Ultimate Guide to GST Compliance in India: Comprehensive FAQ with Latest Updates

Goods and Services Tax (GST) compliance is essential for businesses in India to avoid penalties, claim benefits like Input Tax Credit (ITC), and ensure smooth operations. Whether you're dealing with GST invoices, e-way bills, GST billing software, or handling a GST notice, understanding the current rules can save you time and money. This comprehensive guide addresses common queries on GST compliance, GST help, GST raids, GST bills, GST invoice software, free billing options, and invoice generators, based on the latest regulations effective from 2025.

GST Basics and Input Tax Credit (ITC)

What is Input Tax Credit (ITC) in GST, and how does it work?

Input Tax Credit allows businesses to reduce their GST liability by subtracting the GST paid on purchases (input tax) from the GST collected on sales (output tax). Essentially, you only pay tax on the value added.

Example:

• Purchase raw materials: ₹10,000 + ₹1,800 GST
• Sell product: ₹15,000 + ₹2,700 GST
• Net GST payable: ₹2,700 – ₹1,800 = ₹900

Key ITC Conditions (Section 16 of CGST Act):

• Valid Tax Invoice: Must possess a valid tax invoice or debit note
• Receipt of Goods/Services: Must have received the goods or services
• Tax Payment: Supplier must have paid the tax to the government
• Return Filing: Must file required GST returns
• 180-Day Payment Rule: Must pay supplier within 180 days from invoice date

Visit: cbic-gst.gov.in for detailed ITC guidelines.

Detailed guidelines to avail GST input tax credit: GST Input Tax Credit (ITC) guidelines

Why is GST registration beneficial even if my turnover is below the threshold?

While GST registration is not mandatory for turnover below ₹40 lakh (goods) or ₹20 lakh (services), voluntary registration offers strategic advantages:

Benefits:

• Claim Input Tax Credit on purchases, reducing overall tax burden
• Enhanced business credibility with vendors and clients
• Easier interstate trade without compliance restrictions
• Eligibility to sell on e-commerce platforms like Amazon and Flipkart
• Better access to business loans due to improved financial documentation

Drawbacks to Consider:

• Regular GST return filing obligations
• Potential increase in CA fees or software costs
• Need to collect GST on every sale, which may affect pricing competitiveness

Assessment Tip: Evaluate if your customers need GST credit and if you plan to scale or sell across states before deciding on voluntary registration.

In which 5 cases is voluntary GST registration recommended, even below the turnover threshold?

Recommended Scenarios:

• Input Tax Credit Claims: To claim ITC on office supplies, equipment, or machinery
• B2B Client Requirements: When serving business clients who require GST invoices
• E-commerce Platform Sales: Mandatory for selling on Amazon, Flipkart, etc., regardless of turnover
• Business Credibility: A GSTIN signals legitimacy and fixed business premises
• Export Services: Freelancers receiving foreign payments need GST registration for zero-rated supply benefits

Reference: Visit services.india.gov.in for GST registration procedures.

GST Invoices, Billing Software, and Compliance

Why do GST-compliant invoices matter, and what happens if you fail to issue them properly?

As per GST regulations, failure to issue proper invoices can lead to:

• Penalties up to ₹10,000
• Loss of Input Tax Credit claims
• GST notices and scrutiny

Creating GST-compliant invoices helps avoid penalties, enables ITC claims, and builds trust with customers and authorities. Digital tools like GST invoice software or free billing apps simplify creation and ensure compliance.

What are the mandatory fields in a GST invoice or GST bill format?

Essential Invoice Elements:

• Invoice Number & Date: Unique identifier and issue date
• Supplier Details: Name, address, and GSTIN
• Recipient Details: Name, address, and GSTIN (if registered)
• HSN/SAC Code: Classification for goods/services
• Item Details: Description, quantity, rate, taxable value
• Tax Details: CGST, SGST, or IGST rates and amounts
• Total Amount: Including applicable taxes

Using a software, such as TaxEase makes the invoicing hassle free. Creating invoices is absolutely free on TaxEase.

