IN GST Return

India GST Return Skill (GSTR-3B / GSTR-1) v2.0

Verified rates & thresholds (accountant-reviewed)

Reviewed against the cited tax authorities by Mayur Deokar on 2026-06-06. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified skill_facts — edit the facts, not the prose.

GST

• Standard rate — 18% (CGST 9% + SGST 9% / IGST 18%)
• Lower rate — 5% (CGST 2.5% + SGST 2.5% / IGST 5%) (Notification 1/2017-CT(Rate))
• 12% rate — 12% (CGST 6% + SGST 6% / IGST 12%) (Notification 1/2017-CT(Rate))
• Demerit rate — 28% (CGST 14% + SGST 14% / IGST 28%) (CGST Act)
• Nil/exempt — 0% — fresh food, healthcare, education (Notification 12/2017-CT(Rate))
• Zero-rated — 0% — exports, SEZ (with ITC refund) (IGST Act s 16)
• Key rule — IGST rate = CGST rate + SGST rate, always (IGST Act)
• Goods (general states) — INR 40 lakh aggregate turnover (CGST Act s 22)
• Goods (special category states) — INR 20 lakh (CGST Act s 22)
• Services (all states) — INR 20 lakh (INR 10 lakh special states) (CGST Act s 22)
• E-invoicing threshold — INR 5 crore AATO (any FY from 2017-18) (Notification 10/2023-CT)
• E-way bill threshold — INR 50,000 applies for interstate; for intrastate transport of goods, the limit is state-wise (varies by state) as per CGST Rules 2017 (CGST Rules 2017)
• GSTR-3B (monthly) — 20th of following month (CGST Rules)
• GSTR-3B (quarterly QRMP) — 22nd-24th of month after quarter (by state) (CGST Rules)
• GSTR-1 (monthly) — 11th of following month (CGST Rules)
• GSTR-1 (quarterly) — 13th of month after quarter (CGST Rules)
• Monthly vs quarterly — Monthly if turnover > INR 5 crore; however, taxpayers with turnover ≤ INR 5 crore also have the option to choose monthly filing instead of QRMP (CGST Act 2017)
• GSTIN Format – Structure — 15-digit: 2 state code + 10 PAN + entity code + Z + checksum (CGST Rules)
• GSTIN Format – Structure — 15-digit: 2 state code + 10 PAN + entity code + Z + checksum (CGST Rules)

Section 1 -- Quick reference

Read this whole section before classifying anything.

Quick reference fields

Field	Value
Country	India (Republic of India)
Tax structure	Dual GST: CGST + SGST/UTGST (intra-state) or IGST (inter-state)
Standard rate	18% (CGST 9% + SGST 9% / IGST 18%)
Lower rate	5% (CGST 2.5% + SGST 2.5% / IGST 5%)
Demerit rate	40% (CGST 20% + SGST 20% / IGST 40%) -- luxury/sin goods only
Nil/exempt	0% -- fresh food, healthcare, education
Zero-rated	0% -- exports, SEZ supplies (with ITC refund)
Key rule	IGST rate = CGST rate + SGST rate, always
Primary return forms	GSTR-3B (summary + tax payment); GSTR-1 (outward supply details)
Filing portal	https://gst.gov.in (GST Common Portal)
Authority	Central Board of Indirect Taxes and Customs (CBIC)
Currency	INR only
Filing frequencies	Monthly (turnover > INR 5 crore); Quarterly under QRMP (turnover <= INR 5 crore)
GSTR-3B deadline	20th of following month (monthly); 22nd-24th of month after quarter (quarterly, by state)
GSTR-1 deadline	11th of following month (monthly); 13th of month after quarter (quarterly)
Registration threshold (goods, general)	INR 40 lakh aggregate turnover
Registration threshold (goods, special states)	INR 20 lakh
Registration threshold (services, all)	INR 20 lakh (INR 10 lakh special states)
E-invoicing threshold	INR 5 crore aggregate turnover (any FY from 2017-18)
E-way bill threshold	INR 50,000 consignment value
GSTIN format	15-digit: 2 state code + 10 PAN + entity code + Z + checksum
Contributor	Open Accounting Skills Project
Validated by	Deep research verification, April 2026
Validation date	April 2026

Key GSTR-3B tables

Table	Meaning
3.1(a)	Outward taxable supplies (other than zero-rated, nil-rated, exempted) -- all taxable sales + tax collected
3.1(b)	Outward taxable supplies (zero-rated) -- exports + SEZ supplies
3.1(c)	Other outward supplies (nil-rated, exempted)
3.1(d)	Inward supplies (liable to reverse charge) -- RCM purchases
3.1(e)	Non-GST outward supplies -- petroleum, alcohol, etc.
3.2	Inter-state supplies to unregistered persons, composition taxpayers, UIN holders
4(A)	ITC Available -- imports, RCM, ISD, other ITC
4(B)	ITC Reversed -- Rule 42/43 reversals, others
4(C)	Net ITC Available -- 4(A) minus 4(B)
4(D)	Ineligible ITC -- as per Sec 17(5)
5.1	Interest and late fee payable
6.1	Tax payment -- IGST, CGST, SGST -- cash + ITC utilization

Key GSTR-1 tables

Table	Meaning
4A/4B/6B/6C	B2B supplies (invoices, debit notes, credit notes)
5A/5B	B2C inter-state (invoice value > INR 2.5 lakh)
7	B2C other (intra-state and inter-state below INR 2.5 lakh, rate-wise)
6A	Exports (with payment / without payment of tax)
8A/8B/8C/8D	Nil-rated, exempted, and non-GST supplies
9B	Credit notes / debit notes (unregistered)
11A/11B	Amendments to prior period B2B / export invoices
12	HSN-wise summary of outward supplies

Conservative defaults -- India-specific

Ambiguity	Default
Unknown rate on a sale	18%
Unknown VAT status of a purchase	Not deductible (no ITC)
Unknown counterparty state	Same state as client (intra-state, CGST+SGST)
Unknown B2B vs B2C status for buyer	B2C (no GSTIN, no ITC for buyer)
Unknown business-use proportion (vehicle, phone, home office)	0% recovery
Unknown SaaS billing entity	Reverse charge from non-resident (IGST)
Unknown blocked-input status (entertainment, personal use)	Blocked under Sec 17(5)
Unknown whether transaction is in scope	In scope
Unknown inter-state vs intra-state	Intra-state (CGST+SGST)

Red flag thresholds -- country slot values for reviewer brief

Threshold	Value
HIGH single-transaction size	INR 5,00,000
HIGH tax-delta on a single conservative default	INR 25,000
MEDIUM counterparty concentration	>40% of output OR input
MEDIUM conservative-default count	>4 across the return
LOW absolute net GST position	INR 10,00,000

Section 2 -- Required inputs and refusal catalogue

Required inputs

Minimum viable -- bank statement for the month/quarter in CSV, PDF, Excel, or pasted text. Must cover the full filing period. Acceptable from any Indian bank: SBI, HDFC, ICICI, Axis, Kotak, PNB, Bank of Baroda, IndusInd, Yes Bank, IDFC First, or any other scheduled bank. Also acceptable: Razorpay, Paytm, or other payment processor settlement reports.

