Author: virevonadmin

GST Composition Scheme: Who Should Opt In, Limits and Conditions

For many small traders, manufacturers and restaurants, the GST composition scheme offers a simpler way to comply: tax is paid at a low flat rate on turnover, returns are fewer, and record-keeping is lighter. But it is not the right choice for everyone, because composition dealers cannot claim input tax credit, cannot charge GST to customers and cannot make inter-State sales.

This guide explains the eligibility limits, rates and conditions for FY 2026-27, the compliance calendar, and a simple way to decide whether opting in makes sense for your business.

Key takeaways

Businesses supplying goods (and restaurants) with aggregate turnover up to ₹1.5 crore in the preceding year can opt in; the limit is ₹75 lakh in specified special category States.
Service providers and mixed suppliers can use a separate scheme under section 10(2A) with a ₹50 lakh limit and a 6% rate.
Rates are 1% for manufacturers and traders and 5% for restaurant services (split equally between CGST and SGST).
Composition dealers file CMP-08 quarterly (by the 18th after each quarter) and GSTR-4 annually (by 30 June).
No input tax credit, no GST on invoices and no inter-State outward supplies; opting in is best when customers are mainly consumers and margins are stable.

Who is eligible for the GST composition scheme

A registered person whose aggregate turnover in the preceding financial year did not exceed ₹1.5 crore can opt for composition under section 10(1) of the CGST Act. In Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand, the limit is ₹75 lakh.

Aggregate turnover is computed on an all-India PAN basis, so all registrations under the same PAN must opt in together.

Who cannot opt in

Suppliers making inter-State outward supplies.
Casual and non-resident taxable persons.
Manufacturers of certain notified goods, such as ice cream, pan masala, tobacco products and aerated waters.
Persons supplying services through e-commerce operators that collect tax at source.
Businesses supplying goods not taxable under GST, such as alcoholic liquor for human consumption.

Composition dealers can make intra-State supplies of goods through e-commerce operators, subject to the platform’s enrolment conditions.

Rates under the composition scheme

Category	Rate (CGST + SGST)	Turnover base
Manufacturers	1% (0.5% + 0.5%)	Turnover in the State
Traders	1% (0.5% + 0.5%)	Turnover of taxable supplies
Restaurants (not serving alcohol)	5% (2.5% + 2.5%)	Turnover in the State
Service providers under section 10(2A)	6% (3% + 3%)	Turnover in the State

The composition rates were not changed by the GST 2.0 rate rationalisation that took effect on 22 September 2025. However, the normal scheme became cheaper for many goods moving to 5%, which changes the comparison for some businesses. Our GST 2.0 rate structure checklist explains the new slabs.

Conditions to keep in mind

Bill of supply, not tax invoice, with the words “composition taxable person, not eligible to collect tax on supplies”.
Display “composition taxable person” on the signboard at the principal place of business and on each additional place.
No input tax credit on purchases, including capital goods.
Reverse charge: tax on inward supplies liable to reverse charge must be paid at normal rates.
Purchases from unregistered persons: where reverse charge applies, it is payable in addition to composition tax.
Crossing the limit: once turnover in the year crosses the threshold, the option lapses and the business must move to the regular scheme and file the prescribed intimation.

Compliance calendar

Form	Purpose	Due date
CMP-02	Opt in (existing registered persons)	Before the start of the financial year
CMP-08	Quarterly statement and tax payment	18th of the month after the quarter
GSTR-4	Annual return	30 June after the financial year
CMP-04	Withdraw from the scheme voluntarily	When opting out

New applicants can opt for composition directly in the registration application. Existing registrants who wish to opt in for FY 2027-28 should file CMP-02 before 1 April 2027 and also deal with input tax credit on stock held on the day before opting in.

Should you opt in? A simple test

Composition works well when:

Your customers are mainly consumers or unregistered businesses who cannot use your GST anyway.
Your value addition is high relative to purchases, so losing input tax credit costs little.
You sell only within your State.
You want lighter compliance and have limited accounting support.

It is usually unsuitable when:

Your customers are GST-registered businesses that want input tax credit on your invoices.
You buy large amounts of taxed inputs or capital goods.
You plan to sell to other States or grow beyond the limit soon.