Resource: Check cbic-gst.gov.in/gst-goods-services-rates.html for current GST rates.

Related Blog: What are the guidelines from GST department regarding a valid GST invoice?

Read more in this blog: GST guidelines for valid invoice

What should you consider about quoted prices and invoice amounts in GST transactions?

Key Considerations:

• Understand if quoted price is inclusive or exclusive of GST
• Verify supplier's GSTIN validity for legitimate ITC claims
• Confirm your eligibility to claim ITC on the transaction
• Calculate actual payment amount after GST

Important: Use GST strictly for business-related expenses to avoid notices and penalties. Proper invoicing with GST software prevents financial errors and ensures compliance.

What happens if you forget to cancel an e-invoice on the portal? How to fix the issue of mismatch in such case?

If you've cancelled an invoice in your books but forgot to cancel it on the e-invoice portal:

Timeline: GST rules allow only 24 hours to cancel an e-invoice

Solution if 24 hours have passed:

• Issue a Credit Note
• Adjust in your GSTR filing to align books and portal data
• Use reliable billing software with automated reminders for compliance

Important: Data mismatches in GSTR-1 can lead to GST notices and compliance issues.

GST Registration and Documentation

What documents are acceptable as address proof for GST registration?

Valid Address Proof Documents:

• Latest Electricity/Water Bill or Property Tax Receipt
• Rent Agreement (with owner's NOC if rented)
• Latest Bank Statement or Passbook with address
• Municipal Khata Certificate or Trade License
• Ownership Documents like Sale Deed or Registry Copy
• Shop Establishment Certificate
• Landline or Broadband Bill with business name and address

Best Practice: Ownership documents provide strongest proof for self-owned premises.

Related Blog: How to apply for GST registration?

Read more in this blog: Complete Guide to GST Registration in India: Step-by-Step Process for 2025

Can two GSTIN numbers be registered at the same address?

Yes, the GST Act does not prohibit multiple GST registrations at a single address, as clarified by the Kerala Advance Ruling Authority in the Space Lens Office Solutions Pvt. Ltd. case.

Compliance Requirements:

• Obtain landlord's permission for sub-leased arrangements
• Ensure clear space demarcation (desk or cabin assignments)
• For inventory-based businesses, stock separation may be challenging
• Feasible for startups and service-based businesses if rules are followed

How do you update your business name in GST registration?

Process:

• File Form REG-14 with supporting documents
• GST officer will verify and approve the changes
• Update promptly to avoid Section 28 notices

Important: Always update changes in business name, address, or details promptly for GST compliance.

How can you avoid PAN verification errors during GST registration?

Common Issue: Name spelling mismatch between PAN card and Income Tax records

Solution:

• Verify PAN details match the Income Tax database before applying
• Use the exact name format from IT records
• Complete PAN corrections if needed before GST registration
• Valid PAN is mandatory for GST registration

When is GST registration required for a food business?

Registration Requirements:

• Online Platform Sales (Swiggy, Zomato): GST registration not required (platforms handle GST)
• Offline Sales (restaurant, café, direct delivery): Mandatory after ₹20 lakh annual turnover
• Start without registration and apply later when threshold is crossed

What are the key implications and benefits of GST Instruction No. 03/2025-GST for businesses? How does it simplify GST registration process?

Key implications of Instruction No. 03/2025 and its benefit to GST registered businesses:
Instruction No. 03/2025-GST, issued on April 17, 2025 by CBIC, brings significant reforms to the GST registration process in India. It aims to standardize documentation, eliminate arbitrary queries, enforce strict timelines, and ensure a hassle-free, transparent experience for genuine businesses.
Read below for more details on provisions, timelines, and practical advantages for GST applicants.

