Question 1

What are the mandatory registration thresholds for GST in 2026?

Accepted Answer

The registration requirements depend on the type of business and its location. For most states, goods suppliers must register if their annual turnover exceeds ₹40 lakh, while service providers must register at ₹20 lakh. However, in special category states like the Northeast or certain hill states, the threshold drops to ₹10 lakh. It is important to note that certain categories, such as e-commerce sellers and businesses making interstate supplies, are required to register from "Day One" regardless of their turnover.

Question 2

What is the "kill switch" regarding Bank KYC and GST compliance?

Accepted Answer

As of 2026, the GSTN portal uses an automated system that links your GSTIN directly to your bank account details. If the names do not match exactly or if the account is not verified on the portal, the system can automatically suspend your registration. This suspension acts as a "kill switch," blocking your ability to generate e-way bills or file returns, which effectively brings business operations to a halt until the data mismatch is corrected.

Question 3

How does the Invoice Management System (IMS) affect how businesses claim Input Tax Credit (ITC)?

Accepted Answer

The IMS, introduced in the 2025-26 financial year, changed ITC from a passive process to an active one. Taxpayers can no longer simply claim credit based on a paper invoice; they must log into the portal and manually "Accept," "Reject," or mark as "Pending" every invoice uploaded by their suppliers. Only invoices that appear in the GSTR-2B statement and are acted upon in the IMS are eligible for ITC claims in the GSTR-3B return.

Question 4

What is the 30-day rule for e-invoicing and why is it critical?

Accepted Answer

For businesses with a turnover of ₹10 crore or above, there is a strict requirement to upload B2B invoices to the Invoice Registration Portal (IRP) within 30 days of the invoice date. If this window is missed, the portal will reject the invoice and refuse to generate an Invoice Reference Number (IRN). Without a valid IRN and the accompanying QR code, the invoice is not legally recognized, and the buyer will be unable to claim any associated Input Tax Credit.

Question 5

What is Rule 86B and how does it impact tax payments?

Accepted Answer

Rule 86B is a liquidity-focused regulation that applies to businesses with a monthly taxable turnover exceeding ₹50 lakh. Under this rule, these businesses are generally required to pay at least 1% of their total tax liability in cash, even if they have enough Input Tax Credit (ITC) in their electronic credit ledger to cover the full amount. Failing to adhere to this 1% cash payment requirement can lead to the blocking of GSTR-3B filings.

GST Compliance in India: Staying Audit-Proof

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