GST Compliance in India: A Simple Guide for Businesses

What is GST Compliance? 

If you’re a business owner, freelancer, or startup founder in India, chances are you’ve come across the term GST compliance more times than you can count. You’ve heard it from accountants, read it in government notices, and maybe even seen it on client invoices. But let’s pause for a second. What is GST compliance, really?

Let’s unpack this term in a straightforward, no-jargon way. Whether you're running a small business from home or managing a team of 50, this is something you absolutely need to understand. And don’t worry by the end of this, you’ll have a crystal-clear idea of what it means and how it applies to you.

Let’s Start with the Basics: What is GST?

Before jumping into compliance, let’s quickly revisit what GST is.

GST stands for Goods and Services Tax. It’s a comprehensive, destination-based indirect tax that replaced a bunch of previous taxes like VAT, service tax, and excise duty in India. Instead of having multiple taxes at every stage of the supply chain, GST brings everything under one umbrella.

Whether you sell digital services, physical products, or provide professional consulting, you’re likely covered under GST. And that brings us to the next point…

So, what is GST Compliance?

In simple terms, GST compliance means following all the rules and regulations under the GST law to ensure your business is legally and financially aligned with tax authorities.

Think of GST compliance like maintaining a healthy financial lifestyle for your business. Just like your body needs regular exercise, checkups, and a balanced diet, your business needs regular return filings, invoice matching, and proper tax payments to stay “fit” in the eyes of the government.

Here’s a more practical definition:

GST compliance refers to the act of adhering to all the GST guidelines issued by the Government of India. This includes timely registration, accurate invoicing, periodic return filing, tax payments, and maintaining proper digital records of all taxable transactions.

Real-World Example: A Day in the Life of a GST-Compliant Business

Let’s make this even more relatable.

Imagine you run a digital marketing agency called “PixelReach” based in Pune. You charge your clients for services like SEO, ad campaigns, and website building.

Here’s how PixelReach stays GST compliant:

1. You registered under GST when your turnover crossed ₹20 lakhs.
2. You issue GST-compliant invoices for every project with the correct HSN/SAC codes.
3. You collect 18% GST from clients and keep track of it using a simple tool or accounting software.
4. Every month, you file your GSTR-3B return (a summary of your sales, purchases, and GST liability).
5. You reconcile invoices with vendors and ensure your input tax credit (ITC) is matched properly.
6. You pay the GST dues online before the 20th of each month.
7. You save digital records of all your transactions in case of a GST audit.

This entire process? That’s what GST compliance looks like in action. It’s not just about tax filing it’s a holistic practice of responsible business behavior.

Why Does GST Compliance Matter for Your Business?

Running a business in India whether you're a startup founder, a freelancer, or a growing SME is exciting. But in the midst of scaling your services, managing operations, and delivering value to customers, there's one silent factor that can make or break your financial health: GST compliance.

You’ve probably heard the term “GST compliance” thrown around by your CA or tax consultant, but what does it really mean? And more importantly, why should you, as a business owner, care about it? Let's break it down in the most human and relatable way possible.

First, What Is GST Compliance In Simple Terms?

At its core, GST compliance simply means following the rules laid out under India’s Goods and Services Tax (GST) law. Think of it as a routine set of responsibilities just like you have SOPs for your sales or operations, GST has its own playbook.

These responsibilities include:

1. Registering under GST if your turnover crosses a certain threshold
2. Issuing proper GST invoices
3. Filing returns every month or quarter, depending on your business type
4. Paying the right amount of GST to the government
5. Maintaining digital records of all your transactions

In short, GST compliance in India ensures that your business is tax-transparent, audit-ready, and legally secure.

Why It’s a Big Deal for Indian Businesses

Let’s say you run a design agency in Bangalore or a product startup in Gurgaon. Your focus is always on product, team, and growth. But here’s the truth: if you ignore statutory requirements for tax compliance, you open yourself up to:

1. Hefty fines and penalties
2. Legal notices
3. Blocked input tax credits
4. Lower GST compliance ratings, which could affect your business reputation
5. Even worse a temporary ban on filing returns, which freezes your operations

In today's digital economy, compliance isn’t just a legal duty it’s a growth enabler. Being GST-compliant builds trust with customers, partners, and even investors. It shows that your business is organized, clean, and future-ready.

