WhatsApp Image 2025-08-28 at 16.52.09

GST Advisory

  • Year-end financial reporting
  • Bank funding or loan requirements
  • Internal control and management review
  • Periodic verification for large inventory-based businesses
Quick Chat With Us

Get Quote Here

WHAT IS GST ADVISORY?

GST Advisory refers to professional guidance and support provided to businesses and individuals to help them understand, comply with, and optimally manage their obligations under the Goods and Services Tax (GST) law in India. It goes beyond routine return filing and focuses on interpretation of GST provisions, compliance strategy, risk management, and advisory support in line with the CGST Act, 2017 and related rules.

INPUT TAX CREDIT (ITC)

Advisory refers to professional guidance and support provided to businesses and individuals to help them understand, comply with, and optimally manage their obligations under the Goods and Services Tax (GST) law in India. It goes beyond routine return filing and focuses on interpretation of GST provisions, compliance strategy, risk management, and advisory support in line with the CGST Act, 2017 and related rules.

LEGAL PROVISIONS

1.Section 16 of the CGST Act, 2017 – ITC ki eligibility aur conditions
2.Section 17(1) – Business aur non-business use ke liye ITC ka apportionment
3.Section 17(2) – Taxable aur exempt supplies ke liye ITC ka apportionment
4.Section 17(5) – Blocked credits (jisme ITC allowed nahi hota)
5.Rule 36 of CGST Rules, 2017 – ITC claim ke liye documents aur restrictions
6.Rule 37 – Supplier ko payment na hone par ITC reversal
7.Rule 42 – Exempt supplies ke case me ITC reversal (inputs & services)
8.Rule 43 – Capital goods par ITC reversal (exempt supplies ke liye)

MANDATORY CONDITIONS FOR AVAILING ITC

A registered person may avail ITC only if all of the following conditions are satisfied:
1. Possession of a valid tax invoice or debit note
2. Receipt of goods or services
3. Tax charged has been actually paid to the Government by the supplier
4. Supplier has furnished details in GSTR-1, and the same is reflected in GSTR-2B
5. Recipient has furnished GSTR-3B
6. ITC is availed within the prescribed time limit
(earlier of: 30th November of the following financial year or date of filing annual return)

RESTRICTION BASED ON GSTR-2B

• ITC can be availed only to the extent reflected in GSTR-2B
• Provisional ITC (invoices not appearing in GSTR-2B) is not allowed
• Taxpayers must reconcile:
o Purchase register
o GSTR-2B
o GSTR-3B (monthly)

BLOCKED CREDITS (SECTION 17(5))

ITC is not available on certain supplies, including but not limited to:
• Motor vehicles (subject to exceptions)
• Food & beverages, club memberships
• Works contract for immovable property
• Goods/services for personal consumption
• Goods lost, stolen, destroyed, written off, or given as free samples

REVERSAL OF ITC

ITC must be reversed in cases such as:
• Non-payment to supplier within 180 days
• Exempt supplies (Rule 42/43)
• Wrongly availed or ineligible credit Reversed ITC may attract interest @ 18% p.a.

COMPLIANCE BEST PRACTICES

• Monthly reconciliation of GSTR-2B vs books
• Follow up with non-compliant suppliers
• Maintain proper documentation
• Avoid year-end bulk ITC claims
• Review blocked credits regularly

SCOPE OF GST ADVISORY

GST advisory services typically include:
• Interpretation of GST law and applicability to business transactions
• GST registration and structuring advice
• Input Tax Credit (ITC) eligibility, optimisation, and reversals
• E-invoicing and e-way bill compliance advisory
• Return reconciliation (GSTR-1, GSTR-3B, GSTR-2B vs books)
• GST audit and scrutiny preparedness
• Advisory on notices, assessments, and litigation support
• Updates on GST amendments, notifications, and circulars

WHY GST ADVISORY IS IMPORTANT?

