GST and Indirect Tax
In a Satpur or Ambad factory, GSTR-2B, the e-invoices and the job-work challans rarely agree on their own, and each gap can become reversed credit with interest or a notice years later. Our work covers GST from registration to the Appellate Tribunal, along with customs and foreign trade.
Last reviewed 8 October 2026
GST touches every invoice a factory raises and every bill it pays. An auto component maker in Sinnar MIDC may send castings to three job workers, buy from forty suppliers and move stock to a second unit, and each of those movements must agree with a return. A small error in a challan, a supplier's filing or the value of a stock transfer leads to blocked credit and interest, and the notice usually arrives two or three years later, when the people and papers involved are hard to trace. We keep the returns, the books and the movement of goods in agreement month by month. When the department raises questions, we prepare the reply and attend the hearing.
From our Nashik office we work with manufacturers, job workers, traders, distributors and service businesses, including those with registrations in more than one state and those that import or export. The law we refer to is the Central Goods and Services Tax Act, 2017, the Maharashtra Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017, with the rules and notifications issued under them. Customs work refers to the Customs Act, 1962, the Customs Tariff Act, 1975 and the Foreign Trade Policy 2023.
Registration and returns
A registration that omits a job worker's premises, or a return filed without a supplier match, is often discovered only when an officer asks for it. Routine filings are where most later disputes begin, and so they receive the same care as a notice.
GST registration
New registrations, additional places of business and registrations in other states. We check that every godown, unit and job worker's premises where your goods are kept has been declared.
Registration amendment and cancellation
Changes in address, proprietors, partners or directors are filed as amendments. Where a business closes, or where the officer has cancelled a registration, we handle the cancellation or the application for revocation.
GSTR-1 and GSTR-3B
Monthly and quarterly returns are prepared from the books. Before each filing, sales are matched with the e-invoices and e-way bills, and the tax paid is compared with the liability declared.
GSTR-9 annual return
The annual return is prepared from the reconciled monthly data. Errors from the year that can still be corrected are identified before it is filed.
GSTR-9C reconciliation statement
Turnover and tax in the audited accounts are reconciled with the returns, and each difference is explained in the statement.
QRMP and composition scheme
We examine whether quarterly filing with monthly payment, or the composition scheme, suits a smaller business, and we handle the option and the filings that follow from it.
E-invoicing and e-way bills
Generation from your billing software is configured and tested, including job-work movements, branch transfers, sales returns and goods sent for repair. Cancelled and amended documents are a frequent cause of mismatch.
Input tax credit
Credit that is unclaimed, mismatched or reversed is working capital the business has already paid out. For most manufacturers the checks below are run every month.
ITC reconciliation with GSTR-2B
Purchases in the books are matched with supplier data in GSTR-2B and the Invoice Management System. You receive a list of suppliers who have not filed, so that they can be followed up before the credit lapses.
ITC review and recovery
Past periods are reviewed for credit that was eligible but never claimed, or that was reversed without cause. Where the time limit still permits, the credit is claimed.
ITC reversals
Reversals for unpaid suppliers, exempt supplies, personal use and blocked credits are worked out. When capital goods are sold or moved to another unit, the reversal on their remaining life is calculated.
Specific transactions
Some transactions follow rules of their own. An error in one of them tends to repeat in every return until somebody finds it.
Job work and ITC-04
Delivery challans, the time limits for the return of inputs and capital goods, and the ITC-04 statement. Scrap generated at the job worker's premises is treated separately.
GST refunds
Refunds on exports with or without payment of tax, and refunds of accumulated credit under an inverted duty structure. The Letter of Undertaking for zero-rated supplies is filed each year.
Classification and rate
The HSN or SAC classification of your products and services is examined, together with the applicable rate. The rate changes made from 22 September 2025 moved many goods between slabs, so older classifications should be read again.
Place of supply
For services and inter-state transactions, the place of supply decides whether IGST or CGST and SGST is payable. Tax paid under the wrong head cannot simply be adjusted, and a refund claim may be needed.