Statutory Requirements Aren’t Just Formalities They’re Business Foundations

We know "statutory requirements for tax compliance" may sound like dry government language. But let’s make it real:

1. Registered vendors won’t work with non-compliant businesses. If your GST number is flagged, many B2B partners will avoid you.
2. You can’t claim input tax credit (ITC) if your supplier doesn’t file returns on time and vice versa. One delay can trigger a chain reaction.
3. Loan approvals (from banks, NBFCs) often require you to submit GST return filings. No compliance, no capital.
4. Tender participation in government contracts or large enterprises often demands clean GST records.

So yes, GST compliance isn't just about ticking boxes it’s a license to grow responsibly.

Still Think You’re “Too Small” to Worry About GST?

This is a common myth among freelancers, solo founders, and micro businesses. “Why should I bother? I only make ₹12 lakhs a year!”

But here’s the twist: the threshold for mandatory GST registration is:

1. ₹20 lakhs for service providers (₹10 lakhs in some special category states)
2. ₹40 lakhs for goods suppliers

If you cross it even by a small margin you must register and comply. And even if you're under the limit, voluntarily opting for GST can boost your credibility, especially if you're selling to big clients who need input credit.

Also, GST compliance helps you stay ready for scaling. Today it’s ₹10L; tomorrow it could be ₹50L. Why wait for chaos later when you can build clean processes now?

Non-Compliance Has Real Costs (That Most Entrepreneurs Overlook)

Here’s a simple reality check:

Real-Life Example: The Freelancer Who Lost a ₹5L Deal

Take this: Ramesh, a freelance UX designer from Hyderabad, once missed out on a ₹5 lakh project with a US-based agency. Why? They needed a valid GST invoice to process the payment. He didn’t have a GSTIN, nor was he GST compliant. They moved on to another vendor.

This isn’t an isolated incident. Every day, small businesses lose opportunities due to lack of basic compliance hygiene.

The Core Pillars of GST Compliance (Based on GST Guidelines)

The Government of India, through the GST portal and CBIC (Central Board of Indirect Taxes and Customs), has laid out several GST guidelines to define what businesses must do to stay compliant. Here are the most essential ones:

1. Registration

You must register under GST if:

1. Your annual turnover exceeds the prescribed threshold (₹20L for services, ₹40L for goods).
2. You engage in inter-state supply.
3. You operate on e-commerce platforms.

2. Invoicing

You must issue invoices that:

1. Contain your GSTIN (GST Identification Number)
2. Mention HSN/SAC codes
3. Clearly state CGST, SGST, and IGST as applicable

3. Return Filing

Depending on your business type, you need to file:

1. Monthly returns (GSTR-1 & GSTR-3B)
2. Quarterly returns (QRMP scheme)
3. Annual return (GSTR-9)

4. Tax Payment

You must calculate and pay your GST dues before the due date (usually the 20th of the following month).

5. Input Tax Credit (ITC)

You must reconcile your purchases and ensure that your vendors are also compliant so that you can claim the input tax credit.

6. Record Keeping

Maintain clear records for:

1. Sales and purchase invoices
2. Credit/debit notes
3. E-way bills (for goods transportation)

These aren’t suggestions, they're legal obligations under GST. Failing to follow them can lead to penalties, interest charges, or even legal scrutiny.

What Happens If You’re Not GST Compliant?

Let’s say you don’t file your returns on time or submit incorrect data. What’s the big deal?

Here’s what could happen:

1. You lose access to Input Tax Credit (which increases your cost)
2. Your GST compliance rating drops (more on this in the next section)
3. Your business might get flagged during audits or assessments
4. Clients and vendors may refuse to work with you
5. You may face financial penalties, sometimes up to ₹10,000 per return!

In short: Non-compliance is a cost you don’t want to pay.

How Can You Simplify GST Compliance?

Here’s the good news: you don’t have to manage all this manually.

Many Indian businesses today use accounting software or GST compliance platforms like FilingBuddy to automate:

1. Monthly reminders
2. Return filing
3. Reconciliation of invoices
4. Digital record-keeping

The result? You save time, avoid errors, and stay 100% compliant without burning out or hiring expensive consultants.