Detailed Benefits and Provisions

Simplified & Standardized Documentation

• Only specific documents are required to prove business premises, reducing ambiguity and delays.
• For owned premises: Only one acceptable proof (like property tax receipt or electricity bill).
• For rented/consent/shared premises: Specific limited documents (such as a rent agreement and one proof of lessor’s ownership).
• Arbitrary requests (lessor PAN/Aadhaar, residence justification, banned HSN questions) are strictly prohibited.

Faster & Predictable Timelines

• Non-risky applications: Mandated to be processed within 7 working days—no physical verification required.
• Risky cases or Aadhaar not authenticated: To be processed within 30 days, physical verification mandated with GPS-tagged evidence.

Transparent Query & Clarification Process

• Officers must raise clarifications only for incomplete, illegible, or mismatched information; other routine queries are not allowed.
• Applicants are given 7 working days to respond, followed by a final decision within another 7 working days.

Reduced Harassment & Compliance Burden

• Officers cannot seek irrelevant extra documentation nor raise queries on business feasibility or other unrelated presumptions.
• Supervisory approvals required for exceptional document requests; strong accountability for officers deviating from rules.
• Fewer visits and communications with tax authorities—making registrations smoother for end users.

Prohibited Queries by Officers

Officers cannot ask for:

• Residential address justifications
• Questions about banned HSN codes
• Business feasibility assessments
• Extra documents like lessor's PAN, Aadhaar, photographs
• Udhyam/MSME certificates (unless specifically required)
• Presumptive queries unrelated to submitted documents

Clarification & Response Process

Officers can issue FORM GST REG-03 (clarification notice) only for:

• Illegible/incomplete documents
• Address mismatches
• Incomplete/vague address
• Extra documents like lessor's PAN, Aadhaar, photographs
• Clarification on cancelled/suspended GSTIN linked to PAN

Applicants get 7 working days to respond via FORM GST REG-04. Officers must approve/reject within 7 working days after response. If no response: Rejection within 7 working days after deadline.

Enhanced Ease of Doing Business

• Streamlined procedures and clear guidance for all states resolve past inconsistencies.
• Honest taxpayers face fewer rejections, less delay, and increased confidence in government processes.
• Supports startup business formation and market entry through expedited and easier registration.

Useful References & Government Links

• Instruction No. 03/2025-GST (Official PDF)(link)
• GST Council Circulars(link)

Exports under GST

Is GST registration mandatory for freelancers exporting services outside India?

Answer: Yes, GST registration is mandatory for persons engaged in export of services, irrespective of turnover threshold, as per Section 24 of the CGST Act, 2017.

Legal Provision:
Section 24 of the CGST Act, 2017 states:
"Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––
...
(vi) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52."
More specifically, persons making any inter-state taxable supply are required to register mandatorily under Section 24(vii) of CGST Act.

Official CBIC Clarification:
The Central Board of Indirect Taxes and Customs (CBIC) has clarified through Circular No. 43/17/2018-GST dated May 10, 2018 that:
"Export of services is treated as inter-state supply as per Section 7(5)(c) of IGST Act, 2017. Therefore, any person making export of services is required to obtain GST registration irrespective of the threshold limit."

Key Points:

• No threshold exemption: Even if your turnover is ₹1 lakh, registration is mandatory
• Applies to freelancers: Individual freelancers exporting services must register
• Inter-state supply: Export is treated as inter-state supply under Section 7(5)(c) of IGST Act

I earned ₹25 lakh through freelancing in previous financial year but didn't register for GST. What should I do now?

Answer: You should voluntarily register for GST immediately and regularize your past exports through proper documentation. Voluntary disclosure before detection significantly reduces penalties.