Recommended -- purchase and sales invoices for the period (especially for inter-state B2B, exports, and reverse charge), prior period GSTR-3B and GSTR-1 filed copies, GSTR-2B (auto-drafted ITC statement) from the GST portal, Form 26AS / AIS (for cross-verification of TDS and high-value transactions).

Ideal -- Tally ERP / Zoho Books / ClearTax / Busy Accounting export (trial balance + GST-ready transaction register), complete invoice register with HSN/SAC codes, GSTR-9 from prior year, e-invoicing JSON exports if applicable.

Refusal policy if minimum is missing -- SOFT WARN. If no bank statement or transaction data is available at all, hard stop. If bank statement only without invoices, proceed but record in the reviewer brief: "This GSTR-3B was produced from bank statement alone. The reviewer must verify, before approval, that ITC claims are supported by tax invoices appearing in GSTR-2B, that all inter-state vs intra-state classifications are correct, and that reverse-charge self-assessments match the supplier's invoice."

India-specific refusal catalogue

If any trigger fires, stop, output the refusal message verbatim, end the conversation. Refusal is a safety mechanism.

• R-IN-1 -- Composition scheme taxpayer — Trigger: client is registered under composition scheme (Sec 10), or mentions CMP-08, GSTR-4, or turnover below INR 1.5 crore with simplified filing. Message: "Composition scheme taxpayers file GSTR-4 (annual) and CMP-08 (quarterly challan), not GSTR-3B/GSTR-1. They cannot claim ITC, cannot make inter-state supplies, and pay tax at flat rates (1% for traders/manufacturers, 5% for restaurants, 6% for service providers). This skill covers regular taxpayers only. Please use a qualified GST practitioner for composition scheme returns."
• R-IN-2 -- Multi-state registration — Trigger: client has GSTINs in more than one state and asks to consolidate or cross-credit. Message: "Each state GSTIN is a separate taxpayer under GST law. Cross-state ITC utilization is not permitted. This skill handles a single GSTIN filing only. If you need to file for multiple GSTINs, process each separately. For ISD (Input Service Distributor) cross-charge scenarios, please use a qualified CA/GST practitioner."
• R-IN-3 -- SEZ supplies (as supplier to SEZ) — Trigger: client makes supplies to SEZ units or developers and asks about zero-rating, LUT filing, or refund of accumulated ITC specific to SEZ. Message: "SEZ supply documentation (endorsed invoices, SEZ authority endorsement, LUT/bond filing) requires fact-specific verification beyond this skill. Please use a qualified GST practitioner for SEZ supply compliance."
• R-IN-4 -- E-commerce operator (TCS obligations) — Trigger: client operates an e-commerce platform and must collect TCS under Sec 52, or is a supplier through e-commerce with specific compliance obligations. Message: "E-commerce operators have TCS collection, GSTR-8 filing, and platform-level compliance obligations that are outside the scope of this skill. Please use a qualified GST practitioner."
• R-IN-5 -- Input Service Distributor (ISD) — Trigger: client is registered as an ISD or needs to distribute common input services across multiple GSTINs. Message: "ISD distribution requires proportional credit allocation across GSTINs under CGST Rules. This skill covers single-GSTIN regular taxpayers only. Please use a qualified CA/GST practitioner for ISD compliance."

Section 3 -- Supplier pattern library (the lookup table)

This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment from the table directly. Do not second-guess. Do not consult Tier 1 rules -- the table is authoritative for patterns it covers.

How to read this table. Match by case-insensitive substring on the counterparty name/description as it appears in the bank statement. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5.

3.1 Indian banks (fees exempt -- exclude)

Indian banks fee exclusions

Pattern	Treatment	Notes
SBI, STATE BANK OF INDIA	EXCLUDE for bank charges/fees	Financial service, exempt under Notification 12/2017-CT(Rate)
HDFC BANK, HDFC BK	EXCLUDE for bank charges/fees	Same
ICICI BANK, ICICI BK	EXCLUDE for bank charges/fees	Same
AXIS BANK	EXCLUDE for bank charges/fees	Same
KOTAK MAHINDRA, KOTAK BK	EXCLUDE for bank charges/fees	Same
PNB, PUNJAB NATIONAL BANK	EXCLUDE for bank charges/fees	Same
BOB, BANK OF BARODA	EXCLUDE for bank charges/fees	Same
INDUSIND, YES BANK, IDFC FIRST	EXCLUDE for bank charges/fees	Same
INTEREST, BYAJ, INT PAID, INT RECD	EXCLUDE	Interest income/expense, exempt financial service
LOAN, EMI, PERSONAL LOAN, HOME LOAN	EXCLUDE	Loan principal/EMI movement, not a supply
FD, FIXED DEPOSIT, RD	EXCLUDE	Investment movement, not a supply

3.2 Government (exclude entirely -- not a supply)

Government exclusions

Pattern	Treatment	Notes
GST PMT, GST PAYMENT, GST CHALLAN, GSTN	EXCLUDE	Tax payment to government
INCOME TAX, IT DEPT, TDS, ADVANCE TAX, CPC BANGALORE	EXCLUDE	Direct tax payment
MCA, ROC FEE, COMPANY AFFAIRS	EXCLUDE	Regulatory fee
EPFO, PF, ESI, ESIC, PROVIDENT FUND	EXCLUDE	Statutory social security contribution
PROFESSIONAL TAX, PT PAYMENT	EXCLUDE	State professional tax
STAMP DUTY, REGISTRATION FEE (govt)	EXCLUDE	Government fee, not a supply
MUNICIPAL, NAGAR NIGAM, PROPERTY TAX	EXCLUDE	Local body tax

3.3 Telecom and utilities (18%)

Telecom and utilities

Pattern	Treatment	GSTR-3B Table	Notes
JIO, RELIANCE JIO	18% input, CGST+SGST or IGST	4(A)	Telecom service
AIRTEL, BHARTI AIRTEL	18% input	4(A)	Telecom service
VI, VODAFONE IDEA	18% input	4(A)	Telecom service
BSNL, MTNL	18% input	4(A)	Government telecom, still taxable
TATA POWER, ADANI ELECTRICITY, BSES, BESCOM, MSEDCL	18% input	4(A)	Electricity distribution (post-GST 2.0: electricity brought under GST at 18% for commercial/industrial consumers)
MAHANAGAR GAS, IGL, ADANI GAS	5% input	4(A)	Piped natural gas for domestic/CNG at 5%
WATER SUPPLY, JALABOARD	EXCLUDE		Municipal water, exempt

3.4 Insurance

Insurance

Pattern	Treatment	Notes
LIC, LIFE INSURANCE CORP	EXCLUDE	Life insurance premium -- exempt (pure life, term). Endowment/ULIP policies may have GST but ITC blocked under Sec 17(5)(d)
HDFC ERGO, ICICI LOMBARD, BAJAJ ALLIANZ	18% -- but check Sec 17(5)(d)	General insurance at 18%. ITC blocked unless: (i) government-mandated employee coverage, or (ii) used for making taxable supply of same category
STAR HEALTH, NIVA BUPA, CARE HEALTH	18% -- but check Sec 17(5)(d)	Health insurance at 18%. ITC blocked unless government-mandated employee coverage
NEW INDIA ASSURANCE, UNITED INDIA	18% -- but check Sec 17(5)(d)	Same treatment as HDFC Ergo

