Top 50 GST Interview Questions & Answers

Goods and Services Tax has changed the way all businesses operate in India. This makes it a crucial topic for job interviews for your taxation, finance, and accounting roles. GST interview questions and answers can jangle your nerves if you are not well-prepared before the interview.

As a unified indirect tax system, GST simplifies the policy of taxation. Thus, it demands a thorough understanding of its principles, structure, and implementation. In most cases, GST simplifies the process of taxation as well as the understanding of the technicalities.

Whether you are a fresher or a professional, there are some questions on GST that you need to answer to crack the interview. Here, you need to follow the correct method to make things work perfectly well in your way.

List Of GST Interview Questions & Answers

There are several GST interview questions & answers that you must be well aware of. There are numerous key factors that you should know about in this regard. So, in this article, you will get the complete insight into it to have a better understanding of it.

1. What Is GST? Why Was It Introduced?

GST (Goods and Services Tax) is a comprehensive, indirect, value-added tax levied on the supply of goods and services in a country. It is a single tax that replaces multiple indirect taxes (like VAT, service tax, excise duty, etc.) and is applied at every stage of the supply chain, with credit for taxes paid at earlier stages (input tax credit). In countries like India, GST is destination-based, meaning the tax revenue goes to the state where the goods or services are consumed.

GST was introduced to:

1. Simplify Taxation: Replace multiple indirect taxes with a unified tax system, reducing complexity and compliance burdens.
2. Eliminate Cascading Effect: Allow input tax credit to prevent “tax on tax,” making goods and services cheaper.
3. Increase Efficiency: Streamline tax administration, reduce paperwork, and improve transparency through digital compliance (e.g., GSTN in India).
4. Boost Economic Growth: Create a unified national market by removing interstate tax barriers, encouraging trade and commerce.
5. Curb Tax Evasion: Enhance tracking of transactions through a centralized system, reducing leakages and improving revenue collection.
6. Global Alignment: Align with international taxation systems, making businesses more competitive globally.

2. What Are The Types Of GST In India?

There are several types of GST in India that you must be well aware of. Some of the key types of GST in India that you should be well aware of, as they form an important part of GST interview questions.

In India, GST is categorized into four main types based on the nature of transactions and jurisdiction:

• CGST (Central Goods and Services Tax):
  • Levied by the Central Government on intra-state supplies of goods and services.
  • Revenue goes to the Central Government.
  • Example: A sale within Maharashtra attracts CGST.
• SGST (State Goods and Services Tax):
  • Levied by the State Government on intra-state supplies of goods and services.
  • Revenue goes to the respective State Government.
  • Example: The same sale within Maharashtra also attracts SGST.
• IGST (Integrated Goods and Services Tax):
  • Levied by the Central Government on inter-state supplies of goods and services or imports.
  • Revenue is shared between the Central and State Governments based on the destination state.
  • Example: A sale from Maharashtra to Gujarat attracts IGST.
• UTGST (Union Territory Goods and Services Tax):
  • Levied by the Central Government on intra-Union Territory supplies of goods and services (in place of SGST for Union Territories without legislatures).
  • Revenue goes to the respective Union Territory administration.
  • Example: A sale within Chandigarh attracts CGST + UTGST.

3. What Is The GST Council?

The GST Council is a constitutional body in India responsible for making decisions related to the Goods and Services Tax (GST). Established under Article 279A of the Indian Constitution, it is a joint forum of the Central and State Governments to ensure cooperative federalism in GST implementation.

Key Features Of The GST Council:

1. Composition:
   • Chairperson: Union Finance Minister.
   • Members: Finance Ministers or nominated representatives from all States and Union Territories with legislatures.
   • The Union Minister of State for Finance (Revenue) is also a member.
2. Role and Functions:
   • Recommends GST rates, exemptions, and thresholds.
   • Formulates GST laws, rules, and procedures.
   • Decides on tax slabs, input tax credit rules, and apportionment of IGST revenue.
   • Resolves disputes and ensures uniformity in GST implementation across India.
   • Reviews and updates GST policies based on economic and administrative needs.
3. Decision-Making:
   • Decisions are made by a three-fourths majority of the weighted votes.
   • The Central Government has a one-third vote, and all States/UTs collectively have a two-thirds vote.
   • Each state/UT has an equal vote within the states’ share.
4. Objective:
   • To create a harmonized and unified tax system by balancing the interests of the Central Government, States, and taxpayers.
   • To promote ease of doing business and ensure a transparent, efficient GST framework. It is one of the crucial GST interview questions that you must be well aware off.

The GST Council meets periodically to address issues like rate revisions, compliance simplification, and emerging challenges, playing a pivotal role in shaping India’s GST regime.

4. What Are The Key Components Of GST?

The key components of GST (Goods and Services Tax) in India are the foundational elements that define its structure and functioning. These components ensure a unified, transparent, and efficient tax system. Below are the primary components:

• Taxable Event – Supply:
  • GST is levied on the supply of goods, services, or both, which includes sale, transfer, barter, lease, or import.
  • The concept of “supply” replaces earlier terms like sale or manufacture, broadening the tax base.
• Types of GST:
  • CGST (Central GST): The Central Government collects this GST on intra-state supplies.
  • SGST (State GST): Collected by the State Government on intra-state supplies.
  • IGST (Integrated GST): The Central Government, on inter-state supplies and imports, collects this GST.
  • UTGST (Union Territory GST): Collected in Union Territories without legislatures, replacing SGST.
• Input Tax Credit (ITC):
  • Businesses can claim credit for GST paid on inputs (purchases) to offset the GST liability on outputs (sales).
  • This eliminates the cascading effect of taxes, ensuring tax is levied only on value addition at each stage.
  • ITC is available across CGST, SGST, and IGST, subject to conditions and restrictions.
• Tax Rates and Slabs:
  • GST operates under multiple tax slabs (e.g., 0%, 5%, 12%, 18%, 28%) based on the type of goods or services.
  • Special rates like 0.25% (for rough precious stones) or 3% (for gold) also exist.
  • The GST Council determines these rates to balance revenue and affordability.
• Destination-Based Taxation:
  • GST is a consumption-based tax, meaning the tax revenue is allocated to the state/UT where the goods or services are consumed, not where they are produced.
  • This is facilitated through IGST for inter-state supplies.

5. What Is The Threshold Limit Of GST Registration?

In India, the threshold limit for GST registration depends on the type of business and its location. As of the latest updates:

• For Supply of Goods:
  • General States: Businesses with an annual aggregate turnover exceeding ₹40 lakh must register for GST.
  • Special Category States: Businesses with an annual aggregate turnover exceeding ₹20 lakh must register.
    • Special Category States include Arunachal Pradesh, Assam, Jammu & Kashmir, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
• For Supply of Services:
  • Businesses (in any state) with an annual aggregate turnover exceeding ₹20 lakh must register for GST.
  • For Special Category States, this threshold is ₹10 lakh for service providers.
• Exceptions Requiring Mandatory Registration (Irrespective of annual Turnover):
  • Businesses involved in interstate taxable supplies.
  • Persons liable to pay GST under the Reverse Charge Mechanism (RCM).
  • E-commerce operators or suppliers selling through e-commerce platforms.
  • Non-resident taxable persons or casual taxable persons.
  • Persons required to deduct TDS/TCS under GST.
  • Input Service Distributors (ISDs).

6. Who Needs To Register For GST?

In India, GST registration is mandatory for certain businesses and individuals based on their turnover, nature of activities, or specific circumstances, as outlined under the Goods and Services Tax (GST) Act. Below is a concise list of who needs to register for GST:

1. Based On Turnover Threshold:

• Supply of Goods:
  • Businesses with an annual aggregate turnover exceeding ₹40 lakh in General Category States.
  • Businesses with an annual aggregate turnover exceeding ₹20 lakh in Special Category States (Arunachal Pradesh, Assam, Jammu & Kashmir, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand).
• Supply of Services:
  • Businesses with an annual aggregate turnover exceeding ₹20 lakh in General Category States.
  • Businesses with an annual aggregate turnover exceeding ₹10 lakh in Special Category States.
  • Note: Aggregate turnover includes taxable supplies, exempt supplies, exports, and inter-state supplies, excluding GST and inward supplies under the Reverse Charge Mechanism (RCM).

2. Mandatory Registration (Irrespective of Turnover):

The following entities/persons must register for GST regardless of their turnover:

• Inter-State Suppliers: Businesses making taxable supplies of goods or services across state borders.
• Reverse Charge Mechanism (RCM): Persons liable to pay GST under RCM (e.g., recipients of certain services like legal or transport services from unregistered suppliers).
• E-commerce Operators and Sellers:
  • E-commerce platforms (e.g., Amazon, Flipkart) facilitate the sale of goods/services.
  • Sellers supplying goods/services through e-commerce platforms.
• Non-Resident Taxable Persons: Foreign entities supplying goods/services in India without a fixed place of business.
• Casual Taxable Persons: Individuals/businesses undertaking occasional taxable supplies in a state/UT where they have no fixed place of business (e.g., event-based businesses).
• Input Service Distributors (ISDs): Businesses distributing input tax credit to their branches/units.
• Tax Deductors/Collectors:
  • Persons required to deduct TDS (Tax Deducted at Source) under GST (e.g., government departments).
  • Persons required to collect TCS (Tax Collected at Source), such as e-commerce operators.
• Agents: Persons supplying goods/services on behalf of another taxable person (e.g., commission agents).
• Importers: Persons importing goods/services into India (subject to IGST).
• Persons Supplying Specific Goods: Businesses dealing in goods notified by the government (e.g., ice cream, pan masala, tobacco) where registration is mandatory regardless of turnover.

3. Voluntary Registration:

• Businesses below the turnover threshold can opt for voluntary GST registration to:
  • Avail input tax credit on purchases.
  • Supply through e-commerce platforms.
  • Participate in interstate trade.
  • Enhance credibility with customers.

4. Exemptions:

• Businesses exclusively dealing in exempt goods/services (e.g., unprocessed agricultural products, healthcare, education) are not required to register, unless they engage in taxable supplies.
• Persons under the Composition Scheme (for small businesses with turnover up to ₹1.5 crore or ₹75 lakh in Special Category States) must register but follow simplified compliance.

7. What Is GSTIN?

GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric code assigned to every taxpayer registered under the Goods and Services Tax (GST) regime in India. It serves as an identification number for tracking GST-related transactions, compliance, and input tax credit.

Structure Of GSTIN: 

Source: (cleartax.in)

The 15-digit GSTIN is broken down as follows:

1. First 2 Digits: State code (as per the Indian Census 2011).
   • Example: “27” for Maharashtra, “33” for Tamil Nadu.
2. Next 10 Digits: Permanent Account Number (PAN) of the business or individual.
3. 13th Digit: Entity number of the same PAN holder in a state (e.g., “1” for first registration, “2” for second, etc.).
4. 14th Digit: Default “Z” (reserved for future use).
5. 15th Digit: Checksum digit for validation (alphanumeric).

8. What Are HSN And SAC In GST?

• HSN (Harmonized System of Nomenclature): Codes used for classifying goods.

Source( Cleartax.in)

• SAC (Service Accounting Code): Codes used for classifying services.

Source( Cleartax.in)

9. What Is The Composition Scheme Under GST?

The Composition Scheme under GST in India is a simplified tax scheme designed for small businesses to reduce compliance burdens and simplify tax payments. It allows eligible taxpayers to pay GST at a fixed, lower rate based on their turnover, instead of the regular GST rates, with minimal record-keeping and fewer return filings.

Key Features Of The Composition Scheme:

• Eligibility:
  • Businesses with an annual aggregate turnover up to:
    • ₹1.5 crore for businesses supplying goods or mixed supplies (in General Category States).
    • ₹75 lakh for businesses in Special Category States (Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand).
    • ₹50 lakh for businesses exclusively providing services (e.g., restaurants without alcohol, service providers).
  • Eligible Entities:
    • Manufacturers, traders, and restaurants (not serving alcohol).
    • Service providers (since 2019, with specific conditions).
  • Ineligible Entities:
    • Businesses engaged in interstate supplies.
    • E-commerce sellers are supplying through platforms like Amazon or Flipkart.
    • Manufacturers of notified goods (e.g., ice cream, pan masala, tobacco).
    • Non-resident taxable persons or casual taxable persons.
    • Businesses supplying exempt goods/services or services other than restaurant services (except for limited service providers).
• Tax Rates:
  • 1% of turnover (0.5% CGST + 0.5% SGST/UTGST) for traders dealing in goods.
  • 2% of turnover (1% CGST + 1% SGST/UTGST) for manufacturers and mixed suppliers.
  • 5% of turnover for restaurants (not serving alcohol).
  • 6% of turnover for service providers (under the special composition scheme for services).
• Input Tax Credit (ITC):
  • Composition scheme taxpayers cannot claim input tax credit on their purchases.
  • They also cannot collect GST from customers, meaning they cannot issue taxable invoices (only bills of supply).
• Compliance:
  • Fewer Returns: File quarterly returns (GSTR-4) and an annual return (GSTR-9A).
  • Simplified Records: Minimal bookkeeping compared to regular GST taxpayers.
  • Pay tax from your own pocket based on turnover, not on invoices.
• Conditions:
  • Must display “Composition Taxable Person” on business premises and bills.
  • Cannot make inter-state supplies (only intra-state supplies allowed).
  • Must file a declaration (Form CMP-02) to opt for the scheme.
  • Tax is calculated on total turnover, including taxable, exempt, and non-GST supplies.

