{"id":1117,"date":"2026-03-17T00:00:00","date_gmt":"2026-03-17T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/gst-compliance-checklist-new-companies-india\/"},"modified":"2026-06-23T13:08:41","modified_gmt":"2026-06-23T13:08:41","slug":"gst-compliance-checklist-new-companies-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/gst-compliance-checklist-new-companies-india\/","title":{"rendered":"GST Compliance Checklist for New Companies in India"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>GST compliance basics every new company should know<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What GST compliance includes<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GST compliance involves several recurring tasks that ensure tax reporting and payments are accurate and timely. For new companies, the main compliance areas include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GST invoicing and e-way bill generation<\/strong> (when applicable)<\/li>\n\n\n\n<li><strong>Monthly or quarterly return filing<\/strong> based on the chosen scheme<\/li>\n\n\n\n<li><strong>Payment of GST liability<\/strong> and tracking of interest or late fees<\/li>\n\n\n\n<li><strong>Input Tax Credit (ITC) verification and reconciliation<\/strong><\/li>\n\n\n\n<li><strong>Maintaining proper records and documentation<\/strong> for audits or notices<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These tasks form the backbone of GST compliance and must be managed consistently throughout the year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What decides your compliance workload<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Not all companies have the same GST compliance requirements. The workload often depends on the nature and scale of the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Factors that influence GST compliance include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Turnover<\/strong>: Higher turnover often means more invoices and more complex reporting.<\/li>\n\n\n\n<li><strong>Nature of supply<\/strong>: Businesses dealing in goods may have e-way bill requirements, while service companies focus more on invoicing and ITC tracking.<\/li>\n\n\n\n<li><strong>B2B vs B2C mix<\/strong>: B2B transactions require detailed invoice reporting for ITC claims.<\/li>\n\n\n\n<li><strong>Interstate supply<\/strong>: Interstate sales are subject to IGST and place-of-supply rules.<\/li>\n\n\n\n<li><strong>E-commerce selling<\/strong>: Sellers on marketplaces must track TCS and platform reporting.<\/li>\n\n\n\n<li><strong>Composition vs regular scheme<\/strong>: Composition taxpayers have simpler returns but cannot claim ITC.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Day 0 checklist after GST registration<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Set up your GST profile correctly<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The first step after obtaining GST registration is to ensure that the company\u2019s GST profile is configured correctly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Important steps include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Confirm the <strong>legal name, trade name, and registered address<\/strong><\/li>\n\n\n\n<li>Map <strong>authorised signatory access<\/strong> for GST filings<\/li>\n\n\n\n<li>Update <strong>bank account details<\/strong> if not already completed<\/li>\n\n\n\n<li>Create a <strong>GST compliance folder<\/strong> (digital or physical) to store registration certificates, filings, and supporting documents<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Set up invoicing rules and templates<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A proper invoicing system is critical for GST compliance. Incorrect invoice formats or missing fields are one of the most common causes of compliance issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your invoicing setup should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mandatory fields like <strong>GSTIN, invoice number series, HSN\/SAC codes, and place of supply<\/strong><\/li>\n\n\n\n<li><strong>Tax rate mapping<\/strong> for each product or service category<\/li>\n\n\n\n<li>A process for issuing <strong>credit notes and debit notes<\/strong><\/li>\n\n\n\n<li>A <strong>customer master database<\/strong> capturing state, GSTIN, and billing details<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Monthly GST compliance checklist<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sales and invoice compliance<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Every month, businesses must ensure that their sales transactions are properly recorded and compliant with GST rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key checks include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Issue <strong>GST-compliant invoices for all taxable supplies<\/strong><\/li>\n\n\n\n<li>Verify <strong>correct GST rates and place of supply<\/strong><\/li>\n\n\n\n<li>Track <strong>advances, cancellations, and refunds<\/strong><\/li>\n\n\n\n<li>Maintain a <strong>continuous invoice series without gaps<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Purchase and expense compliance<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Vendor invoices are critical for claiming Input Tax Credit. Incorrect or missing vendor data can cause ITC loss.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monthly purchase checks should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Collect <strong>valid tax invoices from all vendors<\/strong><\/li>\n\n\n\n<li>Verify <strong>vendor GSTIN and mandatory invoice fields<\/strong><\/li>\n\n\n\n<li>Identify <strong>reverse charge transactions<\/strong> if applicable<\/li>\n\n\n\n<li>Separate <strong>business expenses from personal expenses<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Input Tax Credit (ITC) checks<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Input Tax Credit reduces the GST payable by offsetting taxes paid on business purchases. However, ITC is allowed only when documentation and supplier reporting match.