Below is a detailed overview of the latest modifications introduced in the IMS, effective from the October 2025 tax period.

Pending Action for Specified Records

Taxpayers can now keep certain specified records in the pending category, but only for a limited period.

• For monthly filers, the pending status can be maintained for one month (one tax period).
• For quarterly filers, the pending status can be maintained for one quarter (one tax period).

The following types of records can be kept pending in the system:

• Credit Notes or upward amendments of Credit Notes
• Downward amendment of Credit Note where the original Credit Note was rejected
• Downward amendment of Invoice/Debit Note where the original Invoice was already accepted and GSTR-3B has been filed
• ECO-document downward amendment where the original document was accepted and GSTR-3B has been filed

This new control ensures that the pending option is used within a defined timeframe, encouraging timely reconciliation and reducing open items in the system.

Declaring ITC Reduction Amount

To bring more clarity on the reversal of Input Tax Credit (ITC), the GSTN has specified the following:

• If the recipient has not availed ITC on a particular invoice or document, no ITC reversal is required.
• If ITC has been availed only partially, the reversal obligation will be limited to the extent of ITC actually availed.

Accordingly, a new facility has been added in the IMS where taxpayers can declare the amount of ITC actually availed and, where applicable, enter the amount to be reversed.

This facility allows taxpayers to:

• Reverse ITC either in full or in part, by specifying the amount.
• Declare reversals that have already been made earlier or where ITC was never availed.

Such transparency helps prevent unnecessary reversals and ensures accurate ITC reporting in line with Section 16(4) of the CGST Act, 2017.

Option to Save Remarks

A new “Remarks” feature is being introduced in IMS, allowing taxpayers to add short notes or explanations while marking any record as rejected or pending.

• This feature is optional and will be rolled out shortly.
• The remarks entered will appear in the taxpayer’s GSTR-2B for future reference.
• The same will also be visible to suppliers in their Outward Supplies View Dashboard, helping them identify issues and make necessary corrections.
• This improvement enhances communication and transparency between suppliers and recipients.

Effective Date and Due Date

• The new functionalities related to keeping credit notes pending and declaring ITC amounts will be made effective from the October 2025 tax period.
• The due date for keeping records pending will be calculated based on the date or tax period in which such documents are communicated by the supplier.

Conclusion

GST Portal Update: New Changes in Invoice Management System (IMS)

The above-mentioned changes will apply only to records filed by suppliers after the rollout of these new features. Taxpayers are advised to carefully review the new provisions and utilize them while taking actions and filing returns for upcoming periods.

These updates in the IMS mark another progressive step towards a more transparent and efficient GST compliance system. By allowing partial ITC reversals, restricting the pending period, and introducing remarks for better communication, the GSTN aims to strengthen invoice-level accuracy and reduce disputes in ITC reconciliation. To read more about IMS Facility, click here to read our blog on “GST Portal new Facility “Invoice Management System (IMS)”

To download official advisory, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

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MRL Industrial Cooperative Service Society Ltd vs. Revenue [W.P. 3993 of 2025]

Background of the Case

The petitioner, MRL Industrial Cooperative Service Society Ltd., challenged three separate orders passed by the Revenue, under the GST laws. The orders in question were passed under section 73 and section 161 of the TN/CGST Act 2017 which related to FY 2018-19.

Arguments by the Appellant

The petitioner contended that all notices and communications leading to the impugned orders were uploaded only on the GST portal under the “View of additional notices and orders” column. The petitioner was unaware of these notices and, consequently, could not file a reply or appear for a personal hearing. As a result, the orders were passed ex-parte, violating the principles of natural justice.

The petitioner, a cooperative society providing manpower supply services, argued that the ex-parte orders caused severe hardship, as its bank account was attached, making it difficult to disburse salaries to employees.

The petitioner submitted that it was willing to deposit 10% of the disputed tax amount if the court set aside the impugned orders.

