GST Compliance Checklist for Small Businesses in India

Today’s chosen theme: GST Compliance Checklist for Small Businesses in India. Here’s a friendly, no-jargon roadmap to stay compliant, avoid penalties, and build trust with customers and vendors. Follow along, ask questions in the comments, and subscribe for practical reminders tailored to small business realities.

Start Right: Registration and Thresholds

Check whether your aggregate turnover crosses current registration thresholds for goods or services, and remember that certain inter-state supplies require GST regardless. Special-category states may have lower limits. Rules evolve, so verify the latest notification and ask questions below to avoid an unnecessary or delayed registration.

Start Right: Registration and Thresholds

The Regular scheme allows input tax credit and standard invoicing, while the Composition scheme offers simpler compliance at the cost of not collecting GST or claiming credits. Consider your customer mix, margins, and vendor ITC needs. Share your situation in the comments and we will help you weigh the trade-offs.

Invoices, e-Invoices, and E-Way Bills

Build a compliant tax invoice

Include supplier and recipient details with GSTINs, invoice number and date, place of supply, HSN/SAC, taxable value, tax rate and amount, and an authorized signature. Mention whether you are Regular or a Composition taxpayer. Standard templates reduce mistakes; ask for our editable sample by subscribing today.

When e-invoicing becomes mandatory

E-invoicing is currently mandated above specified aggregate turnover thresholds in any preceding financial year, often set at five crore. It requires generating IRNs and QR codes via approved channels. Confirm your eligibility each year and train staff early. Comment with your turnover history if you want a quick eligibility check.

E-way bill basics you should not ignore

For the movement of goods above prescribed value limits, generate an e-way bill with accurate vehicle and transport details. Mismatches can trigger delays and penalties. Build a dispatch checklist, and audit a random sample weekly. Share your logistics pattern below and we will suggest a right-sized control routine.

Input Tax Credit: Capture, Reconcile, Protect

Claim ITC only when you have a valid tax invoice, have received goods or services, the supplier has reported tax correctly, and you have paid the supplier within the prescribed period. Keep proof of receipt and payment. Comment if you need a simple tracker template for these conditions.

Input Tax Credit: Capture, Reconcile, Protect

Compare purchase registers to GSTR-2B every week. Flag missing invoices, wrong GSTINs, or tax rate errors. Nudge vendors early—habits beat month-end chaos. Subscribe to get our color-coded reconciliation sheet that shows what to claim now and what to watch next month.

Special Scenarios: Reverse Charge, Exports, and E-Commerce

Under RCM, the recipient pays GST for specified supplies like certain goods transport, legal services, or import of services. Create a separate purchase category, pay via cash ledger, and claim eligible ITC in the correct period. Share your vendor types and we will map likely RCM exposures.

Audit-Ready Record Keeping

What to keep and for how long

Maintain invoices, e-invoice IRNs, e-way bills, ledgers, reconciliations, and correspondence for the statutory retention period, generally counted from the due date of the annual return. Keep versioned backups. If you need a retention matrix, subscribe and we will share one tailored to your state.

Common Mistakes and How to Fix Them

If a return is late, compute late fees and interest promptly, then file without delay to stop the clock. Set rolling reminders and a backup preparer. Share your due-date crunch story, and we will suggest a cadence that prevents repeats.

Common Mistakes and How to Fix Them

When GSTR-3B tax or ITC differs from books, reconcile line by line: rate errors, omitted invoices, or wrong periods. Document your adjustments and fix upstream causes. Subscribe to get our reconciliation playbook used by small retailers and service firms alike.