Registration and filing are just the start — staying compliant means claiming input tax credit correctly, responding to department notices on time, and avoiding avoidable penalties. Our Compliance Pro plan covers all three.
Input Tax Credit (ITC) Advisory
ITC lets you reduce the GST you owe on sales by the GST already paid on business purchases. To claim it, you need a valid tax invoice, the supplier must have filed their return and paid the tax, and the credit must reflect in your GSTR-2B. We reconcile your purchase register against GSTR-2B every month to catch mismatches before they become a notice.
Some purchases are blocked from ITC entirely — motor vehicles for personal use, food and beverages, club memberships, and works contract services for immovable property, among others. We flag these during reconciliation so you don't over-claim by mistake.
GST Notice Handling
GST notices have a fixed response window — commonly 7–15 days depending on the notice type — and non-response can lead to a best-judgment assessment or penalty. Common notices include GSTR-3A (for non-filing) and DRC-01C (for ITC mismatches with GSTR-2B). We read the notice, gather the requested information, and draft the response through the GST portal on your behalf.
Penalties You Can Avoid
• Late filing fees (₹50/day regular, ₹20/day NIL returns) — avoidable with reminders
• 18% p.a. interest on delayed tax payment
• Suo-motu cancellation of GSTIN after six months of continuous non-filing
• 10–100% penalty for unregistered operation past the threshold
E-Way Bill Compliance
Goods movement above ₹50,000 in value requires a valid e-way bill generated before transport begins. We help set this up correctly, especially for businesses shipping inter-state or through third-party logistics partners.
Cancelling GST Registration
If your business closes or falls below the threshold, GST registration can be cancelled — but all pending returns must be filed and a final GSTR-10 submitted first. We handle this wind-down process for clients closing or restructuring their business.
Why Financial Sage
Compliance Pro bundles GSTR-9 annual filing, monthly ITC reconciliation, and notice handling into one plan — see the full breakdown on our Pricing page.
Frequently Asked Questions
Don't ignore it — GST notices have a fixed response window (commonly 7–15 days depending on the notice type), and non-response can lead to a best-judgment assessment or penalty. Read the notice section carefully, gather the requested documents, and respond through the GST portal. Our Compliance Pro plan includes notice handling and drafting support.
GSTR-3A is a notice issued to taxpayers who have not filed their GST returns by the due date, asking them to file within 15 days. Continued non-filing can lead to a best-judgment tax assessment by the officer based on available information, which is usually higher than your actual liability.
Yes. If returns remain unfiled for a continuous period specified under GST rules (commonly six months for regular taxpayers, or a set number of consecutive periods for composition taxpayers), the officer can suo-motu cancel your GST registration after issuing a show-cause notice.
The standard late fee is ₹50 per day of delay (₹25 CGST + ₹25 SGST) for regular returns, and ₹20 per day (₹10 + ₹10) for NIL returns, subject to a government-notified maximum cap that depends on turnover. Interest at 18% per annum also applies on any tax paid late. Our GST late fee and interest calculators estimate this instantly.
Input Tax Credit lets a registered business reduce the GST it owes on sales by the GST it already paid on business purchases (inputs, input services, and capital goods). This prevents the same value from being taxed multiple times as goods move through the supply chain.
You need a valid tax invoice, the goods/services must actually be received, the supplier must have filed their GSTR-1 and paid the tax to the government, and you must file your own return within the prescribed time. ITC also reflects in your GSTR-2B statement, which should be reconciled with your purchase records.
ITC is blocked (not claimable) on items like motor vehicles for personal use, food and beverages, employee health/life insurance (unless mandated by law), club memberships, works contract services for construction of immovable property (with exceptions), and goods/services used for personal consumption.
A mismatch between the ITC you claim in GSTR-3B and what shows up in your auto-generated GSTR-2B can trigger a system-generated notice (like DRC-01C) asking you to explain or reverse the excess credit. This usually happens when your supplier hasn't filed their return or reported the invoice correctly.
Yes — our Compliance Pro plan includes ongoing ITC advisory, where we review your purchase register against GSTR-2B each month, flag mismatches before filing, and advise on credits you may be missing or wrongly claiming.
An e-way bill is required for the movement of goods valued above ₹50,000 (single invoice or consolidated) when transported by road, rail, air, or vessel — whether it's a sale, transfer, or return of goods. It must be generated before the goods start moving and carried along with the consignment.
Yes. You can apply for cancellation of GST registration if your business closes, turnover falls below the threshold, or ownership changes. All pending returns must be filed and dues cleared before cancellation is approved, and a final return (GSTR-10) is required after cancellation.
Talk to a GST Expert
Free consultation. We respond fast and file within 24 hours of receiving your documents.