Respondent’s Response

The respondent, conceded that if the petitioner deposited 10% of the disputed tax, the court could consider the petitioner’s prayer.

Court Findings and Decision

The Madras High Court ruled in favor of the petitioner, holding that the impugned orders were passed without affording the petitioner an opportunity to be heard. The notices were not served physically but were merely uploaded on the GST portal, which the petitioner was unaware of. The court held that the orders were ex-parte and, therefore, unsustainable in law.

The court emphasized that the principles of natural justice were violated, as the petitioner was not given a fair chance to present its case. The court set aside the impugned orders and remanded the matters back to the Revenue for fresh consideration and the court directed the respondent to defreeze the petitioner’s bank account upon proof of payment of 10% of the disputed tax.

To download official order, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

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GST reconciliation is a crucial process for businesses to ensure that GST filings match with the records available at GST portal as well as with your books of accounts. Inaccurate reconciliation can lead to tax penalties and loss of Input Tax Credit (ITC). In this guide, we will walk you through the step-by-step process of GST reconciliation for 2025 and how to avoid common errors.

What is GST Reconciliation?

GST reconciliation refers to the process of matching your sales and purchase details of books with the data filed on the GST portal. This ensures that the Input Tax Credit (ITC) you claim is accurate and outward GST are paid and there are no discrepancies between your records and your suppliers’ filings.

Importance of GST Reconciliation for 2025

1. Avoiding Penalties: Mismatches in GST filings can result in penalties and unnecessary compliance issues in future.
2. Ensuring ITC Accuracy: Accurate reconciliation ensures that you claim the correct amount of Input Tax Credit. Wrong ITC claimed can create a trouble with burden of Interest and penalty.
3. GST Compliance: Regular reconciliation helps businesses stay GST-compliant and avoid notices from the tax department.
4. Better Cash Flow Management: Proper reconciliation prevents cash flow issues due to denied ITC claims.
5. GST Annual return: GST reconciliation help to file your GST return as this is the last return for particular year and we can correct and adjust all are mistakes and omission at year end.

Key Steps for GST Reconciliation for 2025

1. Collect and Organize Your Data

Gather all invoices, sales, and purchase records from your accounting software or ERP system. Ensure that invoices have valid GSTINs and other details such as taxable value, GST amount, Invoice date etc.

2. Download GST Data from the GST Portal

Log in to the GST portal and download your GSTR-2A, GSTR-2B, and Annual GSTR-3B & GSTR 1 reports. These documents help to match your filed returns with your suppliers’ data and your software data.

3. Compare and Reconcile

You can reconcile your all GST in reference to outward as well inward GST in following ways:

• GSTR 3B and GSTR 2A: Reconcile the ITC claimed in GSTR 3B with ITC shown under GSTR 2A.
• GSTR 3B with ITC Register (Books): Reconcile that ITC claimed in GSTR 3B matched with your books, This can be done by verify the claimed ITC with ITC register of your books. There are possibilities that some ITC can be taken twice or maybe some ITC missed to claim.
• GSTR 1 with Sales register: Reconcile the sales recorded in sales register of books with GSTR 1. There can be some bills or sales and sales return which we can be forgot to report.
• Books ITC register with Electronic credit ledger: You may also reconcile your ITC register with electronic credit register.
• Books cash register with Electronic cash register: You can reconcile your cash deposited as per your books with electronic cash register of GST portal.
• Electronic liability ledger: You can reconcile this by incorporating the credit cash register entries with the outward GST liability.

4. Communicate with Suppliers

If you find mismatches in your ITC or there are some purchase bills which was not shown under your GSTR 2A return, reach out to your suppliers and request corrections in their GST returns and request to upload the missed bills. This is crucial for claiming accurate ITC.

5. Make Necessary Adjustments

Adjust your books based on reconciled data to ensure accurate GST filing. If required, amend your GSTR-1 before the due date.

GSTR 3B cannot be amended but you can make necessary adjustment by paying tax with interest if you claimed wrong ITC.

