The make in India initiative highlights the significance of exporters in transforming India into a global manufacturing hub. The volume of exports drives the economic growth of the country with benchmarks set to achieve $5 Trillion Economy.However, the frequent changes brought in GST laws relating to exports, with refund mechanisms and other stringent conditions has come to pose challenges to the exporters.Key TakeawaysExports under GST is treated as “Zero-Rated Supplies”, which allows the exporters with the facility to claim refund of taxes paid or accumulated ITC. The two modes to claim refunds are explained in Rule 96 and Rule 89, in which exporters can claim the refund on exports either with payment of IGST or through Letter of Undertaking(LUT)/Bond.It is important to note that exporters cannot claim both the options of refund for the same export as it would result in double taxation benefit which is not permissible under GST law.Notification No. 20/2024 which was issued by the department after 54th GST council meeting, stating few omissions under both the aforesaid rules, relieving the exporters by removing key restrictions and making the mechanisms to claim refund under both the rules much simpler.It is also significant to note that the exporter should properly adhere to the said provisions of both the rules, maintain proper invoices and documentation to avoid refund delays or rejections.Refund claims must be filed within 2 years from the relevant date under Section 54 of the CGST Act, 2017.What is GST Export Refund?A GST export refund is a mechanism introduced by GST laws in which the exporters in India are allowed to claim refunds on the taxes paid for export supplies; since exports are considered to boost economic growth, this mechanism ensures that exporters are not burdened with tax expenses, hence exports are usually classified as “zero-rated supplies.”The following supplies are classified under exports:Supply of goods to outside India.Supply of services outside India.Supplies made to SEZ units/ developers for authorised operations.It is crucial to note that the above are zero rated supplies and not exempted supplies.What is the GST Export Refund Process?The GST export refund process guides the exporter to claim the refund of taxes paid on exports or on inputs used for exports.There are mainly two refund routes:Export without payment of GST- GST laws give the exporter with an option to export goods and services through a facility called LUT (Letter of Undertaking). LUT is a declaration given by the exporter declaring to the GST department that:Applicable GST laws for exports are complied with.Exports will be completed within prescribed time.IGST will be paid if the export conditions are not adhered to.LUT can be furnished by a registered person in the GST portal through Form GST RFD 11,  which is valid up to one financial year (Rule 89).Exports with payment of IGST- This is a much simpler procedure where the IGST is paid by the exporter on the export invoice and the refund can be claimed. The shipping bill through which the export is made is considered as a refund application.

The tobacco industry in India remains one of the largest worldwide, with over 275 million users despite severe health risks. To curb consumption, the government imposes heavy taxes on tobacco products. The 56th GST Council meeting (3rd September 2025) in New Delhi and additional cess with effect from 1st February 2026 reinforced this stance. This article explains GST on cigarettes, the rates on tobacco products, and the additional duties and cess imposed.Key TakeawaysTobacco products, including cigarettes, pan masala, gutkha, and chewing tobacco, will attract 40% GST starting from 1st February 2026, as per Central Tax (Rate) Notification No. 19/2025.The GST rate for Biris has been reduced from 28% to 18%, effective from the same date.CBIC has imposed additional excise duty ranging from Rs.2,050 to Rs.8,500 per 1000 sticks from 1st February 2026, varying as per the cigarette length.New RSP-Based Valuation: Starting 1st February 2026, GST for notified tobacco goods will be calculated based on the Retail Sale Price (RSP) printed on the package, regardless of the actual transaction priceTobacco GST Rate with HSN CodeTobacco ProductGST RateHSN CodeBidis18%2403Pan Masala40%2106 90 20Unmanufactured tobacco and tobacco refuse (excluding tobacco leaves)40%2401Cigars, cheroots, cigarillos, and cigarettes of tobacco or tobacco substitutes40%2402Other manufactured tobacco, homogenised or reconstituted tobacco, tobacco extracts and essences (other than bidis)40%2403Products containing tobacco for inhalation without combustion40%2404 11 00Products containing nicotine substitutes for inhalation without combustion40%2404 19 00Impact of GST on the Tobacco IndustryThe tobacco industry attracts Central Excise duty, National Calamity Contingent Duty (NCCD), GST, and compensation cess as it is a sin good.

GSTR-9 is the annual return to be filed on 31st December of the year following the financial year. The return contains the details of all the sales, purchases and ITC (Input Tax Credit) claimed during the financial year. However, there may be instances where a number of mismatches can occur such as: ITC mismatch in GSTR 2A and GSTR 3B, Non-availability of ITC, mismatch in HSN/SAC codes, etc. This article sheds the light on such mismatches, its causes and to make appropriate adjustments thereof. Key Takeaways:Identifying the common errors that occur while reporting of ITC, discrepancies between outward supplies as per GSTR 1 and tax paid as per GSTR 3B, mismatch in HSN/SAC codes, etc.The discrepancies and mismatches can be rectified by maintaining proper monthly records, following with suppliers, and seeking professional help wherever required. By doing so, businesses can claim their eligible ITC, avoid penalties, and interest charges and enhance GST compliance.Use of different tools and software aids in reconciliations which helps to automate the process. Reconciling mismatches in ITC claimed is the fundamental aspect and the main purpose for filing GSTR 9. Hence,  identifying and rectifying such mismatches and discrepancies ensures appropriate compliance.What is ITC Mismatch in GSTR 9?ITC mismatch in GSTR 9 refers to discrepancies between ITC details reported by the taxpayer throughout the financial year and data available in GST records.

