Navigating GST compliance key challanges and best practices for 2025
1. Real-time invoice matching is mandatory, requiring 100% accuracy in supplier invoices for Input Tax Credit (ITC) claims; delays or mismatches can result in significant cash flow issues.
2. Increasing regulatory complexity with stricter return filing deadlines, penalties for non-compliance ranging from ₹10,000 to ₹50,000, and risk of GST registration suspension.
3. New mandatory multi-factor authentication (MFA) and stricter e-way bill regulations add layers of cybersecurity and procedural hurdles.
4. Delays in GST refunds remain a bottleneck, particularly for exporters and MSMEs, often due to documentation mismatches or pending deficiency memos.
5. AI-powered GST audits increase detection of errors but also raise the compliance bar for accuracy and timely filings.
Best Practices:
Automate GST filing, invoice reconciliation, and return processes to reduce errors and comply with real-time invoice matching requirements.
Train accounting and tax teams regularly on evolving GST rules and portal updates to maintain compliance readiness.
Conduct periodic internal GST audits to identify and rectify discrepancies proactively.
Use credible, fully GST-compliant vendors to avoid ITC denial and supply chain disruption.
Monitor refund status actively and submit all necessary documentation promptly to minimize delays.
Implement stringent cybersecurity protocols including mandatory MFA for GST portal access.
These insights can help businesses simplify GST compliance, avoid penalties, and leverage efficiencies under the 2025 GST framework