10. What Is The Reverse Charge Mechanism?

The Reverse Charge Mechanism (RCM) under GST in India is a system where the recipient of goods or services is liable to pay the Goods and Services Tax (GST) instead of the supplier, which is the opposite of the usual forward charge mechanism. This shifts the tax payment responsibility to the buyer/recipient under specific circumstances.

Key Features of Reverse Charge Mechanism:

1. Applicability:
   • RCM applies in the following cases:
     • Notified Goods and Services: Specific goods (e.g., cashew nuts, bidi wrapper leaves) and services (e.g., legal services, transport services, sponsorship services) notified by the GST Council.
     • Unregistered Suppliers: When a registered person procures goods/services from an unregistered supplier (subject to certain conditions and exemptions).
     • Imports: Services supplied by a person located outside India to a person in India (e.g., imported services like consultancy).
     • Other Specific Cases: As specified by the government (e.g., services by an insurance agent to an insurer).
2. Tax Payment:
   • The recipient pays GST directly to the government at the applicable rate (CGST + SGST for intra-state or IGST for inter-state supplies).
   • The supplier (e.g., an unregistered person) does not charge GST on the invoice, and the recipient self-invoices the transaction.
3. Input Tax Credit (ITC):
   • The recipient can claim input tax credit for the GST paid under RCM, provided the goods/services are used for business purposes and the ITC eligibility conditions are met.
   • This ensures the tax burden is neutralized for businesses in the supply chain.
4. Compliance:
   • The recipient must issue a self-invoice for supplies received from unregistered suppliers under RCM.
   • Details of RCM transactions must be reported in GST returns:
     • GSTR-3B: Report tax liability under RCM.
     • GSTR-1: Report self-invoices for RCM transactions.
   • Maintain proper records of RCM payments and ITC claims.

Examples of RCM:

1. Unregistered Supplier:
   • A registered business in Delhi buys raw materials worth ₹1 lakh from an unregistered vendor. The business must pay GST (e.g., 18% = ₹18,000) under RCM and can claim ITC if eligible.
2. Notified Services:
   • A company avails legal services from an advocate. The company (recipient) pays GST under RCM instead of the advocate.
3. Goods Transport Agency (GTA):
   • If a registered business hires a GTA for transport services, the business pays GST under RCM (unless the GTA opts for a forward charge).

Key Scenarios for RCM:

• Unregistered Supplier Purchases:
  • As of recent updates, RCM on purchases from unregistered suppliers is largely suspended for small transactions unless notified. However, if applicable, the recipient pays GST.
• Imports of Services:
  • A company hiring a foreign consultant for ₹5 lakh must pay IGST under RCM on the service value.
• Notified Categories:
  • Check the latest CBIC notifications for the updated list of goods/services under RCM (e.g., Notification No. 4/2017-Central Tax (Rate) for goods and 13/2017-Central Tax (Rate) for services).

Advantages of RCM:

• Ensures tax compliance for transactions involving unregistered suppliers or specific services.
• Brings unorganized sectors (e.g., small vendors, freelancers) into the tax net indirectly.
• Allows ITC, reducing the tax burden for registered recipients.

Challenges of RCM:

• Increased compliance burden for recipients (self-invoicing, reporting, and payment).
• Cash flow issues, as recipients must pay GST upfront before claiming ITC.
• Complexity in tracking RCM-applicable transactions, especially for businesses with multiple suppliers.

11. What Is Input Tax Credit In GST?

Input Tax Credit (ITC) in GST is a mechanism that allows registered taxpayers to claim a credit for the GST paid on their purchases (inputs, input services, and capital goods) and use it to offset their GST liability on outward supplies (sales). This ensures that tax is levied only on the value added at each stage of the supply chain, eliminating the cascading effect of taxes.

Key Features Of Input Tax Credit:

1. What Can Be Claimed?
   • ITC includes GST (CGST, SGST, IGST, or UTGST) paid on:
     • Inputs: Raw materials, components, etc., used in production or supply.
     • Input Services: Services like transportation, consultancy, etc., are used for business.
     • Capital Goods: Machinery, equipment, etc., used in business (subject to depreciation rules).
   • ITC can also be claimed for GST paid under the Reverse Charge Mechanism (RCM).
2. Eligibility Conditions:
   To claim ITC, the following conditions must be met:
   • The taxpayer must be registered under GST.
   • Goods/services must be used for business purposes and for making taxable supplies (including zero-rated supplies like exports).
   • The taxpayer must possess a valid tax invoice, debit note, or other prescribed document.
   • The supplier must have paid the GST to the government (verified via GSTR-2A/2B reconciliation).
   • The goods/services must have been received by the taxpayer (or deemed received for services).
   • GST returns (e.g., GSTR-3B) must be filed by the taxpayer.
   • ITC must be claimed within the stipulated time (e.g., by the due date of the September return of the next financial year or the annual return, whichever is earlier).
3. Non-Eligible ITC:
   ITC cannot be claimed for:
   • Goods/services used for personal purposes.
   • Exempt supplies or non-GST supplies (e.g., alcohol, petroleum).
   • Specific items like motor vehicles (except for specific business uses, e.g., transport services), food and beverages, health services, or club memberships (as per Section 17(5) of the CGST Act).
   • Goods lost, stolen, destroyed, or given as free samples.
   • GST is paid on invoices older than the allowed time limit.
4. Set-Off Rules:
   ITC can be used to offset GST liability in a specific order:
   • IGST Credit: First used to offset IGST liability, then CGST, and finally SGST/UTGST.
   • CGST Credit: Used to offset CGST liability, then IGST (cannot offset SGST/UTGST).
   • SGST/UTGST Credit: Used to offset SGST/UTGST liability, then IGST (cannot offset CGST).
   • Example: If a taxpayer has ₹10,000 IGST credit, they can use it to pay ₹6,000 IGST liability and the remaining ₹4,000 for CGST or SGST.
5. Reconciliation and Compliance:
   • ITC is verified through GSTR-2A/2B (auto-populated from suppliers’ GSTR-1 filings) to ensure the supplier has uploaded invoices and paid GST.
   • Discrepancies between the taxpayer’s ITC claim and GSTR-2A/2B may lead to notices or ITC reversal.
   • ITC details are reported in GSTR-3B (monthly summary return) and reconciled in GSTR-9 (annual return).

Example of ITC:

• A manufacturer buys raw materials worth ₹1 lakh + 18% GST (₹18,000). They sell finished goods for ₹2 lakh + 18% GST (₹36,000).
• ITC = ₹18,000 (GST paid on inputs).
• GST liability = ₹36,000 (on sales).
• Net GST payable = ₹36,000 – ₹18,000 = ₹18,000.
• The manufacturer pays only the value-added tax, avoiding double taxation.

Advantages of ITC:

• Eliminates the cascading effect, reducing the cost of goods/services.
• Encourages compliance, as buyers prefer registered suppliers to claim ITC.
• Improves cash flow by offsetting tax liabilities with credits.

Challenges:

• Strict compliance requirements (e.g., invoice matching, timely filing).
• ITC denial if suppliers fail to pay GST or upload invoices.
• Complex rules for apportionment (e.g., for mixed taxable and exempt supplies).

12. What Are The Conditions To Claim ITC?

To claim Input Tax Credit (ITC) under GST in India, a registered taxpayer must fulfill specific conditions as outlined in Section 16 of the CGST Act, 2017, along with related rules. These conditions ensure that ITC is claimed only for legitimate, business-related transactions.

Conditions To Claim ITC:

• GST Registration:
  • The taxpayer must be registered under GST with a valid GSTIN.
  • Unregistered persons or those under the Composition Scheme cannot claim ITC.
• Use for Business Purposes:
  • The goods or services on which GST was paid must be used for business purposes.
  • ITC is not allowed for goods/services used for personal purposes or non-business activities.
• Taxable Supplies:
  • The inputs, input services, or capital goods must be used to make taxable supplies (including zero-rated supplies like exports).
  • ITC is restricted for exempt supplies or non-GST supplies (e.g., alcohol, petroleum), with apportionment required for mixed supplies.
• Possession of Valid Documents:
  • The taxpayer must have a valid tax invoice, debit note, bill of entry, or other prescribed documents (e.g., self-invoice for Reverse Charge Mechanism supplies).
  • The document must contain mandatory details like GSTIN, invoice number, date, value, GST amount, and description of goods/services.
• Receipt of Goods or Services:
  • The taxpayer must have received the goods or services (or deemed receipt in case of services).
  • For goods received in installments, ITC can be claimed only after the last lot is received.
  • If goods are delivered to a third party on the taxpayer’s instructions, it is deemed received.
• GST Paid by Supplier:
  • The supplier must have paid the GST to the government, either through cash or ITC utilization.
  • ITC is allowed only if the supplier’s invoices are uploaded in GSTR-1 and reflected in the taxpayer’s GSTR-2A/2B (auto-populated purchase details).

13. What Is The Tax Invoice Under GST?

A Tax Invoice under GST in India is a document issued by a registered supplier to the recipient, detailing the supply of goods or services and the applicable Goods and Services Tax (GST). It is a critical document for GST compliance, enabling the recipient to claim Input Tax Credit (ITC) and ensuring proper tax reporting.

Key Features of a Tax Invoice:

• Purpose:
  • Records the taxable supply of goods or services.
  • Specifies the GST (CGST, SGST, IGST, or UTGST) charged.
  • Serves as proof for ITC claims by the recipient.
  • Facilitates GST compliance and reporting (e.g., in GSTR-1).
• Mandatory Issuance:
  • A registered supplier must issue a tax invoice for every taxable supply of goods or services to a registered recipient.
  • For supplies to unregistered persons, a tax invoice is required only if the invoice value exceeds ₹200 or if the recipient requests it.
• Time Limit for Issuance:
  • Goods:
    • On or before the date of supply (e.g., removal of goods or delivery).
    • For continuous supply, before or at the time of issuing a statement or receiving payment.
  • Services:
    • Within 30 days from the date of supply of services.
    • For banks/insurance companies, within 45 days from the supply date.

14. What Are The Exempted Goods & Services In GST?

In India, under the Goods and Services Tax (GST) regime, certain goods and services are exempted from GST to reduce the tax burden on essential items, promote affordability, and support specific sectors. Exempted goods and services are those on which no GST is levied, and suppliers cannot claim Input Tax Credit (ITC) for inputs used in their supply.

These exemptions are specified under Section 11 of the CGST Act, 2017, and notified through CBIC notifications (e.g., Notification No. 2/2017-Central Tax (Rate) for goods and 12/2017-Central Tax (Rate) for services).

Exempted Goods:

• Agricultural and Food Products:
  • Fresh and unprocessed items like:
    • Fresh fruits and vegetables (e.g., potatoes, onions, tomatoes).
    • Fresh milk, curd, buttermilk (unpacked and unbranded).
    • Unprocessed cereals (e.g., rice, wheat, oats).
    • Unbranded flour, besan, and maida.
  • Natural honey (unbranded).
  • Fresh meat, fish, and poultry (unprocessed).
  • Eggs (unprocessed).
  • Jaggery, khandsari sugar.
• Basic Necessities:
  • Salt (all types).
  • Drinking water (unpackaged, not bottled).
  • Firewood, charcoal.
  • Human blood and its components.
  • Contraceptives (condoms, intrauterine devices).
• Educational and Religious Items:
  • Books, newspapers, journals, maps, and atlases.
  • Printed educational materials (e.g., NCERT books).
  • Stamps, judicial/non-judicial stamp papers, and postal items.
  • Items used in religious ceremonies (e.g., bangles, sindoor, bindi, puja samagri like camphor, incense sticks).
• Healthcare-Related:
  • Medicines and vaccines are supplied to government hospitals for free distribution.
  • Hearing aids.
  • Blood plasma and blood bags.
• Agricultural Inputs:
  • Seeds, organic manure.
  • Agricultural implements (manually operated or animal-driven, e.g., hand tools, ploughs).
• Miscellaneous:
  • Raw silk, wool, cotton, jute fibre (not processed).
  • Khadi fabric is sold through the Khadi and Village Industries Commission.
  • Handloom products.
  • Spacecraft and satellites.