3.5 SaaS and cloud -- Indian entities (18%)

SaaS Indian entities

Pattern	Billing entity	Treatment	Notes
AWS INDIA, AMAZON INTERNET SERVICES	Amazon Internet Services Pvt Ltd (IN)	18% IGST (if inter-state) or CGST+SGST (if same state)	Check supplier GSTIN state code vs client state
GOOGLE INDIA, GOOGLE CLOUD INDIA	Google India Pvt Ltd / Google Cloud India Pvt Ltd (IN)	18%	Check invoice for GSTIN
ZOHO, ZOHO CORP	Zoho Corporation Pvt Ltd (IN, Chennai)	18% IGST or CGST+SGST	Check state code
FRESHWORKS	Freshworks Technologies Pvt Ltd (IN, Chennai)	18%	Same treatment
MICROSOFT INDIA	Microsoft Corporation India Pvt Ltd (IN)	18%	Check invoice for Indian GSTIN
CLEARTAX, CLEAR	Clear (formerly ClearTax) (IN)	18%	Accounting/compliance SaaS

3.6 Non-resident SaaS (reverse charge under IGST Act Sec 5(3))

Non-resident SaaS reverse charge

Pattern	Billing entity	Treatment	Notes
NOTION, NOTION LABS	Notion Labs Inc (US)	RCM -- self-assess IGST 18% via cash ledger	Report in GSTR-3B Table 3.1(d). ITC claimable in 4(A)(3)
OPENAI, CHATGPT	OpenAI Inc (US)	RCM -- IGST 18%	Same
GITHUB (US entity)	GitHub Inc (US)	RCM -- IGST 18%	Check if billed by Indian or US entity
ANTHROPIC, CLAUDE	Anthropic PBC (US)	RCM -- IGST 18%	Same
FIGMA	Figma Inc (US)	RCM -- IGST 18%	Same
CANVA	Canva Pty Ltd (AU)	RCM -- IGST 18%	Non-resident, reverse charge
SLACK (US)	Slack Technologies LLC (US)	RCM -- IGST 18%	If billed by US entity. Salesforce Ireland = check
HUBSPOT (US)	HubSpot Inc (US)	RCM -- IGST 18%	Check billing entity
TWILIO	Twilio Inc (US)	RCM -- IGST 18%	Same

3.7 Payment processors (18%)

Payment processors

Pattern	Treatment	Notes
RAZORPAY	18% input (IGST or CGST+SGST)	Payment gateway fees -- check GSTIN state code
PAYTM, ONE97 COMMUNICATIONS	18% input	Same
STRIPE INDIA, STRIPE PAYMENTS INDIA	18% input	Indian entity -- check invoice
STRIPE (US/IE entity)	RCM -- IGST 18%	Non-resident -- reverse charge if no Indian GSTIN
CASHFREE, INSTAMOJO, PHONEPE BUSINESS	18% input	Payment processing service
PAYPAL (transaction fees from foreign entity)	RCM -- IGST 18%	PayPal Pte Ltd (SG) -- non-resident reverse charge
CCAVENUE, BILLDESK	18% input	Indian payment processors

3.8 Travel (5% / 18%)

Travel

Pattern	Treatment	Notes
INDIGO, INTERGLOBE AVIATION	5% (economy class)	Domestic air travel economy = 5%. Business class = 18%. Check ticket class
AIR INDIA	5% (economy) / 18% (business)	Same split. International flights = zero-rated
SPICEJET, AKASA AIR, AIR ASIA INDIA	5% (economy) / 18% (business)	Same treatment
VISTARA, TATA SIA	5% (economy) / 18% (business)	Same
OLA, ANI TECHNOLOGIES	5%	Ride-hailing at 5% (non-AC auto/e-rickshaw may be exempt)
UBER INDIA	5%	Same as Ola
IRCTC, INDIAN RAILWAYS	5%	Rail transport of passengers. Sleeper/AC chair at 5%. Local suburban exempt
MAKEMYTRIP, GOIBIBO, YATRA	18% on service fee; underlying transport at transport rate	Platform commission at 18%. Underlying ticket at 5%/18% per class
HOTELS, OYO, TAJ, ITC HOTELS, LEMON TREE	18% (tariff > INR 7,500/night) or 5% (tariff <= INR 7,500, without ITC option)	Check declared tariff

3.9 Restaurants (5% no ITC vs 18%)

Restaurants

Pattern	Treatment	Notes
SWIGGY	5% (collected by platform)	Restaurant service via e-commerce -- 5% with no ITC. Platform is liable to collect and remit GST
ZOMATO	5% (collected by platform)	Same as Swiggy
Restaurant (direct, non-hotel, non-AC)	5% output (no ITC)	Restaurant choosing 5% rate foregoes ITC
Restaurant (in hotel, tariff > INR 7,500)	18% (with ITC)	Hotel restaurant where declared room tariff > INR 7,500
DOMINOS, PIZZA HUT, MCDONALDS, KFC, BURGER KING	5% (dine-in/takeaway)	QSR chains at 5% without ITC
CLOUD KITCHEN, REBEL FOODS	5% via platform	Same treatment as Swiggy/Zomato delivery

3.10 Professional services (18%)

Professional services

Pattern	Treatment	Notes
CA, CHARTERED ACCOUNTANT, [name] & ASSOCIATES	18% input (CGST+SGST or IGST)	Professional services. ITC available if used for taxable outward supply
CS, COMPANY SECRETARY	18% input	Same
ADVOCATE, ADV, LAWYER, LAW FIRM	18% -- RCM applies	Legal services by individual advocate/firm = reverse charge. Recipient pays GST
CONSULTANT, CONSULTANCY	18% input	Check if RCM applies (non-resident consultant = RCM)
ARCHITECT, INTERIOR DESIGNER	18% input	Forward charge from registered supplier

3.11 Rent

Rent

Pattern	Treatment	Notes
RENT (commercial property)	18% input (CGST+SGST or IGST)	Commercial property rent at 18%. ITC available
RENT (residential, to registered person for business)	18% RCM	From 18 Jul 2022, residential property rented to registered person = RCM on tenant. Tenant self-assesses 18%
RENT (residential, to unregistered person)	EXCLUDE	Exempt. Not a taxable supply when tenant is unregistered
COWORKING, WEWORK, AWFIS, COWRKS, 91SPRINGBOARD	18% input	Commercial workspace service at 18%

3.12 Salaries and wages (exclude entirely -- not a supply)

Salaries and wages

Pattern	Treatment	Notes
SALARY, WAGES, STIPEND, PAYROLL	EXCLUDE	Employer-employee relationship. Schedule III -- not a supply
BONUS, GRATUITY, LEAVE ENCASHMENT	EXCLUDE	Same
CONTRACTOR (individual, no GSTIN)	EXCLUDE from GST; flag for TDS	Not a GST supply if unregistered. May need 194C TDS

Section 4 -- Worked examples

These are six fully worked classifications drawn from a hypothetical HDFC Bank statement of a Mumbai-based self-employed software consultant (GSTIN: 27XXXXX1234X1Z5, Maharashtra). They illustrate the trickiest cases. Pattern-match against these when you encounter similar lines in any real statement.

