GST guides

GST returns, invoices, input tax credit and e-invoicing — explained for Indian businesses.

60 guides4 h of readingFree to read

GST returnsWhat is GSTR-1?GSTR-1 is the return in which a registered business reports every sale it made in a month or quarter. Your buyers get their input tax credit from what4 min read

GST returnsGSTR-1 due dates and late feeMonthly filers file GSTR-1 by the 11th of the next month and QRMP filers by the 13th after the quarter. File late and you pay a per-day late fee, and 3 min read

GST returnsWhat is GSTR-3B?GSTR-3B is the summary return in which you declare your total sales tax, claim your input tax credit and pay the balance in cash. It is the return tha4 min read

GST returnsGSTR-1 vs GSTR-3B: what is different and why they must matchGSTR-1 is the detailed list of your sales; GSTR-3B is the summary where you pay tax. The tax on sales in both should be the same for the period, and t4 min read

Input tax creditGSTR-2B and input tax credit matchingGSTR-2B is a monthly statement of the input tax credit your suppliers have reported against your GSTIN. As a rule, you can claim credit in GSTR-3B onl4 min read

Input tax creditInput tax credit conditions under GSTYou can claim GST paid on purchases only when every condition in the law is met: a valid invoice, goods or services received, the invoice in your GSTR4 min read

Input tax creditBlocked input tax credit under GSTSome purchases do not give you input tax credit even when the bill is perfect. The list is in section 17(5) of the CGST Act, and knowing it saves you 4 min read

Input tax creditHow to reconcile GSTR-2B with the purchase registerDownload GSTR-2B, put it next to your purchase register, match bill by bill on supplier GSTIN and invoice number, then sort every difference into a kn4 min read

GST basicsHSN and SAC codes explainedHSN codes classify goods and SAC codes classify services. Your turnover decides how many digits you must print on invoices, and the code you pick deci4 min read

GST returnsHSN summary in GSTR-1 (Table 12)Table 12 of GSTR-1 summarises all your sales for the period by HSN or SAC code, with quantity, unit, taxable value and tax. It must add up to the rest4 min read

GST returnsB2B vs B2C invoices in GSTR-1If the buyer has a GSTIN, the invoice is B2B and goes into Table 4 invoice by invoice. If not, it is B2C: large inter-state invoices go to Table 5, an4 min read

GST returnsB2C Large invoices in GSTR-1A B2C Large invoice is an inter-state sale to an unregistered buyer above a set invoice value. These are reported invoice by invoice in Table 5 of GST4 min read

GST documentsCredit notes and debit notes in GSTA credit note reduces the value or tax of an invoice already issued; a debit note increases it. Both are issued by the supplier, both are reported in 4 min read

GST documentsSales returns under GSTWhen a customer sends goods back, the supplier issues a credit note against the original invoice, reports it in GSTR-1, and reduces output tax, provid4 min read

GST basicsPlace of supply for goods under GSTFor most sales of goods, the place of supply is where the movement of goods ends for delivery to the buyer. If that is in your own state, charge CGST 4 min read

GST basicsIGST vs CGST and SGSTCharge CGST plus SGST when the supplier and the place of supply are in the same state, and IGST when they are in different states. The total rate is t3 min read

GST basicsGST state codes listEvery state and union territory has a two-digit GST state code. It is the first two digits of every GSTIN and is used for place of supply on invoices,4 min read

GST basicsHow to read a GSTINA GSTIN is a 15-character number: two digits for the state, ten characters of the holder’s PAN, one character for the registration count, a default Z,4 min read

GST basicsGST composition schemeThe composition scheme lets small businesses pay GST at a low flat rate on turnover and file simpler returns. In exchange they cannot collect GST from4 min read

GST basicsReverse charge mechanism under GSTUnder reverse charge, the buyer, not the seller, pays GST to the government on certain notified goods and services. The buyer pays it in cash, reports4 min read

GST basicsGST on advances receivedFor goods, normal taxpayers do not pay GST when they receive an advance; tax is paid when the invoice is issued. For services, GST is payable on the a4 min read

GST basicsGST registration thresholdYou must register for GST once your aggregate turnover crosses the threshold, generally ₹40 lakh for businesses selling only goods and ₹20 lakh for se4 min read

E-invoicingE-invoicing and IRN under GSTE-invoicing means reporting each B2B invoice to a government Invoice Registration Portal, which returns a unique Invoice Reference Number (IRN) and a 4 min read

E-invoicingE-invoice QR code explainedThe QR code on a GST e-invoice is generated and digitally signed by the Invoice Registration Portal. It carries the key details of the invoice and its4 min read

E-way billE-way bill basicsAn e-way bill is an electronic document generated on the GST e-way bill portal before goods worth more than the set limit are moved by road, rail, air4 min read

E-way billE-way bill vs e-invoiceAn e-invoice registers a B2B invoice with the government; an e-way bill authorises moving goods. A business can need one, both or neither, and when it4 min read

GST returnsGSTR-9 annual returnGSTR-9 is the yearly return that consolidates everything you reported in the monthly or quarterly returns for a financial year: sales, tax, input tax 4 min read

GST returnsGSTR-9C reconciliation statementGSTR-9C reconciles the turnover, tax and input tax credit in your audited financial statements with what you reported in GSTR-9 for the same year. It 3 min read

GST returnsQRMP scheme: quarterly returns, monthly paymentUnder QRMP, smaller taxpayers file GSTR-1 and GSTR-3B once a quarter instead of every month, but still pay tax monthly. It cuts the number of returns 4 min read