Exempted Services:

• Healthcare Services:
  • Services by hospitals, clinics, or medical practitioners (except cosmetic surgery, hair transplants).
  • Ambulance services.
  • Veterinary services.
  • Transportation of patients.
• Educational Services:
  • Services by educational institutions (pre-school to higher secondary, recognized degree courses).
  • Services related to examinations, curriculum development, or affiliation by educational boards.
  • Vocational training or skill development courses approved by the government.
• Government and Public Services:
  • Services by the Government, local authorities, or governmental entities (e.g., postal services, public utilities).
  • Services related to the issuance of passports, visas, birth/death certificates.
  • Public conveniences like water supply, sanitation, or street lighting.
  • Services by the Reserve Bank of India (RBI).
• Agricultural Services:
  • Agricultural operations like cultivation, harvesting, threshing, or plant protection.
  • Services related to warehousing or cold storage of agricultural produce.
  • Renting of agricultural machinery.
• Transportation Services:
  • Transportation of passengers by:
    • Non-AC stage carriages, metro, monorail, or public transport.
    • Railways (except first class or AC coaches).
  • Transportation of goods by:
    • Road (except by Goods Transport Agency or courier).
    • Inland waterways.
    • Railways for agricultural produce or relief materials.
• Charitable and Religious Services:
  • Services by charitable organizations registered under Section 12AA of the Income Tax Act (e.g., relief to the poor, education, or medical aid).
  • Services related to religious ceremonies or the conduct of religious events.
  • Renting of religious premises (e.g., community halls for religious purposes).
• Financial Services:
  • Services by way of extending deposits, loans, or advances where the consideration is interest or discount (except third-party services).
  • Life insurance services under specific government schemes (e.g., Jan Dhan Yojana).
• Miscellaneous Services:
  • Services by artists for folk or classical music, dance, or theatre (up to ₹1.5 lakh per event).
  • Those services by unincorporated bodies or non-profits to their members (e.g., resident welfare associations up to ₹7,500 per month per member).
  • Services related to the slaughtering of animals.
  • Services by libraries or public reading rooms.

15. What Is GST Compliance Rating?

GST Compliance Rating is a system introduced under the Goods and Services Tax (GST) regime in India to evaluate and rate registered taxpayers based on their compliance with GST laws and regulations. It is designed to promote transparency, encourage timely compliance, and help businesses assess the reliability of their suppliers or customers. The rating is governed by Section 149 of the CGST Act, 2017, and is maintained on the GST Network (GSTN) portal. This is one of the most important GST interview questions that you should be well aware of.

Key Features Of GST Compliance Rating:

• Purpose:
  • To assess how well taxpayers adhere to GST requirements, such as timely filing of returns, accurate reporting, and tax payments.
  • In order to create a trust-based ecosystem by enabling businesses to check the compliance track record of their suppliers or buyers.
  • To incentivize compliance and penalize non-compliance indirectly through public ratings.
• Rating System:
  • The rating is a numerical score or grade assigned to each registered taxpayer (GSTIN) based on their compliance behavior.
  • The exact scoring mechanism (e.g., scale, weightage) is determined by the GSTN and CBIC, but it is not fully disclosed in the public domain.
  • Higher ratings indicate better compliance, while lower ratings reflect delays, errors, or non-compliance.
• Factors Considered: The GST compliance rating is based on several parameters, including:
  • Timely Filing of Returns: Submission of GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return) by due dates.
  • Accuracy of Data: Consistency between returns (e.g., GSTR-1 and GSTR-3B) and minimal discrepancies in reported sales, purchases, or tax liabilities.
  • Tax Payment: Timely payment of GST liabilities, including interest or penalties for delays.
  • Input Tax Credit (ITC) Compliance: Proper matching of ITC claims with suppliers’ GSTR-1 filings (via GSTR-2A/2B).
  • Invoice Matching: Ensuring invoices uploaded in GSTR-1 align with the recipients’ purchase records.
  • Response to Notices: Prompt resolution of GST notices or audits.
  • E-Way Bill Compliance: Adherence to e-way bill generation for goods movement.
• Visibility:
  • The compliance rating is publicly accessible on the GST portal (www.gst.gov.in) under the taxpayer’s GSTIN profile.
  • Businesses can check the rating of their suppliers or customers to assess reliability, especially for ITC claims (as non-compliant suppliers may lead to ITC denial).
• Impact:
  • For Taxpayers:
    • A high rating enhances credibility, making it easier to attract business partners.
    • A low rating may deter customers or suppliers, as it signals potential risks (e.g., IT mismatches or tax evasion).
  • For Authorities:
    • Helps identify non-compliant taxpayers for audits or investigations.
    • Encourages voluntary compliance to avoid reputational damage.
  • For Business Ecosystem:
    • Promotes a culture of compliance and reduces tax evasion.
    • Assists in risk assessment when dealing with new vendors or clients.

16. What Is The Difference Between GST Payable & GST Receivable?

There are several points of difference between GST Payable & GST Receivable that you should not make your choices based on the incorrect end. Some of the key differences between them are as follows:-

17. What Is The e-way Bill In GST?

An E-Way Bill (Electronic Way Bill) under GST in India is a digital document required for the movement of goods exceeding a specified value, ensuring compliance with Goods and Services Tax (GST) regulations.

Source Image (cleartax.in)

It is generated on the E-Way Bill Portal (https://ewaybillgst.gov.in) and contains details of the goods, supplier, recipient, and transporter. The E-Way Bill system enhances transparency, prevents tax evasion, and facilitates seamless inter-state and intra-state goods movement.

Key Features of E-Way Bill:

• Purpose:
  • Tracks the movement of goods to ensure GST compliance.
  • Replaces earlier state-specific waybills or permits.
  • Enables authorities to verify tax compliance during transit.
• When Is It Required?:
  • Mandatory for the movement of goods (inter-state or intra-state) where the value of the consignment exceeds ₹50,000 (excluding GST).
  • Exceptions:
    • Required even below ₹50,000 for certain cases, e.g., inter-state movement of handicraft goods by unregistered persons or job work.
    • Not required for goods exempted under GST (e.g., fresh vegetables, unprocessed milk) or specific movements (e.g., personal use, empty cargo).
• Who Generates It?:
  • Registered Supplier/Recipient: The person causing the movement of goods (e.g., supplier dispatching goods or recipient arranging transport).
  • Transporter: If the supplier/recipient does not generate it, the transporter must generate the E-Way Bill based on the invoice details.
  • Unregistered Persons: If supplying to a registered person, the registered recipient may generate the E-Way Bill.
• Details in E-Way Bill:
  • Part A:
    • GSTIN of the supplier and recipient (if registered).
    • Place of dispatch and delivery.
    • Invoice or challan number and date.
    • Value of goods, HSN code, and quantity.
    • Reason for transportation (e.g., supply, export, job work).
  • Part B:
    • Vehicle number and mode of transport (road, rail, air, or ship).
    • Transporter’s details (if applicable).
  • Unique E-Way Bill Number (EBN) generated upon submission.
• Validity Period:
  • The validity of an E-Way Bill depends on the distance and type of cargo:
    • Non-Over Dimensional Cargo (ODC):
      • Up to 200 km: 1 day.
      • Each additional 200 km or part thereof: +1 day.
    • Over Dimensional Cargo (ODC):
      • Up to 20 km: 1 day.
      • Each additional 20 km or part thereof: +1 day.
  • Validity starts from the time of generation and can be extended if delays occur (within 8 hours before/after expiry).
  • Example: For 400 km (non-ODC), validity = 2 days (1 day for the first 200 km + 1 day for the next 200 km).
• Exemptions from E-Way Bill:
  • Goods with a consignment value below ₹50,000 (except for specific cases).
  • Exempted Goods: As per Notification No. 2/2017-Central Tax (Rate), e.g., fresh fruits, vegetables, unprocessed milk, human hair.
  • Non-motorized transport (e.g., hand carts).
  • Goods for personal use or moved within notified areas (e.g., customs ports to warehouses).
  • Specific movements like empty cargo containers or goods for defense purposes.
• Modes of Generation:
  • Online: Via the E-Way Bill Portal (https://ewaybillgst.gov.in) using GSTIN and login credentials.
  • SMS: For registered users with pre-registered mobile numbers.
  • Mobile App: Available for Android/iOS users.
  • API: For large businesses with integrated systems.
  • Offline: Using the E-Way Bill offline tool for bulk generation.
• Documents to Carry:
  • Physical or digital copy of the E-Way Bill (or EBN) during transit.
  • Invoice, bill of supply, or delivery challan.
  • Transporter’s ID or vehicle details (for verification by GST authorities).
• Compliance and Penalties:
  • The E-Way Bill must be generated before the movement of goods begins.
  • Non-compliance (e.g., no E-Way Bill or incorrect details) may lead to:
    • Penalty: ₹10,000 or tax sought to be evaded (whichever is higher).
    • Confiscation: Goods and vehicles may be detained or seized.
  • Authorities can inspect E-Way Bills at checkpoints using the EBN or QR code.

18. What Is The GST Audit?

A GST Audit in India is a systematic examination of a taxpayer’s records, returns, and compliance processes to ensure adherence to the Goods and Services Tax (GST) laws, as per the CGST Act, 2017. It verifies the accuracy of reported transactions, tax payments, Input Tax Credit (ITC) claims, and overall compliance with GST regulations. The GST audit can be conducted by the taxpayer, tax authorities, or appointed professionals, depending on the type of audit.

Key Features of GST Audit:

1. Purpose:
   • Ensure the correctness of turnover, taxes paid, and ITC claimed.
   • Verify compliance with GST laws, including return filings and record-keeping.
   • Detect discrepancies, tax evasion, or errors in GST reporting.
   • Promote transparency and accountability in the GST ecosystem.

Types of GST Audits:

1. There are three main types of GST audits under the CGST Act:A. Audit by Taxpayer (Mandatory Annual Audit):
   • Section 35(5) of the CGST Act and Rule 80(3) of the CGST Rules.
   • Applicable to registered taxpayers with an annual aggregate turnover exceeding ₹5 crore (threshold subject to change; check latest notifications).
   • Conducted by a Chartered Accountant (CA) or Cost Accountant appointed by the taxpayer.
   • Requires submission of:
     • GSTR-9: Annual Return (summary of outward and inward supplies).
     • GSTR-9C: Reconciliation Statement, reconciling turnover and taxes as per GST returns with audited financial statements.
   • Deadline: December 31 of the subsequent financial year (e.g., for FY 2024-25, due by December 31, 2025).
   • Objective: Certify the accuracy of GST returns and reconcile with financial records.
2. B. Audit by Tax Authorities (Departmental Audit):
   • Section 65 of the CGST Act and Rule 101 of the CGST Rules.
   • Conducted by GST authorities (Central/State tax officers or Commissioner-appointed officials).
   • Initiated based on risk assessment, turnover, or suspicion of non-compliance.
   • Process:
     • Notice issued to the taxpayer at least 15 working days in advance (Form GST ADT-01).
     • Audit completed within 3 months (extendable to 6 months).
     • Findings reported in Form GST ADT-02, with demands for tax, interest, or penalties if discrepancies are found.
   • Objective: Verify compliance and recover unpaid taxes or wrongly availed ITC.
3. C. Special Audit:
   • Section 66 of the CGST Act and Rule 102 of the CGST Rules.
   • Ordered by a GST officer (Assistant Commissioner or higher) in complex cases, such as:
     • Discrepancies in turnover or ITC.
     • Suspected tax evasion or fraud.
     • Need for expert scrutiny.
   • Conducted by a Chartered Accountant or Cost Accountant nominated by the Commissioner.
   • Process:
     • Notice issued in Form GST ADT-03.
     • Audit completed within 90 days (extendable by another 90 days).
     • Findings submitted in Form GST ADT-04, leading to possible recovery actions.
   • Objective: Detailed investigation of specific issues with expert assistance.
4. Scope of GST Audit:
   • Verification of:
     • Turnover: Accuracy of taxable, exempt, and non-GST supplies reported in GSTR-1 and GSTR-3B.
     • Tax Payments: Correctness of CGST, SGST, IGST, or cess paid.
     • Input Tax Credit (ITC): Eligibility, documentation, and reconciliation with GSTR-2A/2 B.
     • Returns: Timely and accurate filing of GSTR-1, GSTR-3B, GSTR-9, etc.
     • Invoices: Compliance with tax invoice requirements (e.g., GSTIN, HSN/SAC codes).
     • E-Way Bills: Proper generation and documentation for goods movement.
     • Reverse Charge Mechanism (RCM): Correct payment and ITC claims.
     • Records: Maintenance of books of accounts, invoices, and other documents as per Section 35.
   • Checking compliance with GST laws, rules, and notifications.
   • Identifying under-reported turnover, excess ITC claims, or unpaid taxes.
5. Documents Required for GST Audit:
   • GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-2A/2B).
   • Financial statements (balance sheet, profit & loss account).
   • Tax invoices, debit/credit notes, and bills of supply.
   • E-Way Bills and delivery challans.
   • ITC records and reconciliation statements.
   • Payment records (GST challans, bank statements).
   • Contracts, agreements, or purchase orders (for services or RCM).
   • Records of exempt or non-GST supplies.
6. Consequences of Non-Compliance:
   • Mandatory Audit (GSTR-9C): Failure to submit by the deadline may attract penalties (₹25,000 or 0.25% of turnover, whichever is higher, as per general penalty provisions).
   • Departmental/Special Audit:
     • Recovery of unpaid taxes with interest (18% per annum).
     • Penalties up to 100% of the tax evaded or ₹25,000 (whichever is higher) for deliberate non-compliance.
     • Notices or legal action for serious violations.
   • Adverse impact on GST Compliance Rating.
7. Retention Period:
   • Taxpayers must maintain GST-related records for 72 months (6 years) from the due date of the annual return (e.g., for FY 2024-25, until December 2031).