Common Challenges in GST Reconciliation

1. Delayed Data from Suppliers: Some suppliers may not file their returns on time, causing mismatches.
2. Missing Invoices: If invoices are missing from the GST portal, ITC claims may be denied.
3. Incorrect Tax Details: Errors in tax amounts or GSTINs can lead to reconciliation issues.
4. ITC Restrictions: As per GST rules, only invoices uploaded by suppliers are eligible for ITC.

Best Practices for GST Reconciliation in 2025

• Reconcile Monthly: Regular reconciliation helps avoid last-minute errors and penalties.
• Use Automation Tools: GST software can simplify the reconciliation process.
• Verify Supplier Compliance: Ensure that your suppliers file their returns on time to avoid ITC loss.
• Maintain Accurate Records: Keep detailed invoices and transaction records for future reference.

Frequently Asked Questions on GST Reconciliation for 2025

1. What is the deadline for GST reconciliation for FY 2024-25?

There are no such deadline for your GST reconciliation unless you are required to file GSTR 9 annual return which can be file by 31^st December 2025 (unless extended) hence GST reconciliation will be necessary before filing annual return.

2. Can I claim ITC for invoices not reflecting in GSTR-2B?

No, ITC can only be claimed for invoices uploaded by your supplier and reflecting in GSTR-2B.

3. How often should I reconcile my GST data?

It is recommended to reconcile GST data monthly to avoid mismatches and ensure compliance.

4. What should I do if my supplier has not filed GSTR-1?

Contact your supplier and request them to upload the missing invoices in their next GSTR-1 filing.

5. What are the consequences of not reconciling GST?

Failure to reconcile GST can lead to ITC loss, tax notices, penalties, and cash flow issues.

Conclusion

GST reconciliation for 2025 is essential for businesses to ensure compliance, avoid penalties, and maximize ITC claims. Confused about how to reconcile your GST with books? No worries! Just connect with us at Taxunplugby dropping your Name, email and number— we’ll handle all these sticky things and you focus on enjoying your life.”The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs

The post A Practical Guide to GST Reconciliation for 2025 appeared first on Tax Unplug.

For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025.

In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated. 8th October 2024, effective from 1st November 2024. This rule provides procedural guidelines for the said waiver scheme.

As per the waiver scheme, if a notice or order is issued under Section 73 for the financial years 2017-18, 2018-19 and 2019-20, the taxpayers are required to file an application in FORM GST SPL-01 or FORM GST SPL-02, respectively on the common portal within three months from notified date, which is 31.03.2025.

In this regard it is to inform that Form GST SPL-01 and Form GST SPL-02 are under development and same will be made available on the common portal tentatively from the first week of January 2025. In the meantime, taxpayers are advised to pay the tax amount demanded in the notice, statement, or order issued under Section 73 on or before March 31st, 2025, to ensure that they receive the waiver benefits by paying their taxes before the deadline.

Taxpayer can pay the demanded tax amount through the “payment towards demand” facility in case of demand orders and through Form GST DRC-03 in case of notices. However, if payment has already been done through Form GST DRC-03 for any demand order then taxpayer need to link the said Form GST DRC 03 with such demand order through Form GST DRC-03A, which is now available on the common portal.

To know more about the scheme in detail, click here.

To Download the official advisory, click here.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

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If you have a business in India, especially in a big city like Mumbai, you need to register for GST. GST is a single tax that replaced many other taxes, making business easier. This guide will show you how to register for GST step-by-step. By registering, you’ll be following tax rules and getting the benefits of being a GST business.

Who Needs to Register for GST in India?

Under the GST Act, any business with an annual turnover of over ₹20 lakhs (₹10 lakhs for northeastern states) must register for GST. Additionally, businesses involved in interstate supplies, e-commerce, and agents working on behalf of suppliers are also required to complete GST registration.