A worked comparison

A trader in Uttar Pradesh sells ₹1 crore of goods a year, all at 5% GST, mostly to walk-in customers, and buys goods worth ₹80 lakh on which ₹4 lakh GST is paid.

Regular scheme: output tax ₹5 lakh less input tax credit ₹4 lakh = ₹1 lakh net GST (recovered from customers through prices).
Composition: 1% of ₹1 crore = ₹1 lakh, paid from the trader’s own margin, and the ₹4 lakh input GST becomes a cost.

Here the regular scheme is clearly better because input credit is high. For a trader with higher margins, lower-rate inputs or goods at 18%, the answer can reverse. Run the numbers for your own mix before deciding.

Frequently asked questions

What is the turnover limit for the GST composition scheme in FY 2026-27?

₹1.5 crore of aggregate turnover in the preceding year for goods suppliers and restaurants (₹75 lakh in specified States), and ₹50 lakh for service providers under section 10(2A).

Can a composition dealer sell to other States?

No. Inter-State outward supplies are not allowed, although inter-State purchases are permitted.

Can a composition dealer claim input tax credit?

No. Input tax credit is not available on purchases while in the composition scheme.

When is GSTR-4 due?

GSTR-4, the annual return for composition dealers, is due by 30 June following the end of the financial year.

If you are weighing the composition scheme against regular GST for your business, we would be happy to run the numbers with you and handle the switch smoothly.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 27, 2026

Month-End Close Checklist: A Faster, Cleaner Close for Growing Businesses

A reliable month-end close checklist is what separates businesses that make decisions on last week’s numbers from those that wait until the auditor arrives. As a company grows, transactions multiply, and without a structured close the books drift: bank balances do not match, GST credits are missed, and management reports arrive too late to be useful.

This article sets out a practical close process for growing Indian businesses, with a day-by-day calendar, the reconciliations that matter most, tax tie-outs, and tips for shortening the close without cutting corners.

Key takeaways

A good close runs on a fixed calendar with a named owner for every task.
Reconciliations of bank, cards, payment gateways, receivables, payables and statutory ledgers are the core of the close.
Book accruals and prepaids every month, not just at year-end, so profit is meaningful month on month.
Tie out GST, TDS and payroll ledgers to returns and portals as part of the close, not as a separate exercise.
Finish with a variance review and a short MIS pack; most businesses can realistically close within about a week.

Why a structured close pays off

A disciplined monthly close delivers benefits well beyond tidy books:

Better decisions: leaders see margins, cash and receivables while there is still time to act.
Fewer tax surprises: GST input tax credit and TDS issues are caught within the same month.
Smoother audits: year-end becomes the twelfth close, not a separate project.
Stronger lender and investor confidence: timely, consistent MIS builds credibility.

A day-by-day month-end close checklist

The calendar below assumes a close target of about seven working days. Adjust it to your size and systems, but keep the sequence.

Day	Focus	Key tasks
Day -2 to 0	Pre-close	Remind teams of cut-off, chase pending bills and expense claims, confirm stock count plans
Day 1	Cash	Import bank and card statements, reconcile all bank accounts and payment gateways
Day 2	Revenue and receivables	Complete invoicing, match receipts, review credit notes and ageing
Day 3	Purchases and payables	Book vendor bills, match with GRNs and POs, reconcile key vendor ledgers
Day 4	Accruals and adjustments	Accrue unbilled expenses and revenue, prepaid amortisation, depreciation, provisions
Day 5	Payroll and tax	Reconcile salary, PF, ESI and TDS ledgers; tie GST ledgers to returns and GSTR-2B
Day 6	Review	Trial balance review, flux analysis, intercompany and suspense clearing
Day 7	Reporting	Finalise MIS pack, commentary and lock the period

Reconciliations that matter most

Cash and bank

Reconcile every bank account, credit card and wallet to the statement balance. Unreconciled items older than 30 days deserve investigation. Payment gateway settlements need special attention: match gross collections, fees, GST on fees and net payouts separately.

Receivables and payables

Review debtor ageing and follow up on overdue balances.
Confirm balances with top customers and vendors at least quarterly.
Clear unapplied receipts and advance payments.
Watch payments to MSME vendors, since delayed payment can affect tax deductions under the income-tax rules on MSME dues.