Reverse charge
Goods transport agency services, legal fees, director services and notified purchases from unregistered persons. The tax is paid in cash, and the credit is claimed afterwards.
GST reviews
GST health check
One or more years are reviewed before the department examines them. The review covers credit, rates, related-party supplies, job work and annual return differences. You receive a list of exposures, each with its cost and the action required.
Departmental GST audit support
When the department schedules an audit, we prepare the records it asks for, attend the meetings and reply to the draft observations before the final report is issued.
Notices and disputes
Each notice is read against your returns and books before anything is written, and the reply is filed with its supporting papers.
Scrutiny notices (ASMT-10)
Discrepancies raised on scrutiny of returns are explained in Form ASMT-11, with reconciliations, so that the matter can close at that stage.
Demand notices (DRC-01)
The summary of a show cause notice or demand is checked for limitation, computation and the section invoked. Where a payment is made, it is recorded in the correct form.
Show cause notice replies
Replies are drafted on the facts and the law, and personal hearings are attended. The record built at this stage forms the base for any appeal.
GST appeals
First appeals go to the Appellate Authority and second appeals to the GST Appellate Tribunal. The work covers the pre-deposit, the grounds of appeal and the hearings.
GST advance rulings
Where a classification or a transaction is uncertain, an application can be made to the Authority for Advance Ruling. An appeal against the ruling can also be filed.
Customs and foreign trade
Many manufacturers in the district import raw material or machinery and export part of their output. Customs and foreign trade meet GST at several points, such as IGST on imports and refunds on exports.
Customs classification and valuation
The tariff heading of imported goods is examined. In related-party imports, the assessable value and the effect of royalties or assists on it are reviewed as well.
Duty drawback
Drawback claims on exported goods at the All Industry Rates or at a brand rate, and the reconciliation of amounts received.
Importer Exporter Code
Application for the IEC and its annual updation on the DGFT portal.
Foreign Trade Policy incentives
Schemes such as RoDTEP, Advance Authorisation and EPCG are reviewed for your exports. The export obligations attached to them are tracked until discharge.
SEZ and EOU compliance
Supplies made to SEZ units and developers, and the periodic returns and procedures for units operating under the SEZ or EOU schemes.
For manufacturers
In a factory, most GST disputes arise from a few recurring situations: castings left at a job worker, scrap sold without an invoice, stock moved between units. Each one leaves a trace in the stores register long before it appears in a return. For that reason we work with your stores, dispatch and accounts teams, and the returns are read last.
Goods that do not come back from the job worker
Inputs sent for job work must be returned within one year, and capital goods within three years. Moulds, dies, jigs, fixtures and tools are outside these limits. If inputs are not returned in time, the law treats them as supplied on the day they left your factory, with tax, and interest from the date that tax would have been due. We reconcile challans with goods received back, item by item, and report the balances in ITC-04. See our article on GST on job work.
Scrap and waste
Turnings, borings, rejected castings, off-cuts and process waste are taxable supplies, whether they are sold from your factory or from the job worker's premises. For each type, we check the rate and classification and identify who issues the invoice. The scrap register is also compared with production and stock.
Multiple units and group companies
Units registered in different states are separate persons under GST. Stock moved between them is therefore a supply that needs an invoice and a value. Supplies between group companies are valued under the related-party rules. Common services such as rent, software or audit fees are sometimes billed to one registration and used by several; in that case the credit has to be distributed through an Input Service Distributor registration, which has been compulsory for this since 1 April 2025.
Capital goods and plant
In an expansion year, credit on machinery, its installation and its foundations is a large figure. We check what is eligible and what is blocked as civil work. The reversal required when a machine is sold or moved to another unit is also worked out.
Imported inputs and exports
IGST paid on imports is available as credit only when the bill of entry is reflected correctly. On the export side, the choice between paying IGST and exporting under a Letter of Undertaking affects the cash cycle, and it is reviewed each year.
