GST and Income Tax Compliance: Building a Better Compliance Process

For most businesses in India, tax compliance is not a single annual event. GST returns, TDS deposits and statements, advance tax instalments and annual income tax returns each follow their own calendar. Missing one usually means interest, late fees or a notice, and fixing problems after the fact takes far longer than preventing them. A well-organised compliance process turns this from a recurring source of stress into routine work.

Start with a complete compliance calendar

The first step is knowing exactly what applies to your business. That depends on your registrations, legal structure, turnover, the kinds of payments you make and whether you deal with parties outside India. A useful calendar lists every obligation, its due date, the information needed to complete it and the person responsible for providing that information.

• GST: periodic returns such as GSTR-1 and GSTR-3B, and annual returns where applicable.
• TDS: deduction at the correct rate, deposit within the due dates, quarterly statements and certificates to payees.
• Income tax: advance tax estimates during the year and the annual return prepared from finalised accounts.

Prepare returns from reconciled records

Many compliance problems are really accounting problems. If the books, the GST returns and the TDS records are prepared from different data, mismatches are almost certain. Reconciling purchase records with supplier data available on the GST portal, and checking that TDS credits in your tax records agree with your books, catches most issues before they reach a return.

This is why we recommend that returns are prepared from the same books that are maintained month to month. Our accounting and bookkeeping services and tax advisory and compliance work are designed to operate together for this reason.

Request information early

Late filings are often caused by information arriving late rather than by the filing itself. A good process requests documents and confirmations well before each due date, shares draft returns for approval, and leaves time to resolve queries. It also flags gaps or risks as soon as they are noticed, rather than close to a deadline.

Keep up with changes in the law

Tax rules in India change frequently. One significant example is the Income-tax Act, 2025, which replaces the Income-tax Act, 1961 with effect from 1 April 2026. The core principles are largely retained, but section numbers, terminology and some procedures have changed. Businesses should check how these changes affect their own filings, internal templates and contracts that refer to specific sections.

Respond to notices in an organised way

Even well-run businesses receive notices and queries from time to time. The key is to understand what the notice is asking for, identify the records required and respond within the time allowed. Keeping filings, workings and supporting documents organised throughout the year makes this much simpler.

Remember where responsibility sits

Outsourcing tax compliance does not transfer legal responsibility. The business and its directors or partners remain responsible under the law. An adviser prepares and files returns based on the information provided and should flag issues they notice, but accurate and timely information from the business is essential.

How Dhee Group can help

We map every GST, TDS and income tax obligation that applies to you, prepare returns from reconciled records, share them for your approval and file them through the official portals. If you transact with group companies overseas, our international taxation and transfer pricing team can support that side too. Contact us to review your current compliance process.

This article provides general information only and is not advice for any specific situation. Rules and thresholds change; please contact us before acting on it.