Example 1 -- Non-resident SaaS reverse charge (Notion)

Input line: 05.01.2026 ; NOTION LABS INC DEBIT CARD ; DR ; USD 10.00 ; INR 840.00

Reasoning: Notion Labs Inc is a US entity (Section 3.6). No GST on the charge. This is an import of services -- the client must self-assess IGST at 18% under reverse charge (IGST Act Sec 5(3)). RCM liability paid via electronic cash ledger only. ITC claimable in the same period if conditions under Sec 16 are met. Net effect = zero (cash-neutral for fully taxable person).

Output table

Date	Counterparty	Gross (INR)	Net	GST self-assessed	Rate	GSTR-3B Table (output)	GSTR-3B Table (input)	Default?	Question?
05.01.2026	NOTION LABS INC	-840	-840	IGST 151	18%	3.1(d)	4(A)(3)	N	--

Example 2 -- Indian SaaS, inter-state (AWS India)

Input line: 10.01.2026 ; AMAZON INTERNET SERVICES PVT LTD NEFT ; DR ; INR 23,600.00

Reasoning: Amazon Internet Services Pvt Ltd is registered in Telangana (GSTIN: 36XXXXXX). Client is in Maharashtra (27). Different states = inter-state = IGST at 18%. Invoice amount INR 23,600 is gross (INR 20,000 net + INR 3,600 IGST). ITC of INR 3,600 IGST claimable if reflected in GSTR-2B.

Output table

Date	Counterparty	Gross (INR)	Net	GST paid	Rate	GSTR-3B Table	Default?	Question?
10.01.2026	AMAZON INTERNET SERVICES	-23,600	-20,000	IGST 3,600	18%	4(A)(5)	N	--

Example 3 -- Domestic restaurant, blocked ITC (Swiggy)

Input line: 15.01.2026 ; BUNDL TECHNOLOGIES SWIGGY ; DR ; INR 450.00

Reasoning: Swiggy (Bundl Technologies) is a restaurant aggregator platform. Restaurant food at 5% -- but ITC on food and beverages is blocked under Sec 17(5)(b). The 5% GST is collected and remitted by the e-commerce platform. For the recipient (our client), no ITC is available regardless of business purpose. Exclude from ITC claim. The expense may still be deductible for income tax purposes if business-related.

Output table

Date	Counterparty	Gross (INR)	Net	GST	Rate	ITC?	Default?	Question?
15.01.2026	SWIGGY	-450	-429	21 (5%)	5%	BLOCKED -- Sec 17(5)(b)	Y	"Was this a business meal or personal?"

Example 4 -- Legal services under reverse charge (Advocate)

Input line: 20.01.2026 ; ADV RAJESH SHARMA NEFT ; DR ; INR 50,000.00

Reasoning: Payment to an advocate for legal services. Under Notification 13/2017-CT(Rate) Sl. No. 2, legal services by an individual advocate or firm of advocates to any business entity attract reverse charge. The client (business entity) must self-assess GST at 18%. Since both advocate and client are in Maharashtra, this is intra-state: CGST 9% + SGST 9% on INR 50,000 = INR 9,000 total. Paid via cash ledger. ITC of INR 9,000 claimable if the legal service was for business purposes.

Output table

Date	Counterparty	Gross (INR)	Net	GST self-assessed	Rate	GSTR-3B Table (output)	GSTR-3B Table (input)	Default?	Question?
20.01.2026	ADV RAJESH SHARMA	-50,000	-50,000	CGST 4,500 + SGST 4,500	18%	3.1(d)	4(A)(3)	Y	"Confirm advocate is in same state (intra-state) and not an employee"

Example 5 -- Domestic air travel, economy class

Input line: 22.01.2026 ; INTERGLOBE AVIATION INDIGO 6E-1234 ; DR ; INR 5,250.00

Reasoning: IndiGo domestic flight. Economy class domestic air travel attracts 5% GST (CGST 2.5% + SGST 2.5% or IGST 5%). Net = INR 5,000, GST = INR 250. ITC of INR 250 is available if the travel was for business purposes and not blocked under Sec 17(5)(e) (travel benefits to employees on vacation are blocked, but business travel by the proprietor is not LTC). Check: business class would be 18%.

Output table

Date	Counterparty	Gross (INR)	Net	GST	Rate	GSTR-3B Table	Default?	Question?
22.01.2026	INTERGLOBE AVIATION	-5,250	-5,000	250	5%	4(A)(5)	Y	"Economy or business class? Business purpose?"

Example 6 -- Motor vehicle (personal car), hard block

Input line: 28.01.2026 ; MARUTI SUZUKI INDIA LTD NEFT ; DR ; INR 8,50,000.00

Reasoning: Car purchase payment. ITC on motor vehicles is hard-blocked under Sec 17(5)(a) unless the vehicle is used for: (i) further supply of vehicles, (ii) transportation of passengers, (iii) driving training, or (iv) transportation of goods. A software consultant does not qualify for any exception. Full ITC block regardless of business use. The GST paid (18% or 40% depending on vehicle type) is a cost to the business. Do not claim any ITC.

Output table

Date	Counterparty	Gross (INR)	Net	GST	Rate	ITC?	Default?	Question?
28.01.2026	MARUTI SUZUKI	-8,50,000	--	--	18%/40%	BLOCKED -- Sec 17(5)(a)	Y	"Motor vehicle: blocked. Is this for transport of goods/passengers as primary business?"

Section 5 -- Tier 1 classification rules (compressed)

Each rule states the legal source and the GSTR-3B table mapping. Apply silently if the data is unambiguous.

5.1 GST rate slabs (post-GST 2.0, effective 22 Sep 2025)

• Legislation — CGST Act Sec 9; 56th GST Council; Notification 01/2017-CT(Rate) as amended. (CGST Act Sec 9; 56th GST Council; Notification 01/2017-CT(Rate))
• 5% slab — packaged food, medicines, economy transport, insurance, EVs, restaurants (without ITC option), small hotels (56th GST Council, 22 Sep 2025)
• 18% slab — most goods and services -- IT, telecom, financial services, professional services, branded garments, consumer durables, cement, non-luxury automobiles, commercial rent (56th GST Council, 22 Sep 2025)
• 40% slab — demerit/luxury only -- aerated drinks, energy drinks, premium motor vehicles (SUVs >4m, >1500cc), online gaming/casinos/betting (56th GST Council, 22 Sep 2025)
• 0% (nil/exempt) — fresh food (milk, cereals, vegetables, fruits), healthcare, education (56th GST Council, 22 Sep 2025)
• 0% (zero-rated) — exports, SEZ supplies (56th GST Council, 22 Sep 2025)
• Former slabs abolished — Former 12% and 28% slabs abolished 22 Sep 2025. Items moved to 5% or 18% respectively. (56th GST Council, 22 Sep 2025)