Statutory ledgers

GST: match output tax with GSTR-1 and GSTR-3B, and input tax credit with GSTR-2B and your actions in the Invoice Management System. Our guides on GSTR-2B vs GSTR-3B reconciliation and the IMS explain how.
TDS: ensure deductions booked equal challans paid and that ledger balances clear each month.
Payroll: reconcile gross salary, deductions and employer contributions to the payroll register.

Inventory and fixed assets

Reconcile stock ledgers with physical counts on a rotating basis, and update the fixed asset register for additions, disposals and capital work in progress.

Accruals, cut-off and adjustments

Many small businesses book expenses only when bills arrive, which makes monthly profit swing wildly. A cleaner approach:

Accrue recurring expenses such as rent, utilities, professional fees and interest even if bills are pending.
Recognise revenue for services performed but not yet invoiced, and defer amounts billed in advance.
Amortise prepaids such as insurance, software subscriptions and annual maintenance contracts.
Charge depreciation monthly from the fixed asset register.
Review provisions for bonus, leave encashment, warranties and doubtful debts.

Keep a standard journal list so that recurring entries are posted consistently every month.

Review and reporting

Before locking the period, review the numbers as a reader would:

Flux analysis: compare each major line with the previous month and budget. Explain movements above a set threshold.
Margin checks: gross margin by product or service line should be within expected ranges.
Balance sheet sense check: no unexpected negative balances, suspense or clearing accounts at nil or explained.
Cash view: closing cash, receivables and payables, with a short forward look.

A compact MIS pack usually includes a profit and loss statement with budget comparison, balance sheet, cash flow summary, receivable and payable ageing, and three to five key performance indicators with commentary.

Tips for a faster close

Automate bank feeds and use rules for recurring transactions.
Close sub-ledgers continuously: reconcile banks weekly, not monthly.
Use templates for reconciliations, accruals and MIS so work is repeatable.
Set materiality: do not delay the close for small items; accrue and adjust next month.
Lock periods after closing to prevent back-dated entries.
Document the process so that it does not depend on one person.

Outsourcing parts of the close to an experienced team can also bring discipline and continuity, especially for businesses without a full in-house finance function.

Frequently asked questions

How long should a month-end close take?

It depends on size and systems, but many growing businesses can close within five to eight working days with a clear calendar, automated feeds and standard templates.

What is the most important step in the month-end close?

Bank and cash reconciliation. If cash is right, most other errors surface quickly during the rest of the close.

Should small businesses book accruals every month?

Yes, at least for significant recurring items. It makes monthly profit meaningful and avoids a large catch-up at year-end.

Can GST and TDS reconciliations be part of the close?

They should be. Tying statutory ledgers to returns and GSTR-2B every month prevents missed credits and notices later.

If you would like help designing a reliable month-end close or running it for your business each month, our accounting team would be happy to assist.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 27, 2026

NRI Residential Status: How the Day-Count Rules Work

Your tax liability in India depends far more on your residential status than on your citizenship or passport. NRI residential status is decided each year by counting the days you spend in India, with a few special rules for Indian citizens, persons of Indian origin and those with significant Indian income. Get the status right, and everything else, from which income is taxable to which return form applies, falls into place.

This guide explains the day-count tests, the 120-day and deemed resident rules, the resident but not ordinarily resident (RNOR) category, and how to plan visits sensibly. The rules are the same in substance under the Income-tax Act 2025, which applies from the 2026-27 tax year.

Key takeaways

You are resident in a tax year if you are in India for 182 days or more, or for 60 days or more in the year and 365 days or more in the four preceding years.
For Indian citizens leaving India for employment (or as crew), and for Indian citizens and persons of Indian origin visiting India, the 60-day limb is replaced with 182 days.
If such a visitor’s Indian income (excluding foreign-source income) exceeds ₹15 lakh, the 60-day limb becomes 120 days, and a resident under this rule is treated as RNOR.
An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country is deemed resident (as RNOR).
A non-resident is taxed in India only on income that arises, accrues or is received in India.

Why residential status matters

Residents and ordinarily residents (ROR) are taxed in India on worldwide income and must report foreign assets.
Resident but not ordinarily resident (RNOR) individuals are taxed broadly on Indian income, plus foreign income from a business controlled or profession set up in India.
Non-residents (NR) are taxed only on Indian-source income or income received in India.

