Quick Answer: What is GSTR-2B? GSTR-2B is a static, monthly auto-generated statement on the GST portal that determines a business’s eligible Input Tax Credit (ITC). Generated on the 14th of every month, it pulls data directly from your suppliers’ GSTR-1 filings. In 2026, GSTR-2B is the absolute source of truth for ITC claims; claiming credit…
Quick Answer: The primary difference between GSTR-1 and GSTR-3B is their purpose and sequence. GSTR-1 is a detailed, invoice-level report of your sales (outward supplies) that must be filed first so your buyers can claim Input Tax Credit. GSTR-3B is a consolidated summary return filed afterward, used to declare your final tax liability, claim your…
It’s March 18. You’re staring at your profit and loss statement, and the number at the bottom is higher than you expected. Good problem to have—except now you owe more tax than you budgeted for, and the financial year closes in less than two weeks. I’ve seen this play out hundreds of times. A small…
Last month, I spent an entire afternoon untangling a client’s TDS compliance mess — misclassified cash withdrawals, an expired lower deduction certificate, and zero documentation trail. The kicker? Every single issue traced back to rule changes the client simply hadn’t tracked. That experience is exactly why I’m writing this. Starting 1 April 2026, India’s income…
Last quarter, a retail client walked into my office with a stack of GST notices — three demand letters, two ITC disallowances, and a registration suspension warning. His business was doing well. Sales were growing. But his GST compliance was a mess, and it had been silently compounding for months. He’s not alone. Most small…
Under GST, output tax is the tax you collect on sales, while input tax credit is the tax you can claim on purchases to reduce your final tax liability. The difference between the two determines how much GST you actually pay the government. In simple terms, understanding the difference between input tax credit and output…
You just realized your GSTR-3B was due three days ago. The portal shows “pending.” Your stomach drops. Take a breath. If you file your GST returns late, you face a daily late fee, interest on unpaid tax, and — in persistent cases — recovery actions under the CGST Act. That’s the short version. But the…
Under GST, goods and services are taxed differently based on classification, rate, time of supply, and invoicing rules. Understanding this difference is critical for correct compliance — and in 2026, with automated data matching catching classification errors faster than ever, getting it wrong isn’t just inconvenient. It triggers notices. Most GST notices I see land…
An accounting and invoicing system is a structured process that connects invoice creation, accounts receivable tracking, automated follow-ups, and financial reporting—so payments arrive predictably and cash flow stays visible. Last quarter, a service-business founder showed me his “system” for getting paid. It was a spreadsheet with client names, invoice dates, and a column labeled “Paid?”…
The Silent Drop-Off Problem Here’s something I’ve watched play out hundreds of times at ProfitBooks. A small business owner signs up for an accounting software trial. They’re motivated. They’ve finally decided to move past spreadsheets. They log in, see the dashboard, glance at a few menu items… and close the tab. They never come back.…