5.2 CGST+SGST vs IGST determination

• Legislation — CGST Act Sec 9; IGST Act Sec 5; IGST Act Chapter V (Place of Supply). (CGST Act Sec 9; IGST Act Sec 5; IGST Act Chapter V)

Scenario table

Scenario	Tax type
Supplier state = Buyer state (intra-state)	CGST + SGST (half rate each)
Supplier state = Buyer UT (intra-UT)	CGST + UTGST
Supplier state != Buyer state (inter-state)	IGST (full rate)
Import of goods	IGST (via Customs) + BCD (no ITC on BCD)
Import of services	IGST under reverse charge
Export	Zero-rated (IGST or under LUT)

• Key determination — Compare first two digits of supplier GSTIN vs buyer GSTIN. If same state code = intra-state. If different = inter-state. If buyer has no GSTIN (B2C), use buyer's billing address to determine state. (IGST Act Chapter V)

5.3 Reverse charge on import of services

• Legislation — IGST Act Sec 5(3); Sec 5(4). (IGST Act Sec 5(3); Sec 5(4))
• RCM on import of services — ANY import of services where supplier is outside India and recipient is in India -- IGST must be self-assessed and paid by recipient under reverse charge. No threshold. Paid via electronic cash ledger only (ITC cannot be used to discharge RCM liability). ITC on the RCM payment is available in the same period if Sec 16 conditions are met. Net effect = zero for a fully taxable recipient. (IGST Act Sec 5(3); Sec 5(4))
• Reporting — Report: GSTR-3B Table 3.1(d) for output; Table 4(A)(3) for ITC. (IGST Act Sec 5(3); Sec 5(4))

5.4 Domestic reverse charge (specified services)

• Legislation — CGST Act Sec 9(3); Notification 13/2017-CT(Rate). (CGST Act Sec 9(3); Notification 13/2017-CT(Rate))
• Key RCM categories — Legal services by individual advocate/firm of advocates; Services by director (not as employee) to company; Services by Goods Transport Agency (GTA) -- if GTA has not opted for forward charge; Sponsorship services to body corporate/partnership; Services by government/local authority to business entity; Security services from unincorporated supplier to registered person (CGST Act Sec 9(3); Notification 13/2017-CT(Rate))
• Mechanics — self-assess at applicable rate, pay via cash ledger, report in 3.1(d), claim ITC in 4(A)(3). (CGST Act Sec 9(3); Notification 13/2017-CT(Rate))

5.5 E-invoicing (INR 5 crore threshold)

• Legislation — CGST Rule 48(4); Notification 13/2020-CT and amendments. (CGST Rule 48(4); Notification 13/2020-CT)
• E-invoicing rules — If aggregate turnover in any FY from 2017-18 onwards exceeds INR 5 crore: Mandatory e-invoice for all B2B supplies; Upload JSON to Invoice Registration Portal (IRP) at einvoice1.gst.gov.in; Receive IRN (Invoice Reference Number) + QR code; IRN + QR must appear on invoice; E-invoice auto-populates GSTR-1 and e-way bill Part A; 30-day reporting rule: taxpayers with AATO >= INR 10 crore must report within 30 days of invoice date (from 1 Apr 2025); MFA mandatory for all GST portal access from 1 Apr 2025 (CGST Rule 48(4); Notification 13/2020-CT)

5.6 ITC conditions (all four must be met)

• Legislation — CGST Act Sec 16(2). (CGST Act Sec 16(2))
• Four conditions — 1. Possession of tax invoice or debit note. 2. Receipt of goods or services. 3. Tax actually paid to government by supplier (reflected in GSTR-2B). 4. Recipient has filed GSTR-3B. (CGST Act Sec 16(2))
• ITC cap — ITC cannot exceed amount in GSTR-2B. If supplier has not uploaded invoice, recipient CANNOT claim ITC. (CGST Act Sec 16(2))
• Time limit — Earlier of 30 Nov of year following the FY, or date of filing GSTR-9 for that FY. (CGST Act Sec 16(2))
• Non-payment reversal — If recipient does not pay supplier within 180 days of invoice date, ITC must be reversed. Re-claim upon payment. (CGST Act Sec 16(2))

5.7 Blocked credits -- Sec 17(5) (absolute blocks)

Blocked credits table (CGST Act Sec 17(5))

Category	Blocked?	Exception
Motor vehicles and conveyances	YES	Only if used for: further supply of vehicles, transport of passengers, driving training, transport of goods
Food, beverages, outdoor catering, beauty, health, cosmetic surgery	YES	Only if used for making outward taxable supply of same category, or as element of taxable composite/mixed supply
Club membership, health and fitness centre	YES	None
Rent-a-cab, life insurance, health insurance	YES	Government-mandated employee provision; or used for making taxable supply of same category
Travel benefits to employees on vacation (LTC/LTA)	YES	None
Works contract for immovable property (not plant & machinery)	YES	Input service for further supply of works contract
Construction of immovable property on own account (not plant & machinery)	YES	None
Personal consumption	YES	None
Goods lost, stolen, destroyed, written off, gifts, free samples	YES	None -- ITC must be reversed

5.8 ITC utilization order

• Legislation — CGST Act Sec 49(5); Circular 98/17/2019-GST. (CGST Act Sec 49(5); Circular 98/17/2019-GST)
• Utilization order — IGST Credit --> First against IGST liability --> Then against CGST liability --> Then against SGST/UTGST liability CGST Credit --> First against CGST liability --> Then against IGST liability --> CANNOT be used against SGST/UTGST SGST Credit --> First against SGST liability --> Then against IGST liability --> CANNOT be used against CGST (CGST Act Sec 49(5); Circular 98/17/2019-GST)
• IGST exhaustion rule — IGST credit must be fully exhausted before CGST or SGST credit is used against IGST liability. (CGST Act Sec 49(5); Circular 98/17/2019-GST)

5.9 ITC reversal -- Rule 42/43

• Legislation — CGST Rules, Rule 42 (inputs/input services), Rule 43 (capital goods). (CGST Rules, Rule 42, Rule 43)
• Reversal formula — ITC to reverse = (Exempt turnover / Total turnover) x Common Credit (CGST Rules, Rule 42)
• Capital goods reversal — Capital goods: 5-year useful life. Monthly reversal = Total ITC / 60 x (exempt / total turnover). (CGST Rules, Rule 43)

5.10 Filing deadlines and late fees

Filing deadlines and late fees table

Return	Deadline	Late fee (with tax liability)	Late fee (nil)
GSTR-3B (monthly)	20th of following month	INR 50/day (max INR 10,000)	INR 20/day (max INR 500)
GSTR-1 (monthly)	11th of following month	INR 50/day (max INR 10,000)	INR 50/day (max INR 10,000)
GSTR-9	31st December following FY	INR 200/day (max 0.5% of turnover)	Same

• Interest on late payment — 18% per annum on net cash liability. Excess ITC claimed and utilized: 24% per annum.

