
ITC reversals	Bills unpaid for 180 days, free samples, blocked items
RCM	GTA freight, legal fees and other RCM purchases paid in cash
File GSTR-3B	Liability matches GSTR-1; ITC within GSTR-2B
Ledgers	Books' GST balances match the portal's credit and cash ledgers

The ITC matching step is explained in reconciling GSTR-2B with the purchase register.

A quick monthly sense-check

Suppose a trader's month shows taxable sales of ₹42,00,000 and taxable purchases of ₹38,50,000, all at 18%.

Output tax: ₹7,56,000
Input tax: ₹6,93,000
Expected cash payment: about ₹63,000

If GSTR-3B is asking for ₹2,00,000 in cash, something is off: a purchase not in GSTR-2B, a large credit note missed, or sales entered twice. A 30-second estimate like this catches errors before filing.

Quarterly and yearly

QRMP filers: IFF for large B2B buyers in months 1 and 2, if they want credit monthly.
Before 1 April: decide on QRMP or composition for the next year; renew LUT if you export.
By 30 November: fix previous-year GSTR-1 errors, claim missed ITC, issue last GST credit notes.
By 31 December: annual return.
Year end: physical stock count, so stock in books, sales and purchases tell a consistent story.

Who does what

Task	Usually done by
Party GSTIN check, invoice accuracy	Billing staff
E-way bills and challans	Dispatch
Purchase entry and GSTR-2B matching	Accountant
Return review and sign-off	Owner or partner
Filing and notices	Accountant or CA

Write this down. In many trading firms one person quietly does everything, and when they are on leave in the third week of the month, returns slip.

Warning signs

GST paid in cash jumps while sales are flat.
A large supplier's bills keep missing from GSTR-2B.
The input GST ledger in books is far higher than the portal's credit ledger.
Stock in books keeps rising while the godown looks empty.
Buyers repeatedly call about ITC not showing.

Any one of these is worth an hour with your accountant before it becomes a notice. Most have simple causes, such as a purchase bill entered twice or a supplier filing late, and they are far easier to fix in the same month than a year later.

Records to keep

Keep invoices, bills of supply, credit and debit notes, delivery challans, e-way bills, stock records and payment proofs for the period the law requires (generally 72 months from the due date of the annual return for the year). Digital copies are acceptable if they can be produced. This is general information, not tax advice.

Running the checklist with Tally and Cashflow OS

TallyPrime holds the masters and vouchers this checklist depends on. Cashflow OS puts that data on the owner's phone: party and item lists, day book, the GSTR-1 view with bill-wise and HSN-wise detail, the GSTR-3B view, and payables ageing for the 180-day check. Roles let a salesperson see items and their own customers while the accountant handles returns. Filing is on the GST portal.

Avoid these

Common mistakes

MistakeBilling B2B sales without checking the GSTIN
Do this instead
Verify the buyer's GSTIN on the GST portal when creating the party, and store state and registration type.
MistakeInter-state sales billed with CGST and SGST
Do this instead
Bill inter-state sales with IGST and the buyer's state; set place of supply correctly in the party master.
MistakeClaiming ITC not in GSTR-2B
Do this instead
Match purchases with GSTR-2B every month and follow up suppliers who have not filed before claiming.
MistakeOne person doing all GST work unchecked
Do this instead
Split tasks: billing checks invoices, the accountant matches ITC, the owner reviews before filing.

Keep handy

Checklist

GST checklist for traders — 8 checks. Tick them as you go.

Party GSTINs verified, with state and registration type
HSN code, rate and unit on every item
Every sale on a tax invoice or bill of supply
E-way bills generated before goods leave, where required
Purchases entered the day they arrive
GSTR-1 data reviewed and filed by the due date
Purchases matched with GSTR-2B before GSTR-3B
Books' GST balances match the portal's cash and credit ledgers

In Cashflow OS

How Cashflow OS helps

Cashflow OS puts your TallyPrime books on every phone in the team. Where it fits this topic:

GSTR-1 and GSTR-3B views on the phone

The GSTR-1 view with bill-wise and HSN-wise detail and the GSTR-3B view are prepared from your Tally data, with JSON download for the portal. Filing is on the GST portal.

See GST reports from your Tally data

Payables ageing for the 180-day check

Bill-wise payables with ageing show supplier bills getting close to 180 days unpaid, so ITC reversals are not missed.

See Payables tracking

Questions people ask

What should a trader check before filing GSTR-1?

That every B2B invoice has the right GSTIN, inter-state sales use IGST, HSN codes are filled and the HSN summary agrees with invoice totals.

How long must GST records be kept?

Generally 72 months from the due date of the annual return for that year, longer if proceedings are pending.

Do traders need e-way bills for local deliveries?

Often yes, when the consignment value crosses the limit, even within the state. States may set their own intra-state rules.

Should I file GSTR-1 before the due date?

Filing early helps your buyers see their credit sooner and leaves time to fix errors before GSTR-3B.

What is the 180-day rule?

If you do not pay a supplier within 180 days of the invoice date, the ITC on the unpaid amount has to be reversed (interest may apply), and can be claimed again once you pay.

Do I need a separate invoice series for each counter?

A unique series per counter or branch helps keep numbers unique for the year and makes tracing easier.

When is the last date to fix last year's GSTR-1 errors?

Generally 30 November after the end of the financial year, or the date the annual return is filed if earlier. Check the current rule.

What if GSTR-3B cash payable looks too high?

Check for purchases missing from GSTR-2B, missed credit notes or sales entered twice before you file.

This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.