Step-by-Step Action Plan:

Step 1: Immediate GST Registration

• Apply for GST registration at www.gst.gov.in
• Mention effective date of liability (when you crossed threshold or started exports)
• Complete registration process with all required documents

Step 2: File Letter of Undertaking (LUT)

• Apply for LUT immediately after registration using Form GST RFD-11
• LUT allows zero-rated exports without payment of IGST
• Valid for entire financial year from date of acceptance

Step 3: Regularization Strategy

• File retrospective GST returns for periods when exports were made
• Report all export invoices in respective period returns
• Since exports are zero-rated under Section 16 of IGST Act, tax liability will be nil

Legal Protection for Voluntary Disclosure:
Section 73(5) of CGST Act provides relief:
"Where any person chargeable with tax under sub-section (1) pays the said tax along with interest payable under section 50 within thirty days of issue of the show cause notice, all proceedings in respect of the said notice shall be deemed to be concluded."
Voluntary disclosure before notice significantly reduces penalties compared to post-detection scenarios.

Q3. Can I claim zero-rated export status for past invoices if I register GST now?

Answer: Yes, export of services is zero-rated under Section 16 of IGST Act regardless of when you register, provided you can substantiate the exports and file LUT retrospectively where permitted.

Legal Basis:
Section 16(1) of IGST Act, 2017:
"Zero rated supply means any of the following supplies of goods or services or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit."
Section 16(3) of IGST Act states:
"Subject to the provisions of sub-section (5), a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:––
(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder."

Practical Application:
For Past Exports :

• File retrospective returns showing export invoices
• Report exports at 0% GST rate (zero-rated supply)
• No IGST payment required if exports are proven
• LUT benefit available prospectively from date of acceptance

Documentation Requirements:

• Detailed export invoices with foreign client details
• Proof of foreign remittance (bank statements showing PayPal inward remittances)
• Contracts or agreements with foreign clients
• Service delivery proof (emails, project completion documents)

Important Note: While LUT filed now applies prospectively, the zero-rated nature of exports is inherent in the transaction itself. You won't need to pay 18% GST on past exports if you can prove they were legitimate export of services.

What is FIRC, and why is it important for exporters under GST?

Foreign Inward Remittance Certificate (FIRC) is issued by your bank to confirm receipt of foreign payment and validates zero-rated supply under GST.

Required By:

• Exporters receiving foreign currency payments
• Freelancers with international clients
• Agencies providing digital services abroad
• GST-registered businesses claiming ITC on exports

Process:

• After payment receipt, request FIRC from your bank
• File RFD-01 for GST refund

Important: Without FIRC, GST officers may reject zero-rated claims, blocking refunds or ITC.

I received payments through PayPal and don't have FIRC/FIRA. Is this acceptable as proof for GST compliance?

Answer: Yes, PayPal statements combined with other documentation can serve as valid proof for export of services, though FIRC/FIRA is preferred. The law requires "proof of receipt of payment in convertible foreign exchange" which can be established through multiple documents.

Legal Requirement:
Rule 96A of CGST Rules, 2017 states:
"The application in FORM GST RFD-11 for furnishing a Letter of Undertaking shall be accompanied by–
(a) a statement containing the details of exports made, export invoices and the details of Foreign Inward Remittance Certificate (FIRC) or any other document evidencing receipt of foreign exchange in respect of exports made."

However, CBIC has clarified acceptable alternatives:
CBIC Circular No. 08/2018-Customs dated February 01, 2018 clarifies:
"In case of non-availability of FIRC, exporters may submit the following documents as proof of realization:
• Bank Realization Certificate (BRC)
• Foreign Exchange Inward Remittance Statement
• Bank Account Statement showing foreign currency credit"

Acceptable Documentation:
For PayPal Transactions:

1. PayPal transaction statements showing:
   • Date of receipt
   • Amount in foreign currency
   • Sender details (foreign client)
   • Purpose/description mentioning services
2. Bank account statements showing:
   • PayPal to bank account transfers
   • Conversion to Indian Rupees
   • Dates matching with PayPal statements
3. PayPal annual statements (available for download)
4. Supporting documents:
   • Export invoices raised to foreign clients
   • Service agreements/contracts
   • Email correspondence proving service delivery
   • Project completion certificates or client acknowledgments

For Limited PayPal History (Only 12 Months):
Download and preserve immediately:

• All available PayPal transaction history
• Generate annual statements if available
• Take screenshots with timestamps
• Download all available reports

Alternative Proof Methods:

• Bank passbook/statement showing PayPal credits for entire 2022
• CA certification of income from foreign clients
• Income Tax Returns showing foreign income
• Form 15CA/15CB if applicable (though typically for payments out)

How are exports treated under GST, and what filing rules apply?