To sum it up:
GST compliance is the art and science of following the GST rules that keep your business tax-safe and growth-ready. From issuing the right invoices to filing returns on time and claiming ITC every piece matters.

Understanding what GST compliance is can be your first step toward running a professional, investor-ready, and audit-proof business in India.

So the next time someone asks you, “What is GST compliance?”, you’ll know exactly what to say and more importantly, how to act on it.

Your Monthly GST Compliance Checklist

Running a business in India comes with many responsibilities, and keeping up with GST compliance is one of the most important but also one of the most confusing. Deadlines, forms, codes, portals it can all feel like a maze.

That’s why we’ve created this easy-to-follow, step-by-step GST compliance checklist, written in plain English, to help you stay on top of your monthly GST compliance. Whether you're managing things on your own or using accounting software, this guide will ensure you meet all your statutory requirements for tax compliance without the stress.

Let’s break it down together.

What Is a GST Compliance Checklist?

Think of the GST compliance checklist as your monthly to-do list to stay on the right side of the law. Just like you might track monthly sales goals or project timelines, your GST checklist helps ensure:

1. Your GST returns are filed
2. Your taxes are paid
3. Your invoices and documents are in order
4. You’re protected from late fees, penalties, or audits

It's not just for accountants, every business owner should know these steps.

Your Monthly GST Compliance Checklist

Here’s a simple, humanized version of what your month should look like when it comes to GST compliance:

1. Track All Sales and Purchase Invoices (Daily/Weekly)

Why it matters: Every invoice you issue or receive directly affects your GST liability or input credit.

• Maintain a digital log of all sales invoices issued.
• Collect GST-compliant purchase invoices from vendors.
• Make sure your invoices have all mandatory details: GSTIN, invoice number, HSN/SAC codes, taxable value, and tax breakdown (CGST/SGST/IGST).

This helps with matching data during return filing and claiming input tax credit.

2. Reconcile Input Tax Credit (ITC) with GSTR-2B (Start of the Month)

Why it matters: You can only claim ITC if your supplier has filed their return and declared the invoice.

1. Download your GSTR-2B from the GST portal.
2. Match the purchase invoices in your records with those in GSTR-2B.
3. Note mismatches and follow up with vendors immediately.
4. If ITC doesn’t match, you may not be able to claim that credit in the current month.

This is a critical step in your gst monthly compliance to optimize cash flow.

3. Prepare and File GSTR-1 (On or before 11th of the Month)

What it is: GSTR-1 is a statement of all your outward (sales) supplies for the month.

1. Check that all sales invoices are accounted for.
2. If you offer discounts, returns, or credit notes, include those too.
3. File the GSTR-1 return on time to enable your buyers to claim ITC.

Statutory requirement under GST law. Delay here can impact your clients’ ability to claim ITC.

4. Review GSTR-3B Draft & Calculate Tax Payable (Before 18th)

What it is: GSTR-3B is your summary return that includes both sales and ITC, and helps you compute your tax liability.

1. Review sales (from GSTR-1) and purchases (from your books and GSTR-2B).
2. Confirm eligibility of input credit.
3. Finalize the amount of GST payable.

This step ensures accurate calculation of tax due and helps avoid interest or penalties.

5. Pay GST Liability (Before 20th of the Month)

Don’t forget: Filing returns without paying GST doesn’t count as compliance.

1. Make payment online using credit ledger, cash ledger, or challan (Form PMT-06).
2. Keep a copy of the challan and payment confirmation for records.
3. If no GST is due (nil return), file anyway to stay compliant.

This is a non-negotiable part of your gst compliance checklist.

6. File GSTR-3B Return (On or before 20th)

Action: Submit the return after payment.

1. Log in to the GST portal and file the return using DSC or OTP verification.
2. Once filed, download the acknowledgement (ARN).
3. If you’re under the QRMP scheme, you’ll only need to file quarterly, but payment may still be monthly.

Missing this can attract late fees of ₹50–₹100 per day plus interest on unpaid taxes.

7. Maintain Updated Books and Digital Records (End of the Month)

Why it matters: Under statutory requirements for tax compliance, you must keep:

1. Copies of all GST invoices issued and received
2. Payment challans
3. Return filing acknowledgements
4. Reconciliation reports

Store these digitally on your accounting software or cloud. You may need them during audits or in case of disputes.

