GST Compliance & Input Tax Credit Risk

For regular monthly taxpayers, GSTR-1 (details of outward supplies) is due on the 11th of the following month under Section 37, and GSTR-3B (summary return and tax payment) is due on the 20th of the following month under Section 39. For taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme, GSTR-1/IFF is due on the 13th of the month following the quarter, and GSTR-3B is due on the 22nd or 24th of the month following the quarter (depending on state categorization).

Under Section 47 of the CGST Act, late fees are ₹50 per day (₹25 CGST + ₹25 SGST) for taxable returns, or ₹20 per day (₹10 CGST + ₹10 SGST) for Nil returns, capped at statutory limits per return. In addition, under Section 50(1) of the CGST Act, interest is levied at 18% per annum calculated strictly on the net tax liability paid through the electronic cash ledger from the due date until the date of payment.

Under Section 16(2)(aa) of the CGST Act, a registered buyer cannot claim Input Tax Credit (ITC) on an invoice unless the supplier has furnished details of the invoice in their GSTR-1 and it appears in the buyer's auto-generated GSTR-2B. If a supplier fails to file GSTR-1 or delays filing, the buyer is legally barred from claiming the ITC, resulting in double cash outflow or tax notices with 18% interest.

A company can review relevant purchase evidence, supplier invoice reporting, and the recipient's GSTR-2B with its tax professional. LanceIQ's current product coverage includes GST monitoring; contact LanceIQ to discuss the appropriate scope for a company-specific review.

No. Once filed, GSTR-1 and GSTR-3B cannot be revised. Any corrections, omissions, or amendments must be declared in subsequent tax periods under Table 9/10 of GSTR-1 and Table 4 of GSTR-3B before statutory cutoff dates (30th November following the end of the financial year).