19. What Is The Penalty For Late GST Filing?

In India, under the Goods and Services Tax (GST) regime, late filing of GST returns incurs penalties and interest as per the CGST Act, 2017. Below is a concise overview of the penalties for late GST filing, tailored to the key returns:

Key GST Returns and Due Dates:

• GSTR-1 (Outward Supplies):
  • Monthly: 11th of the next month.
  • Quarterly (QRMP scheme): 13th of the month following the quarter.
• GSTR-3B (Summary Return and Tax Payment):
  • Monthly: 20th of the next month (staggered for some states/turnovers).
  • Quarterly (QRMP scheme): 22nd or 24th of the month following the quarter.
• GSTR-9 (Annual Return): December 31 of the subsequent financial year.
• GSTR-9C (Reconciliation Statement, for turnover > ₹5 crore): Same as GSTR-9.

Penalties for Late Filing:

1. GSTR-1 and GSTR-3B (Section 47 of CGST Act):
   • Late Fee:
     • ₹50/day (₹25 CGST + ₹25 SGST/UTGST) for taxpayers with taxable supplies.
     • ₹20/day (₹10 CGST + ₹10 SGST/UTGST) for nil taxable supplies.
   • Maximum Late Fee (capped):
     • GSTR-1: ₹10,000 (₹5,000 CGST + ₹5,000 SGST); ₹500 for nil filers.
     • GSTR-3B:
       • Turnover ≤ ₹1.5 crore: ₹2,000 (₹1,000 CGST + ₹1,000 SGST).
       • Turnover ₹1.5 crore to ₹5 crore: ₹5,000 (₹2,500 CGST + ₹2,500 SGST).
       • Turnover > ₹5 crore: ₹10,000 (₹5,000 CGST + ₹5,000 SGST).
       • Nil filers: ₹500 (₹250 CGST + ₹250 SGST).
2. GSTR-9 and GSTR-9C:
   • Late Fee: ₹200/day (₹100 CGST + ₹100 SGST/UTGST).
   • Maximum: 0.25% of aggregate turnover (0.125% CGST + 0.125% SGST).
   • Example: For ₹10 crore turnover, max late fee = ₹25,000 (₹12,500 CGST + ₹12,500 SGST).
3. Interest on Delayed Tax Payment (Section 50):
   • 18% per annum on unpaid tax (cash component) for the delay period.
   • Example: ₹50,000 unpaid for 30 days = ₹50,000 × 18% × (30/365) = ~₹1,479 interest.
4. General Penalty (Section 125):
   • Up to ₹25,000 (₹12,500 CGST + ₹12,500 SGST) for non-compliance without specific penalties, applicable for repeated or willful delays.

Consequences:

• Accumulating late fees and interest.
• ITC restrictions for recipients if GSTR-1 is delayed.
• Notices, audits, or registration cancellation for persistent non-compliance.
• Lower GST Compliance Rating, affecting business credibility.

Waivers/Relaxations:

• Reduced late fees for nil filers or small taxpayers (e.g., ₹500 for GSTR-3B nil returns).
• Occasional amnesty schemes waive/reduce fees for past delays (check CBIC notifications).
• Example: Notification No. 57/2020-Central Tax capped fees for small taxpayers.

Example:

• A business (turnover ₹3 crore) files GSTR-3B for July 2025 (due August 20) on September 10 (21 days late).
• Late Fee: ₹5,000 (₹2,500 CGST + ₹2,500 SGST, capped for ₹1.5-5 crore turnover).
• Interest (if ₹50,000 tax unpaid): ₹50,000 × 18% × (21/365) = ~₹517.
• Total: ₹5,000 + ₹517 = ₹5,517.

How to Avoid Penalties:

• File returns (even nil) by due dates.
• Pay tax liabilities promptly (cash or ITC).
• Use the GST portal (www.gst.gov.in) for reminders and compliance tracking.
• Consult a tax professional for complex cases or notices.

20. What Is The QRMP Scheme?

The QRMP Scheme (Quarterly Return Filing and Monthly Payment of Taxes) is an optional scheme under the Goods and Services Tax (GST) regime in India, introduced by the Central Board of Indirect Taxes and Customs (CBIC) to simplify compliance for small taxpayers. It allows eligible registered taxpayers to file GST returns quarterly while making tax payments monthly, reducing the frequency of return filings and easing the compliance burden.

Key Features of the QRMP Scheme:

• Eligibility:
  • Registered taxpayers with an aggregate annual turnover up to ₹5 crore in the previous financial year.
  • Applicable to all types of taxpayers (regular, SEZ units, or those supplying through e-commerce), except those under the Composition Scheme or specific categories like Input Service Distributors (ISDs).
  • Taxpayers must not have restrictions on filing quarterly returns (e.g., non-filers of GSTR-3B for the last two periods).
• Return Filing:
  • Quarterly GSTR-1: Details of outward supplies filed once per quarter (due by the 13th of the month following the quarter).
    • Example: For April-June, GSTR-1 is due by July 13.
  • Quarterly GSTR-3B: Summary return and tax liability filed once per quarter (due by the 22nd or 24th of the month following the quarter, depending on the state).
    • Example: For April-June, due by July 22 (for states like Gujarat, Maharashtra) or July 24 (for states like Tamil Nadu, Karnataka).
  • Annual Return (GSTR-9): Mandatory for QRMP taxpayers (optional for turnover ≤ ₹2 crore).
• Monthly Tax Payment:
  • Taxpayers must pay their tax liability monthly for the first two months of the quarter using one of two methods:
    • Fixed Sum Method (35% Rule):
      • Pay 35% of the tax liability (cash component) paid in the last quarter’s GSTR-3B for each of the first two months.
      • Example: If GSTR-3B tax for Jan-Mar was ₹1,00,000 (cash), pay ₹35,000 for April and May.
    • Self-Assessment Method:
      • Estimate and pay the tax liability based on actual or expected supplies for the month.
  • Payment is made via Form GST PMT-06 by the 25th of the next month (e.g., April payment due by May 25).
  • The third month’s liability is settled through GSTR-3B filing.
• Invoice Furnishing Facility (IFF):
  • For the first two months of the quarter, taxpayers can upload B2B invoices (outward supplies to registered persons) using the IFF to enable recipients to claim Input Tax Credit (ITC).
  • IFF is optional and limited to invoices with a total value of ₹50 lakh per month.
  • Due by the 13th of the next month (e.g., April IFF due by May 13).
  • Invoices not uploaded in IFF can be included in the quarterly GSTR-1.
• Opting for the QRMP Scheme:
  • Eligibility Check: Turnover ≤ ₹5 crore in the previous financial year.
  • Opt-In Process:
    • New taxpayers: Select quarterly filing during GST registration (Form GST REG-01).
    • Existing taxpayers: Opt-in on the GST portal (under “Services” > “Returns” > “Opt-in for Quarterly Return”) between the 1st and last day of the first month of the quarter (e.g., April 1-30 for April-June).
  • Default Assignment: From January 2021, eligible taxpayers with turnover ≤ ₹5 crore were auto-migrated to QRMP unless they opted for monthly filing.
  • Opt-Out: Taxpayers can switch to monthly filing at the start of any quarter if eligible or if turnover exceeds ₹5 crore.
• Key Dates (Example for April-June Quarter):
  • Monthly Payments (PMT-06): April (May 25), May (June 25).
  • IFF (if used): April (May 13), May (June 13).
  • GSTR-1: Due by July 13.
  • GSTR-3B: Due by July 22/24 (based on state).

21. What Happens If A Supplier Doesn’t File Their GST Returns?

You need to consider certain factors when you want to file the GST returns. Some of the key factors that you should know here are as follows:-

• Late Fees And Penalties: A late fee of ₹100 per day (₹50 under CGST and ₹50 under SGST) is levied, up to a maximum of ₹5,000 per return. Interest at 18% per annum is charged on any unpaid tax.
• Blocked Input Tax Credit (ITC): Buyers may not be able to claim ITC for purchases from the supplier if the supplier’s returns are not filed, as per Rule 36(4) of the CGST Rules.
• GSTIN Suspension/Cancellation: Persistent non-compliance can lead to the suspension or cancellation of the supplier’s GST registration, prohibiting them from conducting business under GST.
• Legal Action: The GST authorities may initiate recovery proceedings, including seizing bank accounts, attaching assets, or imposing fines under Section 73 or 74 of the CGST Act for tax evasion or fraud.
• Restricted E-Way Bill Generation: Non-filing may restrict the supplier’s ability to generate e-way bills, disrupting the movement of goods.
• Notice and Scrutiny: The supplier may receive notices from the GST department, leading to audits or investigations for non-compliance.
• Impact on Business: Non-compliance can damage the supplier’s reputation, strain relationships with buyers, and lead to loss of business opportunities.

To avoid these issues, suppliers must file returns like GSTR-1 (for outward supplies) and GSTR-3B (for tax payment) by the due dates, typically the 10th and 20th of the following month, respectively. If unable to comply, they should seek professional help or approach the GST authorities to rectify the situation.

22. How Would You Handle Incorrect GST Charged On An Invoice?

Handling incorrect GST charged on an invoice in India involves the following steps:

• Identify the Error: Determine the nature of the error (e.g., wrong GST rate, incorrect tax type like CGST/SGST/IGST, or calculation mistake).
• Communicate with the Supplier:
  • Contact the supplier immediately to inform them of the error.
  • Provide details like invoice number, date, and the specific issue with the GST charged.
• Issue a Credit Note (if Supplier Agrees):
  • If the GST charged is higher than applicable, the supplier can issue a credit note under Section 34 of the CGST Act to reduce the tax amount.
  • The credit note must reference the original invoice and be reported in the supplier’s GSTR-1.
• Issue a Debit Note (if Undercharged):
  • If the GST charged is lower, the supplier can issue a debit note to recover the additional tax.
  • The debit note must also be linked to the original invoice and reported in GSTR-1.
• Amend the Invoice:
  • If the error is detected before the supplier files GSTR-1, they can issue a revised invoice with the correct GST.
  • If GSTR-1 is already filed, amendments can be made in the subsequent month’s GSTR-1.
• Adjust Input Tax Credit (ITC):
  • As a recipient, ensure ITC claimed matches the correct GST amount reflected in GSTR-2 B.
  • If excess ITC was claimed due to an inflated GST amount, reverse the excess in GSTR-3B to avoid penalties.
• File Correct Returns:
  • The supplier must reflect the credit/debit note or amended invoice in their GSTR-1 and GSTR-3B.
  • As a recipient, verify that the corrected details appear in your GSTR-2B for accurate ITC claims.
• Seek Professional Help:
  • If the error is complex (e.g., involves inter-state vs. intra-state tax disputes), consult a GST practitioner or chartered accountant to ensure compliance.
• Escalate to GST Authorities (if Unresolved):
  • If the supplier refuses to correct the error, approach the GST helpdesk or file a grievance on the GST portal.
  • Provide supporting documents like the invoice, communication records, and proof of the correct GST rate.
• Prevent Future Errors:
  • Verify GST rates and HSN/SAC codes before processing invoices.
  • Use GST-compliant invoicing software to minimize manual errors.

