> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bizaxl.com/llms.txt
> Use this file to discover all available pages before exploring further.
# GST Compliance
> How to manage GST settings, generate returns, issue e-invoices, and stay compliant in Bizaxl Medical Retail.
Bizaxl Medical Retail includes full support for Indian Goods and Services Tax (GST) through the India Compliance module. This covers e-invoicing, e-waybills, GSTR-1 and GSTR-3B filing, HSN-wise reporting, and purchase reconciliation. For a medical retail business, getting GST right is critical - medicines have varying rates and exemptions, and penalties for non-compliance are significant.
***
## Who Uses This Feature
| Role | What They Do Here |
| ------------------------- | ------------------------------------------------------------- |
| **Accounts Staff** | Manages GST filings, reconciliations, and compliance settings |
| **Store Manager / Owner** | Reviews GST position; monitors compliance dashboard |
| **Administrator** | Configures GST Settings, GSTIN, HSN codes |
***
## GST Rates on Medical Products
Medical products in India have varying GST rates. Common rates are:
| Category | GST Rate |
| ----------------------------------------------- | ------------------------ |
| Most essential medicines (listed by government) | 0% (exempt or nil-rated) |
| Medicines on 5% list | 5% |
| Other pharmaceuticals, medical devices | 12% |
| Certain equipment and consumables | 18% |
The correct GST rate must be configured on each item using the correct HSN code. Applying the wrong rate leads to overpayment or underpayment of tax, both of which attract penalties. Verify rates with your tax consultant.
***
## Setup: GST Settings
Your administrator must configure GST once during initial setup.
Go to: **GST India workspace → GST Settings**
Key settings to configure:
| Setting | What to Enter |
| ---------------------------------- | ------------------------------------------------------- |
| **GSTIN** | Your business's GST registration number (15-digit) |
| **State** | Your state of registration |
| **e-Invoice Applicable** | Enable if your turnover exceeds the e-invoice threshold |
| **e-Invoice Applicable From Date** | The date from which e-invoicing applies |
| **e-Waybill Applicable** | Enable if your consignments exceed ₹50,000 value |
| **NIC Portal Username/Password** | For auto-generating e-invoices and e-waybills via API |
***
## HSN Codes on Items
Every item you sell must have the correct HSN (Harmonised System of Nomenclature) code assigned. This is what the GST system uses to determine the applicable rate.
1. Open the item in the Items Catalogue
2. Find the **HSN Code** field
3. Enter or search for the correct code
4. The linked **Item Tax Template** should match the rate for that HSN code
For medicines, common HSN codes fall under Chapter 30 (Pharmaceutical products). Your tax consultant can provide the correct codes for your product range.
***
## Generating e-Invoices
If your business turnover exceeds the government-mandated threshold, every B2B sales invoice must have an **IRN (Invoice Reference Number)** - this is the e-invoice identifier.
In Bizaxl, once e-invoicing is enabled in GST Settings:
1. Create and submit a Sales Invoice normally
2. The system automatically sends the invoice to the government's IRP (Invoice Registration Portal)
3. An **IRN** and **QR code** are generated and attached to the invoice
4. The invoice PDF includes the QR code automatically
**To check pending e-invoices:**
* Look at the **Pending e-Invoices** number card on the GST India workspace
* Or go to **GST India workspace → e-Invoice Log**
***
## Generating e-Waybills
For goods dispatched with a value exceeding ₹50,000 (or as applicable in your state), an **e-Waybill** must be generated before transport.
1. From a submitted Delivery Note or Sales Invoice, click **Generate e-Waybill**
2. Enter transporter details (vehicle number, transporter ID)
3. The system generates the e-waybill and attaches it to the document
4. Print the e-waybill and send with the goods
**To check pending e-waybills:**
* Look at the **Pending e-Waybills** number card on the GST India workspace
***
## GSTR-1: Monthly Outward Supplies Return
GSTR-1 must be filed by the 11th of the following month. It declares all your sales transactions.