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Important ITC checks include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Match <strong>purchase invoices with supplier uploads<\/strong><\/li>\n\n\n\n<li>Identify <strong>blocked ITC categories<\/strong> under the GST rules<\/li>\n\n\n\n<li>Maintain <strong>proof of receipt of goods or services<\/strong><\/li>\n\n\n\n<li>Perform <strong>regular ITC reconciliation<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Return filing and payment readiness<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once sales and purchase records are finalised, companies must prepare for GST return filing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key tasks include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Finalise <strong>sales and purchase data for the reporting period<\/strong><\/li>\n\n\n\n<li>Calculate <strong>net GST payable after adjusting ITC<\/strong><\/li>\n\n\n\n<li>File <strong>applicable GST returns within the due dates<\/strong>\u200d<\/li>\n\n\n\n<li>Pay taxes, <strong>store challans, and payment proofs<\/strong><\/li>\n<\/ul>\n\n\n\n<div data-rt-embed-type=\"true\">\n<style type=\"text\/css\">\n.did-you-know-box {<br \/>\n  border: 1px solid #D9DEE7;<br \/>\n  border-radius: 8px;<br \/>\n  background-color: #FFFFFF;<br \/>\n  margin: 32px 0;<br \/>\n  overflow: hidden;<br \/>\n}<\/p>\n<p>\/* Header row *\/<br \/>\n.did-you-know-header {<br \/>\n  font-family: 'DM Sans', sans-serif;<br \/>\n  font-weight: 500;<br \/>\n  font-size: 1.25rem;<br \/>\n  line-height: 1.4;<br \/>\n  background-color: #0D1835;<br \/>\n  color: #FFFFFF;<br \/>\n  padding: 14px 20px;<br \/>\n}<\/p>\n<p>\/* Content row *\/<br \/>\n.did-you-know-content {<br \/>\n  font-family: 'DM Sans', sans-serif;<br \/>\n  font-weight: 400;<br \/>\n  font-size: 1rem;<br \/>\n  line-height: 1.5;<br \/>\n  color: #0E1835;<br \/>\n  padding: 18px 22px;<br \/>\n}<br \/>\n<\/style>\n<div class=\"did-you-know-box\">\n<div class=\"did-you-know-header\">\n    Did You Know?\n  <\/div>\n<div class=\"did-you-know-content\">\n    Many new companies lose Input Tax Credit not because they are ineligible, but because invoices are incomplete or supplier data is missing.\n<p>    ITC depends on accurate invoice details and matching records.<br>\n    A single wrong GSTIN or place of supply can trigger notices later.<br>\n    Regular reconciliation is far easier than fixing mismatches at year-end.\n  <\/p><\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Quarterly compliance checklist<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Reconcile books vs GST returns<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Quarterly reviews help identify discrepancies before they accumulate into major issues. Important checks include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compare <strong>turnover reported in books vs GST returns<\/strong><\/li>\n\n\n\n<li>Review <strong>credit notes and debit notes issued during the quarter<\/strong><\/li>\n\n\n\n<li>Verify <strong>tax rate classification and HSN\/SAC codes<\/strong><\/li>\n\n\n\n<li>Confirm <strong>interstate vs intrastate transaction classification<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Review vendor compliance<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Supplier compliance directly affects a company&#8217;s ITC eligibility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quarterly vendor reviews should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Identify <strong>vendors who delay or fail to file GST returns<\/strong><\/li>\n\n\n\n<li>Follow up for <strong>missing or incorrect invoices<\/strong><\/li>\n\n\n\n<li>Resolve <strong>old ITC mismatches<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Year-end GST compliance checklist for new companies<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Full-year review and clean-up<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of the financial year, companies should conduct a detailed GST review to ensure accuracy before closing books.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key activities include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Perform <strong>annual reconciliation of sales, purchases, and ITC<\/strong><\/li>\n\n\n\n<li>Review <strong>interest or late fee exposure<\/strong><\/li>\n\n\n\n<li>Correct <strong>tax classification or reporting issues<\/strong><\/li>\n\n\n\n<li>Ensure <strong>all amendments, credit notes, and missed invoices are recorded<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Record keeping and audit readiness<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Proper documentation is essential for handling GST audits or notices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should maintain records such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Invoices, e-way bills, challans, and GST returns<\/strong><\/li>\n\n\n\n<li><strong>Reconciliation statements and working papers<\/strong><\/li>\n\n\n\n<li><strong>Contracts and supporting documents for major expenses<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Common GST compliance mistakes new companies make<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many compliance issues arise from simple operational mistakes. Some common ones include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applying <strong>incorrect GST rates or HSN\/SAC codes<\/strong><\/li>\n\n\n\n<li>Using the <strong>wrong place of supply for interstate transactions<\/strong><\/li>\n\n\n\n<li>Missing invoice fields or maintaining <strong>broken invoice sequences<\/strong><\/li>\n\n\n\n<li>Claiming ITC <strong>without supplier data matching<\/strong><\/li>\n\n\n\n<li>Filing GST returns <strong>late and ignoring penalties<\/strong><\/li>\n\n\n\n<li>Not identifying <strong>reverse charge transactions<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tools and processes to simplify GST compliance<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Create a simple compliance system<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of treating GST as an occasional task, businesses should build a simple compliance system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Practical steps include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintain a <strong>monthly GST calendar with due dates<\/strong><\/li>\n\n\n\n<li>Use a <strong>single system for invoices and vendor bills<\/strong><\/li>\n\n\n\n<li>Perform <strong>weekly or monthly reconciliation routines<\/strong><\/li>\n\n\n\n<li>Clearly define <strong>responsibility between founders, finance teams, and accountants<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">With structured processes, GST compliance becomes predictable and manageable, even for new companies navigating the system for the first time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Thinking of launching your business? Begin your<\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/\"><strong><em> company registration<\/em><\/strong><\/a><strong><em> today with Razorpay Rize.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>A rigorous compliance roadmap for new companies under the CGST Act. Covers mandatory bank updates, Rule 37 ITC reversals, and the e-invoicing mandates.<\/p>\n","protected":false},"author":1,"featured_media":1118,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/1117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=1117"}],"version-history":[{"count":4,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/1117\/revisions"}],"predecessor-version":[{"id":1487,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/1117\/revisions\/1487"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/1118"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=1117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=1117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=1117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}