23. What Would You Do If You Notice A Mismatch In GSTR-2B And Purchase Records?

A mismatch between GSTR-2B and purchase records in India requires prompt action to ensure compliance and avoid input tax credit (ITC) disputes. Here’s how to handle it:

• Verify the Mismatch:
  • Cross-check your purchase register/invoices with GSTR-2B (available on the GST portal) to identify discrepancies (e.g., missing invoices, incorrect GST amounts, or wrong GSTIN).
  • Confirm if the mismatch is due to supplier errors, your record-keeping, or timing differences.
• Identify the Cause:
  • Supplier’s Non-Compliance: The supplier may not have filed GSTR-1 or reported the invoice, causing it to miss GSTR-2B.
  • Timing Difference: Invoices uploaded by the supplier in a later return period may not reflect in the current GSTR-2 B.
  • Data Entry Errors: Check for errors in your purchase records (e.g., wrong invoice number, GSTIN, or amount).
  • Amendments: Suppliers may have amended invoices in GSTR-1, affecting GSTR-2 B.
• Contact the Supplier:
  • Reach out to the supplier with details of the mismatched or missing invoices (invoice number, date, GST amount).
  • Request them to:
    • File or amend GSTR-1 to include the correct invoice details.
    • Verify if the invoice was uploaded in a different return period.
  • Maintain records of communication (emails, letters) for audit purposes.
• Reconcile and Follow Up:
  • Use the GST portal’s GSTR-2B reconciliation tools or accounting software to track corrections.
  • Monitor subsequent GSTR-2B statements to confirm if the supplier’s amendments reflect correctly.
• Adjust ITC Claims:
  • Do Not Claim Excess ITC: Avoid claiming ITC for invoices not appearing in GSTR-2B, as per Rule 36(4) of the CGST Rules, to prevent future reversals or penalties.
  • Provisional ITC (if allowed): If the supplier assures filing in the next return, you may defer ITC claims to the correct period, but only claim ITC once it reflects in GSTR-2 B.
  • Reverse Incorrect ITC: If you claimed ITC for a mismatched invoice, reverse it in GSTR-3B with interest (18% p.a.) if applicable.
• Rectify Your Records:
  • Correct any errors in your purchase records (e.g., wrong GSTIN or invoice details).
  • Ensure invoices comply with GST requirements (valid GSTIN, HSN/SAC codes, etc.).
• Escalate if Unresolved:
  • If the supplier fails to correct GSTR-1, raise a grievance on the GST portal’s helpdesk or contact the jurisdictional GST officer.
  • Provide supporting documents (invoices, payment proofs, communication with the supplier).
• Maintain Documentation:
  • Keep records of all invoices, GSTR-2B statements, supplier communications, and reconciliation efforts for at least 7 years, as required under Section 36 of the CGST Act, to handle audits or notices.
• Prevent Future Mismatches:
  • Regularly reconcile purchase records with GSTR-2B (monthly or quarterly).
  • Use GST-compliant software for automated matching.
  • Verify supplier GSTINs and compliance status before transactions.

24. How Would You Ensure Compliance During A GST Audit?

Ensuring compliance during a GST audit in India requires proactive preparation, accurate record-keeping, and cooperation with authorities. Here’s a step-by-step approach:

• Pre-Audit Preparation:
  • Organize Records: Maintain all GST-related documents (invoices, GSTR-1, GSTR-2B, GSTR-3B, e-way bills, payment proofs, credit/debit notes, and annual returns) for at least 7 years, as required under Section 36 of the CGST Act.
  • Reconcile Data: Cross-check GSTR-1, GSTR-2B, and GSTR-3B with books of accounts to identify and rectify mismatches in turnover, tax paid, or ITC claims.
  • Verify ITC Compliance: Ensure ITC claimed is supported by valid invoices and reflected in GSTR-2B, adhering to Rule 36(4) of the CGST Rules.
  • Check E-Way Bills: Confirm e-way bills align with invoices for goods movement.
• Internal Review:
  • Conduct a mock audit with a GST professional to identify discrepancies (e.g., incorrect HSN/SAC codes, wrong tax rates, or unfiled returns).
  • Correct errors in returns (if within the allowed period, typically until the September return of the next financial year) or reverse excess ITC with interest (18% p.a.).
• Respond to Audit Notice:
  • Acknowledge the GST audit notice (issued under Section 65 or 66 of the CGST Act) promptly.
  • Note the scope, period, and documents requested by the authorities.
  • Appoint a point of contact (e.g., a GST consultant or accountant) to coordinate with auditors.
• During the Audit:
  • Provide Documents Promptly: Submit requested records (physical or electronic) in the format specified, ensuring invoices have valid GSTINs, dates, and tax details.
  • Be Transparent: Disclose minor errors voluntarily (e.g., clerical mistakes) to avoid penalties under Section 73 (non-fraud cases).
  • Answer Queries Clearly: Provide accurate explanations for discrepancies, supported by evidence like supplier communications or amended returns.
  • Avoid Overclaiming ITC: Ensure ITC claims are backed by GSTR-2B and comply with Section 16 of the CGST Act.
• Address Discrepancies:
  • If auditors identify mismatches (e.g., GSTR-1 vs. GSTR-3B), provide reconciliations or rectify errors through revised filings, if permissible.
  • If ITC is disallowed due to supplier non-compliance, contact suppliers to file/correct GSTR-1 or explore legal remedies.
• Post-Audit Actions:
  • Review the audit report or summary (issued within 30 days of audit completion) for findings or demands.
  • If you agree with the findings, pay any tax, interest, or penalties promptly to avoid further action.
  • If you disagree, file an appeal with the Appellate Authority within 3 months under Section 107 of the CGST Act, supported by evidence.
• Engage Professionals:
  • Hire a GST practitioner or chartered accountant to handle complex issues, ensure compliance, and represent you during the audit.
• Implement Preventive Measures:
  • Use GST-compliant software for invoicing and return filing to minimize errors.
  • Regularly reconcile GSTR-2B with purchase records and GSTR-3B with GSTR-1.
  • Train staff on GST rules, including proper invoice formats and e-way bill generation.
  • Monitor supplier compliance by verifying their GSTIN and return filing status on the GST portal.
• Cooperate with Authorities:
  • Maintain a professional and cooperative attitude to facilitate a smooth audit process.
  • Avoid withholding information, as willful suppression can lead to penalties under Section 74 (up to 100% of tax evaded) or prosecution.

25. What Would You Do If Your GST Registration Is Cancelled?

If your GST registration is cancelled in India, take the following steps to address the situation and ensure compliance:

• Understand the Reason for Cancellation:
  • Check the cancellation notice issued by the GST authorities (via the GST portal, email, or physical notice) to identify the reason. Common reasons include:
    • Non-filing of GST returns for 6 consecutive months (for regular taxpayers).
    • Failure to commence business within 6 months (for new registrations).
    • Non-compliance with GST provisions (e.g., issuing invoices without supply, tax evasion).
    • Voluntary cancellation request by the taxpayer.
  • The notice will specify whether the cancellation is suo moto (initiated by the GST officer under Section 29 of the CGST Act) or due to your application.
• Assess the Impact:
  • Once cancelled, you cannot issue GST invoices, claim input tax credit (ITC), or generate e-way bills, effectively halting GST-registered business activities.
  • Buyers may not claim ITC on your supplies, impacting business relationships.
• Rectify Non-Compliance (if Applicable):
  • File Pending Returns: If cancellation is due to non-filing, file all pending returns (GSTR-1, GSTR-3B, GSTR-9) with applicable late fees (₹100/day, max ₹5,000 per return) and interest (18% p.a. on unpaid tax).
  • Pay Outstanding Dues: Clear any tax, interest, or penalties through the GST portal or via demand orders.
  • Correct Other Issues: Address other violations (e.g., update business details, respond to notices) as specified in the cancellation order.
• Apply for Revocation of Cancellation:
  • Eligibility: You can apply for revocation within 30 days of receiving the cancellation order (extendable up to 90 days with approval from the GST officer).
  • Process:
    • Log in to the GST portal (www.gst.gov.in).
    • Navigate to “Services” > “Registration” > “Application for Revocation of Cancellation.”
    • Submit Form GST REG-21 with details of corrective actions (e.g., proof of filed returns, payment receipts).
    • Attach supporting documents (e.g., cleared dues, updated business details).
  • Follow-Up: The GST officer will review the application and may request additional documents or clarification. Respond promptly.
  • Outcome: If approved, your GSTIN will be restored; if rejected, you’ll receive a notice with reasons.
• Appeal if Revocation is Denied:
  • If the revocation application is rejected, file an appeal with the Appellate Authority within 3 months under Section 107 of the CGST Act.
  • Submit Form GST APL-01 with supporting evidence (e.g., proof of compliance, reasons for delay).
  • Engage a GST practitioner or lawyer for complex cases.
• Apply for New Registration (if Revocation Not Possible):
  • If revocation is not feasible (e.g., due to time limits or legal restrictions), apply for a new GST registration via Form GST REG-01 on the GST portal.
  • Ensure all compliance issues are resolved to avoid future cancellations.
  • Note: A new GSTIN may be issued, and you cannot claim ITC or benefits tied to the old GSTIN.
• Inform Stakeholders:
  • Notify customers, suppliers, and banks about the cancellation and steps taken (e.g., revocation or new registration).
  • Update GSTIN details in contracts, invoices, and accounting systems once resolved.
• Prevent Future Cancellations:
  • File GSTR-1 and GSTR-3B on time (by the 10th and 20th of the following month, respectively).
  • Regularly reconcile GSTR-2B with purchase records to ensure ITC compliance.
  • Monitor GST portal notices and respond promptly.
  • Use GST-compliant software for accurate invoicing and return filing.
  • Engage a GST professional for ongoing compliance.
• Seek Professional Help:
  • Consult a GST practitioner or chartered accountant to navigate complex issues, draft revocation applications, or handle appeals.
  • They can also assist in resolving tax disputes or representing you before the GST authorities.

26. How Do You Ensure Timely GST Filing?

Ensuring timely GST filing in India requires systematic planning, accurate record-keeping, and proactive compliance. Here’s how to achieve it:

• Understand Filing Deadlines:
  • GSTR-1 (outward supplies): By the 11th of the next month (monthly) or 13th of the month following the quarter (quarterly for QRMP scheme).
  • GSTR-3B (summary return and tax payment): By the 20th of the next month (monthly) or 22nd/24th of the month following the quarter (quarterly for QRMP, depending on the state).
  • GSTR-9 (annual return): By December 31st of the next financial year (mandatory for taxpayers with turnover above ₹2 crore).
  • Other Returns: GSTR-5 (non-resident taxpayers), GSTR-6 (ISD), etc., have specific deadlines. Check applicability.
• Maintain Organized Records:
  • Keep digital or physical copies of all invoices, credit/debit notes, e-way bills, and payment receipts.
  • Ensure invoices comply with GST rules (valid GSTIN, HSN/SAC codes, tax rates, etc.).
  • Reconcile purchase records with GSTR-2B monthly to verify input tax credit (ITC).
• Use GST-Compliant Software:
  • Adopt accounting software (e.g., Tally, Zoho Books, or ClearTax) for automated invoice generation, tax calculation, and return preparation.
  • Integrate with the GST portal for seamless data upload and error detection.
  • Use tools to track filing deadlines and send reminders.
• Set Up a Filing Calendar:
  • Create a monthly/quarterly calendar with key GST deadlines (GSTR-1, GSTR-3B, tax payments).
  • Set reminders 5–7 days before due dates to allow time for data compilation and review.
• Automate Tax Payments:
  • Pay GST liability (calculated in GSTR-3B) before the filing deadline via the GST portal using net banking, NEFT/RTGS, or over-the-counter methods.
  • Maintain sufficient balance in the Electronic Cash Ledger to avoid delays.
  • Apply for extensions (if allowed) or seek professional help to rectify non-compliance.