Under GST, exports are zero-rated supplies (no GST payable).

Filing Requirements (May 2025 GST Advisory):

• Report export invoices in Table 6A, regardless of recipient type
• In HSN summary (Table 12), select B2C even for foreign B2B clients
• Table 4B is for domestic taxable B2B supplies, not exports

Benefit: Correct filing ensures smooth refunds, no HSN mismatches, and clear audits.

What is a Letter of Undertaking (LUT) for exports, and how do you file it?

LUT Benefits for regular exporters:

• No GST on exports without upfront payment
• No refund claims needed
• Improved cash flow
• Easier compliance

Filing Process:

1. Visit www.gst.gov.in
2. Go to Services → User Services → Furnish Letter of Undertaking
3. File once per financial year
4. Fill and submit the form

Alternative: Without LUT, pay GST upfront and claim refunds later.

How do you get an export license in India?

Step-by-Step Process:

1. Business Registration: Register as Sole Proprietorship, Partnership, or Private Limited with valid PAN
2. Apply for IEC Code:
   • Visit dgft.gov.in
   • Submit PAN, bank details, business address, KYC
   • Obtain HS Code for your product
3. Additional Clearances: For restricted goods (food, pharmaceuticals):
   • File Form ANF-2N on DGFT
   • Secure regulatory clearances

Result: Proper licensing enables confident international operations.

GST Returns and Filing

Which GST returns are mandatory based on business turnover?

Return Filing Requirements as per the turnover:

Return Type	Mandatory For	Frequency
GSTR-1	All registered taxpayers	Monthly (>₹5 cr) / Quarterly (<₹5 cr)
GSTR-3B	All registered taxpayers	Same as GSTR-1 frequency
GSTR-9	Annual turnover >₹2 crore	Annual (Due: Dec 31)
GSTR-9C	Annual turnover >₹5 crore	Annual (with audited accounts)

New Rule (July 2025): All GST returns must be filed within 3 years from due date.

What happens if you cancel your GST registration—do you need to file any final returns?

Yes, file GSTR-10 (Final Return) within 3 months of cancellation.

Requirements:

• Report ITC reversal on closing stock
• Disclose pending tax liability
• Failure can result in ₹10,000 minimum penalty plus interest

Recommendation: Set deadline and consult a CA for accurate filing.

What are the major GST compliance changes effective July 2025?

Three Key Changes:

• GSTR-3B Becomes Non-Editable:
  • Auto-populated from GSTR-1 or IFF only
  • Manual corrections via GSTR-1A only
  • Prevents mismatches and revenue leakage
• 3-Year Time Limit:
  • Returns older than 3 years permanently blocked
  • Clear overdue returns before July 2025
• E-Way Bill 2.0 Portal Launch:
  • Synchronized with 1.0 for smooth transition
  • Updated compliance requirements

GST Notices, Officers, and Raids

What should you do if you receive a GST notice?

First identify the Section under which the notice has been given:

Section	Type	Time Limit	Penalty
Section 73	Non-fraud/Unintentional error	3 years	10% of tax or ₹10,000
Section 74	Fraud/Deliberate error	5 years	15-100% of tax
Section 74A	Minor offences (≤₹1 lakh)	42 months	0-30% of tax

Response Strategy:

• Don't panic - Understand the section and time limits
• Verify allegations against your records
• Respond within prescribed time
• Seek professional help for complex cases

Key: Departments may misclassify cases; respond according to actual facts, not their classification.

Related Blog: What to do when GST officer asks you to reverse claimed ITC owing to supplier GST getting invoked?