If you’re ever served a notice, these records will be your defense.

8. Check GST Portal Notices or Mismatches (Every 2–3 weeks)

Pro tip: The GST portal sometimes flags mismatches or pending filings.

Log in regularly to check your dashboard for:

1. Notices from the GST department
2. Outstanding dues
3. Return mismatches

 Address these early to avoid legal complications or restrictions on ITC.

9. Check Vendor Compliance Status (Ongoing)

Why it matters: If your vendor isn’t GST-compliant, you lose the right to claim input credit.

1. Use the GST portal to check your vendor’s filing status (GSTR-1 and GSTR-3B).
2. Prefer working with vendors who maintain consistent compliance.

A small vendor slip-up can cost you thousands in denied ITC.

10. Update Your GST Software/Records (Optional but Useful)

If you’re using accounting software for gst compliance, make sure:

1. It syncs with the GST portal
2. Updates GST rules and due dates
3. Sends you filing reminders

FilingBuddy, for example, automates much of this for businesses that want minimal hassle and maximum reliability.

Set Monthly GST Reminders

Set calendar alerts or use compliance platforms that notify you ahead of due dates:

• 11th: GSTR-1
• 18th: Review draft & calculate
• 20th: GSTR-3B + Payment

Why This Checklist Matters

You might wonder “Isn’t this too much?” Not really. Once the flow is set, most of these steps take just 1–2 hours a month, especially with the right tools.

This checklist is your GST life jacket. It ensures:

1. You avoid penalties and interest
2. You maintain good standing with clients and vendors
3. You claim every rupee of eligible input credit
4. You are always ready for audits, tenders, and funding opportunities

Your monthly GST compliance checklist isn’t a burden it’s your business safety net. And in a complex tax environment like India, it’s also your competitive advantage.

So the next time the 20th of the month is around the corner, don’t panic. Pull up this checklist, tick through each step, or let FilingBuddy do it for you.

In the world of taxes, consistency is currency.

What is a GST Compliance Rating?

The GST compliance rating is a score given by the Government of India to every registered GST taxpayer. It is designed to reflect how consistently and accurately a business is complying with GST laws.

The higher your rating, the better. It shows that your business:

1. Files returns on time
2. Pays taxes without delays
3. Responds to notices or queries promptly
4. Maintains transparency and correctness in all GST dealings

While the exact scoring scale hasn’t been fully made public by the GST authorities yet, the goal is clear: to encourage businesses to build a culture of consistent and timely compliance.

Why It Matters for Your Business

You might wonder "Does this rating really affect me?" The answer is: absolutely yes.

In an ecosystem driven by digital transactions and tax transparency, businesses that maintain a high GST compliance rating are seen as trustworthy. Here’s how it impacts you:

1. More Business Opportunities: Corporate clients and government tenders often prefer vendors with a strong compliance track record.
2. Faster Refunds: High-rated taxpayers may get faster GST refunds or priority processing.
3. Fewer Audits and Notices: A strong rating can reduce the likelihood of your business being flagged for verification or audit.
4. Vendor Trust: Vendors are more likely to work with you if they know they can claim input credit smoothly due to your timely return filings.

In short, your gst compliance rating acts like a public badge of honor demonstrating that you’re a responsible taxpayer.

So, How to Check GST Compliance Rating?

Now let’s get into the practical part of how to check your GST compliance rating as a business owner or finance manager.

As of now, the compliance rating feature is not publicly displayed on the GST portal for all taxpayers. However, the framework for implementation has already been laid out under Section 149 of the CGST Act.

Here’s how the process generally works:

Where to Find It:

Once rolled out publicly, the compliance rating will be visible on your GST portal dashboard the same place where you file returns or check payment status.

You'll need to:

1. Go to https://www.gst.gov.in
    
2. Login with your GSTIN and password
    
3. Navigate to the “Compliance Rating” section (once made available)

Currently, the portal shows various indicators that influence your compliance rating, such as:

1. Timely return filing status
2. Payment status of previous tax periods
3. Mismatch notices, if any
4. ITC claim inconsistencies

While the numerical score or stars aren’t publicly visible yet, staying consistent on these parameters is the surest way to protect your future rating.

What Affects Your GST Compliance Rating?