GST returnsInvoice Furnishing Facility (IFF)IFF lets a quarterly (QRMP) filer upload B2B invoices for the first two months of a quarter, so buyers get their input tax credit monthly instead of w3 min read

GST valuationGST on discounts and dealer schemesA discount shown on the invoice at the time of sale simply lowers the taxable value. A discount given later lowers it only if it was agreed before the4 min read

GST valuationGST on free samples and giftsGoods given away free to an unrelated person are usually not a taxable supply, but the input tax credit on them is blocked. Gifts to related persons, 3 min read

GST paymentsTDS and TCS under GSTUnder GST, certain government buyers deduct tax at source (TDS) from payments to suppliers, and e-commerce operators collect tax at source (TCS) from 4 min read

GST paymentsGST interest and late feesPay GST late and you owe interest on the tax, counted day by day. File a return late and you owe a fixed late fee per day, up to a cap. Neither can be4 min read

GST complianceCommon GST notices and how to respondMost GST notices to small businesses come from mismatches the portal can see: returns not filed, GSTR-1 sales higher than GSTR-3B, or ITC above GSTR-23 min read

GST basicsNil-rated, exempt and non-GST suppliesAll four kinds carry no GST on the bill, but they are not the same. Nil-rated and exempt supplies cost you input tax credit, zero-rated exports do not3 min read

GST on freightGST on goods transportGST on freight depends on who moves the goods. A goods transport agency that issues a consignment note is taxed under special rules, often reverse cha4 min read

GST exportsGST for exporters: LUT and zero-rated suppliesExports are zero-rated under GST. You can export without paying IGST by filing a Letter of Undertaking (LUT) each year and claim a refund of unused in3 min read

GST returnsGSTR-1 amendments: correcting a filed returnA filed GSTR-1 cannot be revised. Mistakes are fixed in amendment tables of a later GSTR-1, or, for the same month before GSTR-3B is filed, through th3 min read

GST for manufacturersGST on job workA registered principal can send inputs and capital goods to a job worker without paying GST, on a delivery challan. The goods must come back within on3 min read

GST for branchesGST on stock transfer between branchesMoving stock between godowns under the same GSTIN is not a supply; a delivery challan is enough. Sending stock to your own branch in another state is 3 min read

GST online sellingGST for e-commerce sellersSelling through a marketplace adds three things to normal GST work: the operator collects TCS from your payouts, every sale needs the right place of s3 min read

GST ratesHandling a GST rate change in billingWhen a GST rate changes, the rate on a sale depends on when three things happen: the supply, the invoice and the payment. If two of the three fall aft3 min read

GST paymentsGST electronic ledgers: cash, credit and liabilityEvery GST registration has three running accounts on the portal: the electronic cash ledger (money you deposit), the electronic credit ledger (input t3 min read

GST paymentsGST payment challan (PMT-06)GST is paid by creating a challan in Form PMT-06 on gst.gov.in and paying it through an authorised bank. The money lands in your electronic cash ledge3 min read

Input tax creditITC reversal under the 180-day ruleIf you claim input tax credit on a purchase but do not pay the supplier the value and the tax within 180 days of the invoice date, you must reverse th4 min read

GST invoicesGST invoice mandatory fieldsA GST tax invoice must carry the details listed in Rule 46 of the CGST Rules. Missing ones can cost your buyer their input tax credit and invite quest3 min read

GST due datesGST compliance calendar for MSMEsMost small businesses have the same GST rhythm every month: sales return by the 11th (or 13th quarterly), tax return by the 20th (or 22nd/24th quarter3 min read

GST complianceGST checklist for tradersMost 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 the4 min read

GSTINHow to check GSTIN validityCheck a GSTIN in two steps: first make sure its 15-character format is right, then look it up on the GST portal's Search Taxpayer page to see the lega3 min read

GST invoicesFreight and delivery charges in GST invoicesFreight, packing and delivery you charge on your own sales invoice are part of the value of the goods. They are taxed at the same rate as the goods, n4 min read

GST returnsGSTR-1 JSON upload: steps and error fixesInstead of typing invoices on the portal, you can upload them as a JSON file generated by your accounting software or the GST offline tool. The portal3 min read

Tally and GSTHow to prepare GSTR-1 from TallyTallyPrime builds GSTR-1 from your sales, credit notes and debit notes. Your job is to make sure every voucher is included correctly, fix the ones Tal3 min read

Tally and GSTHow to check GSTR-3B from Tally dataGSTR-3B is where tax is actually paid, so it deserves the most careful check. Compare Tally's GSTR-3B report with your filed GSTR-1, the GSTR-2B on th3 min read

GST returnsCommon GSTR-1 errors and how to avoid themGSTR-1 errors rarely cost you tax directly, but they cost your buyers credit and lead to calls, mismatches and notices. Most come from a handful of ca3 min read

GST valuationGST on cash discounts given after the saleA cash discount for early payment is usually given after the invoice. You can reduce GST on it only if the discount was agreed before the sale and you4 min read

GST invoicesBill of supply under GSTA bill of supply is the document you issue instead of a tax invoice when no GST can be charged: by a composition dealer, or by anyone supplying exempt3 min read

GST complianceGST audit preparation checklistA GST department audit checks your books and returns for a period and asks you to explain differences. Businesses that reconcile monthly finish quickl3 min read

GST for servicesGST for service and repair businessesA repair business supplies two things: the parts it fits and the work it does. How you bill them decides the GST rate, and services have their own rul3 min read

GST B2CGST on sales to unregistered buyersSales to customers without a GSTIN are B2C sales. You still charge GST at the item's rate, but the invoice details, the way you report it in GSTR-1 an3 min read

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