FINBOAT

  The Reverse Charge Mechanism (RCM) is one of the most sensitive compliance areas under the Central Goods and Services Tax Act, 2017. Many GST notices and tax demands arise due to incorrect handling of reverse charge transactions. This article explains RCM in a practical, business-focused manner so that companies, professionals, and entrepreneurs can ensure proper compliance. What is Reverse Charge under GST? Under normal GST provisions: The supplier collects GST from the customer and deposits it with the government. Under Reverse Charge: The recipient of goods or services is liable to pay GST directly to the government. In simple terms, the tax responsibility shifts from the supplier to the buyer. Legal Provisions Governing RCM Reverse charge is covered under: Section 9(3) – Notified goods and services Section 9(4) – Purchases from unregistered suppliers (restricted applicability) Section 9(5) – E-commerce operator liable to pay...

  What Should You Do If You Receive a GST Notice? Receiving a notice under the Goods and Services Tax Act can be stressful for any business owner. However, a GST notice does not automatically mean penalty or wrongdoing. In most cases, it is issued for clarification, mismatch, or verification purposes. The key is to act promptly, respond professionally, and ensure proper documentation. This guide explains what you should do if you receive a GST notice and how to protect your business from unnecessary penalties. Step 1: Read the Notice Carefully Do not panic. Carefully review: The section under which the notice is issued The financial year involved The reason for the notice The deadline to respond Whether a personal hearing is required Understanding the nature of the notice is the first step toward preparing an accurate reply. Step 2: Identify the Reason for the Notice Common reasons include: Mismatch between GSTR-1 and GSTR-3B ITC mismatch with GSTR-...

Director related Documents 1. PAN card of all Directors 2. Aadhaar of all directors   3. Address proof of Directors : Either “BANK STATEMENT” OR “POST PAID MOBILE BILL” OR “ELECTRICITY BILL” OR “WATER BILL” (NO OTHER DOCUMENT WILL BE CONSIDERED AS ADDRESS PROOF).   4. Provide the details of how long the person has been living at the above address. 5. Passport-size photos of all directors. 6. Email addresses and mobile numbers of all directors. 7. Current Occupation and engagement of all directors. 8. Educational details of all directors 9. Place of birth of all directors   Company -Related Details 1. Two proposed names of the company (must be UNIQUE) 2. Detail of business activity for drafting   of MOA & AOA   Registered office related Documents of the company If the business is run on a rented property, then;                a. Rent Agreement  ...

  Receiving a notice under the Goods and Services Tax (GST) law can be unsettling for any business. However, in most cases, GST notices are system-generated due to data mismatches, non-compliance, or reporting errors. With increasing digitization and data analytics by the GST department, even minor inconsistencies can trigger scrutiny. Understanding the common reasons for GST notices helps businesses remain compliant and avoid unnecessary penalties, interest, and litigation. Below is a professional overview of the most frequent reasons why businesses receive GST notices in India. 1. Mismatch Between GSTR-1 and GSTR-3B One of the most common triggers is a mismatch between: Outward supplies declared in GSTR-1 Tax liability discharged in GSTR-3B If turnover or tax declared in GSTR-1 exceeds what is reported and paid in GSTR-3B, the system may generate a notice for short payment of tax. Best Practice: Conduct monthly reconciliation before filing returns. 2. Diff...

A GST tax invoice is not just a bill — it is a legal document that proves the supply of goods and/or services under the Goods and Services Tax (GST) regime in India. It plays a crucial role in tax compliance, filing of returns, and claiming Input Tax Credit (ITC) . If any mandatory information is missing , the invoice can be treated as defective or invalid , leading to denial of ITC , penalties, and commercial disputes. After the major GST rate overhaul implemented from September 22, 2025 , the GST slabs of 12% and 28% were abolished and replaced with a simplified structure of 5% and 18% for most supplies, along with specific higher rates for luxury/sin goods. This article lists all the key fields that must be mentioned in a GST tax invoice according to the latest law. If these are not included, the invoice cannot be considered a valid tax invoice under GST. 1. Document Title — “TAX INVOICE” Every GST invoice must clearly carry the title “TAX INVOICE” at the top. Without ...

  E-Invoicing under GST is one of the most important compliance reforms introduced by the Government of India to improve transparency, reduce fake billing, and ensure smooth GST reporting. Over the years, e-invoicing has become mandatory for a large number of taxpayers and is now a key part of GST compliance for businesses. In this article, we will understand what e-invoicing is , who is required to generate it , the step-by-step process , latest legal provisions , and its impact on GST return filing. What is E-Invoicing Under GST? E-Invoicing (Electronic Invoicing) under GST refers to the system where specified taxpayers are required to upload their invoice details on the Invoice Registration Portal (IRP) and obtain a unique reference number called the Invoice Reference Number (IRN) . Once the invoice is uploaded on the IRP: The invoice gets authenticated A QR Code is generated An IRN (Invoice Reference Number) is issued The invoice becomes valid as per GST...