Even though the exact algorithm is not disclosed, several known factors contribute to how your rating is calculated. Let’s explore them:

1. Punctuality in return filing: Delays in GSTR-1 or GSTR-3B directly impact your rating.
2. Correctness of data: Mismatches between reported values and actual transactions (as per portal or audit) can bring down your rating.
3. Tax payment consistency: Partial or non-payment of GST leads to a poor score.
4. Response to GST notices: Ignoring notices or delaying rectifications can damage your score.
5. Input Tax Credit mismatches: Claiming ITC beyond what’s allowed or without supporting documents can be seen as high-risk behavior.

The more consistent, transparent, and prompt you are, the better your gst compliance rating will be.

How to Stay in the “Green Zone”

Until the rating system is made fully visible, your best strategy is to follow the GST compliance checklist rigorously every month. Here are some golden rules:

1. Set automated reminders for GSTR-1 and GSTR-3B filing dates
2. Pay your tax dues before the 20th of each month never wait till the last day
3. Reconcile ITC with GSTR-2B every month
4. Avoid underreporting or over-claiming input credit
5. Maintain digital records of all transactions and payments
6. Acknowledge and respond to any notice on the GST portal within the deadline

Better yet use smart tools like FilingBuddy, which alert you about deadlines, flag invoice mismatches, and file your returns accurately so your rating stays strong month after month.

Will Your Rating Be Public?

Yes, eventually. As per the GST Act, compliance ratings are expected to be made public which means vendors, customers, or authorities may soon be able to view your GST credibility score.

Think of it like a “compliance scorecard” for your business. Once this system is live, it could even be a differentiator for your business in the B2B ecosystem.

Imagine this scenario: two vendors are bidding for a project. One has a 9/10 GST compliance rating, and the other is unknown. Who do you think the client will trust more?

Quick Summary

Your GST compliance rating is more than a hidden score; it's your business’s reputation on the GST network. It tells the world that your business is reliable, timely, and transparent in handling its tax responsibilities.

While you may not be able to check your exact score today, every return you file and every tax payment you make is a step toward a higher rating tomorrow.

At FilingBuddy, we help you future-proof your business by keeping your records clean, returns timely, and processes audit-ready so that when ratings go public, you’re already on top.

Benefits of Staying 100% GST Compliant

Let’s be real compliance isn’t the most glamorous part of running a business. No founder or finance manager wakes up excited about return filings or tax payments. But when you truly understand what 100% GST compliance does for your business, you start seeing it not as a burden, but as a strategic advantage.

In a country like India where the tax ecosystem is evolving rapidly, being GST compliant isn’t optional anymore it’s essential. And the benefits of staying on top of your compliance checklist go far beyond “avoiding penalties.”

Let’s break it down in simple, real-world terms.

No More Stressful Surprises or Last-Minute Rushes

When you’re consistently GST compliant, you automatically avoid the chaos that comes with last-minute filings or missed deadlines. You never have to scramble through old invoices, chase your CA for extensions, or worry about penalty emails from the GST portal.

Imagine closing your month with the peace of mind that everything is filed, paid, and stored. That peace? It’s one of the biggest benefits of staying compliant.

You know your returns are in.
Your taxes are paid.
Your records are clean.

That’s what we call compliance clarity.

Penalties and Interest

One of the most obvious benefits of full GST compliance is this: you stop leaking money on late fees and fines.

Here’s what non-compliance could cost you:

1. ₹50/day for late filing of nil returns
2. ₹100/day for regular returns
3. 18% annual interest on delayed GST payments
4. ₹10,000+ for repeated non-compliance or mismatches

Now imagine you save all that money month after month just by following a regular compliance check system. That money can be better invested in your business growth, marketing, or even team incentives.

Staying compliant saves real cash.

Unlock Full Input Tax Credit (ITC)

Claiming Input Tax Credit (ITC) is one of the most valuable aspects of GST. It allows you to offset the tax you’ve already paid on business purchases, which directly lowers your tax burden.

But here’s the catch: you can only claim ITC if you and your vendors are both compliant. That means:

1. Your vendor files their GSTR-1 on time
2. You file your GSTR-3B without errors
3. Your invoices match what’s reported on the GST portal

When your GST compliance is 100%, you never miss out on ITC. Over time, this leads to thousands or lakhs in savings especially for growing businesses.