The status is determined separately for each tax year (1 April to 31 March). Under the Income-tax Act 2025, the “tax year” replaces the old previous year and assessment year concepts; our explainer on the tax year concept covers this change.

The basic NRI residential status tests

An individual is resident in India for a tax year if either condition is met:

Present in India for 182 days or more in the year; or
Present in India for 60 days or more in the year and for 365 days or more in the four immediately preceding years.

If neither is met, the individual is a non-resident. Days of arrival and departure are generally both counted as days in India, so keep a precise travel log.

Exceptions to the 60-day limb

Person	Second test becomes
Indian citizen leaving India for employment abroad, or as a crew member of an Indian ship	182 days (so only the 182-day test effectively applies)
Indian citizen or person of Indian origin visiting India, Indian income up to ₹15 lakh	182 days
Indian citizen or person of Indian origin visiting India, Indian income above ₹15 lakh	120 days, with 365 days in the preceding four years

“Indian income” here means total income other than income from foreign sources.

Deemed residency for Indian citizens

An Indian citizen whose Indian income exceeds ₹15 lakh and who is not liable to tax in any other country because of domicile, residence or a similar criterion is deemed to be resident in India, regardless of the number of days spent here. Such a person is treated as RNOR, so foreign income generally remains outside the Indian tax net.

This rule mainly affects individuals living in countries that do not levy personal income tax. If this applies to you, keep evidence of your tax position abroad and review your Indian income each year.

RNOR: the helpful middle category

A resident individual is RNOR if either:

They were non-resident in 9 out of the 10 preceding years; or
They were in India for 729 days or less in the preceding 7 years.

In addition, individuals who become resident only because of the 120-day rule, and those who are deemed resident, are treated as RNOR.

RNOR status is particularly useful for returning NRIs. It often provides one to three years in which foreign income, such as interest on overseas deposits or rent from a property abroad, is not taxed in India, giving time to restructure overseas assets.

Worked examples

Example 1: frequent visitor with modest Indian income. Ravi, an Indian citizen working in Dubai, spends 150 days in India in the 2026-27 tax year. His Indian income is ₹6 lakh. Because he is a visiting citizen with Indian income below ₹15 lakh, the 60-day limb is replaced by 182 days. At 150 days, he is a non-resident.

Example 2: visitor with significant Indian income. Meera, a person of Indian origin living in Singapore, spends 130 days in India. Her Indian income from rent and capital gains is ₹22 lakh, and she was in India for 400 days in the preceding four years. The 120-day limb applies, and she meets it, so she is resident but treated as RNOR.

Example 3: returning NRI. Arjun moves back to India permanently in June 2026 after 12 years abroad. He is resident for 2026-27 (over 182 days), but having been non-resident in at least 9 of the previous 10 years, he is RNOR for the year.

Practical tips for NRIs

Track days carefully: use passport stamps, boarding passes and a simple spreadsheet. Differences of a few days can change the status.
Estimate Indian income early in the year if you plan long visits, to see whether the ₹15 lakh threshold may be crossed.
Update your bank status: once you become resident, NRE and FCNR accounts need to be redesignated under FEMA rules, which are separate from tax residence.
Check the treaty: if you are resident in both India and another country, the tie-breaker rules in the relevant DTAA decide where you are treated as resident for treaty purposes.
Choose the right return: residential status determines the return form and schedules, including foreign asset reporting for ROR individuals. See our overview of key changes under the Income-tax Act 2025.

Frequently asked questions

Is residential status based on the calendar year?

No. It is based on the Indian tax year, which runs from 1 April to 31 March.

Do the arrival and departure days count?

Generally yes. Both the day of arrival and the day of departure are usually treated as days of presence in India.

Does the ₹15 lakh threshold include foreign income?

No. It refers to total income other than income from foreign sources, such as Indian salary, rent, interest and capital gains.

Did the Income-tax Act 2025 change the residence rules?

The substance of the tests, including the 120-day and deemed resident rules, was carried forward. Terminology changed, with the tax year replacing the previous year.

