Introduction
The Goods and Services Tax (GST) regime in India places strong emphasis on timely filing of returns, accurate reporting of transactions, and reconciliation of Input Tax Credit (ITC). Non-compliance not only results in interest, late fees, and penalties but also exposes businesses to departmental scrutiny and litigation.
To enable management to assess compliance at a glance, GSTZen has developed the GST Compliance Report. This report consolidates return filings, sales, purchases, and ITC utilization into a single document, enabling CFOs, CXOs, and senior management to make informed decisions.
1. Compliance Status – Filing Discipline
As per Section 39 of the CGST Act, 2017, registered persons are required to file periodic returns (e.g., GSTR-1, GSTR-3B) within prescribed timelines.
- GSTR-1 (Rule 59, CGST Rules) – captures outward supplies. Timely filing ensures that customers can claim ITC without disruption.
- GSTR-3B (Rule 61, CGST Rules) – a monthly summary return to discharge GST liability. Delay attracts late fee under Section 47 and interest under Section 50.
The compliance status section of the report highlights whether returns were filed on time, late, or missed, giving management a quick compliance snapshot.
2. Sales Overview – Revenue Reporting
This section summarizes turnover and tax liability, both year-to-date and for the reporting month.
- Ensures alignment of GSTR-1 (invoice-level reporting) with GSTR-3B (tax payment).
- Aids reconciliation with books of accounts as required under Section 35 of the CGST Act.
For management, this provides clarity on reported revenues and the resulting tax obligations.
3. ITC Overview – Credit Utilization
Input Tax Credit is the backbone of GST compliance. The report covers:
- Imports ITC – credit availed under Section 16(1) read with IGST Act provisions.
- ITC Claimed in GSTR-3B – reflecting credit availed.
This ensures that available credits are correctly availed and utilized, reducing the cost of tax compliance.
4. Validation Checks – Identifying Mismatches
GSTZen incorporates automated reconciliation to highlight discrepancies, such as:
- GSTR-1 vs GSTR-3B – mismatch in outward supplies.
- GSTR-2B vs GSTR-3B – mismatch in ITC claimed.
- Exempt turnover vs common credit reversal (Rule 42 & 43 of CGST Rules).
These checks enable early detection of issues that may otherwise result in departmental notices under Section 61 or audit under Section 65.
5. Payment of Taxes – Cash vs Credit Utilization
The report details how tax liabilities were discharged:
- Cash Ledger – payments made directly.
- Credit Ledger – utilization of ITC.
Management can verify whether working capital is optimized by balancing cash outflow with credit utilization, as envisaged under Section 49 of the CGST Act.
6. Sales Reports – with top 10 Customer Insights
This section provides the summary and Monthly analysis related to Outward Supplies reported in GSTR 3B as well as GSTR 1.
The report segregates:
- Taxable sales (domestic supplies)
- Zero-rated supplies (exports, SEZ) under Section 16 of the IGST Act
- Exempt/Nil-rated supplies
It also provides Top 10 Customers by turnover, enabling management to assess revenue concentration risk and dependency on key clients.
For management, this helps in analyzing their key Customers and mix of domestic, zero rated and exempt outward supplies
7. Purchase and ITC Reports – Supplier Insights
This section analyzes supplier compliance and ITC availability:
- Auto-populated ITC in GSTR-2B (supplier-filed data).
- Ineligible ITC – blocked credits under Section 17(5) or mismatched place of supply.
- Delayed ITC Reporting – suppliers filing invoices late, impacting ITC flow.
- Top 10 Suppliers – highlighting vendor dependency.
For management, this helps in vendor risk assessment and strengthens supply chain governance.
8. Comparison Reports – Reconciliation Assurance
The most critical aspect of compliance is reconciliation across returns:
- GSTR-1 vs GSTR-3B – ensuring outward supplies match tax payment.
- GSTR-2B vs GSTR-3B – ensuring ITC claimed is within eligibility.
- Reverse Charge Mechanism (RCM) – ensuring liability paid matches ITC claimed under Section 9(3)/(4) of CGST Act.
Discrepancies in these reports can invite scrutiny, and proactive resolution ensures smooth compliance.
Conclusion – A Dashboard for Compliance Health
The GST Compliance Report by GSTZen acts as a strategic dashboard for high-level management, offering:
- A comprehensive compliance overview (filings, sales, ITC, payments).
- Automated validations to identify risk areas early.
- Actionable insights into customer and vendor concentration.
By aligning with statutory provisions under the CGST Act, IGST Act, and GST Rules, the report equips leadership teams with the clarity required to ensure compliance, manage risks, and take data-driven business decisions.
In essence, this report transforms compliance from a routine filing activity into a management tool for strategic oversight.