27. How Do You Stay Updated On GST Changes?

Staying updated on GST changes in India is crucial for compliance and avoiding penalties. Here’s how to do it effectively:

1. Monitor Official GST Sources:
   • GST Portal (www.gst.gov.in): Check the “News and Updates” section for notifications, circulars, and filing deadline changes.
   • CBIC Website (www.cbic.gov.in): Review press releases, notifications, and circulars issued by the Central Board of Indirect Taxes and Customs.
   • GST Council Website (www.gstcouncil.gov.in): Follow meeting outcomes and decisions on rate changes, exemptions, or rule amendments.
2. Subscribe to Government Notifications:
   • Register for email/SMS alerts on the GST portal for real-time updates on compliance requirements.
   • Follow CBIC’s official social media accounts (e.g., X handle @CBIC_India) for instant announcements.
3. Engage with Professional Bodies:
   • Join newsletters or webinars from institutes like the Institute of Chartered Accountants of India (ICAI) or Confederation of Indian Industry (CII) for expert insights on GST changes.
   • Attend GST-focused seminars or workshops organized by trade bodies or chambers of commerce.
4. Consult GST Practitioners:
   • Work with a chartered accountant or GST consultant who stays updated on regulatory changes and can provide tailored advice.
   • Schedule periodic reviews to discuss how new rules impact your business.
5. Use GST Software and Tools:
   • Leverage accounting software (e.g., Tally, ClearTax, Zoho Books) that integrates GST updates and compliance requirements automatically.
   • Use GST portal tools for real-time validation of rates, HSN/SAC codes, and return formats.
6. Follow Reputable News and Blogs:
   • Read updates from trusted sources like Taxmann, GST Suvidha Kendra, or Economic Times for summaries of GST amendments.
   • Subscribe to newsletters from tax advisory firms (e.g., PwC, Deloitte, EY) for detailed analyses.
7. Participate in Industry Forums:
   • Join online forums or groups on platforms like X, LinkedIn, or WhatsApp where businesses and tax professionals discuss GST updates.
   • Engage in Q&A sessions or follow hashtags like #GSTIndia for real-time insights.
8. Track Legislative Changes:
   • Review amendments to the CGST/SGST/IGST Acts and Rules published in the Gazette of India or the CBIC website.
   • Monitor budget announcements and Finance Acts for major GST policy shifts.
9. Attend Training Programs:
   • Enroll in GST certification courses or training sessions offered by government bodies, private institutes, or online platforms like Udemy or Coursera.
   • Train staff to understand and implement GST changes effectively.
10. Set Up Alerts for Key Events:
    • Mark GST Council meeting dates on your calendar to anticipate potential rate or rule changes.
    • Use Google Alerts for keywords like “GST India updates” to receive news on regulatory changes.

28. How Do You Handle ITC Reconciliation?

Handling Input Tax Credit (ITC) reconciliation in India ensures accurate GST compliance and maximizes eligible credit while avoiding penalties. Here’s a step-by-step approach:

• Understand ITC Reconciliation:
  • ITC reconciliation involves matching your purchase records (invoices, debit notes) with GSTR-2B (auto-generated ITC statement) to verify eligible credit as per Section 16 of the CGST Act.
  • Ensure ITC claimed in GSTR-3B aligns with GSTR-2B to comply with Rule 36(4), which restricts provisional ITC.
• Collect and Organize Data:
  • Gather all purchase invoices, debit/credit notes, and payment records for the relevant period.
  • Ensure invoices meet GST requirements: valid GSTIN, invoice number, date, HSN/SAC codes, and correct tax details (CGST/SGST/IGST).
  • Maintain a digital or physical purchase register with details of the supplier’s GSTIN, invoice value, and tax paid.
• Download GSTR-2B:
  • Log in to the GST portal (www.gst.gov.in) and download GSTR-2B (available after the 14th of the next month) for the relevant tax period.
  • GSTR-2B reflects invoices uploaded by suppliers in their GSTR-1, forming the basis for ITC eligibility.
• Match Purchase Records with GSTR-2B:
  • Compare each invoice in your purchase register with GSTR-2B entries. Check for:
    • Matching GSTIN, invoice number, date, taxable value, and tax amount.
    • Missing invoices (not reported by suppliers in GSTR-1).
    • Discrepancies in tax rates or amounts.
  • Use GST-compliant software (e.g., Tally, ClearTax, or Zoho Books) or Excel for automated matching.
• Classify Mismatches:
  • Invoices Missing in GSTR-2B: The Supplier hasn’t filed GSTR-1 or reported the invoice.
  • Invoices in GSTR-2B but not in Records: Possible unrecorded purchases or supplier errors.
  • Value/Tax Mismatches: Differences in taxable value or tax amount due to errors.
  • Timing Differences: Invoices reported by suppliers in a later period.
• Resolve Discrepancies:
  • Contact Suppliers: For missing or mismatched invoices, inform suppliers immediately with invoice details and request them to:
    • File or amend GSTR-1 to include the invoice.
    • Correct errors in tax amounts or invoice details.
  • Track Amendments: Monitor subsequent GSTR-2B statements to confirm supplier corrections.
  • Record Communication: Maintain emails or letters with suppliers for audit purposes.
• Adjust ITC Claims:
  • Claim ITC Only for Matched Invoices: Claim ITC in GSTR-3B only for invoices reflected in GSTR-2B to avoid disallowance.
  • Defer ITC for Mismatches: If the supplier promises to amend GSTR-1, claim ITC in the month it appears in GSTR-2B, within the deadline (September of the next financial year or annual return date, per Section 16(4)).
  • Reverse Excess ITC: If you claimed ITC for invoices not in GSTR-2B, reverse it in GSTR-3B with interest (18% p.a.) to avoid penalties.
• Use Reconciliation Tools:
  • Leverage the GST portal’s ITC reconciliation tool or third-party software to automate matching and flag discrepancies.
  • Generate reports to identify recurring issues (e.g., non-compliant suppliers).
• Maintain Documentation:
  • Keep reconciled records, GSTR-2B statements, supplier communications, and ITC adjustment proofs for at least 7 years, as required under Section 36 of the CGST Act.
  • Document reasons for unclaimed ITC (e.g., supplier non-compliance) for audit defense.
• Prevent Future Mismatches:
  • Verify the supplier GSTIN and compliance status before transactions using the GST portal.
  • Implement automated invoice validation in accounting systems to catch errors early.
  • Reconcile GSTR-2B with purchase records monthly to address issues before filing GSTR-3 B.
• Seek Professional Help:
  • Engage a GST practitioner or chartered accountant for complex reconciliations, especially during audits or disputes.
  • Consult experts if ITC is disallowed due to the supplier’s defaults, to explore legal remedies.

29. What Tools Do You Use For GST Compliance?

To ensure GST compliance in India, a combination of software, online platforms, and manual tools can streamline processes like return filing, ITC reconciliation, invoicing, and record-keeping. Here are the key tools commonly used:

• GST Portal (www.gst.gov.in):
  • Purpose: Official platform for filing returns (GSTR-1, GSTR-3B, GSTR-9), downloading GSTR-2B, generating e-way bills, paying taxes, and checking supplier compliance.
  • Features:
    • ITC reconciliation tools for matching GSTR-2B with purchase records.
    • Notices and updates on GST rules and deadlines.
    • GSTIN verification and registration services.
  • Use Case: Essential for direct compliance tasks and monitoring supplier GSTR-1 filings.
• Accounting and GST Software:
  • TallyPrime:
    • Features: Automated GST calculations, invoice generation, return filing, and ITC reconciliation.
    • Use Case: Ideal for small to large businesses to manage books and file returns directly from the software.
  • ClearTax:
    • Features: Cloud-based GST return filing, ITC matching, e-invoicing, and error detection.
    • Use Case: Simplifies complex filings and reconciliations for businesses and tax professionals.
  • Zoho Books:
    • Features: GST-compliant invoicing, return preparation, and integration with the GST portal.
    • Use Case: Suitable for SMEs with integrated accounting and GST needs.
  • QuickBooks India:
    • Features: GST invoicing, tax calculations, and reconciliation reports.
    • Use Case: Useful for businesses with global operations needing GST compliance.
  • Marg ERP:
    • Features: Industry-specific GST solutions, e-way bill generation, and return filing.
    • Use Case: Popular in retail, manufacturing, and distribution sectors.
• E-Invoicing Tools:
  • NIC E-Invoice Portal (einvoice1.gst.gov.in):
    • Purpose: Mandatory for businesses with a turnover above ₹5 crore (as of 2025) to generate IRNs and QR codes.
    • Use Case: Ensures compliance with e-invoicing norms under GST.
  • Third-Party E-Invoicing Software (e.g., ClearTax, Tally, or GSPs like Aspire or Cygnet):
    • Features: Bulk IRN generation, integration with ERP systems, and error validation.
    • Use Case: Streamlines e-invoicing for high-volume transactions.

30. How Do You Manage GST Compliance For Multiple States?

Managing GST compliance across multiple states in India requires careful coordination due to varying state-specific rules, multiple GSTINs, and inter-state transactions. Here’s a streamlined approach to ensure compliance:

• Obtain State-Specific GSTINs:
  • Register separately in each state where you have a fixed establishment or supply goods/services, as per Section 22 of the CGST Act.
  • Use the GST portal (www.gst.gov.in) to apply for GSTINs via Form GST REG-01, linking all registrations to the same PAN.
  • Maintain a centralized record of all GSTINs with details like state, business location, and compliance requirements.
• Centralized Data Management:
  • Use GST-compliant ERP or accounting software (e.g., TallyPrime, SAP, ClearTax, or Zoho Books) to consolidate invoices, ITC, and return data across states.
  • Maintain a master database for invoices, e-way bills, and tax payments, tagged by state and GSTIN.
  • Store records digitally (e.g., Google Drive, Dropbox) for at least 7 years, as required under Section 36 of the CGST Act.
• Understand Intra-State vs. Inter-State Transactions:
  • Intra-State: Apply CGST + SGST for supplies within the same state, using the state’s GSTIN.
  • Inter-State: Apply IGST for supplies across states, ensuring correct GSTIN and place of supply rules (per Section 10/11 of the IGST Act).
  • Use HSN/SAC codes and verify tax rates for each state to avoid errors.
• Streamline Invoicing:
  • Generate state-specific invoices with the correct GSTIN, tax type (CGST/SGST or IGST), and place of supply.
  • Implement e-invoicing (mandatory for turnover above ₹5 crore as of 2025) using the NIC e-invoice portal or GSPs like ClearTax for all state GSTINs.
  • Automate invoice validation in software to ensure compliance with state-wise formats.

31. Describe A Time When You Resolved A GST Filing Issue.

In early 2024, a mid-sized manufacturing company I was assisting (hypothetically) faced a GST filing issue.

The company, registered in Maharashtra and Karnataka, discovered that their GSTR-3B for December 2023 in Maharashtra could not be filed due to a mismatch between their input tax credit (ITC) claims and GSTR-2B data.

Additionally, the GST portal flagged an error, indicating insufficient ITC in the Electronic Credit Ledger, risking a filing delay and potential penalties.

Steps Taken To Resolve The Issue:

• Identified the Issue:
  • I reviewed the GSTR-2B statement for Maharashtra’s GSTIN and compared it with the company’s purchase register. The mismatch showed that ITC worth ₹2 lakh from two suppliers was missing in GSTR-2B, though invoices were recorded in the company’s books.
  • The root cause was that one supplier had not filed their GSTR-1, and the other had reported incorrect invoice details (wrong taxable value).
• Contacted Suppliers:
  • I drafted emails to both suppliers, attaching copies of the invoices and requesting immediate action:
    • Supplier 1 (non-filer): Urged them to file their GSTR-1 for December 2023 by the 11th of January 2024.
    • Supplier 2 (incorrect details): Asked them to amend their GSTR-1 to correct the taxable value.
  • I followed up with phone calls to ensure urgency, as the GSTR-3B filing deadline was the 20th of January.
• Temporary Workaround:
  • Since the GSTR-3B deadline was approaching and Supplier 1’s GSTR-1 was still pending, I advised the company to exclude the ₹1.2 lakh ITC from that supplier’s invoices in the current filing to avoid errors.
  • For Supplier 2, who corrected their GSTR-1 by January 15th, the updated ITC of ₹80,000 appeared in GSTR-2B, allowing its inclusion in GSTR-3B.
• Filed GSTR-3B On Time:
  • Using TallyPrime, I prepared the GSTR-3B with the reconciled ITC (excluding Supplier 1’s credit) and ensured the tax liability of ₹3.5 lakh was paid via the Electronic Cash Ledger.
  • The return was filed on January 18th, avoiding late fees (₹100/day, max ₹5,000) and interest (18% p.a.).
• Followed Up on Pending ITC:
  • Supplier 1 filed their GSTR-1 by January 25th, and the ₹1.2 lakh ITC reflected in the January 2024 GSTR-2B.
  • I updated the company’s records and claimed this ITC in the January GSTR-3B, filed by February 20th, ensuring no credit was lost within the Section 16(4) deadline (September 2024).
• Prevented Future Issues:
  • I implemented a monthly reconciliation process using ClearTax to match GSTR-2B with purchase records before the GSTR-3B deadline.
  • I recommended verifying supplier compliance (GSTIN status and GSTR-1 filing history) on the GST portal before major transactions.
  • The company trained its accounts team on ITC reconciliation and set up automated reminders for supplier follow-ups.

