GST Compliance Checklist for Small Businesses and Tax Practitioners
A comprehensive operational checklist covering monthly GSTR-1 & 3B timelines, 2B ITC reconciliation, e-invoicing thresholds, and compliance audit steps.
1. Overview of Monthly & Quarterly GST Obligations
Operating under the Goods and Services Tax (GST) framework in India requires systematic record-keeping and strict adherence to periodic filing calendars. Depending on whether a business files under regular monthly schedules or the Quarterly Return Monthly Payment (QRMP) scheme, missing return windows can attract late fees and interest under Section 50 of the CGST Act.
- GSTR-1 (Outward Supplies): Monthly filers must report outward sales by the 11th of the succeeding month; QRMP filers report via Invoice Furnishing Facility (IFF) by the 13th.
- GSTR-3B (Summary Return & Tax Settlement): Must be filed with net tax liability payment by the 20th of the following month for regular monthly taxpayers.
- PMT-06 (Monthly Tax Payment for QRMP): Taxpayers under QRMP deposit self-assessed or fixed-sum monthly tax by the 25th of the month.
2. Input Tax Credit (ITC) Reconciliation Best Practices
Under Section 16(2)(aa) of the CGST Act and Rule 36(4), a taxpayer can only claim Input Tax Credit on invoices that appear in their auto-drafted GSTR-2B statement. This makes monthly purchase register reconciliation a critical operating procedure for tax practices and accounting teams.
| Reconciliation Check | Action Required | Risk if Overlooked |
|---|---|---|
| Matched in GSTR-2B & Books | Claim full eligible ITC in GSTR-3B Table 4(A)(5) | None — verified credit |
| Present in Books, Missing in 2B | Hold ITC; notify supplier to file or amend GSTR-1 | Notice under ASMT-10 & interest liability |
| Present in 2B, Missing in Books | Verify invoice delivery; account in current accounting period | Unclaimed credit expiration |
| Ineligible ITC (Sec 17(5)) | Mandatorily reverse in GSTR-3B Table 4(B)(1) | Disallowance during departmental audit |
3. E-Invoicing & E-Way Bill Verification
Businesses crossing the prescribed aggregate turnover threshold must generate IRN (Invoice Reference Number) for B2B supplies and exports. E-Way Bills must be generated for movement of goods exceeding ₹50,000 in value (or state-specific thresholds for intra-state movement).
4. Year-End Audit & Annual Return Preparation (GSTR-9 & 9C)
Annual returns require a comprehensive reconciliation between audited financial statements, book turnover, GSTR-1 outward figures, and GSTR-3B tax payment records. Maintaining monthly reconciliation working papers throughout the financial year significantly reduces year-end audit friction.
Summary for Practice & Compliance Files
- 1Reconcile Purchase Registers with GSTR-2B before filing every monthly GSTR-3B.
- 2Strictly reverse blocked credits under Section 17(5) to avoid departmental notices.
- 3Track supplier filing status regularly to prevent blocked input tax credit.
- 4Preserve digital tax records and filing acknowledgments for a minimum of 6 years (72 months).
Official Government & Statutory References
- Goods and Services Tax (GST) Portal(GSTN / Government of India)
- Central Board of Indirect Taxes and Customs (CBIC)(Ministry of Finance)
Frequently Asked Questions
What is the difference between GSTR-2A and GSTR-2B?
GSTR-2A is a dynamic statement that changes continuously as suppliers upload invoices. GSTR-2B is a static, auto-drafted statement generated on the 14th of each month that serves as the legal basis for claiming Input Tax Credit for that tax period.
Can Input Tax Credit be claimed if the supplier has not filed GSTR-1?
No. As per Section 16(2)(aa) of the CGST Act, ITC can only be claimed if the invoice details have been furnished by the supplier in their GSTR-1/IFF and communicated to the recipient in GSTR-2B.
Streamline GST Reconciliation Across All Your Practice Clients
Taxoryn gives Indian tax practices automated due-date boards, GSTR-2B tracking, and structured client filing queues in one workspace.
Related Practice Resources
View All ResourcesGST vs Income Tax: Key Differences, Timelines, and Compliance Responsibilities
A clear structural comparison between India's indirect tax (GST) and direct tax (Income Tax) frameworks, registration rules, and practice workflows.
Moving Beyond Excel & WhatsApp: Modern Practice Management for Indian CA Firms
Why managing client filings across scattered spreadsheets and messaging apps causes deadline risks, and how dedicated practice management workspaces solve it.
Standard Operating Procedure: End-to-End Tax Practice Compliance Workflow
A 5-stage standard operating procedure from client intake to computation, multi-tier partner review, return filing tracking, and acknowledgment delivery.