India GST, TDS & Income Tax Compliance Guide
Complete guide to India's Goods & Services Tax regime — GSTR returns, e-Invoice, e-Way Bill, ITC reconciliation, TDS, and filing deadlines. Updated for FY 2025–26.
GST rates were revised in September 2025, and the rates on this page have not yet been checked by a tax professional against that revision. Confirm the current rate in the CBIC rate notifications before you invoice.
GST Return Types & Due Dates
India's GST system requires multiple returns depending on your registration type. Here are all returns with their filing frequency and deadlines.
| Return | Frequency | Due Date | Purpose | Guide |
|---|---|---|---|---|
| GSTR-1 | Monthly / Quarterly | 11th / 13th of next month | Outward supply details — all B2B and B2C invoices, credit/debit notes, and export invoices. | Read Guide |
| GSTR-2B | Monthly (Auto-generated) | 14th of next month | Auto-drafted ITC statement based on suppliers' GSTR-1 filings. Used for ITC reconciliation. | Read Guide |
| GSTR-3B | Monthly / Quarterly | 20th–24th of next month | Summary return with tax liability, ITC claims, and net tax payable. Primary payment return. | Read Guide |
| GSTR-9 | Annual | 31st December | Annual return consolidating all monthly/quarterly filings. Mandatory for taxpayers above ₹2 crore turnover. | Read Guide |
| CMP-08 | Quarterly | 18th of month after quarter | Composition scheme dealers' statement-cum-challan for quarterly tax payment. | — |
| GSTR-5 | Monthly | 13th of next month | Return for non-resident taxable persons conducting business in India. | — |
| GSTR-6 | Monthly | 13th of next month | Return for Input Service Distributors (ISD) to distribute ITC to branches. | — |
| GSTR-7 | Monthly | 10th of next month | Return for TDS deductors under GST — government departments and specified entities. | — |
| GSTR-8 | Monthly | 10th of next month | Return for TCS collectors — e-commerce operators collecting tax at source. | — |
Key Compliance Areas
Beyond returns, Indian businesses must comply with e-Invoicing, e-Way Bills, ITC rules, TDS provisions, and proper HSN/SAC classification.
e-Invoice Mandate
Electronic invoicing is mandatory for businesses with turnover above ₹5 crore. Invoices must be registered on the Invoice Registration Portal (IRP) to generate a unique IRN and QR code.
- Mandatory for B2B transactions
- Real-time validation via IRP
- IRN + QR code on every invoice
- Auto-population in GSTR-1
- 6-digit HSN code required
e-Way Bill
Required for movement of goods worth more than ₹50,000. Generated on the e-Way Bill portal before goods are transported.
- Mandatory for goods > ₹50,000
- Part A (invoice) + Part B (transport)
- Valid for distance-based time limits
- Consolidated e-Way Bill for multiple consignments
- Exemptions for specific goods
Input Tax Credit (ITC)
Claim credit for GST paid on business purchases. ITC must be reconciled with GSTR-2B and claimed in GSTR-3B within specified time limits.
- Match with GSTR-2B auto-drafted data
- Reversal rules for non-payment within 180 days
- Blocked credits under Section 17(5)
- Proportional ITC for exempt supplies
- Annual reconciliation in GSTR-9
TDS under GST
Government departments and specified entities must deduct TDS at 2% (1% CGST + 1% SGST) on payments exceeding ₹2.5 lakh to GST-registered suppliers.
- Applicable to government contracts > ₹2.5 lakh
- File GSTR-7 monthly by 10th
- Issue TDS certificate (GSTR-7A)
- Deductee claims credit in electronic cash ledger
- Non-deduction attracts interest + penalty
GST Registration & Amendment
Register for GST when turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services). Voluntary registration available. Amendments and cancellation via GST portal.
- Threshold: ₹40L goods / ₹20L services
- Aadhaar authentication required
- PAN-based registration (one per state)
- Amendment within 15 days of change
- Cancellation / Suo Moto cancellation rules
HSN & SAC Classification
Classify goods under HSN codes and services under SAC codes. Correct classification determines applicable GST rate and filing requirements.
- 4-digit HSN for turnover < ₹5 crore
- 6-digit HSN for turnover ≥ ₹5 crore
- SAC codes for all service supplies
- HSN summary in GSTR-1
- Misclassification attracts penalties
Penalties & Late Fees
Non-compliance with GST provisions attracts penalties, interest, and even registration cancellation. Here are the key penalties to be aware of.
| Offence | Penalty |
|---|---|
| Late filing of GSTR-3B | ₹50/day (₹20/day for NIL return), max ₹10,000 |
| Late filing of GSTR-1 | ₹50/day (₹20/day for NIL), max ₹10,000 |
| Non-filing beyond 3 months | Registration liable for cancellation |
| Wrong ITC claim | 100% of wrong credit + interest at 24% |
| Invoice without GST registration | ₹10,000 or tax evaded, whichever is higher |
| Non-issuance of e-Invoice | ₹25,000 per invoice |
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