Prerequisites Before You Register for GST in India

To start the GST registration process, keep these documents ready:

1. PAN Card of the business or individual.
2. Proof of business registration or incorporation certificate.
3. Identity and Address proof of promoters or directors.
4. Bank account details, including a bank statement or canceled cheque.
5. Digital Signature Certificate (DSC) (for companies and LLPs).
6. Address proof of business premises, such as a utility bill or property tax receipt.

Step-by-Step Guide to Register for GST in India

Follow these steps for a smooth GST registration process:

Step 1: Visit the GST Portal

Go to the official GST portal at https://www.gst.gov.in/. Select “Services” and then “Registration.” Click on “New Registration.”

Step 2: Enter Details

Fill in the required details, including:

• Business PAN: Use the PAN of the company or individual as applicable.
• Email ID and Mobile Number: Ensure these are active as they will be used for OTP verification.

Step 3: Verify with OTP

Once you submit your details, you will receive OTPs on your email and mobile number. Enter these OTPs on the portal to verify.

Step 4: Complete Part B of the Form

After verification, proceed to Part B of the registration form. Here, you will need to provide:

• Business Details: Business name, business constitution type, and PAN.
• Promoter/Director Details: Name, designation, and address.
• Authorized Signatory Details: Information about the person authorized to sign the GST application.
• Principal Place of Business: Address proof for your main office location.

Step 5: Upload Required Documents

Upload the documents prepared earlier, including identity proofs, bank account information, and business address proof. Make sure the documents are in the correct format as specified by the portal.

Step 6: Submit the Application with DSC or E-Signature

Once all documents and details are filled out, submit the application using a Digital Signature Certificate (DSC) or e-Signature (for individuals with Aadhar-linked mobile numbers).

Step 7: Get Your Application Reference Number (ARN)

After submission, you will receive an Application Reference Number (ARN) via SMS and email. Use this ARN to track the status of your GST registration.

Step 8: Approval and Issuance of GSTIN

The GST officer will verify your application, and if all is in order, you will be issued a GST Identification Number (GSTIN) for your business.

Benefits of Completing GST Registration in Mumbai

For businesses in Mumbai, being GST-compliant offers numerous benefits:

• Improved Credibility: Having a GST number can build trust with customers and suppliers.
• Input Tax Credit: Registered businesses can claim input tax credits, reducing their tax burden.
• Simple Compliance: With GST, multiple indirect taxes are unified, making compliance easier.
• Nationwide Reach: Businesses can expand their operations interstate without additional tax hassles.

Tips for Smooth GST Registration in Mumbai

1. Double-check your documents to ensure all details match across documents.
2. Respond promptly to any queries from the GST department to avoid delays.
3. Keep track of deadlines for renewals and updates to maintain a valid GST registration.

Common Issues and Solutions for GST Registration

While applying to register for GST in India, some common issues may arise, such as:

• Incorrect OTP Verification: Recheck phone numbers and emails for accurate entry.
• Technical Errors on GST Portal: Retry during non-peak hours to avoid system downtime.
• Rejected Application: Ensure all uploaded documents are clear and up-to-date.

How TaxUnplug Can Help with GST Registration in Mumbai

Navigating tax processes can be complex, especially if you’re new to GST. TaxUnplug offers comprehensive assistance for GST registration and filing, guiding you through each step and handling paperwork efficiently so you can focus on growing your business. Whether you need help with document preparation or filing, our team is here to simplify the process.

Conclusion

Registering for GST in India doesn’t have to be a hassle. By following these steps and ensuring all documents are in place, your business in Mumbai can complete GST registration smoothly. With TaxUnplug’s expert guidance, you can stay compliant, avoid penalties, and leverage tax benefits that come with GST registration.

The post How to Register for GST in India: A Complete Step-by-Step Guide appeared first on Tax Unplug.

It is crucial for business owners to take immediate action to avoid future regret. Begin archiving your GST records as you have done for other taxes prior to 2017.

