Monthly GST Compliance Checklist, Manufacturers

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12 critical items still open - these are the highest-risk gaps.

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Sales and outward supplies

All sales invoices for the month are posted and numbered in sequenceCRITICALHSN codes are present on every invoice item and at the required digit lengthCRITICALE-invoice IRN generated for all invoices where e-invoicing appliesCRITICALE-way bill generated for movements above the value limitCRITICALCredit and debit notes are posted against the correct original invoicesExport invoices and LUT usage are separated for reportingAdvances received are reviewed for GST treatmentSales register totals agree with the ledger

Purchases and input tax credit

All purchase bills received up to month end are enteredCRITICALPurchase register is reconciled to GSTR-2B by invoice number and GSTINCRITICALMissing supplier invoices are chased and ITC held until they appearBlocked credits under Section 17(5) are excluded from the claimReverse charge purchases are identified and tax paid in cashCredit notes received from suppliers are adjustedCapital goods ITC is recorded separately from inputsSupplier GSTINs are checked for active status

Job work and stock movements

Delivery challans are issued for all goods sent to job workersCRITICALGoods sent and received back are matched against challansAging of inputs at job workers is reviewed against the one-year limitCapital goods at job workers are tracked against the three-year limitITC-04 working is updated for the quarter or half-yearStock transfers between own branches carry the right tax treatment

Return filing and payment

GSTR-1 figures are reviewed against the sales register before filingCRITICALGSTR-1 is filed by the due dateCRITICALGSTR-3B liability and ITC are tied to the booksCRITICALCash ledger balance is sufficient before the due dateGSTR-3B is filed and the acknowledgement is savedCRITICALLate fee and interest, if any, are calculated and bookedGST ledger accounts in the books are reconciled to the portal ledgersSupporting working files are saved in a dated folder

TDS and other monthly items

TDS deducted in the month is deposited by the due dateCRITICALVendor PANs are present for all TDS deducteesTDS return data is prepared for the quarterPending notices or portal messages are reviewedNext month's compliance calendar is shared with the team

Mark each item as done. Any critical item left open should be cleared before the filing date. Adapt the list to your registration type and turnover.

ITC reconciliation report

Optional expert review on automating purchase register versus GSTR-2B matching from your ERP.

Optional. The tool and every export work without this. No spam.

How to use it

Run the list in the first week of the month before GSTR-1 and again before GSTR-3B. Assign each group to a named person, tick items as done and export the finished list to PDF or Excel as evidence of process. The critical items are those that most often cause notices or blocked credit.

Why reconciliation comes first

Input tax credit can generally be claimed only for invoices that appear in the auto-drafted GSTR-2B and meet the other conditions. Comparing the purchase register with GSTR-2B by supplier GSTIN and invoice number shows missing, duplicate and mis-keyed bills. Do this every month rather than at year end, when suppliers are harder to chase.

Manufacturing specifics

Job work, scrap sales and branch stock transfers create most of the extra work for plants. Keep challans, return dates and ITC-04 data in one place. The time limits for goods at the job worker are tracked under Section 143, and goods not returned in time may be treated as supply.

Common mistakes

Filing 3B from a draft that is not tied to the books, ignoring blocked credit categories, and leaving e-way bill cancellations unrecorded. Another is using one preparer for both preparing and reviewing the return.

Frequently Asked Questions

When should GSTR-2B reconciliation happen?

Ideally right after GSTR-2B is generated around the 14th, and before filing GSTR-3B on the 20th. Doing it earlier gives time to chase suppliers.

Is this checklist enough for an audit?

It supports process discipline but is not a statutory audit programme. Your auditor or tax consultant will add items based on turnover, state and registration type.

Do composition taxpayers use it?

Only partly. Composition taxpayers have different returns and cannot claim ITC, so use the sales, TDS and filing sections and skip the credit steps.

Which ERP setting helps most?

Mandatory HSN, GSTIN and place of supply fields on masters and vouchers help most, since they prevent bad data at entry instead of fixing it at filing.

If reconciliation takes days each month, Netray can discuss a read-only report over your ERP data that lists unmatched invoices before the filing date.

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Monthly GST Compliance Checklist for Indian Manufacturers