Pass Vendor and Client Compliance Checks Easily

Many businesses now conduct vendor compliance checks before onboarding a service provider. That includes verifying:

1. GSTIN validity
2. Filing history
3. Return status
4. Invoice compliance

If your business is not consistently GST compliant, you may fail these checks and lose the deal even if you’re the best at what you do.

But when you maintain clean, visible GST records, you earn client trust faster. You’re seen as reliable, organized, and low-risk. That means:

1. Faster vendor onboarding
2. No delays in invoice approval
3. Smooth input credit for your client
4. Higher chances of repeat business

Being compliant opens doors.

Improve Your GST Compliance Rating (and Reputation)

As discussed earlier, your GST compliance rating is an upcoming feature of India’s tax system. Though it’s not publicly visible yet, its foundations are already in place.

Staying 100% compliant improves your rating automatically:

1. File returns on or before the due date? 
2. Pay taxes fully and accurately? 
3. Match invoices with GSTR-2B? 
4. Respond to GST notices timely? 

The higher your rating, the more trust you command in the ecosystem. It reflects in:

1. Loan applications
2. B2B partnerships
3. Government or corporate tenders
4. Marketplace or e-commerce onboarding

In a digital-first world, your GST rating = your tax reputation.

Stay Audit-Ready (Without the Panic)

We’ve all heard the horror stories—businesses getting surprise tax audits and scrambling to find missing invoices or filings. But if your GST compliance is 100%, there’s no need to panic.

You already have:

1. Digitally organized invoices
2. Filed returns with acknowledgements
3. Payment challans saved and accessible
4. Reconciled ITC reports

That means if the GST department ever knocks on your door, you’re not scared. You’re prepared.

Build Investor and Lender Confidence

Whether you’re raising funds or applying for a business loan, one thing is for sure: investors and lenders look at your tax history.

A fully compliant GST record shows:

1. You run a professionally managed business
2. Your finances are clean
3. You can handle regulatory obligations
4. You’re ready to scale

It’s one of those small details that builds big trust.

Simplify Business Planning and Forecasting

When you consistently maintain GST compliance:

1. You get accurate monthly reports
2. You understand your tax liabilities in advance
3. You avoid sudden cash flow surprises

This helps you plan better, budget more confidently, and avoid any “tax season stress.”

In fact, with a tool like FilingBuddy, your dashboard shows you your past trends, ITC forecasts, and upcoming dues making you financially proactive instead of reactive.

Compliance = Credibility = Growth

To sum it up, staying GST compliant is not just about obeying the law. It’s about:

1. Gaining confidence in your numbers
2. Building trust with stakeholders
3. Avoiding unnecessary costs
4. Improving operational efficiency
5. Creating long-term business value

It’s your silent superpower the thing that helps you scale without chaos.

How FilingBuddy Helps You Stay 100% Compliant

At FilingBuddy, we believe compliance should be:

1. Smart
2. Automated
3. Human-friendly

We offer:

1. Auto-filing for GSTR-1, 3B, and 9
2. Real-time ITC reconciliation
3. Compliance alerts and reminders
4. Audit-ready digital records
5. Expert assistance for notices and filings

So instead of worrying about statutory requirements and deadline stress, you get to focus on what you do best growing your business.

In today’s fast-moving, tech-driven business world, compliance is no longer a choice, it's a brand asset. It separates organized, future-ready businesses from those stuck in the old way of doing things.

By staying 100% GST compliant, you not only protect your business you propel it.

FAQs – GST Compliance Made Easy

If GST still feels a little complex, you’re not alone. These 15 frequently asked questions will help you get clear answers and take confident steps toward full GST compliance without the jargon. Each answer is beginner-friendly, actionable, and crafted with your real-world business scenarios in mind.

1. What is included in GST compliance?

GST compliance covers everything required by the law to manage your GST obligations properly. This includes registering for GST, issuing GST-compliant invoices, filing monthly or quarterly returns (like GSTR-1 and GSTR-3B), reconciling input tax credit (ITC), paying taxes on time, and maintaining proper digital records as per GST guidelines.