How an engagement runs
For a review or a notice, the period and the questions are agreed at the outset. Routine monthly work follows a calendar fixed with your accounts team.
Scope
The period, the registrations and the questions to be answered are agreed in writing.
Records and reconciliation
The records listed below are collected. The returns are then reconciled with the books and with supplier and e-invoice data.
Discussion
Differences are discussed with your accounts team before anything is written.
Findings and reply
You receive a note of findings stating the tax and interest at stake on each point. Where a notice is involved, the reply is drafted from that note and filed after your approval.
What we need from you
For a GST review or a notice reply we usually ask for the following. Routine returns need only the monthly sales and purchase registers and bank statements.
- GST registration certificates for every state, with the list of declared places of business
- Returns filed for the period, including annual returns and reconciliation statements
- Sales and purchase registers, and e-invoice and e-way bill reports for the period
- Electronic credit and cash ledgers, and the GSTR-2B statements
- Job-work challans, the record of goods received back, and ITC-04 filings
- Stock and scrap registers, and the bill of materials for main products
- Agreements and invoices for transactions with group companies and related parties
- Bills of entry, shipping bills and the IEC, where you import or export
- Copies of any notices, audit observations, orders and earlier replies
Common questions
Is stock sent to our own unit in another state taxable?
Yes. Each state registration is treated as a distinct person, so moving goods from your Maharashtra unit to your unit in another state is a supply even without consideration. A tax invoice and an e-way bill are required, and the value is calculated under the valuation rules. Because the receiving unit can normally claim the credit, the main costs are compliance and working capital.
What happens if goods sent for job work are not returned in time?
If inputs are not returned within one year, or capital goods within three years, they are treated as supplied by you to the job worker on the day they were sent out. You must pay tax on them, with interest from the date that tax would have been due for the month of dispatch, and report them accordingly. The limits can be extended on sufficient cause by the Commissioner, by up to one year for inputs and two years for capital goods. Moulds, dies, jigs, fixtures and tools are not covered by these limits.
We have received a GST show cause notice. How long do we have to reply?
The notice states the date for a reply and for any personal hearing. That date binds you, so it should be read first. Send us the notice with the returns for the period it covers. More time to collect records can be requested through an adjournment, although the request should be made in writing before the date passes.
Is the GST Appellate Tribunal now working?
Yes. The GST Appellate Tribunal began accepting appeals online in September 2025. Second appeals against orders of the first appellate authority now go to it through its own e-filing portal. The special window for appeals against orders communicated before 1 May 2026 closed on 31 July 2026. For later orders the normal limit applies: three months from the date the order is communicated.
How often should a manufacturer have a GST review?
Once a year is a sensible minimum. The review should be held before the annual return is filed, so that errors can still be corrected in the return. A further review is useful before a bank or an investor carries out due diligence and after a change in accounting software. It is also advisable when the business adds a unit or starts using job workers.
We export part of our output. Should we pay IGST or export under a Letter of Undertaking?
For most goods both routes are permitted. Under a Letter of Undertaking no tax is paid on the export, and the accumulated input credit is claimed as a refund. Regular exporters often find that paying IGST and receiving it back is quicker, although it uses credit or cash in the meantime. The choice depends on your credit balance and refund history, and on any export incentive you receive, since some of them restrict one route.
Do you handle customs matters as well as GST?
Yes. Classification and valuation of imports, duty drawback, the IEC and Foreign Trade Policy schemes are part of this work, because each of them affects the GST position of an importer or exporter. Where a matter needs representation before customs authorities, the scope is agreed at the outset.
See also: Accounting and Compliance, Taxation, Manufacturing finance
Contact the firm
About GST and Indirect Tax, or any related matter. A phone number or an email address is enough for us to reply.
- Office
- Office at Plot 08, Eden Complex, Gangapur Road, Nashik 422222
- Hours
- 9:30 AM to 8:00 PM; other times by appointment