If as a buyer, you have followed the GST rules, then you don't need to reverse the ITC. Read more in this blog: How to respond to GST notices for ITC reversal when supplier’s GST registration is cancelled

What are the powers of a GST officer during a visit or raid?

Visit Types and Powers:

• Verification:
  • Verify location and take photos
  • Check bills/agreements
  • Cannot ask for invoices/bank statements
• Inspection (Needs Joint Commissioner approval via INS-1):
  • Can check invoices, accounts, stock
  • Must state reason for inspection
• Search/Seizure (For suspected evasion):
  • Full authority to check phones/laptops, documents
  • Highest level of scrutiny

Your Rights: Always ask - "Is this verification, inspection, or search?" and check their authority document respectfully.

Related Blog: How to prepare for GST officer visit to business premises?

Read more in this blog: Complete Guide: How to Prepare for GST Officer Visit to Your Business Premises

What if a GST officer asks you to visit the office after registration?

Normal Process: Most registrations are approved online; physical verification is rare.

Triggers for Physical Verification:

• Failed Aadhaar verification
• Risky business flags
• Document doubts

Your Response:

• Officers usually visit your premises - you're not required to go
• If asked to visit, request written notice
• Submit only checklist documents
• Consider sending CA/representative

Why must every branch maintain its own GST records?

Legal Requirement: Section 35 of the GST Act mandates each branch must keep physical records at its location.

Consequences of Non-Compliance:

• Goods may be treated as unaccounted
• Penalties and tax demands
• Increased audit scrutiny

Solution: Ensure branch-specific GST files for compliance - storing only at head office violates rules.

Is it legal to charge GST before GSTIN approval?

No, per Section 32 of the GST Act, you cannot charge GST until GSTIN is approved.

Risks of Premature Charging:

• Application rejection
• Legal issues and audits
• Customer complaints

Solution: If charged by mistake, refund the amount. Start charging only after GSTIN approval.

What bank transaction limits trigger GST registration?

Registration Thresholds:

• Service businesses: >₹20 lakh annually
• Trading businesses: >₹40 lakh annually

Consequences of Non-Registration:

• Legal action for crossing threshold without registration
• Income Tax scrutiny on large deposits

Best Practices:

• Avoid cash acceptance for others
• Prevent third-party transfers
• Keep business/personal accounts separate
• Register and file on time

Latest GST Compliance Updates for 2025

What are the new Multi-Factor Authentication (MFA) requirements?

Implementation Timeline:

• January 1, 2025: Mandatory for AATO >₹20 crores
• February 1, 2025: Extended to AATO >₹5 crores
• April 1, 2025: Mandatory for ALL taxpayers

MFA Requirements:

• Additional verification beyond user ID/password
• OTP to registered mobile number
• Enhanced portal security against unauthorized access

Preparation Steps:

• Update registered mobile numbers
• Train staff on new authentication process
• Test MFA setup before mandatory dates

Reference: www.gst.gov.in for MFA setup instructions.

What are the new E-invoicing rules for 2025?

Effective April 1, 2025:

• Threshold reduced to ₹10 crore AATO (from ₹5 crore)
• Mandatory 30-day reporting to IRP (Invoice Registration Portal)
• Automatic rejection after 30-day window
• Loss of ITC for late submissions

Current Rule (August 2023): E-invoicing mandatory for businesses >₹5 crore turnover.

Compliance Action: Businesses must upload e-invoices to IRP within 30 days of invoice issuance to maintain ITC eligibility.

What are the new E-way Bill restrictions?

Effective January 1, 2025:

• EWB generation restricted to base documents not older than 180 days
• Extension limits capped at 360 days total
• Prevents backdated invoice misuse

Current Requirements:

• Mandatory for goods >₹50,000 value
• Two parts: Part A (consignment details) and Part B (transport details)
• Validity: 1 day per 200 km distance

State-wise Variations: Some states have different thresholds - check local rules.

What is the new Mandatory ISD Registration requirement?

