Your credit depends on suppliers
Goods & Services Tax in India
Indian input tax credit depends on your suppliers filing their returns. Their compliance becomes your problem.
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Credit is matched, not claimed
Unlike systems where you claim input tax on the strength of your own invoice, Indian input credit is matched against what your supplier has reported. If a supplier fails to file or reports incorrectly, your credit can be denied even though you paid the tax. That makes supplier compliance a commercial issue: vendor selection, contractual protection and monthly reconciliation all become part of managing working capital.
- Input credit reconciled monthly against supplier filings
- State-wise registrations handled for your actual footprint
- E-invoicing and movement documentation set up correctly
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
Companies successfully established.
What applies
The Indian GST framework
State-wise, monthly, and matched.
| Element | Position |
|---|---|
| Registration | State-wise, where you have a presence or supply. |
| Components | Central, state and integrated tax by transaction type. |
| Returns | Monthly, plus an annual return. |
| Input credit | Matched against supplier filings. |
| E-invoicing | Mandatory above turnover thresholds. |
| Goods movement documentation | Required for consignments above thresholds. |
Registration thresholds, return formats, e-invoicing thresholds, credit matching rules and movement documentation requirements are set by the authorities and change frequently. Yours are applied as currently in force.
How it works
Getting GST right
Register, invoice correctly, reconcile monthly.
Register per state
Registrations obtained in each state where you have premises, stock or taxable supply, since registration is state-wise.
Invoice and document
Invoicing set up correctly, e-invoicing implemented where thresholds apply, and movement documentation generated for consignments.
File and reconcile
Monthly returns filed and input credit reconciled against supplier filings, with discrepancies pursued while they are still fixable.
- States where you have premises or stock
- States where you make supplies
- What you supply, in detail
- Expected turnover
- Whether you cross e-invoicing thresholds
- Whether you move goods between states
- Your main suppliers and their reliability
- Whether you import or export
- Whether supplies are exempt or zero-rated
- Current registrations held
- Accounting system in use
- Any pending credit mismatches
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- State-wise registration assessment and applications
- Invoicing and e-invoicing set up
- Movement documentation configuration
- Monthly return preparation and filing
- Input credit reconciliation against supplier filings
- Annual return preparation
- Guidance on supplier compliance risk
- Correspondence with the authorities
Not included, quoted separately
- Tax itself, paid at cost
- Interest and penalties for earlier periods
- Accounting and invoicing software licences
- Pursuit of non-compliant suppliers
- Audit representation beyond routine correspondence
- Advance rulings
- Customs duties
- Accounts preparation unless included
Verify independently
Official Indian authorities
We file directly with these bodies on your behalf.
Questions
India GST — FAQs
Why does my supplier’s compliance affect me?
Because input credit is matched against what the supplier reports. If they do not file correctly your credit can be denied even though you paid the tax.
How do I protect against that?
Monthly reconciliation so mismatches are found early, supplier selection with compliance in mind, and contractual provisions on compliance and indemnity.
Why is registration state-wise?
Because the tax has state components and registration follows your presence and supply in each state. Multiple states mean multiple registrations and multiple monthly returns.
What is e-invoicing?
Mandatory electronic invoice reporting above prescribed turnover thresholds. Crossing the threshold requires system changes, so it should be anticipated.
What documentation is needed to move goods?
Prescribed electronic documentation for consignments above thresholds. Moving goods without it exposes the consignment to detention.
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