If you’re running an IT services company or software business in India, chances are you’re juggling client deadlines, export invoices, and foreign SaaS subscriptions — all while trying to stay GST compliant. Missing even one step in your GST compliance can invite penalties, notices, and ITC rejections. This is where a clear, practical GST Standard Operating Procedure (SOP) becomes your secret weapon.
Who Is This For?
IT Services Providers, Software Development Firms, Tech Startups & SaaS Companies, and businesses with exports and foreign subscriptions.
1. GST SOP for Invoicing & E-Invoicing
Raise invoices with correct SAC (e.g., 998313 for Software Dev). For B2B, generate e-invoices with IRN and Ack No. using the NIC portal or your ERP. For exports, mark the invoice “Under LUT without payment of IGST”. Maintain a proper e-invoice register. Pro Tip: Reconcile your e-invoice data with GSTR-1 every month.
2. SOP for Export of Services & LUT Compliance
File LUT before March 31 every year on the GST Portal. Add attachments: Previous LUT, Authorization Letter, DSC. Mention LUT details on export invoices. Keep FIRC/BRC as proof of foreign exchange received.
3. SOP for Input Tax Credit (ITC)
Ensure vendors upload invoices correctly (watch out for mismatches in GSTR-2B). Classify purchases into Eligible ITC (laptops, rent, cloud subscriptions) and Blocked ITC (food, gifts, employee travel per Sec 17(5)). Maintain a clean RCM ledger for imported services.
4. SOP for Reverse Charge Mechanism (RCM) – Imported Services
IT companies often miss GST on foreign tools (like AWS, Zoom, or Adobe). Maintain an Import Register with Vendor, Invoice No., Value (in INR), Service Type. Use RBI exchange rate on invoice date. Calculate GST @18% and pay using PMT-06 Challan. Claim this GST back in the same GSTR-3B return.
5. Monthly & Annual Return Filing SOP
Monthly: File GSTR-1 by 11th, GSTR-3B by 20th. Annually: File GSTR-9, and if turnover exceeds ₹5 Cr, file GSTR-9C.
Final Thoughts
GST compliance doesn’t have to be a burden — especially when you’re armed with the right SOPs and checklists. Need help with GST audits or want us to set up your entire SOP system? Reach out to our expert team at AuditorSaab.com.