Effective April 1, 2025:

Businesses with multiple GST registrations under same PAN must:

• Obtain Input Service Distributor (ISD) registration
• Issue ISD invoices for common services
• File GSTR-6 returns for ITC distribution

Previously: Could use cross-charge model; now ISD registration is compulsory.

Benefits: Enhanced transparency and standardized ITC allocation across branches.

GST Composition Scheme and GSTR-4

What is GSTR-4 and who needs to file it?

GSTR-4 is the annual return for composition scheme taxpayers.

Eligibility for Composition Scheme:

• Manufacturers/Traders: Annual turnover ≤₹1.5 crore
• Service Providers: Annual turnover ≤₹50 lakh
• Restaurants (excluding alcohol): Up to ₹1.5 crore

GSTR-4 Filing Requirements:

• All composition scheme taxpayers (even if opted out during the year)
• Due Date: June 30 (extended from April 30 for FY 2024-25 onwards)
• Cannot be revised once filed
• Late Fee: ₹50 per day (max ₹2,000 for taxable, ₹500 for nil returns)

Important: GSTR-4 cannot be filed beyond 3 years from due date (effective July 2025).

GST Refunds

What is RFD-01 and how to claim GST refunds?

RFD-01 is the online application for GST refunds.

Types of Refunds Available:

• Export of goods and services (tax paid/unpaid)
• Excess balance in electronic cash ledger
• Accumulated ITC due to inverted duty structure
• Tax paid under wrong head (CGST/SGST vs IGST)
• Excess payment of tax

Filing Process:

1. Login to GST Portal - www.gst.gov.in
2. Select Refund tab → Application for Refund
3. Choose refund type and fill details
4. Submit with required documents
5. ARN generated for tracking

Officer processes within 15 days

Minimum Refund Amount: ₹1,000

For Exporters: FIRC (Foreign Inward Remittance Certificate) required for foreign payment validation.

Additional GST Help and Best Practices

How can billing software help with GST compliance?

GST Billing Software Benefits:

• Auto-compliant GST invoices with mandatory fields
• Real-time ITC tracking and reconciliation
• E-way bill integration for goods movement
• GSTR filing automation and error reduction
• HSN code suggestions based on product descriptions
• Free billing options available for small businesses

Use an online software, such as TaxEase for creating GST compliant invoices for free. Sign up for plans to file hassle free GST returns.

Key Features to Look For:

• Cloud-based access for multi-location businesses
• Integration with accounting systems
• Regular updates for GST rule changes
• Customer support for compliance queries

Government Resources: Use official portals for authentic information:

• GST Portal: www.gst.gov.in
• GST Council: www.gstcouncil.gov.in
• CBIC: cbic-gst.gov.in

What are the key compliance deadlines to remember for 2025?

Critical Dates:

Date	Requirement
January 1, 2025	EWB restrictions (180-day limit), MFA for ₹20cr+
February 1, 2025	MFA for ₹5cr+ turnover
April 1, 2025	MFA mandatory for all, ISD registration, E-invoice 30-day rule
June 30, 2025	GSTR-4 due date (extended from April 30)
July 1, 2025	GSTR-3B auto-lock, 3-year filing limit
December 31, 2025	GSTR-9 annual return due

How to stay updated with GST changes?

Official Channels:

• GST Portal Notifications: www.gst.gov.in
• CBIC Circulars: cbic-gst.gov.in
• GST Council Updates: www.gstcouncil.gov.in
• State GST Departments: Check respective state portals
• Professional Consultations: CA/tax advisor guidance

Best Practice: Subscribe to official notifications and maintain updated billing software to ensure automatic compliance with rule changes.

Conclusion

This comprehensive FAQ covers essential aspects of GST compliance in India for 2025, incorporating the latest updates on e-way bills, billing software, GST notices, multi-factor authentication, e-invoicing, and refund processes. The GST framework continues evolving with enhanced digital security, streamlined processes, and stricter compliance requirements.