2. How often do I need to file GST returns?

It depends on your business size and the scheme you’ve opted for. Most businesses must file GST returns monthly—this includes GSTR-1 and GSTR-3B. However, under the QRMP scheme (for businesses with turnover below ₹5 crore), you can file GSTR-1 quarterly, while GSTR-3B may still need to be filed monthly. This is a critical part of your gst monthly compliance routine.

3. What happens if I miss a GST filing deadline?

Missing deadlines leads to late fees and interest. For GSTR-3B, the late fee can go up to ₹100 per day (₹50 CGST + ₹50 SGST), and you may also be charged 18% annual interest on outstanding tax. Consistent non-compliance may impact your gst compliance rating and even lead to cancellation of registration.

4. What are the statutory requirements for tax compliance under GST?

Statutory requirements include:

1. Timely GST registration if turnover exceeds the threshold
2. Monthly/quarterly return filing
3. Tax payment before the 20th of the month
4. Proper invoicing as per prescribed format
5. Maintaining digital records for 6–8 years
   These are part of broader statutory requirements for tax compliance that every registered business must follow.

5. What is GSTR-3B and why is it important?

GSTR-3B is a monthly self-declaration return that summarizes your outward supplies (sales), inward supplies (purchases), eligible input tax credit (ITC), and the tax payable. It is critical because it determines how much GST you owe for the month and ensures that the government gets its dues on time.

6. Do I need to file GST returns even if I had no sales in a month?

Yes. Filing “Nil returns” is mandatory even if your business has no sales or purchases in a month. Skipping this step still counts as non-compliance under GST guidelines and can attract penalties or affect your compliance history.

7. How can I claim Input Tax Credit (ITC) properly?

To claim ITC:

1. Ensure your supplier has filed GSTR-1 correctly
2. Match your purchases with GSTR-2B monthly
3. Only claim credit for business-related expenses
4. Keep GST-compliant purchase invoices
   Reconciliation is a key part of gst monthly compliance and helps reduce tax outflow.

8. What is the GST compliance rating and how does it affect me?

The GST compliance rating is a score the government may assign to taxpayers based on their timely filings, tax payments, and error-free records. While the exact scoring system hasn’t been publicly rolled out, a strong rating can boost your business credibility in tenders, investor reviews, and vendor partnerships.

9. Is there a checklist to ensure monthly GST compliance?

Yes! A solid gst compliance checklist should include:

1. Invoice tracking
2. GSTR-1 preparation
3. GSTR-2B reconciliation
4. GSTR-3B filing
5. GST payment
6. Digital record keeping
7. Compliance notices review
   FilingBuddy offers an automated checklist system that simplifies all of this for you.

10. How do I register for GST in India?

Visit https://www.gst.gov.in, click on “Register Now,” and follow the steps. You’ll need documents like PAN, business address proof, bank details, and Aadhaar authentication. Once submitted, you'll receive an ARN and eventually your GSTIN.

11. What documents should I maintain to stay GST compliant?

You should maintain:

• Sales and purchase invoices
• GST returns filing acknowledgements
• Input tax credit reconciliation reports
• Payment challans
• E-way bills (for goods transport)
  This is part of meeting your statutory requirements for tax compliance.

12. Can accounting software help me with GST compliance?

Absolutely. Many businesses use accounting software for gst compliance that automates invoicing, tracks payments, files returns, and even reconciles ITC. FilingBuddy also integrates seamlessly with such software, ensuring smooth, error-free compliance.

13. What is GSTR-9 and when should I file it?

GSTR-9 is an annual return summarizing all your monthly or quarterly filings (GSTR-1 and GSTR-3B). Businesses with annual turnover above ₹2 crore are also required to file a GSTR-9C reconciliation statement. It is typically due by 31st December following the financial year.

14. What’s the difference between GST guidelines and GST law?

GST law refers to the formal legislation under the CGST, SGST, IGST, and UTGST Acts. GST guidelines are clarifications, rules, or procedural instructions issued by CBIC or GSTN to help businesses interpret and comply with the law. Both are important, but guidelines help you understand how to practically implement legal provisions.

15. How can FilingBuddy help with my GST compliance?

FilingBuddy automates the entire GST lifecycle—return filing, invoice generation, ITC reconciliation, tax payment tracking, and digital recordkeeping. With smart reminders, expert support, and a live dashboard, we help you meet every compliance check requirement without stress.