According to Section 39(11) of the CGST Act, 2017, which takes effect on October 1, 2023, taxpayers are restricted from submitting GST returns beyond three years from the due date, as outlined in Notification No. 28/2023. Furthermore, the GST portal has established a data retention policy that limits the availability of taxpayers’ return data to seven years.

Beginning in August 2024, the GST portal commenced the archiving of returns that exceed this seven-year period. For example, the data for July 2017 was archived on August 1, 2024, followed by the data for August 2017 on September 1, 2024.

This archiving will proceed on a monthly basis, with data for September 2017 scheduled for archiving on October 1, 2024, and continuing in this manner. Taxpayers are strongly encouraged to download their return data from the GST portal for any future needs, as information older than seven years will no longer be retrievable.

The official notification dated 24^th September 2024 related to archival of GST returns read as under:

1. Section 39 (11) of the CGST Act, 2017, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, provides that the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return.

2. Further, as per GST portal data policy, data for view of taxpayer to be retained for seven years only. Therefore, the same data policy is being implemented on the GST portal. Thus, return data will not be available to view beyond 7 years for taxpayers.

3. Accordingly, on 01st August 2024 return filed for July 2017 has been archived and on 01st September 2024, data for August 2017 has been archived. Further, this data archival is going to be a monthly activity hence on 01st October 2024 data of September 2017 shall be taken down from the GST portal and so on so forth.

4. Hence, hereby the taxpayers are advised to download their relevant data from the GST portal for any future reference, if required.

To read the official notification, click here.

Archive Your GST Records Before Data Deletion

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

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The IMS is a newly developed feature on the GST portal that allows recipient taxpayers to accept, reject, or keep pending any invoice issued by their suppliers. This functionality is crucial as it ensures that only the invoices accepted by the recipient will be included in their GSTR-2B as eligible ITC, making the process of claiming ITC more transparent and reliable.

How IMS works:

Once a supplier saves an invoice in their GSTR-1 or other related forms (IFF/GSTR-1A), it will automatically reflect in the IMS dashboard of the recipient. The recipient can then review the invoice and take following action:

1. Accept: The invoice becomes part of the recipient’s GSTR-2B, contributing to their eligible ITC.
2. Reject: The invoice will be excluded from the GSTR-2B calculation.
3. Pending: The invoice will not be included in the current GSTR-2B but will be transferred to next month.

If no action is taken, the invoice will be considered “Deemed Accepted” and will move to the GSTR-2B as accepted. This default action helps avoid unnecessary compliance burdens on taxpayers who might overlook or forget to act on an invoice.

Key Features of the IMS

1. Enhanced ITC Verification: Taxpayers now can review the genuineness and authenticity of invoices before they impact their ITC claims, reducing the chances of errors or fraudulent claims.

• Flexibility in Managing Invoices: With the option to keep invoices pending, taxpayers can choose to address specific invoices later, if it’s within the limits prescribed by Section 16(4) of the CGST Act, 2017.

• Sequential GSTR-2B Generation: The system ensures that the GSTR-2B for a period will only be generated if the GSTR-3B of the previous period has been filed, ensuring compliance and order in return filings.

• Impact on Supplier Liability: If a recipient rejects an invoice or credit note, the supplier’s liability may increase in their subsequent GSTR-3B, aligning with the actions taken by the recipient in IMS.

Benefits for Taxpayers

The IMS is more than just an invoice management tool; it’s a system that strengthens the ITC ecosystem within the GST framework. By allowing taxpayers to verify and act on invoices before they affect their ITC claims, the IMS provides greater control and accuracy, minimizing discrepancies between the supplier’s and recipient’s records.

This new system also offers a transparent mechanism for tracking the status of invoices, ensuring that both parties are aware of the actions taken and can respond accordingly. It’s a step forward in making the GST process more taxpayer-friendly, with fewer chances for errors and disputes.

GST Portal new Facility

To download official notification, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

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