5.11 Exports -- two options

• Legislation — IGST Act Sec 16(3); CGST Rules, Rule 96/96A. (IGST Act Sec 16(3); CGST Rules, Rule 96/96A)

Export options table

Option	Mechanism	Refund
Export with payment of IGST	Charge IGST on invoice	Automatic refund via shipping bill (Rule 96)
Export under LUT (without tax)	File Letter of Undertaking annually (RFD-11), invoice at 0%	Claim refund of accumulated ITC (Rule 89, RFD-01)

• Reporting — Report in GSTR-3B Table 3.1(b). GSTR-1 Table 6A. (IGST Act Sec 16(3); CGST Rules, Rule 96/96A)

5.12 E-way bill

• E-way bill requirement — Required for movement of goods where consignment value > INR 50,000. Validity: 1 day per 200 km. Generated on ewaybillgst.gov.in. Not applicable to services. (CGST Rules, Rule 138)

5.13 HSN/SAC on invoices

HSN/SAC requirements table

Turnover	HSN digits required
Up to INR 5 crore	4-digit HSN on B2B invoices
Above INR 5 crore	6-digit HSN on all invoices

• HSN vs SAC — HSN = goods (based on WCO classification). SAC = services (starts with 99xxxx).

5.14 Compensation cess -- abolished

• Cess abolition — Abolished for non-tobacco items from 22 Sep 2025. Abolished for tobacco/pan masala from 1 Feb 2026 (replaced by Health Security and National Security Cess on production capacity). Do NOT apply compensation cess to any invoice dated on or after these dates.

5.15 QRMP scheme

• Legislation — CGST Rule 61A; Notification 84/2020-CT. (CGST Rule 61A; Notification 84/2020-CT)
• QRMP eligibility and mechanics — Eligible if aggregate turnover <= INR 5 crore in preceding FY. GSTR-1 and GSTR-3B filed quarterly. Tax paid monthly via PMT-06 by 25th of following month. Invoice Furnishing Facility (IFF) available for optional B2B invoice upload in months 1 and 2 of quarter (max INR 50 lakh/month). (CGST Rule 61A; Notification 84/2020-CT)

Section 6 -- Tier 2 catalogue (compressed)

For each ambiguity type: pattern, why the bank statement is insufficient, conservative default, question for the structured form.

6.1 Vehicle costs (petrol/diesel)

Pattern: HPCL, BPCL, IOCL, SHELL, petrol pump, fuel station, toll charges (FASTag/NHAI). Why insufficient: vehicle type and business-use proportion unknown. If vehicle is a car -> ITC on the car itself is blocked under Sec 17(5)(a), and fuel for a blocked vehicle is also typically blocked. If commercial vehicle (delivery van, truck) -> ITC available. Default: 0% recovery. Question: "Is this fuel for a car (ITC blocked) or a commercial vehicle used for business? What percentage is business use?"

6.2 Restaurants via platforms (Swiggy/Zomato)

Pattern: SWIGGY, ZOMATO, BUNDL TECHNOLOGIES, ZOMATO LTD, food delivery charges. Why insufficient: personal vs business meal unknown. GST at 5% is collected by the platform (e-commerce operator liable from 1 Jan 2022). ITC on food is blocked under Sec 17(5)(b) regardless. Default: no ITC claim. Expense may still be income tax deductible if business purpose established. Question: "Was this a business meal (e.g., client meeting) or personal? (Note: ITC is blocked either way -- this is for income tax records.)"

6.3 Home office (rent/utilities)

Pattern: rent payment, electricity bill, internet bill from residential address. Why insufficient: proportion of business use unknown. Residential rent to registered person triggers RCM at 18% from 18 Jul 2022 -- but the ITC on residential rent for personal use is blocked under Sec 17(5)(g). Mixed use requires apportionment but lacks clear methodology. Default: 0% ITC recovery on residential expenses. Question: "Do you work from home? What percentage of the property is used exclusively for business? Is the rent in your personal name or business name?"

6.4 Cash withdrawals

Pattern: ATM, CASH WDL, CASH WITHDRAWAL. Why insufficient: unknown what cash was spent on. Cash expenses need invoices for ITC. Default: exclude as owner drawing. Question: "What was the cash used for? Do you have invoices for any cash purchases?"

6.5 Mixed B2B/B2C sales (GSTIN determination)

Pattern: incoming payments from individuals or entities where GSTIN is unknown. Why insufficient: B2B (with GSTIN) requires per-invoice reporting in GSTR-1 Table 4A. B2C inter-state above INR 2.5 lakh requires Table 5A. B2C below threshold goes to Table 7 (rate-wise summary). Without knowing if buyer has GSTIN, cannot determine correct GSTR-1 table. Default: B2C (no GSTIN). Question: "For each sale: does the buyer have a GSTIN? If yes, what is it?"

6.6 Inter-state vs intra-state (counterparty location)

Pattern: payments to/from entities where state is unclear from bank statement description. Why insufficient: CGST+SGST vs IGST determination depends on comparing supplier and buyer state codes. Wrong determination = wrong tax heads = demand notice risk. Default: intra-state (same state as client) = CGST+SGST. Question: "Where is [counterparty] located? Same state as you, or a different state? If B2B, what is their GSTIN?"

6.7 Digital services from abroad (reverse charge -- is it really B2B?)

Pattern: foreign SaaS, cloud services, streaming subscriptions where business vs personal use is ambiguous. Why insufficient: RCM on import of services applies only when the service is received "in relation to business or commerce." Personal subscriptions (Netflix, Spotify personal) are not subject to RCM -- the foreign OIDAR supplier registers and pays under Simplified Registration (IGST Sec 14). Default: if the subscription appears on a business bank statement, treat as business use -> RCM applies. Question: "Is [service] used for business or personal purposes? If personal, it should not be on the business bank statement."

Section 7 -- Excel working paper template (India-specific)

Sheet "Transactions"

Columns:

• A: Date
• B: Counterparty / Description
• C: Debit/Credit indicator
• D: Gross amount (INR)
• E: Net amount (INR)
• F: GST amount (INR)
• G: GST rate (0%, 5%, 18%, 40%, RCM, Exempt, Excluded)
• H: Tax type (CGST+SGST / IGST / RCM-IGST / RCM-CGST+SGST / Nil / Excluded)
• I: GSTR-3B table reference (3.1(a), 3.1(b), 3.1(c), 3.1(d), 4(A), 4(D), Excluded)
• J: GSTR-1 table reference (4A, 5A, 7, 6A, 8A, Excluded)
• K: Default? (Y/N)
• L: Question / Notes

Use blank for excluded transactions in columns G-J.

