India compliance: GST, e-invoicing, UPI and statutory payroll

For a company that operates in India: GST registrations and tax codes, the CGST/SGST or IGST split by place of supply, e-invoices with an IRN and e-way bills, GSTR-1 and GSTR-3B, UPI collection applied as receipts and matched to the settlement, and PF, ESI, professional tax, labour welfare fund and TDS.

India’s screens are sections of Accounting → Close & Compliance — India Registration, GST, GST Returns, UPI Collection, Statutory Payroll and TDS — drawn only for a company that operates in India, and only for people whose roles grant them. Anybody else does not see them, and the screens refuse them. (Until 12 October they were a module of their own, and until 13 October a group called India Compliance; the old addresses still open the same screens.)

Which companies see the India screens

Since 13 October 2026 a company operates in India, and is shown these screens, when any of these holds:

• its own country is India;
• it has an active location or an active org unit in India — a US company with an office in Bengaluru, for example;
• it has a GST registration.

• India’s reference data — tax codes, TDS sections, rates and the number ranges the India documents use — is set up for such a company, whatever its own country.
• The fields on a document (the GSTIN, place of supply and the rest) still follow the company’s own country.
• Nobody is granted anything automatically. An administrator grants the India screens to the company’s roles on Platform › Access › Roles, where the grant is named Accounting › Close & Compliance (India).
• Make the last Indian location or org unit inactive (with no GST registration left) and the screens close for that company within about 30 seconds.

India Registration

• Indian Entity: one per company — the PAN, TAN, CIN, type of entity, aggregate turnover for the financial year, the composition scheme, and whether e-invoicing and e-way bills apply.
• GST Registrations: a GSTIN for every state the company supplies from, each with its registration type and filing frequency (monthly or QRMP). Each files its own returns and keeps its own credit.
• Places of Business: depots, factories and offices under a registration. A supply is made from where the goods leave, not from head office.
• States & Union Territories: the two-digit codes every GSTIN starts with. A union territory without a legislature charges UTGST.

GST on a document

• HSN & SAC Codes: the classification every invoice line carries, with its usual rate.
• GST Tax Codes (Accounting → Close & Compliance → GST → GST Tax Codes, at /accounting/gst-tax-codes): a rate, the cess, the supply type (taxable, zero rated, nil rated, exempt, non-GST, composition), whether input credit is allowed, reverse charge, and the GSTR-3B row and GSTR-1 table it feeds.
• Place of supply decides the split, per document. Supplied within the same state: half CGST, half SGST (or UTGST). Supplied to another state, exported or to a special economic zone: IGST in full. Work out the tax on GST Tax Codes shows the split for a customer, the state supplied from and the lines before anything is raised.

E-invoices and e-way bills

1. E-Invoices → Generate e-invoice from an AR invoice: the buyer’s GSTIN, place of supply, inter-state or not, and the CGST, SGST and IGST.
2. Register with IRP sends it to the Invoice Registration Portal, which returns the IRN, the acknowledgement number and the signed QR code printed on the invoice. Every request and answer is kept under IRP Submissions.
3. An e-invoice can be cancelled within 24 hours of registration. After that, only a credit note corrects it.

E-Way Bills: goods worth ₹50,000 or more do not move without one. Give the invoice or challan, the value, the distance, the from and to state and PIN codes, the mode and the vehicle. It is valid one day for every 200 km, to midnight of the last day.

GST returns

• GST Returns → Compute GSTR-1 for a GSTIN and month: B2B, B2CL, B2CS, exports, credit and debit notes (CDNR, CDNUR), the HSN summary and the documents issued. GSTR-1 Detail shows each document, the table it went in and its tax.
• Compute GSTR-3B: the summary return per registration, with credit notes netted off and documents that should have been e-invoiced but were not shown apart.
• Each return is summed from the documents and carries the codes it came from, so a figure can be traced back years later.

UPI collection

• UPI Addresses: the VPAs money arrives at; the default is the one a request uses. Payment Engines: the UPI rail, the apps on it (Google Pay, PhonePe, Paytm, BHIM) and the gateways that route it.
• UPI Payments → Request a payment against an invoice, by intent (a link that opens the payer’s UPI app), QR, or collect (a request sent to the payer’s VPA for them to approve).
• The PSP’s callback is kept whole under UPI Callbacks with whether its signature checked out. Set the webhook secret on the payment engine; an unsigned callback is recorded and never believed.
• A signed success applies the payment to its invoice as an AR receipt — once, however often the PSP repeats itself. Apply to invoice does it by hand for a payment that arrived without its reference.
• Refund returns money against a payment, never more than was collected.
• UPI Settlements → Reconcile a settlement file (the PSP’s CSV, or a bank statement) matches each line to a payment by RRN, then by reference, then by amount and date. Settlement Lines shows what each line matched — or why it did not.

Statutory payroll

Where payroll runs here, the payslip carries India’s deductions, and Statutory Runs → Run the month reads them off the payslips.

Gratuity → Calculate gratuity works out (basic + DA) × 15 ÷ 26 for each year of service after five years (one year for a fixed-term employee), capped at ₹20 lakh.

TDS

• TDS Sections: the rate and the per-payment and yearly thresholds for each kind of payment. Without the payee’s PAN, at least 20% (section 206AA).
• TDS Deductions → Work out TDS for a payment; tick Record the deduction to keep it. Each deduction is followed through deposited, filed and certificate issued.
• TDS Returns → Compute a return: 24Q (salary, from the payslips), 26Q (residents) and 27Q (non-residents), per quarter.

Who does what