GST Compliance for
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At the start of the month (for the previous month's transactions), collect: (a) All Bills of Entry (BOE) for imports cleared during the month, along with ICEGATE payment receipts and commercial invoices from foreign suppliers, (b) All export invoices raised during the month, along with the corresponding shipping bills, Bills of Lading/Airway Bills, and export orders, (c) FIRC/BRC for export proceeds received during the month (even if the export was in an earlier month), (d) Any purchase invoices for domestic inputs used in manufacturing/processing goods meant for export (to trace ITC eligibility), and (e) Any import of services invoices (digital services, consultancy, etc. from non-resident vendors requiring RCM compliance). Organize these by transaction date and type (import goods, export goods, import of services). Taxvio provides a document collection checklist for import-export clients.

Download your GSTR-2A (auto-populated ITC) and GSTR-2B (system-computed ITC) for the month from the GST portal. In the 'IGST on Imports' section, verify that all your Bills of Entry appear with the correct IGST amounts. Cross-check: (a) BOE number and date from your customs clearance records, (b) IGST amount paid as per ICEGATE payment receipt, vs (c) IGST amount shown in GSTR-2A/2B. Common mismatches: BOE not appearing (ICEGATE to GST portal sync delay — typically 3-5 days after customs clearance), incorrect GSTIN on the BOE (if the customs broker used a wrong GSTIN), or BOE appearing under a different GSTIN if you have multiple registrations. For mismatches, coordinate with your customs broker to rectify the BOE on ICEGATE (via amendment) and wait for the corrected data to flow into GSTR-2B. Only after this reconciliation should you claim the IGST ITC in your GSTR-3B. Taxvio performs BOE reconciliation and flags discrepancies for rectification.

For all exports made during the month, match each export invoice with its corresponding shipping bill. Verify: (a) Shipping bill number and date mentioned on the export invoice are correct, (b) Port code mentioned on the export invoice matches the actual port of export, (c) Invoice value (FOB or CIF, as applicable) matches the value declared in the shipping bill, and (d) HS code (tariff classification) is consistent between the invoice and the shipping bill. This matching is critical for GSTR-1 reporting (Table 6A for exports) and for refund claims (where the refund application requires shipping bill-wise details). If mismatches are found, coordinate with your customs broker to amend the shipping bill on ICEGATE before filing GSTR-1. Taxvio maintains an export invoice-shipping bill master register for all clients.

If you have imported any services from non-resident vendors (outside India, no GSTIN) during the month — e.g., software subscriptions (SaaS), consulting fees, digital marketing services, royalty/license fees — you must pay GST under Reverse Charge Mechanism (RCM) as per Section 5(3) of the IGST Act. Calculate: IGST = Service value in INR (converted at the bank exchange rate on the payment date) × applicable GST rate (typically 18% for most services). Pay the IGST via DRC-03 (challan) on the GST portal and report the import of services in your GSTR-3B (Table 3.1(d) — inward supplies liable to reverse charge). You can claim the same IGST as ITC in the same GSTR-3B (Table 4A(3)), provided the services are for business purposes. Many import-export businesses miss this RCM compliance, especially for small-value foreign digital services — it is a common audit observation. Taxvio tracks all foreign service payments and ensures RCM compliance.

Prepare GSTR-1 for the month, reporting all outward supplies (sales): (a) B2B domestic sales (Table 4A/4B), (b) B2C domestic sales (Table 5/7), (c) Exports of goods under LUT or with payment of IGST (Table 6A — with shipping bill number, port code, and invoice details), (d) Deemed exports, if any (Table 6B), and (e) Export of services (Table 6A, marked as 'Services'). Special care for exports: Ensure every export invoice is reported in Table 6A with the correct shipping bill number and date — this data is critical for refund processing and is cross-verified by the GST/Customs departments. File GSTR-1 by the 11th of the following month (for monthly filers) or by the 13th of the month following the quarter (for quarterly filers under QRMP scheme). Taxvio prepares and files GSTR-1 with export documentation verified.

Prepare GSTR-3B (summary return) consolidating: (a) Outward supplies (total sales, including exports — reported as zero-rated supplies), (b) Inward supplies liable to reverse charge (if any — import of services RCM), (c) Eligible ITC — from GSTR-2B, including IGST on imports (from BOE reconciliation), domestic purchases (from supplier invoices in GSTR-2B), and RCM ITC (from import of services), and (d) Tax payable (Output GST liability minus ITC, plus any RCM payment). Pay any net GST liability via challan (PMT-06) before filing GSTR-3B. File GSTR-3B by the 20th of the following month (monthly filers) or by the 22nd/24th of the month following the quarter (QRMP filers). Common error: claiming ITC on BOE before it appears in GSTR-2B — wait for BOE to reflect in GSTR-2B before claiming, or risk interest and penalty. Taxvio reconciles ITC, files GSTR-3B, and provides a detailed tax computation summary.

LUT (Letter of Undertaking) is valid for one financial year (1st April to 31st March). Before the start of the new financial year, file a fresh LUT on the GST portal (Form GST RFD-11) to continue exporting without payment of IGST. Best practice: file the LUT by mid-March (before the last export of the current financial year) so that it is accepted before 31st March. If you miss the LUT renewal and the new financial year starts, you will have to export with payment of IGST (and claim refund later) until the new LUT is filed and accepted — this can block significant working capital. Taxvio sends automated LUT renewal reminders in February/March each year and handles the filing.

Exporters can claim a refund of accumulated ITC (Input Tax Credit) attributable to zero-rated supplies (exports) by filing Form GST RFD-01 (Refund Application) along with Form GST RFD-01A (Statement of exports). Timing: Typically filed quarterly (after the quarter's GSTR-3B is filed) or monthly for large exporters. Refund formula: Refund Amount = (Export Turnover / Total Turnover) × Net ITC — subject to the condition that the refund is limited to ITC attributable to inputs and input services used in the exported goods/services. Supporting documents required: (a) Shipping bill-wise details of all exports in the refund period, (b) Export invoices, (c) FIRC/BRC (proof of receipt of export proceeds) — mandatory for refund of IGST paid on exports; not mandatory for ITC refund on LUT exports but recommended, (d) CA certificate (if refund amount exceeds ₹2 lakh) certifying the correctness of the refund claim and that no ineligible ITC is included, and (e) Reconciliation statement showing the link between ITC claimed and exports made. File RFD-01 on the GST portal and track the refund status. Typical processing time: 60 days from the date of filing (provisional refund of 90% may be credited within 7 days if the application is complete). Taxvio prepares the refund application, obtains the CA certificate, and coordinates with the GST department until the refund is credited.

At the end of each month's compliance cycle, review: (a) Any pending BOE reconciliation issues (BOEs not appearing in GSTR-2B), (b) Export invoices pending shipping bill matching or FIRC receipt, (c) Accumulated ITC balance (if growing significantly, plan a refund application), (d) Any GST notices or queries from the department (especially on export claims or ITC mismatches), and (e) Upcoming compliance deadlines (GSTR-1, GSTR-3B, quarterly return if applicable). Taxvio provides a monthly compliance summary report for import-export clients, highlighting ITC claimed, exports reported, refunds filed, and any pending actions. This ensures no compliance gap and optimal working capital management (by timely refund claims).