Sheet "GSTR-3B Summary"

One row per table. Column A = table number, Column B = description, Column C = taxable value, Column D = IGST, Column E = CGST, Column F = SGST.

| 3.1(a) | Outward taxable (other) | =SUMIFS(...) | ... |
| 3.1(b) | Outward taxable (zero-rated) | =SUMIFS(...) | ... |
| 3.1(c) | Other outward (nil/exempt) | =SUMIFS(...) | ... |
| 3.1(d) | Inward (reverse charge) | =SUMIFS(...) | ... |
| 4(A)   | ITC Available | =SUMIFS(...) | ... |
| 4(B)   | ITC Reversed | =SUMIFS(...) | ... |
| 4(C)   | Net ITC | =4(A)-4(B) | ... |
| 4(D)   | Ineligible ITC (Sec 17(5)) | =SUMIFS(...) | ... |

Sheet "Tax Computation"

Output tax liability:
  IGST payable on outward supplies = [from 3.1(a) IGST column]
  CGST payable = [from 3.1(a) CGST column]
  SGST payable = [from 3.1(a) SGST column]
  Add: RCM liability (IGST/CGST/SGST) = [from 3.1(d)]

Less: ITC utilized (per utilization order in Section 5.8):
  IGST credit applied -> IGST -> CGST -> SGST
  CGST credit applied -> CGST -> IGST
  SGST credit applied -> SGST -> IGST

Net payable via cash = Output - ITC utilized

Color and formatting conventions

Blue for hardcoded values from bank statement (columns A-D). Black for formulas. Green for cross-sheet references. Yellow background for any row where Default? = "Y". Red text for any blocked ITC row (Sec 17(5)).

Mandatory recalc step

After building the workbook, run:

python /mnt/skills/public/xlsx/scripts/recalc.py /mnt/user-data/outputs/india-gst-<period>-working-paper.xlsx

Check the JSON output. If status is errors_found, fix the formulas and re-run.

Section 8 -- Indian bank statement reading guide

Follow the universal exclusion rules, plus these India-specific patterns.

HDFC Bank statement format

Typical CSV columns: Date, Narration, Chq/Ref No, Value Dt, Withdrawal Amt, Deposit Amt, Closing Balance. Date format: DD/MM/YY or DD/MM/YYYY. Narration field contains the counterparty info -- often cryptic: "NEFT/RTGS/IMPS-[IFSC]-[Sender name]", "UPI-[UPI ID]-[Name]", "POS [Merchant]-[Terminal ID]", "ATM-SELF", "BIL/ONL/[Biller name]".

HDFC narration parsing rules:

• NEFT-UTIB0000XXX-JOHN DOE -> payment to/from John Doe via Axis Bank
• UPI-rajesh@okhdfcbank-RAJESH KUMAR -> UPI payment to/from Rajesh Kumar
• POS 123456789012 AMAZON -> card purchase at Amazon
• BIL/ONL/AIRTEL -> online bill payment to Airtel
• INT.PD -> interest paid (exclude)
• CHG-GST or SERVICE CHARGES -> bank charges (exclude, exempt)

SBI statement format

Typical columns: Txn Date, Value Date, Description, Ref No/Cheque No, Debit, Credit, Balance. Description format: "INB/NEFT/[Ref]-[Name]", "ATM/SELF/[Branch]", "UPI/[ID]/[Name]", "SI-[Standing Instruction]".

ICICI Bank statement format

Typical columns: S No, Value Date, Transaction Date, Cheque Number, Transaction Remarks, Withdrawal Amount (INR), Deposit Amount (INR), Balance (INR). Remarks format: "NEFT-[IFSC]-[Name]", "UPI/[Ref]/[Name]", "MMT/IMPS/[Ref]/[Name]", "POS/[Merchant]/[Location]".

Common patterns across all Indian bank statements

UPI payments: Most common. Format varies but always contains "UPI" and a UPI ID or reference. The counterparty name is usually extractable. UPI to individuals without GSTIN -> likely personal or unregistered supplier -> Tier 2 question needed.

NEFT/RTGS/IMPS: Business payments. IFSC code in the narration can identify the counterparty bank branch. Large RTGS payments (> INR 2 lakh) are likely business transactions.

Card transactions (POS/online): Merchant name is embedded but often truncated. "AMAZON", "FLIPKART", "SWIGGY" are recognizable. "POS 4XXXXX" with no name -> ask client.

Standing instructions (SI/ECS/NACH): Recurring debits for EMI, insurance, subscriptions. Pattern: "ECS/NACH-[Mandate]-[Payee]". Common: LIC (insurance), HDFC HOME LOAN (EMI), SIP (mutual fund).

Internal transfers and exclusions:

• Own-account transfers between savings/current accounts: "TRF-OWN", "SELF TRANSFER", "FD CREATION"
• Mutual fund SIPs: "BSE-MF-[Fund name]" -> investment, exclude
• FD maturity/creation: "FD-[number]" -> exclude
• ATM self-withdrawal: "ATM-SELF", "ATM WDL" -> exclude as drawing

Refunds and reversals: "REVERSAL", "REFUND", "RETURN-NEFT". Book as negative in the same classification as the original transaction. Correct in the period booked, not by amending the original period.

Salary credits (if client has employees): "PAYROLL", "SALARY-[month]", outgoing to multiple individuals on same date. Exclude -- not a supply (Schedule III).

Loan disbursement/repayment: "LOAN DISB", "EMI-[Account]". Exclude -- not a supply.

Foreign currency transactions: Some banks show forex in narration: "FCY-USD-[amount]". Convert to INR at the transaction date rate shown on the statement. Note the rate in column L.

Section 9 -- Onboarding fallback (only when inference fails)

The workflow mandates inferring the client profile from the data first and only confirming with the client when inference fails. The questionnaire below is a fallback.

9.1 Legal name and GSTIN

Inference rule: GSTIN sometimes appears in payment descriptions, especially in NEFT narrations. Extract and validate the 15-digit format (2 state code + 10 PAN + entity code + Z + checksum). Fallback question: "What is your GSTIN? (15-digit alphanumeric, e.g. 27AAPFU0939F1Z5)"

9.2 Registration type

Inference rule: if client is asking for GSTR-3B/GSTR-1, they are regular (non-composition). If they mention CMP-08 or GSTR-4 -> R-IN-1 refuses. Fallback question: "Are you a regular GST taxpayer or under the composition scheme?"

9.3 State of registration

Inference rule: first two digits of GSTIN. Also inferable from the bank branch location in IFSC codes. Fallback question: "Which state is your GST registration in?"

9.4 Filing period and frequency

Inference rule: first and last transaction dates on the bank statement. Monthly filers: single month. QRMP filers: full quarter. Fallback question: "Which period does this cover? Are you a monthly filer or quarterly (QRMP)?"

9.5 Business activity

Inference rule: counterparty mix, sales descriptions, HSN/SAC on invoices. IT/software, consulting, trading, manufacturing are recognizable from transaction patterns. Fallback question: "In one sentence, what does the business do?"

9.6 Inter-state supplies

Inference rule: if outward payments or receipts involve GSTINs from different states or IGST appears on invoices. Fallback question: "Do you make sales to buyers in other states? If so, which states?"

9.7 Exports

Inference rule: foreign currency receipts, forex conversion entries, "FIRC" or "EXPORT" in narration. Fallback question: "Do you export goods or services? If so, do you have a Letter of Undertaking (LUT) filed for this financial year?"

9.8 Reverse charge purchases

Inference rule: payments to advocates, GTA, foreign services, directors. Fallback question: "Do you receive any services from advocates, goods transport agencies, or foreign suppliers? Do you have non-employee directors?"

9.9 E-invoicing applicability

Inference rule: aggregate turnover from prior year GSTR-9 or from client's stated turnover. Fallback question: "Has your aggregate turnover exceeded INR 5 crore in any financial year since 2017-18?"