32. How Do You Prioritize Tasks During GST Filing Season?

GST filing season involves tight deadlines for returns like GSTR-1, GSTR-3B, and GSTR-9, requiring efficient task management to ensure compliance and avoid penalties. Here’s how to prioritize effectively:

• Map Out Deadlines:
  • Note critical dates: GSTR-1 (11th of next month or 13th post-quarter for QRMP), GSTR-3B (20th monthly or 22nd/24th quarterly), and GSTR-9 (December 31st of next financial year).
  • Set internal deadlines 3–5 days earlier (e.g., complete GSTR-1 data by the 7th) to buffer for errors.
• Rank Tasks by Urgency and Impact:
  • High Priority: Tax payments, GSTR-3B filing, and ITC reconciliation (critical to avoid penalties of ₹100/day and 18% interest).
  • Medium Priority: GSTR-1 preparation (affects buyers’ ITC) and supplier follow-ups for GSTR-2B mismatches.
  • Low Priority: Record updates, staff training, or non-urgent notices (defer if needed).
  • Use a tool like Trello or Excel to categorize tasks by priority.
• Follow a Task Sequence:
  • Days 1–5 of Month: Collect invoices, update purchase records, and estimate tax liability.
  • Days 6–10: Reconcile GSTR-2B with purchases, resolve mismatches via supplier communication.
  • Days 10–11: Finalize and file GSTR-1.
  • Days 12–18: Verify ITC, pay taxes, prepare, and file GSTR-3B.
  • Post-Filing: Archive records, respond to GST portal notices.
• Leverage Automation:
  • Use GST software (e.g., ClearTax, TallyPrime) to automate ITC matching, return preparation, and error checks.
  • Prioritize tasks flagged by software (e.g., urgent mismatches or payment shortfalls).
• Delegate Strategically:
  • Assign critical tasks (e.g., filing, tax calculations) to experienced staff or a GST practitioner.
  • Outsource routine tasks (e.g., data entry) to focus on high-stakes filings.
• Monitor Cash Flow and Notices:
  • Ensure funds are ready for tax payments by the 15th to avoid GSTR-3B delays.
  • Check the GST portal daily for notices and prioritize responses to tax or ITC issues.
• Batch and Streamline:
  • Group similar tasks (e.g., reconciling all GSTINs or contacting suppliers) to save time.
  • Use templates for supplier emails to resolve GSTR-1 errors quickly.

33. How Do You Handle Stress During Audits?

GST audits, conducted under Section 65 or 66 of the CGST Act, can be stressful due to intense scrutiny, tight deadlines, and potential penalties. Here’s how to manage stress effectively:

• Be Prepared:
  • Maintain organized records (invoices, GSTR-1, GSTR-2B, GSTR-3B, e-way bills) for 7 years, as required by Section 36. Use cloud tools like Dropbox for quick access.
  • Conduct a pre-audit review with GST software (e.g., ClearTax, Tally) to fix ITC mismatches or filing errors, reducing last-minute panic.
  • Understand the audit notice (scope, period, documents) to focus efforts and avoid overwhelm.
• Organize Tasks:
  • Break audit work into small steps: document submission, ITC reconciliation, and query responses.
  • Prioritize urgent tasks (e.g., submitting records within the 15-day notice period) and delegate routine tasks (e.g., data sorting) to staff.
  • Use a checklist or tool like Asana to track progress, creating a sense of control.
• Seek Professional Help:
  • Engage a GST practitioner or chartered accountant to handle complex issues like tax disputes or ITC disallowance. Their expertise reduces your burden.
  • Schedule brief check-ins to stay updated without feeling overwhelmed.
• Stay Calm with Auditors:
  • Respond to queries promptly with clear, documented answers to build rapport and avoid escalations.
  • Keep a professional tone and log all interactions for reference, reducing anxiety about miscommunication.
• Use Technology:
  • Leverage GST software to generate reports (e.g., ITC summaries, filing history) quickly, saving time and mental energy.
  • Automate reconciliations to focus on high-priority tasks like addressing auditor notices.
• Manage Time Wisely:
  • Allocate specific hours for audit tasks (e.g., mornings for document review) to balance workload and avoid burnout.
  • Start preparation immediately after receiving the notice to avoid a last-minute rush.

34. What Motivates You To Work Under GST Compliance?

The dynamic nature of the GST Laws and its impact on businesses motivates me to stay updated and to make contribution in the smooth tax operation. This is one of the crucial aspects of GST that you must be well aware off.

35. What’s Your Approach To Training Others On GST?

The best answer to this GST interview question is that i make use of simplified examples, real world scenario, and hands on practice to ensure that the team members knows the GST concepts effectively.

36. How Does GST Impact Exports?

The Goods and Services Tax (GST) in India, implemented under the CGST Act, 2017, significantly impacts exports by promoting competitiveness and simplifying tax processes. Exports are treated as zero-rated supplies under Section 16 of the IGST Act, meaning no GST is levied on exported goods or services, and exporters can claim refunds for taxes paid on inputs. So, let’s explore detailed look on GST:-

1. Zero Rated Supplies 

Exports of goods or services are exempt from GST, ensuring Indian products remain cost-competitive in global markets.

Exporters can:

• Supply without paying GST and claim a refund of input tax credit (ITC) on inputs/input services used for exports.
• Pay IGST on exports and claim a refund of the paid tax.

2. Input Tax Credit Returns 

Exporters can claim ITC on GST paid for inputs (raw materials, services) used in producing exported goods/services.

Refunds are processed under two options:

• Export under Bond/Letter of Undertaking (LUT): Export without paying IGST and claim ITC refund. LUT is filed via Form GST RFD-11 on the GST portal, typically by businesses with a clean compliance record.
• Export with IGST Payment: Pay IGST on exports (using ITC or cash) and claim a refund post-export. This is suitable for businesses with excess ITC.

Refunds must be filed via Form GST RFD-01, with a 2-year time limit from the export date.

3. Simplified Export Process 

• GST integrates multiple taxes (e.g., VAT, service tax) into one, reducing compliance complexity for exporters compared to the pre-GST era.
• E-invoicing (mandatory for turnover above ₹5 crore as of 2025) and e-way bills streamline documentation for export shipments.
• The GST portal facilitates refund applications and tracking, improving transparency.

37. What Is The Role Of An Input Service Distributor?

An Input Service Distributor (ISD), defined under Section 2(61) of the CGST Act, 2017, is a mechanism for businesses to distribute Input Tax Credit (ITC) on services received centrally to their units or branches with different GSTINs under the same PAN. Here’s its key role:

• Distributes ITC for Services:
  • An ISD allocates ITC from input services (e.g., IT, advertising, or consultancy) to recipient units (e.g., branches in different states) based on their turnover proportion, as per Rule 39 of the CGST Rules.
  • Example: If a ₹1 lakh ITC is received and Branch A’s turnover is 60% of the total, it gets ₹60,000 ITC.
• Centralizes ITC Management:
  • Handles invoices for services used by multiple units, ensuring ITC is not stuck at the head office and is distributed efficiently to branches for offsetting GST liabilities.
• Issues ISD Invoices:
  • Creates ISD invoices (not tax invoices) to transfer ITC to recipient units, detailing the GSTIN, ITC amount (CGST, SGST, or IGST), and other mandatory fields.
• Files GSTR-6 Return:
  • Submits a monthly GSTR-6 return by the 13th of the following month, reporting ITC received and distributed. This ensures transparency and compliance.
• Simplifies Multi-State Compliance:
  • Enables businesses with multiple GSTINs (e.g., head office in Delhi, branches in Gujarat) to manage ITC for common services without cross-charging or complex invoicing.
• Ensures ITC Utilization:
  • Prevents ITC loss by distributing credits to units that can use them, optimizing tax benefits for the business.

38. Explain GSTR-1, GSTR-2A, and GSTR-3 B?

In the Indian GST framework, GSTR-1, GSTR-2A, and GSTR-3B are critical returns that facilitate tax reporting, input tax credit (ITC) reconciliation, and compliance. Below is a clear explanation of each, including their purpose, key features, and filing requirements:

1. GSTR-1: Return for Outward Supplies

• Purpose: GSTR-1 is filed by registered taxpayers to report details of outward supplies (sales, services, or exports) made during a tax period. It enables buyers to claim ITC based on the supplier’s reported invoices.
• Key Features:
  • Includes details of B2B (business-to-business) invoices, B2C (business-to-consumer) sales, credit/debit notes, advances, exports, and exempt/nil-rated supplies.
  • Auto-populates data in the buyer’s GSTR-2A/2B for ITC verification.
  • Mandatory for all taxpayers except composition scheme dealers, non-resident taxpayers, and Input Service Distributors (ISDs).
• Filing Frequency:
  • Monthly: By the 11th of the next month for taxpayers with turnover above ₹5 crore or those not opted for the QRMP scheme.
  • Quarterly: By the 13th of the month following the quarter for taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme (turnover up to ₹5 crore).
• Key Details Reported:
  • GSTIN of recipients (for B2B).
  • Invoice number, date, taxable value, and tax amount (CGST, SGST, IGST).
  • HSN/SAC codes, place of supply, and e-invoice details (if applicable).
• Compliance Notes:
  • Late filing incurs a fee of ₹100/day (₹50 CGST + ₹50 SGST, max ₹5,000 per return).
  • Errors can be corrected in the next period’s GSTR-1, within the deadline (September of the next financial year or annual return date).
• Example: A manufacturer in Delhi reports ₹10 lakh B2B sales with ₹1.8 lakh IGST in GSTR-1 for January 2025, filed by February 11, 2025. This data appears in the buyer’s GSTR-2A.

2. GSTR-2A: Auto-Populated ITC Statement

• Purpose: GSTR-2A is a read-only, auto-generated statement that reflects ITC available to a taxpayer based on the supplier’s GSTR-1 filings. It helps taxpayers verify ITC eligibility before claiming it in GSTR-3B.
• Key Features:
  • Dynamically updated as suppliers file GSTR-1, GSTR-5 (non-resident suppliers), GSTR-6 (ISDs), or GSTR-7 (TDS deductors).
  • Includes details of inward supplies (purchases) like supplier GSTIN, invoice details, and tax amounts (CGST, SGST, IGST).
  • Used alongside GSTR-2B (a static ITC statement, available post-14th of the next month) for ITC reconciliation.
• Filing Frequency:
  • Not filed by the taxpayer; it’s auto-populated on the GST portal and available for viewing anytime.
• Key Details Included:
  • B2B invoices, credit/debit notes, and amendments reported by suppliers.
  • ITC from ISDs, imports, or reverse charge mechanism (RCM) supplies.
• Compliance Notes:
  • Taxpayers must reconcile GSTR-2A/2B with their purchase records to ensure ITC claims comply with Rule 36(4) of the CGST Rules (ITC limited to invoices in GSTR-2B).
  • Discrepancies (e.g., missing invoices) require supplier follow-up to amend GSTR-1.
• Example: A retailer in Karnataka sees ₹50,000 ITC in GSTR-2A for January 2025, based on supplier invoices. If a supplier’s invoice is missing, the retailer contacts them to file GSTR-1 before claiming ITC.

3. GSTR-3B: Summary Return for Tax Liability and ITC

• Purpose: GSTR-3B is a self-declared summary return where taxpayers report their total tax liability, ITC claimed, and tax paid for a tax period. It serves as a provisional return to declare and discharge GST obligations.
• Key Features:
  • Summarizes outward supplies, inward supplies under reverse charge, ITC availed, and tax paid (via cash or ITC).
  • Mandatory for all taxpayers except those under the composition scheme, non-resident taxpayers, or ISDs.
  • Used to calculate net tax liability after adjusting ITC against output tax.
• Filing Frequency:
  • Monthly: By the 20th of the next month for taxpayers with turnover above ₹5 crore or those not in QRMP.
  • Quarterly: By the 22nd or 24th of the month following the quarter (state-specific) for QRMP taxpayers.

39. What Are Zero-Rated Supplies?

Zero-Rated Supplies in the Indian GST framework, as defined under Section 16 of the IGST Act, 2017, are specific supplies of goods or services that are taxed at a 0% GST rate, allowing suppliers to claim a refund of Input Tax Credit (ITC) on inputs used in making these supplies.

Unlike exempt or nil-rated supplies, zero-rated supplies are fully integrated into the GST system, ensuring no tax burden on the supplier while promoting exports and certain domestic transactions. Below is a detailed explanation:

Zero-rated supplies include the following:-

• Exports of Goods or Services:
  • Goods physically shipped out of India (e.g., textiles exported to the USA).
  • Services where the place of supply is outside India and payment is received in convertible foreign exchange (e.g., IT services provided to a US client).
• Supplies to Special Economic Zones (SEZs):
  • Goods or services supplied to SEZ units or SEZ developers for authorized operations.
  • Treated as exports, even though the supply occurs within India.
  • These supplies are taxed at 0%, meaning no GST is charged on the output, but ITC on inputs (e.g., raw materials, services) is refundable.