GST law is dynamic and interpretation-driven, with frequent amendments and procedural changes. GST advisory helps businesses:
• Ensure accurate and timely compliance
• Avoid interest, penalties, and notices
• Reduce litigation and financial exposure
• Maintain proper documentation and internal controls
• Make informed decisions on tax planning and transactions

PURPOSE OF A GST ADVISORY

GST advisories are issued to:
• Explain new GST rules or amendments
• Clarify confusion or common mistakes by taxpayers
• Guide businesses on GST compliance
• Inform about portal updates (GSTN changes)
• Reduce litigation and errors

DETAILED GST COMPLIANCE CIRCULARS

Circular No.SubjectApplicabilityStatutory ProvisionsKey Compliance Actions RequiredCommon Errors / Non-ComplianceConsequencesBest Practices / Controls
01/2025-26E-InvoicingRegistered persons exceeding notified turnover threshold (excluding exempt categories)Sec. 168 CGST Act; Rule 48(4) CGST RulesGenerate IRN & QR Code; Report invoice to IRP; Cancel within prescribed time; Reconcile with GSTR-1Late IRP reporting; Incorrect HSN/value; Failure to cancelInvoice treated invalid; Penalty; ITC denial to recipientERP-IRP integration; Daily IRN tracking; Monthly reconciliation
02/2025-26GSTR-3BAll regular GST registered taxpayersSec. 39, 41, 49 CGST Act; Rule 36 CGST RulesFile return timely; Claim ITC as per GSTR-2B; Reverse ineligible ITC; Pay tax with interest if delayedExcess ITC; Mismatch with GSTR-1; Wrong table reportingInterest @ 18%; Penalty; NoticesMonthly reconciliation; Maker-checker review; Avoid year-end adjustments
03/2025-26E-Way BillMovement of goods exceeding notified valueRule 138 CGST Rules, 2017Generate before movement; Update vehicle details; Ensure validityExpired EWB; Incorrect vehicle number; Invoice mismatchDetention; Penalty & tax demandSOP for logistics; Auto-alerts for expiry; Driver training
04/2025-26GST Audit & ScrutinyTaxpayers selected for scrutiny or auditSec. 61, 65, 66 CGST ActMaintain records; Reconcile returns & books; Respond to noticesPoor documentation; Unreconciled data; Late repliesTax demand; Interest; PenaltyPeriodic internal audit; Documentation checklist; Timely responses

FREQUENTLY ASKED QUESTIONS (FAQs)

GST advisory involves providing expert guidance on GST law, compliance, planning, and risk management to ensure businesses meet statutory requirements and avoid penalties.
GST advisory services are beneficial for traders, manufacturers, service providers, startups, SMEs, and corporates dealing with complex GST compliance or frequent regulatory changes.
GST advisory focuses on interpretation, compliance strategy, reconciliation, and risk mitigation, whereas return filing is a procedural compliance activity.
GST advisory typically covers: • GST registration and amendments • E-invoicing and e-way bill compliance • Input Tax Credit (ITC) advisory • Return reconciliation and compliance review • GST audits, scrutiny, and notices
GST advisory helps businesses reduce litigation, avoid interest and penalties, ensure accurate ITC claims, and remain compliant with evolving GST laws.

Yes, Small businesses often face compliance challenges due to limited resources and changing laws. GST advisory helps them maintain compliance and prevent costly errors.

GST advisory ensures eligible ITC is correctly claimed, ineligible ITC is reversed, and reconciliations are performed to avoid future disputes.

Yes, GST advisory includes notice analysis, drafting replies, representation before authorities, and compliance correction to reduce tax exposure.

Yes, GST advisory services guide businesses on applicability, implementation, reconciliations, and compliance controls for e-invoicing and e-way bills.

GST advisory may be ongoing, monthly, quarterly, or event-based, depending on business size, transaction volume, and complexity.

Yes, GST advisory helps businesses prepare reconciliations, documentation, and internal reviews to ensure smooth GST audits and scrutiny.
Yes, GST advisory services are typically customised based on industry, turnover, compliance complexity, and business requirements.
By ensuring timely compliance, accurate reporting, correct ITC claims, and proper documentation, GST advisory significantly reduces the risk of penalties and interest.
Yes, even if returns are filed correctly, GST advisory helps identify hidden risks, mismatches, and future compliance exposures.
You can get started by consulting a GST professional who will review your current compliance status and recommend appropriate advisory solutions.

Registration

Forgotten Password?