GST Compliances: Challenges and Opportunities – IT perspective: GST regime would introduce a uniform taxation law across states and different sectors in respect to indirect taxes which would make it easier movement and supply of goods and services hassle free across the country. This will also help in removing economic distortions, promote exports and bring about development of a common national market. Under the GST regime, all existing assessees under Central Excise, Service Tax and VAT are required to migrate to the GST. With a view to support the Government’s initiative of smooth migration and to assist the assessees. Now check more details for GST Compliances from below…

GST Compliances

Business Functions & Compliances – Key GST Aspects

  • On what you pay GST
  • Where you pay GST
  • When you pay GST
  • Treatment of credit notes
  • On what you get input tax credit
  • On how much value you pay GST
  • Treatment of outsourcing
  • What are exempted
  • Classification of goods / services
  • Transition provisions
  • Changes in record keeping
  • Documentation requirements
  • Number of registrations
  • How tax is to be computed
  • Filing of returns
  • Audit requirements

IT Systems – Key GST Aspects

  • Registration Configurations
  • Master Changes
  • Tax Computation
  • Configuration changes
  • Accounting related changes
  • Input Tax Credit configuration
  • Transactional configuration
  • MIS reports
  • Changes in Interfaces
  • Transition Reports
  • Reconciliation Reports
  • Document Formats
  • Business Rule Changes
  • Compliance Reports
  • Filing of returns
  • Audit requirements

Module Level Changes due to GST


  • General Ledgers
  • A/c. Receivables
  • A/c. Payables
  • Invoicing / Billing
  • Voucher


  • Purchase Orders
  • Invoicing
  • Debit/Credit notes
  • Pricing Conditions
  • Info Records

Sales & Distribution

  • Sales Order
  • Invoicing
  • Pricing conditions
  • Info records
  • Debit/Credit notes
  • Sales Area


  • Material
  • Services
  • Customers
  • Vendors
  • Chart of a/c.
  • GL’s



  • Tax Registers
  • MIS Reports
  • Compliance reports
  • Stat Reports
  • Interfaces

Broad Level Changes in Process & Product

New FieldsNew Disclosures and presentation information would need the data fields for capturing the information. For e.g. HSN Codes, Place of Supply
Changes to the COAChanges to chart of Accounts will be eminent
Configuration changesThere will be changes in business rules and general configuration in the system. E.g. Reverse Charge calculation in case of procurement from unregistered dealer
Interface changesData coming from other systems will undergo a change
Reporting changesReporting will change a lot to generate new reports related to GST and Reconciliations
Process RedesignProcess would need to be re-designed For e.g state-wise registration (service companies), change in Supply-chain
System Scalability & ArchitectureWhile the new design is being accepted, the long-term vision and the dynamically changing requirements needs to be considered
Risk Management and GovernanceIt is necessary to also check the current Enterprise Risk Management Matrix and make required changes, due to process re-designing
Change of Software?If the existing system is inadequate for GST reporting and accounting, it may be necessary to implement a new solution

GST Returns….some of then

Return FormWhat to file?By Whom?By When?
GSTR-1Details of outward supplies of taxable goods and/or services effectedRegistered Taxable Supplier10th of the next month
GSTR-1AIf recipient make any changes in GSTR 2, it will again auto populate in GSTR1A and supplier can take actionsRegistered Taxable Supplier17th of the next month
GSTR-2Details of inward supplies of taxable goods and/or services effected claiming input tax credit.Registered Taxable Recipient15th of the next month
GSTR-3Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of taxRegistered Taxable Person20th of the next month
GSTR-4Quarterly return for compounding taxable personComposition Supplier18th of the month succeeding quarter
GSTR-5Return for Input Service DistributorInput Service Distributor13th of the next month
GSTR-9Annual ReturnRegistered Taxable Person31st December of next financial year

GST Some Food for GST

  • Back dated entries control vis a vis return filing date (No revised return allowed)
  • Contractual vs Fair Value (IND-AS), ICDS
  • Home-grown applications on old technologies

Goods and Services Tax Compliance Rating

Compliance rating system is one of the new ways of tax administration. This Section states that every taxable person would be rated based on certain parameters. It also provides that the rating would be published in the public domain.

  • (1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.
  • (2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.
  • (3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.


The compliance rating is a unique form of rating the performance of the taxable persons. The parameters which would be considered for performance rating would be as prescribed.

Amongst others, the rating of a taxable person would be relevant to determine the eligibility of input tax credit in respect of inward supplies, selection for scrutiny and other administrative / monitoring purposes.

This Section provides as follows:

  • Every person liable to pay GST shall be rated and will be assigned a GST compliance rating score.
  • The rating would be based on his record of compliance with the provisions of CGST, IGST and SGST. The details of parameters and methodology for rating would be as prescribed.
  • The compliance rating score will be updated periodically and will be intimated as follows:
    • to the taxable person;
    • will be placed in the public domain.

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