9.10 ITC brought forward

Inference rule: not inferable from a single period statement. Always ask. Question: "Do you have any ITC balance carried forward from the previous period? (IGST, CGST, SGST amounts separately)"

Section 10 -- Reference material

Validation status

This skill is v2.0, rewritten in April 2026 to align with the Malta v2.0 three-tier architecture (Quick reference, Supplier pattern library, Worked examples, Tier 1/Tier 2 split). It supersedes v1.0 (standalone monolithic skill). The India-specific content (rate structure, GSTR-3B/GSTR-1 table mappings, blocked credits, reverse charge, e-invoicing, e-way bill) has been compiled from the CGST Act 2017, IGST Act 2017, CGST Rules 2017, and CBIC notifications/circulars. Post-GST 2.0 rate rationalization (56th GST Council, 22 Sep 2025) is reflected.

Sources

Primary legislation:

1. Central Goods and Services Tax Act, 2017 (CGST Act) -- https://cbic-gst.gov.in
2. Integrated Goods and Services Tax Act, 2017 (IGST Act) -- https://cbic-gst.gov.in
3. CGST Rules, 2017 -- https://cbic-gst.gov.in
4. State Goods and Services Tax Acts (each state)
5. Goods and Services Tax (Compensation to States) Act, 2017 (abolished 2025/2026)

Key notifications: 6. Notification 01/2017-CT(Rate) -- GST rate schedule for goods (as amended by GST 2.0) 7. Notification 11/2017-CT(Rate) -- GST rate schedule for services (as amended) 8. Notification 12/2017-CT(Rate) -- Exempt services list 9. Notification 13/2017-CT(Rate) -- Reverse charge on specified services 10. Notification 13/2020-CT -- E-invoicing applicability 11. Notification 84/2020-CT -- QRMP scheme 12. Notification 02/2025 -- Compensation cess abolition (non-tobacco)

Key circulars: 13. Circular 98/17/2019-GST -- ITC utilization order 14. Circular 140/10/2020-GST -- Director services RCM clarification 15. Circular 164/20/2021-GST -- Restaurant composite/mixed supply

Portals: 16. GST Common Portal -- https://gst.gov.in 17. E-Invoice Portal -- https://einvoice1.gst.gov.in 18. E-Way Bill Portal -- https://ewaybillgst.gov.in

Known gaps

1. The supplier pattern library covers common Indian vendors but does not cover every regional vendor or local supplier. Add patterns as they emerge.
2. Worked examples are drawn from a hypothetical Mumbai-based IT consultant. They do not cover manufacturing, trading, or hospitality specifically. A v2.1 should add sector-specific examples.
3. HSN/SAC classification requires looking up the master schedule -- this skill does not contain the full HSN/SAC master. Flag unknown classifications as [T2].
4. Place of supply for services is frequently disputed (IGST Act Sec 12/13). Complex scenarios involving multiple states or cross-border elements should be flagged [T2].
5. The GST 2.0 rate rationalization (56th GST Council, 22 Sep 2025) abolished the 12% and 28% slabs. Some transitional edge cases may exist for invoices straddling the effective date.
6. Health Security and National Security Cess (replacing compensation cess on tobacco/pan masala from 1 Feb 2026) is not detailed in this skill. Flag as [T3] if encountered.
7. The e-invoicing threshold (INR 5 crore) and 30-day reporting rule (INR 10 crore AATO) are as of April 2026. Verify for future periods.
8. ITC reversal calculations under Rule 42/43 require annual reconciliation in GSTR-9. This skill covers the monthly computation but not the annual true-up.

PROHIBITIONS [T1]

• NEVER allow ITC on blocked credits under Sec 17(5) -- absolute blocks regardless of business use.
• NEVER apply intra-state rates (CGST+SGST) to inter-state supplies, or vice versa.
• NEVER let AI guess HSN/SAC codes -- classification must be verified against the HSN/SAC master.
• NEVER allow ITC claims that do not appear in GSTR-2B.
• NEVER discharge RCM liability using ITC -- must be paid via electronic cash ledger only.
• NEVER allow ITC beyond the time limit (30 Nov of following FY).
• NEVER classify a mixed supply as composite to achieve a lower rate.
• NEVER ignore the ITC utilization order (IGST must be exhausted first).
• NEVER allow e-invoicing-applicable businesses to issue invoices without IRN/QR code.
• NEVER assume export status without LUT filing or IGST payment proof.
• NEVER compute any number -- all arithmetic is handled by the deterministic engine, not Claude.

Change log

• v2.0 (April 2026): Full rewrite to Malta v2.0 architecture. Quick reference with GSTR-3B/GSTR-1 table structure moved to top (Section 1). Supplier pattern library added with 12 sub-tables covering Indian banks, government, telecom, insurance, SaaS, non-resident SaaS, payment processors, travel, restaurants, professional services, rent, salaries (Section 3). Six worked examples from hypothetical HDFC Bank statement (Section 4). Tier 1 rules compressed with post-GST 2.0 rates (Section 5). Tier 2 catalogue with 7 ambiguity types (Section 6). Excel working paper template (Section 7). Indian bank statement reading guide covering HDFC, SBI, ICICI formats (Section 8). Onboarding moved to fallback with inference rules (Section 9). Five India-specific refusals: R-IN-1 (composition), R-IN-2 (multi-state), R-IN-3 (SEZ), R-IN-4 (e-commerce operator), R-IN-5 (ISD).
• v1.0 (April 2026): Initial skill. Standalone monolithic document covering CGST/IGST Acts, rate classification, return forms, ITC rules, blocked credits, reverse charge, e-invoicing, e-way bill, composition scheme, edge cases, and test suite. Compiled from deep research verification.

Self-check (v2.0 of this document)

1. Quick reference at top with GSTR-3B table and conservative defaults: yes (Section 1).
2. Supplier library as literal lookup tables: yes (Section 3, 12 sub-tables).
3. Worked examples drawn from hypothetical HDFC Bank statement: yes (Section 4, 6 examples).
4. Tier 1 rules compressed with post-GST 2.0 rates (5%/18%/40%): yes (Section 5, 15 rules).
5. Tier 2 catalogue compressed with inference rules: yes (Section 6, 7 items).
6. Excel template specification with mandatory recalc: yes (Section 7).
7. Onboarding as fallback only, inference rules first: yes (Section 9, 10 items).
8. All 5 India-specific refusals present: yes (Section 2, R-IN-1 through R-IN-5).
9. Reference material at bottom: yes (Section 10).
10. Blocked credits (Sec 17(5)) hard-block explicit: yes (Section 5.7 + Examples 3, 6).
11. Motor vehicle hard-block explicit: yes (Section 5.7 + Example 6).
12. RCM on import of services explicit: yes (Section 5.3 + Example 1).
13. RCM on domestic specified services (advocate) explicit: yes (Section 5.4 + Example 4).
14. CGST+SGST vs IGST determination explicit: yes (Section 5.2 + Example 2).
15. Restaurant/food ITC block explicit: yes (Section 5.7 + Example 3).

End of India GST Return Skill v2.0

Disclaimer

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