GST Procedure
Step-by-step guide to GST compliance workflows, from registration to return filing and payment processes.
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GST Compliance Overview
The GST compliance framework operates as an integrated, technology-driven ecosystem designed to create seamless tax administration while minimizing manual intervention. The procedural architecture encompasses several interconnected stages, each requiring systematic adherence to statutory timelines and documentation requirements.
Registration
Obtain GSTIN
Invoicing
Generate e-invoices
Returns
File GSTR-1/3B
Payment
Discharge liability
Registration Procedure
The GST registration process follows a standardized digital workflow on the official GST portal (gst.gov.in).
Part A: TRN Generation
- • Select taxpayer type (Regular/Composition/Casual)
- • Enter valid PAN
- • Verify via mobile OTP and email OTP
- • Receive Temporary Reference Number (TRN)
Part B: Application Completion
- • Login using TRN and complete OTP verification
- • Enter business details (trade name, constitution)
- • Add authorized signatory information
- • Specify principal and additional place of business
- • Declare goods and services supplied
- • Upload supporting documents
Part C: Verification & Submission
- • Verify through DSC (for companies/LLPs) or EVC
- • Submit application
- • Track using ARN (Application Reference Number)
- • Receive GSTIN within 3-7 working days
Invoicing & E-Invoicing Procedure
GST-compliant invoicing requires adherence to specific format standards and, for eligible taxpayers, integration with the e-invoicing system.
Mandatory Invoice Fields
- • Supplier's GSTIN and name
- • Invoice number and date
- • Recipient's GSTIN (if registered)
- • Place of supply
- • HSN code for goods/services
- • Quantity and unit of measurement
- • Taxable value and GST rate
- • Amount of CGST, SGST, IGST
- • Signature/digital signature
- • QR code (for B2C invoices > ₹5,000)
E-Invoicing Procedure (AATO > ₹5 crore)
- 1. Generate invoice in ERP/billing software
- 2. Transmit JSON to Invoice Registration Portal (IRP)
- 3. IRP validates and generates Invoice Reference Number (IRN)
- 4. IRP signs invoice digitally and adds QR code
- 5. Receive IRN-signed invoice for use
- 6. 30-day rule: Upload within 30 days (for AATO > ₹10 crore)
Return Filing Workflow
| Step | Action | Timeline |
|---|---|---|
| 1 | File GSTR-1 (Outward supplies) | 11th/13th of next month |
| 2 | Download GSTR-2B (Auto-drafted ITC) | 14th of next month |
| 3 | Reconcile ITC with purchase records | Before filing GSTR-3B |
| 4 | File GSTR-3B with tax payment | 20th/22nd/24th of next month |
| 5 | File GSTR-9 (Annual Return) | 31st December |
Tax Payment Process
GST payment involves creating a challan and utilizing the electronic cash or credit ledger through the GST portal.
- 1Create Challan: Login to GST portal → Services → Payments → Create Challan
- 2Enter Details: Specify major head (CGST, SGST, IGST, Cess) and minor head (tax, interest, penalty, fee)
- 3Select Payment Mode: Net banking, NEFT/RTGS, OTC (over-the-counter), or credit/debit card
- 4Generate CIN: Upon successful payment, receive Challan Identification Number
- 5Auto-credit: Amount reflects in electronic cash ledger within 24 hours
Input Tax Credit (ITC) Claim Procedure
Claiming ITC requires systematic reconciliation and adherence to the "No GSTR-2B, No ITC" rule. The process ensures that credit is claimed only on eligible supplies where tax has actually been paid to the government.
ITC Eligibility Conditions (Section 16)
- • Possession of valid tax invoice or debit note issued by registered supplier
- • Receipt of goods or services
- • Supplier has furnished the invoice in GSTR-1 (reflected in GSTR-2B)
- • Tax charged has been actually paid to government by supplier
- • ITC claimed within specified time limit (earlier of due date of September return or annual return)
- • Goods/services used for business purposes (not personal use)
ITC Reconciliation Process
- 1. Download GSTR-2B from portal on 14th of each month
- 2. Compare with internal purchase records and accounting entries
- 3. Identify mismatches - invoices in GSTR-2B but not in books (excess credit) and invoices in books but not in GSTR-2B (missing credit)
- 4. Follow up with suppliers for missing invoices
- 5. Claim eligible ITC in GSTR-3B based on GSTR-2B
- 6. Maintain reconciliation statement for audit purposes
Ineligible ITC (Section 17(5))
- • Motor vehicles for transportation of persons (unless for further supply, training, or cab services)
- • Food, beverages, outdoor catering, beauty treatment, health services, cosmetic surgery
- • Membership of a club, health and fitness centre
- • Rent-a-cab, life insurance, health insurance (unless mandated by government)
- • Travel benefits to employees on vacation
- • Goods lost, stolen, destroyed, written off, or disposed by gift or free samples
- • Construction of immovable property (other than plant and machinery)
- • Goods/services used for non-business purposes
GST Compliance Calendar 2026
| Form | Due Date | Category |
|---|---|---|
| GSTR-1 | 11th of next month (monthly) | Turnover > ₹5 Cr OR opted monthly |
| GSTR-1 (QRMP) | 13th of month following quarter | Turnover up to ₹5 Cr (Quarterly) |
| GSTR-3B | 20th of next month | General category |
| GSTR-3B | 22nd of next month | Group A States (Chhattisgarh, MP, etc.) |
| GSTR-3B | 24th of next month | Group B States (MH, GJ, etc.) |
| CMP-08 (QRMP) | 18th of next month | Monthly tax payment under QRMP |
| GSTR-5 (Non-resident) | 20th of next month | Non-resident taxable persons |
| GSTR-6 (ISD) | 13th of next month | Input Service Distributors |
| GSTR-9 (Annual) | 31st December 2026 | All regular taxpayers |
| GSTR-9C (Reconciliation) | 31st December 2026 | Turnover > ₹5 Crore |
E-Way Bill Compliance
E-Way bill is mandatory for inter-state movement of goods exceeding ₹50,000 and intra-state movement (threshold varies by state). It ensures proper tracking of goods movement and prevents tax evasion.
When is E-Way Bill Required?
- • Inter-state supply: ₹50,000+ (all goods)
- • Intra-state: Varies (₹50,000 or ₹1,00,000 depending on state)
- • Inward supply from unregistered dealer
- • Job work, exhibition, or testing
E-Way Bill Validity
- • Up to 200 km: 1 day
- • 201-400 km: 2 days
- • 401-600 km: 3 days
- • Every additional 200 km: +1 day
- • Over dimensional cargo: Different calculation
Frequently Asked Questions
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