1. Go to **GST India workspace → GSTR-1 Beta**
2. Select the month and year
3. The system pulls all submitted sales invoices for the period
4. Review the data - check for missing GSTINs, wrong HSN codes, or incorrect amounts
5. Export the data or file directly via the portal
**What goes into GSTR-1:**
* B2B invoices (sales to registered businesses) - requires customer GSTIN
* B2C invoices (sales to unregistered customers)
* Credit notes and debit notes
* HSN-wise summary
***
## GSTR-3B: Monthly Summary Return
GSTR-3B is a summary return filed monthly. It determines your net GST payment (output tax minus input tax credit).
1. Go to **GST India workspace → GSTR-3B**
2. Select the month and year
3. Review the pre-filled summary:
* **Outward supplies** (from your sales)
* **Input tax credit** (from your purchases)
* **Net tax payable**
4. Make the GST payment on the GSTN portal
5. File the return
***
## Purchase Reconciliation
This is how you verify that your input tax credit claims are correct. Suppliers must have filed their GSTR-1 for you to claim ITC on their invoices.
1. Go to **GST India workspace → Purchase Reconciliation Tool**
2. Select the month
3. The tool compares your Purchase Invoices against the supplier's GSTR-2A data from the GSTN portal
4. Mismatches are flagged - investigate and resolve before filing GSTR-3B
**Common mismatches:**
* Supplier filed a different invoice amount
* Supplier's GSTIN is wrong on your record
* Supplier has not filed their return yet
***
## GST Reports
| Report | Where to Find | What It Shows |
| ------------------------- | ------------------- | -------------------------------------------------------- |
| **GST Sales Register** | GST India workspace | All GST-applicable sales with tax breakdown |
| **GST Purchase Register** | GST India workspace | All GST-applicable purchases with tax breakdown |
| **HSN-wise Summary** | GST India workspace | Total sales grouped by HSN code (required for GSTR-1) |
| **e-Invoice Summary** | GST India workspace | Status of all e-invoices (generated, pending, cancelled) |
| **GSTR-3B Details** | GST India workspace | Detailed breakdown for GSTR-3B preparation |
| **GST Balance** | GST India workspace | ITC balance and payable amount |
***
## Monthly GST Filing Calendar
| Date | Activity |
| ----------- | ------------------------------------------------------------- |
| **1st–5th** | Reconcile purchase invoices against GSTR-2A |
| **5th–8th** | Review and correct any invoice errors from the previous month |
| **11th** | File GSTR-1 for the previous month |
| **20th** | File GSTR-3B and make GST payment for the previous month |
***
## Best Practices
* **Assign HSN codes to every item before you start selling.** Missing HSN codes cause errors in GSTR-1 filing and can result in notices from the tax authority.
* **Enter customer GSTIN for all B2B institutional sales.** Without GSTIN, the sale is treated as B2C - the customer cannot claim input tax credit.
* **Reconcile purchases monthly before filing GSTR-3B.** Claiming ITC on invoices the supplier has not filed results in GST demand notices.
* **Do not cancel e-invoices casually.** If an e-invoice is cancelled in Bizaxl but the customer has already received and recorded it, the cancellation must also be communicated to the customer and filed correctly.
* **Verify GST rates on items regularly.** The government revises GST rates on medicines. Review and update your item tax templates when rates change.
***
## Common Mistakes
* **Using the wrong tax template on a sales invoice.** For example, charging 12% on a medicine that is at 5% means overcharging the customer and overpaying tax.
* **Not enabling e-invoicing when crossing the turnover threshold.** Invoices without IRN are non-compliant and attract penalties once the threshold is crossed.
* **Skipping GSTR-1 for a month.** Late GSTR-1 attracts a late filing fee and delays the customer's ability to claim ITC. Set a monthly calendar reminder.
* **Not reconciling purchases before claiming ITC.** Claiming credit on unmatched invoices creates discrepancies that surface during scrutiny.
***
## Related Features
* [Items Catalogue](/retail/medical-retail/items-catalogue) - setting HSN codes and tax templates on items
* [Sales Invoice](/retail/medical-retail/sales-invoice) - where GST is applied on sales
* [Purchase Invoice](/retail/medical-retail/purchase-invoice) - where input tax credit is recorded
* [Supplier Management](/retail/medical-retail/supplier-management) - entering supplier GSTIN
* [Customer Management](/retail/medical-retail/customer-management) - entering customer GSTIN
* [Reports & Monitoring](/retail/medical-retail/reports-overview) - GST reports overview