Practical Study on GST Compliance in Purchase & Sales Return

Vrishabh Mane; Priya Satsangi; Bhawna Sharma

Practical Study on GST Compliance in Purchase & Sales Return

Author(s)	Vrishabh Mane, Dr. Priya Satsangi, Prof. Dr. Bhawna Sharma
Country	India
Abstract	The Goods and Services Tax (GST) has transformed India’s indirect tax system by replacing various state and central taxes with a single framework. This simplification not only made tax management easier but also improved audit trails, input credit tracking, and invoice review across businesses. However, along with this structural change came heightened expectations for compliance accuracy. Of all the areas in GST reporting, managing purchase and sales returns is particularly sensitive, as it directly impacts Input Tax Credit (ITC) eligibility, output liability reporting, and tax calculations for specific periods. During my internship as a Junior Accountant at a Chartered Accountant firm, I gained hands-on experience with these compliance processes. I worked extensively with return registers, credit and debit notes, purchase and sales ledgers, GSTR-1 reporting, GSTR-3B tax payment calculations, and 2B input reconciliation. Through this experience, I learned that even a small numerical error or incorrect invoice reference can disrupt reconciliation, delay tax adjustments, or trigger alerts on the GST portal. This practical involvement helped me realize that compliance relies more on accuracy, discipline, and timely documentation than on theoretical knowledge. The second main goal of this research is to highlight the gap between theoretical GST knowledge and actual implementation in a workplace. While textbooks describe the rules, real-world experience reveals exceptions, necessary corrections, deadlines, and responsibilities, especially under the pressure of month-end workloads. In practice, compliance decisions are not always straightforward; they require judgment, interpretation of documents, client communication, and prompt resolution of data discrepancies. Therefore, this study goes beyond theory, documenting actual field conditions, workflow challenges, and filing behaviors observed during my internship. It also explores the financial impact of delayed note posting, the importance of clear communication between vendors and accountants, and the role of complete documentation in avoiding mismatches. By analyzing real-time entries, error cases, return ratios, reversal patterns, and filing outcomes, the research concludes that compliance with GST purchase and sales returns is not just an accounting task. It is a collaborative regulatory responsibility that demands accuracy, timely record maintenance, verification discipline, and awareness of legal deadlines.
Field	Business Administration
Published In	Volume 6, Issue 6, November-December 2025
Published On	2025-11-28

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Practical Study on GST Compliance in Purchase & Sales Return

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