Invoicing within complex business environments goes far beyond simple paperwork. It serves as a critical finance function for accuracy, compliance, and financial transparency across vast business operations.Further, after introducing the Goods and Services Tax (GST), registered businesses must issue GST invoices, also known as GST bills. Businesses should be careful while generating invoices as every transaction enters into books of accounts through this activity. In this article, you can learn everything about invoicing under GST, including what it is, who should issue it, mandatory fields, types of invoices, revised invoices, and invoicing under special cases.Key TakeawaysGST invoices must include invoice number, date, customer and supplier GSTIN, place of supply, and detailed item descriptions.For unregistered recipients with invoice value over Rs.50,000, additional recipient details are mandatory.CGST Act prescribes specific timelines for issuing invoices, revised invoices, debit notes, and credit notes.Bill of supply is issued when GST cannot be charged, such as for exempt goods or composition scheme suppliers.Invoice-cum-bill of supply is allowed for mixed taxable and exempt supplies to unregistered customers.What is a GST Invoice?In simple words, a GST invoice or a GST bill is a list of goods sent or services provided, along with the amount due for payment. It is an official document that a GST-registered enterprise issues on sale of goods or services including all the mandatory particulars prescribed by the CGST Rules. GST invoice acts as a legal evidence of a transaction.

‘How to generate e invoice’ has been one of the popular questions asked by many taxpayers. e-invoice is a B2B/B2G/export invoice reported by certain applicable GST-registered businesses with the e-invoice portal (GSTN), which must adhere to the standard format notified by the CBIC. This article will take you through the process of the generation of an IRN for e-invoice and also its workflow.Latest Updates4th April, 2025With effect from June 1, 2025, IRP will treat invoice numbers as case-insensitive for IRN generation. All invoice numbers in any format will be converted to uppercase to avoid duplication and ensure consistency.10th May 2023CBIC notified the 6th phase of e-invoicing. Hence, taxpayers having more than Rs 5 crore turnover in any financial year from 2017-18 shall issue e-invoices w.e.f 1st August 2023.06th May 2023The GST department has deferred the time limit of 7 days to report the old e-invoices on the e-invoice IRP portals by three months.

Any persons applying for GST registration must keep GST registration documents handy. Businesses need different sets of documents depending upon the constitution of the business or the type of GST registration that they wish to obtain. Let's deep dive into the GST Registration Documents checklist.Key takeawaysAdequate documentation is pivotal for GST registration, streamlining the process and ensuring legal compliance.Different types of documents will be required to be submitted on the GST portal for GST registration depending upon the type of GST registration needed and business constitution.Documents vary for address proof depending upon whether the premise is owned, rented or co-owned.Ensure the file size and document format are as per the permissible standard before submission for GST registration.Types of GST RegistrationDifferent types of documents will be required to be submitted on the GST portal for GST registration depending upon the type of GST registration needed. This is based on the nature of activities being carried out by the entity. Following are the popular GST registration types, based on which the documents vary-Normal taxpayer registration (including composition dealer, government departments and ISD registrations)GST practitionerTDS registrationTCS registrationA non-resident OIDAR service providerNon-resident taxable person (NRTP)Casual taxable personUN bodies/embassyList of Main Documents Required for GST RegistrationMain documents that taxpayers require for GST registration include the following-PAN card of business/ownerValid ID of owner and photographAddress proof of principle business and additional places of businessBank account detailsCertificate of incorporate/registration of business/MoA/AoABoard resolution wherever company/LLPDocuments Required for GST Based on Business TypeThe following documents are required to obtain GST registration depending on the types of business or constitution.(Individual/Company etc.)-Category of personsDocuments required for GST registrationSole proprietor / Individual– PAN card of the owner  – Aadhar card of the owner  – Photograph of the owner (in JPEG format, maximum size – 100 KB)  – Bank account details*  – Address proof**Partnership firm/ LLP– PAN card of all partners (including managing partner and authorized signatory)  – Copy of partnership deed  – Photograph of all partners and authorised signatories (in JPEG format, maximum size – 100 KB)  – Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.)  – Aadhar card of authorised signatory  – Proof of appointment of authorised signatory  – In the case of LLP, registration certificate / Board resolution of LLP  – Bank account details*  – Address proof of principal place of business**HUF– PAN card of HUF  – PAN card and Aadhar card of Karta  – Photograph of the owner (in JPEG format, maximum size – 100 KB)  – Bank account details*  – Address proof of principal place of business**Company (Public/ Private/ Indian/ foreign)– PAN card of Company  – Certificate of incorporation given by Ministry of Corporate Affairs  – Memorandum of Association (MoA) / Articles of Association (AoA) – PAN card and Aadhar card of authorised signatory.

