With GST 2.0’s rate rationalisation largely complete, the GST Council is now turning its attention to a far more complex, but equally significant issue that has quietly strained the finances of businesses across India — the accumulation of Input Tax Credit (ITC) under the Inverted Duty Structure (IDS). As the Council prepares for its 57th meeting, expected in late July or August, government sources indicate…
With the financial year now concluded and the annual audit season underway, businesses are primarily focused on finalising their financial statements and completing the statutory audit. Alongside the financial audit, this is also the ideal time to undertake a comprehensive review of GST compliance to ensure that all GST-related matters pertaining to the previous financial year are appropriately addressed before the statutory deadlines expire. The…
In recent months, GST authorities have increasingly issued notices and summons in cases involving mismatch or non-tracing of vehicle movement through toll naka or FASTag data against the corresponding e-Way Bills generated by taxpayers. Authorities are increasingly relying on toll plaza and FASTag movement data to verify whether goods covered under an e-Way Bill have actually moved as declared. As a result, notices and enquiries…
In the GST framework, zero-rated supplies covering exports and supplies to SEZ units or developers under Section 16 of the IGST Act, offer significant tax advantages. These include the ability to supply under LUT without payment of tax and to claim refunds of accumulated ITC. However, these benefits are not automatic; they are entirely dependent on robust documentation. In practice, audit disputes seldom arise from…
With the financial year drawing to a close, businesses must look beyond simply finalising their accounts and take time to review key GST compliances. A timely review can help avoid penalties, protect cash flow, and ensures smooth operations from 1st April. Below are some important areas every business should check before the year closes. If you are engaged in the export of goods or services,…
With the introduction of GST 2.0 and rate rationalisation, many businesses are encountering a new and unexpected challenge. While GST rates on finished goods were reduced to improve affordability for consumers, GST on inputs and services has largely remained unchanged. This mismatch has resulted in a growing accumulation of Input Tax Credit (ITC), particularly for businesses operating at GST rates of 5% or lower. For…
Capital goods under GST refer to assets such as machinery, equipment, or vehicles that are used or intended to be used in the course or furtherance of business and that provide economic benefits over a period of more than one year. These assets are in the nature of long-term investments that contribute to income generation and are not consumed immediately in the normal course of…
GST in India is steadily moving toward a system-driven, automated compliance environment, where returns will be generated automatically and taxpayers will mainly review and confirm data instead of preparing or editing returns. In this evolving ecosystem, the accuracy and quality of the data you submit today will determine how seamless your GST compliance becomes tomorrow. 1. Automated Returns and the Direction GST Is Headed The…
Anyone who has ever filed a GST return knows there’s a little room for mistakes. A missed invoice, an unclaimed ITC, or an incorrect entry can easily become permanent. That’s what makes October a decisive month for GST compliance. It’s the period when businesses reconcile their books, match ITC, and resolve mismatches before the financial year formally closes for corrections. A Change Many Still Overlook…
The Goods and Services Tax (GST) is set for its biggest reform since 2017, With the government working on a revamped structure, popularly known as GST 2.0, aimed at making essentials cheaper, simplifying tax slabs, and boosting the economy. For the common man, this reform is not just about tax rules; it’s about lower bills, affordable services, and greater savings each month. What the Government…
