9 GST Compliance Trends | Driving Growth for Businesses

In the last few years, GST Compliance standards have become more fortified than ever before, powered by factors like the introduction of e-invoices, Automation in GST, and changing GST regulations. Businesses unable to keep up with these changes have faced consequences, like a penalty for late filing of GSTR-3B, legal actions for delay in GST payment, and reputational damage.

For example, Zomato recently received a GST notice of ₹400 crore from the Directorate General of GST Intelligence (DGGI), where the company was required to pay the specified GST for their delivery service. Only unsuitable GST operations could lead to failure in identifying such GST compliance requirements.

That is why keeping your filing practices up to date with such changing GST requirements is vital to staying compliant while generating lucrative returns.

And we can help you with that. This article will help you stay ahead of the changing compliance requirements by offering a comprehensive insight into various GST Trends in 2024 to follow.

9 Influential GST Compliance Trends in 2024

Saving your working capital becomes a practical option if you keep yourself informed about every new change happening in the GST space, starting with new trends and technology.

For example, the new statement on ITC reversal and reclaim for instance.

Its introduction has offered businesses the flexibility to correct errors, reclaim ITC in the future, and maintain a comprehensive track record.

1. Reconciliation and E-Invoicing Solutions

The adoption of e-invoicing solutions and robust reconciliation processes are at the forefront of GST compliance. Various automation-driven and cloud-based GST software aid in reconciling returns, streamlining e-invoicing, reducing compliance requirements, and making data accessible. A e-invoicing solution offers bulk generation capabilities while ensuring error-free e-invoices.

2. Automation and Vendor Compliance for ITC

Automated scrutiny of returns ensures accuracy and timely identification of discrepancies, ensuring a more transparent and accountable tax environment. It is why automation is highly recommended for seamless GST return filing and compliance.

The future of input tax credit also remains promising with an increased focus on genuine buyers and a move toward preventing automatic reversals. Businesses are focusing on a risk-based categorization of vendors, enabling better tracking and releasing of vendor payments to prevent wrongly claim ITC.

This approach not only promotes compliance but also ensures a continuous flow of information between businesses and the government.

3. E-Commerce Transaction Disclosure

The bifurcation of sales in GSTR-1 for e-commerce transactions is a major step forward in GST Transparency. It has made Reporting E-commerce transactions mandatory, helping businesses distinguish between direct and indirect sales for more accurate return filing.

4. Automation in Litigation and Notice Response

Automation in responding to notices under sections 88C and 88D is helping many businesses ensure more accurate scrutiny of differences between GSTR-1, GSTR-2B, and GSTR-3B. The DRC-01 facility allows businesses and the Government to respond promptly and settle liabilities with expert guidance, increasing transparency and reducing the likelihood of disputes.

5. Automated Purchase Register

Efforts to digitize e-invoices (with OCR and purchase invoices) help streamline the filing process for businesses. You can automate the purchase register operations, enabling you to better prepare the purchase register according to GST regulations specified by the government. 

You can generate e-invoices within 30 days and manage the purchase register with automation. It will help you align billing cycles and improve ITC reconciliation processes for seamless compliance.

6. Implementing New E-Invoicing Regulations

Incorporating upcoming and potential e-invoicing regulations is necessary to keep your business GST-compliant, some of which can be:

1. Lower turnover requirement for e-invoice (below 5 crore)
2. E-invoicing for B2C transactions
3. The inclusion of exempt sectors like banks and insurance companies under e-invoice

Regulations like these will bring more taxpayers under the e-invoicing net and prevent potential tax evasion.

7. New Technology in Return Filing

A rising trend in GST is using the latest technology like AI and Automation to facilitate the entire return filing process.

For Example:

1. Notice APIs
2. Generative AI for Litigation (for reading & responding to notices)
3. Smart Reporting and MIS
4. Rule-based Engines (to streamline vendor onboarding and monitoring)
5. Data Reconciliation
6. Data Mashups (for real-time insights into performance)

Incorporating such technology and more into your GST operations will help you manage compliance more effectively while maximizing returns.

8. Stronger User Authentication Protocols

The rising tides in Cybersecurity are taking every sector, including GST to a more secure and reliable shore. That is why strong registration and authentication protocols are now a cornerstone of GST compliance. Multi + 2-factor authentication systems like OTPs by number, OTPs by email, and Biometric authentication are being adopted by every GST solution.

As a business owner, it would be your responsibility and obligation to incorporate these practices in your GST operations.

9. Data-Driven GST Compliance

Another popular compliance trend is sharing GST data across government departments and managing it all using the Account Aggregator Framework. GST Data like sales information, cash liquidity status, ITC usage, purchase information, and bank information.

Such data management offers better transparency and accurate insights into your financial status, helping you implement data-driven compliance in your business.

Conclusion

As a business owner, you must stay vigilant and adapt to the evolving regulation in GST as you navigate through the complexities of Compliance in 2024. Maintain a proactive approach to compliance, implement automation in repetitive GST operations, and use tested technology to streamline your compliance practices.

Why Choose Us as Your GST Return Filing Partner?

GSTHero is a Govt. Appointed  GST Suvidha Provider, streamlining GST compliance and tax management for enterprises through automation.

Here’s what you can expect from us:

1. Automated and Hassle-free GST Filing
2. 100% GST Compliance
3. 100% Accuracy in Automated Data Management
4. Tested and Proven GST Solutions
5. On-call Expert and Training Support
6. Error-free ITC Reconciliation

GSTHero - GST Filing Solutions

GSTR Filing

Utilize automated and 1-click solutions to reduce hours of manual work in preparing e-invoice and e-way billing data for GSTR-1 to GSTR-9. 

ITC Reconciliation

Automated and error-free Income Tax Credit Reconciliation with advanced features to auto-notify your vendors and suppliers.

E-Invoicing

Offering compatibility with numerous ERPs, our e-invoicing solutions help you generate and print 100% GST-compliant invoices with 1-click solutions.

E-Way billing

Using automation, you can save time and prevent errors while generating, printing, and managing multiple e-way bills.

GST Litigation

Our user-friendly and centralized Litigation Management System (LMS) simplifies Notices tracking and management to streamline GST Litigation and Compliance.

Third Eye

A smart MIS and pre-auditing solution to get Compliance Diagnosis, Risk Exposure Alerts, and strategic information to make informed decisions.

SafeSign

A digital signature solution to authorize your confidential documents faster and with better security.