Reverse Charge Mechanism (RCM) is a system under GST where the recipient of goods or services pays tax instead of the supplier. It ensures tax compliance in cases where the government finds it difficult to collect from suppliers, like in unorganized sectors or specified transactions.Key TakeawaysRCM shifts tax liability from supplier to recipient in specific notified cases.It applies differently for notified supplies, purchases from unregistered dealers, and certain e‑commerce situations.RCM ensures better tax tracking, especially for high‑risk goods or services.Input Tax Credit (ITC) is available to the recipient if used for business purposes.Compliance under RCM requires timely payment, accurate reporting, and GST registration.What is Reverse Charge Mechanism?Reverse Charge Mechanism (RCM) is a provision under GST where the liability to pay tax is on the buyer of goods or services instead of the seller. This method helps the government cover transactions prone to tax evasion or difficult to monitor. The recipient must self‑invoice (if needed) and pay GST directly to the government.When is Reverse Charge Applicable?The provisions of Reverse Charge Mechanism (RCM) are defined under the following laws:Section 9(3) of CGST Act & Section 5(3) of IGST Act – Notified Goods and ServicesSection 9(4) of CGST Act & Section 5(4) of IGST Act – Purchases from Unregistered SuppliersSection 9(5) of CGST Act & Section 5(5) of IGST Act – E‑commerce TransactionsLet’s break each down in simple language with examples:1. Tax on Notified SuppliesCertain notified goods and services require the recipient to pay GST instead of the supplier.

The finance teams have to run multiple reconciliations before filing the annual GST returns. Due to the volume and complexity of the new tables in GSTR-9/9C, finance teams can not rely on manual, spreadsheet-based processes. They should opt for automation, granular reconciliation, and timely data correction.Key TakeawaysList of 10 must reconciliations to be done before filing annual GST returns.What should be the ideal outcome from the GSTR-9 reconciliations.A pre-filing GSTR-9/9C checklist along with the critical timelines.Why accurate GSTR-9/9C filings gives businesses the strategic financial advantage.Strategic Path to Accurate Annual GST Return FilingThe following 10 reconciliations are non-negotiable and must be completed, documented, and signed-off before the filing deadline.SL NoName of the reconciliationWhat to reconcileIdeal outcomeRoot cause for difference1.Annual turnoverAudited Financial Statements (AFS) vs. GSTR-9 (Table 5A)Zero differenceVariance greater than ₹5 Lakh.2.Outward tax liabilityBooks liability vs. GSTR-3B tax paidLiability = Tax paidUnaccounted payments or short payment interest risk.3.Outward suppliesGSTR-1 turnover vs.

Goods and Services Tax (GST) filings have become a part of the routine workflow. Businesses are required to submit various GST returns, such as GSTR 1, GSTR 3B and GSTR 9, which can be filed either manually or through an automated process. This article will discuss key differences between the manual and automated processes of filing GST returns and related advantages and disadvantages.Key TakeawaysAn automated GST filing system reduces the risk of manual errors, thereby increasing accuracy and improving compliance.Manual GST filing processes are prone to human errors, as data is prepared manually and various tools are required to file returns.As a business scales, a business must consider adopting an automated system for filing GST returns.Cost-benefit analysis is also required for each business before adopting an automated GST filing system.What Is Manual GST Filing?Manual GST filing is one of the common methods used by various taxpayers. This method involves preparing return details using tools provided on the GST Portal. Firstly, the business should collate data from its books of accounts and input the data in the above tools manually. This tool will check if there are any errors and omissions in the data, after which it will produce a JSON file, which can be uploaded directly on the GST portal. In case there are any errors even after uploading on the GST portal, the business must correct those errors and re-upload on the GST portal for verification.

GST on furniture hits every step, from raw wood sourcing all the way to that sofa landing in your living room. For manufacturers, it shapes input tax credits and how much it ultimately costs to make furniture. The 56th GST Council meeting made a significant impact by reducing the GST on eco-friendly, handmade, and bamboo-based furniture from 12% to a more competitive 5%. Meanwhile, regular wooden and metal furniture held steady at 18%. This move cuts costs for green makers but keeps mainstream pricing predictable.Key TakeawaysBamboo, cane, or rattan furniture now enjoys a slick 5% GST rate.Most engineered wood products and furniture parts still face the usual 18%.Crucial raw materials, such as wood wool, particle boards, and bamboo joinery, account for 5% of the total.High-end metal and hospital furniture keep the 18% zone intact..Recent GST Rate Updates for Furniture and Raw MaterialsIn September 2025, the GST rates for furniture and related materials underwent a significant overhaul.