Key Features Of Zero-Rated Supplies:

• No Output Tax:
  • Suppliers do not charge GST on zero-rated supplies, making them cost-competitive, especially for exports.
• ITC Refund Eligibility:
  • Suppliers can claim refunds for GST paid on inputs/input services used in zero-rated supplies, preventing tax accumulation.
  • Refunds are available under two methods:
    • Export under Bond/Letter of Undertaking (LUT): Supply without paying IGST and claim ITC refund.
    • Export with IGST Payment: Pay IGST on the supply (using ITC or cash) and claim a refund of the paid tax.
• Promotes Exports:
  • Zero-rating eliminates the cascading effect of taxes, ensuring Indian goods and services are priced competitively in global markets.

40. How Does GST Affect E-commerce?

The Goods and Services Tax (GST) in India, implemented under the CGST Act, 2017, has significantly transformed the e-commerce sector by streamlining taxation, enhancing compliance, and creating a level playing field. However, it also introduces specific obligations for e-commerce operators and sellers. Below is a detailed explanation of how GST affects e-commerce:

Key Impacts of GST on E-commerce

• Unified Tax Structure:
  • Pre-GST Challenges: E-commerce businesses faced multiple taxes (VAT, CST, service tax) with varying state-specific rules, leading to complexities in compliance and tax cascading.
  • Post-GST Benefits: GST consolidates these taxes into CGST, SGST, or IGST, simplifying tax calculations and reducing the cost of goods/services by allowing Input Tax Credit (ITC) across the supply chain.
• Mandatory GST Registration:
  • E-commerce sellers, regardless of turnover, must register for GST under Section 24(ix) of the CGST Act if they supply goods/services through an e-commerce platform (e.g., Amazon, Flipkart). The ₹40 lakh/₹20 lakh turnover threshold for regular businesses does not apply.
  • Implication: Small sellers, even with low turnover, must comply with GST filing and documentation requirements.
• Tax Collection at Source (TCS):
  • E-commerce operators (e.g., Amazon, eBay) are required to collect TCS at 1% (0.5% CGST + 0.5% SGST or 1% IGST) on the net value of taxable supplies made by sellers through their platform, as per Section 52 of the CGST Act.
  • Process:
    • TCS is deducted from seller payments and deposited by the operator via GSTR-8 by the 10th of the next month.
    • Sellers claim TCS as ITC when filing GSTR-3B.
  • Impact: Improves compliance by tracking seller transactions but temporarily reduces seller cash flow until ITC is claimed.

41. What Is Deemed Export Under GST?

Deemed Export under the Goods and Services Tax (GST) regime in India refers to specific supplies of goods that are treated as exports for GST purposes, even though the goods do not leave the country. These supplies are defined under Section 2(39) of the CGST Act, 2017, and are eligible for benefits similar to exports, such as zero-rated tax treatment or refunds of Input Tax Credit (ITC).

42. What Is The Difference Between Exempt And Rated Supplies?

There are several points of difference between Exempt and Rated supplies that you should be well aware off. Some of the key differences that you must know from your end are as follows:-

43. What Is The GST Applicability On Imports?

The Goods and Services Tax (GST) in India, governed by the CGST Act, 2017, and IGST Act, 2017, applies to imports of goods and services, treating them as inter-state supplies under Section 7 of the IGST Act. Imports are subject to Integrated GST (IGST) and, for goods, additional customs duties, with specific provisions for Input Tax Credit (ITC) and compliance.

1. Import Of Goods  

Tax Levied: Imports of goods are subject to IGST at the applicable GST rate, based on the HSN code of the goods, as per Section 5 of the IGST Act. IGST is levied on the assessable value of the goods, which includes:

• CIF (Cost, Insurance, Freight) value.
• Basic Customs Duty (BCD).
• Any other applicable duties (e.g., anti-dumping duty).

2. Import Of Services  

Tax Levied: Imports of services are subject to IGST under the Reverse Charge Mechanism (RCM), as per Section 5(3) of the IGST Act. The recipient of the service in India is liable to pay IGST.

Place of Supply: Determined by Section 13 of the IGST Act (e.g., location of the recipient for most services).

Conditions for RCM:

• The supplier is located outside India.
• The recipient is a registered person or, in some cases, an unregistered person liable under RCM.
• The service is provided in India (based on place of supply rules).

Example: An Indian company hires a US-based consultant for ₹5 lakh. The Indian company pays 18% IGST (₹90,000) under RCM in its GSTR-3B.

Payment: The recipient reports and pays IGST in GSTR-3B (by the 20th of the next month) and claims ITC if eligible.

3. Input Tax Credit  

• Goods: Importers can claim ITC on the IGST paid during customs clearance, provided the goods are used for taxable supplies and the import is reflected in GSTR-2B. ITC is claimed in GSTR-3B.
• Documents Required:- Bill of Entry, customs payment challan, and supplier invoice (if applicable).
• Services:- ITC on IGST paid under RCM for services can be claimed, subject to eligibility under Section 16 of the CGST Act (e.g., used for business purposes).
• Restriction:- ITC is not available for exempt or non-taxable supplies, and ineligible ITC must be reversed under Rule 42/43.
• Example:- In the above goods import case, the importer claims ₹1.998 lakh IGST as ITC in GSTR-3B, reducing their net tax liability.

4. Exemption & Special Cases 

• • Exempt Goods: Certain imports (e.g., life-saving drugs, goods for charitable purposes) may be exempt from IGST under notifications (e.g., Notification No. 45/2017-Customs).
  • Imports for Exports: Goods imported under schemes like Advance Authorization (AA) or Export Promotion Capital Goods (EPCG) may be exempt from IGST, subject to export obligations.
  • SEZ Imports: Goods imported directly into Special Economic Zones (SEZs) are exempt from IGST if used for authorized operations.
  • Personal Imports: Non-commercial imports (e.g., personal baggage up to ₹50,000) may be exempt from IGST, subject to customs rules.
  • Services: Some services (e.g., online educational services from abroad) may be exempt under specific notifications.

5. Compliance Requirements 

• • Bill of Entry: Importers file a Bill of Entry with customs, mentioning the GSTIN to link IGST payments to their GST account.
  • GSTR-2B: IGST paid on imports auto-populates in GSTR-2B for ITC claims, based on customs data.
  • GSTR-3B: Report IGST paid on imports (goods and services) in GSTR-3B (Table 4 for ITC, Table 3.1 for RCM liability).
  • E-Invoicing: Not applicable for imports, but invoices from foreign suppliers must comply with GST documentation for ITC claims.
  • Record-Keeping: Maintain Bills of Entry, supplier invoices, and payment proofs for 7 years (Section 36) for audits.

6. Reporting In GST Returns 

Goods:

• Reported in GSTR-3B (Table 3.1(d) for IGST liability, Table 4 for ITC availed).
• Auto-populated in GSTR-2B based on ICEGATE data.

Services:

• Reported in GSTR-3B (Table 3.1(c) for RCM liability, Table 4 for ITC).
• Details of RCM supplies are also reported in GSTR-1 (Table 4B) if applicable.

Filing Deadlines: GSTR-3B by the 20th (monthly) or 22nd/24th (quarterly for QRMP).

44. Explain The Process Of GST Refund?

The GST refund process in India, governed by Section 54 of the CGST Act, 2017, and Rule 89-96 of the CGST Rules, 2017, allows taxpayers to claim refunds for excess GST paid, unutilized Input Tax Credit (ITC), or taxes paid on zero-rated supplies (e.g., exports).

Types of GST Refunds

Refunds can be claimed for the following reasons:

1. Excess Cash Payment: Overpayment of GST due to errors in GSTR-3B or tax calculations.
2. Unutilized ITC: Accumulated ITC due to:
   • Zero-rated supplies (exports, SEZ supplies).
   • Inverted duty structure (higher GST on inputs than outputs, e.g., textiles).
3. Exports/Zero-Rated Supplies: Refund of IGST paid on exports or ITC on inputs for exports/SEZ supplies.
4. Deemed Exports: Refund of ITC or IGST for supplies to EOUs, Advance Authorization holders, etc.
5. Provisional Assessment: Refund of excess tax paid under provisional assessment (Section 60).
6. Other Cases: Refunds for tax paid under RCM, excess tax due to erroneous tax rates, or tax paid by unregistered persons in specific cases.

45. What Are The Mixed And Composite Supplies?

There are several points of differences between Mixed and Composite supplies. Some of the key factors of differences are as follows:-

46. What Is The Anti- Profiteering Clause In GST?

The Anti-Profiteering Clause in the Indian GST framework, introduced under Section 171 of the CGST Act, 2017, mandates that businesses pass on the benefits of reduced tax rates or increased Input Tax Credit (ITC) to consumers through lower prices. This provision aims to ensure that the cost reductions resulting from GST implementation are not retained as profits by businesses but are instead reflected in the prices of goods and services.

47. What Is LUT( Letter Of Undertaking) Under GST?

A Letter of Undertaking (LUT) under the Goods and Services Tax (GST) regime in India is a document submitted by a registered taxpayer to undertake the export of goods or services or supply to Special Economic Zones (SEZs) without payment of Integrated GST (IGST).

It is governed by Section 16 of the IGST Act, 2017, and Rule 96A of the CGST Rules, 2017. The LUT allows taxpayers to claim refunds of Input Tax Credit (ITC) on inputs used for zero-rated supplies, simplifying cash flow for exporters and SEZ suppliers.

48. What Is The GST Compensation Cess?

The GST Compensation Cess is a special tax levied under the Goods and Services Tax (Compensation to States) Act, 2017, in India to compensate states for revenue losses arising from the transition to GST from the pre-GST tax regime (e.g., VAT, excise). It is an additional cess imposed on specific goods and services, over and above the regular GST (CGST, SGST, or IGST), to create a compensation fund for states.

49. What Is A Non-Resident Taxable Person?

A Non-Resident Taxable Person (NRTP) under the Indian GST framework, as defined under Section 2(77) of the CGST Act, 2017, is a person who is not a resident of India but occasionally undertakes taxable supplies of goods or services in India, either as a principal or agent, without having a fixed place of business or residence in the country. The NRTP regime ensures that such entities comply with GST regulations for their transactions in India.

50. What Are The Challenges Of GST Implementation?

There are numerous challenges you need to face for GST Implementation. Some of the key challenges that you should overcome from your end are as follows:-

Key Challenges of GST Implementation

• Complex Compliance Requirements:
  • Multiple Returns: Businesses must file multiple returns, such as GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return), with strict deadlines (e.g., 11th and 20th of the next month for GSTR-1 and GSTR-3B). This is particularly burdensome for small and medium enterprises (SMEs).
  • E-Invoicing: Mandatory for businesses with turnover above ₹5 crore (as of 2025), requiring integration with the NIC e-invoice portal, adding technical complexity.
  • Reconciliation: Matching purchase invoices with GSTR-2B to claim Input Tax Credit (ITC) is time-consuming, especially when suppliers fail to file GSTR-1, leading to ITC disallowance.
  • Impact: SMEs with limited resources struggle with compliance, often requiring external consultants, increasing costs.
• Technological Dependence and Portal Issues:
  • GST Portal Glitches: The GST Network (GSTN) portal has faced issues like slow processing, crashes during filing deadlines, and errors in data syncing (e.g., GSTR-2B mismatches).
  • Digital Infrastructure: Small businesses in rural areas lack access to reliable internet or technical expertise to navigate the portal, hindering timely filings.
  • E-Way Bills: Mandatory for goods movement (value > ₹50,000), e-way bill generation requires real-time updates, which can be disrupted by portal downtime.
  • Impact: Technical issues lead to late filings, penalties (₹100/day, max ₹5,000 per return), and delays in ITC claims or refunds.

Final Takeaway

Hence, these are some of the crucial GST interview questions that you must be well aware of. In this article, you will get the complete idea about GST concepts that can make things work perfectly well for you in all possible ways.

You can share your views and opinions in our comment box. This will help us to know your take on this matter. Without the application of the correct plans, things can turn worse for you in the long run.

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ICA Edu Skills Team

Working with businesses in diverse industries. I'm passionate about helping others understand and manage their finances effectively. This blog is where I share practical tips, insightful guides, and the latest updates on accounting, taxation, GST, TallyPrime, and advanced Excel. Feel free to ask questions, leave comments.

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