If you are an NRI planning your visits or returning to India and want clarity on your residential status, we would be glad to help you work it out.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 26, 2026

Trademark Opposition in India: Process, Timelines and Counter-Statement

Once a trademark application is accepted, it is advertised in the Trade Marks Journal so that anyone who believes the mark should not be registered can object. This stage is called trademark opposition, and it is where many brand disputes in India are decided. For an applicant, it can feel like a setback; for a brand owner watching the Journal, it is an important tool to stop a confusingly similar mark.

This guide explains the opposition process under section 21 of the Trade Marks Act 1999 and the Trade Marks Rules 2017, with its strict timelines, and how both sides can prepare.

Key takeaways

An opposition must be filed on Form TM-O within four months of the date the mark is advertised in the Journal; this period cannot be extended.
The official fee is ₹2,700 per class for e-filing (₹3,000 for physical filing).
The applicant must file a counter-statement within two months of receiving the notice of opposition, or the application is treated as abandoned.
Evidence follows in three rounds under Rules 45, 46 and 47, each with tight deadlines, before a hearing before the Registrar.
Organised evidence of use and reputation, gathered early, is the most valuable asset for either side.

Who can file a trademark opposition and on what grounds

Section 21 allows any person to oppose, not just the owner of a registered mark. Opponents often include earlier users, holders of similar registered marks, and occasionally trade associations.

Common grounds include:

Similarity with an earlier mark for identical or similar goods or services, likely to cause confusion.
Prior use and passing off: the opponent used a similar mark before the applicant.
Absolute grounds: the mark is descriptive, lacks distinctiveness or is customary in the trade.
Bad faith: the applicant copied a known mark or had no intention to use it.
Well-known or reputed marks: taking unfair advantage of a mark with reputation, even for different goods.

The trademark opposition process step by step

Stage	Who acts	Time limit	If missed
Notice of opposition (Form TM-O)	Opponent	4 months from advertisement	Right to oppose is lost
Service of notice	Registry	After filing	–
Counter-statement	Applicant	2 months from receipt of notice	Application treated as abandoned
Evidence in support of opposition (Rule 45)	Opponent	2 months from service of counter-statement	Opposition treated as abandoned
Evidence in support of application (Rule 46)	Applicant	2 months from service of opponent’s evidence	Application treated as abandoned
Evidence in reply (Rule 47)	Opponent	1 month from service of applicant’s evidence	Evidence stage closes
Hearing	Both	As scheduled by the Registrar	Party may be treated as having abandoned

Instead of filing evidence, a party can intimate that it relies on the facts already stated. That is an important option where the pleadings and documents already make the case.

Drafting the counter-statement

The counter-statement is the applicant’s formal answer. It is filed on Form TM-O with the same fee and should respond to every paragraph of the notice of opposition.

A good counter-statement:

Admits or denies each allegation specifically; blanket denials are weak.
Sets out the applicant’s story: adoption of the mark, the reason behind it, date of first use and the growth of the business.
Distinguishes the marks visually, phonetically and conceptually, and explains differences in goods, customers and trade channels.
Challenges the opponent’s claims, for example by questioning claimed use dates or pointing out that the opponent’s mark is registered for unrelated goods.
Requests that the opposition be dismissed with costs.

The two-month deadline is treated as strict, so plan for the counter-statement as soon as the notice is received. Track the date on which the notice was served, including by email.

Evidence: building a record that persuades

Evidence in opposition is filed by affidavit with supporting documents. Useful material includes:

Sales invoices spread across years and regions.
Advertising spend and samples of campaigns, catalogues, packaging and social media.
Online presence: website archives, marketplace listings and reviews with dates.
Registrations of the mark or trade name, domain names and company names.
Market surveys or trade affidavits, used carefully and only where credible.

Index the evidence clearly and relate every exhibit to a point in your pleadings. Quality beats volume; the hearing officer must be able to see the chronology quickly.

Hearing, decision and what comes after

After the evidence stage, the Registrar fixes a hearing. Each side presents arguments, and written submissions are often filed. Hearings are commonly conducted by video conference.

The Registrar then passes a reasoned order either allowing the opposition (refusing the application, fully or partly) or dismissing it (allowing the mark to proceed to registration). An aggrieved party can appeal to the High Court within the time allowed; the earlier appellate board was abolished in 2021.

Settlement is always possible at any stage. Many oppositions end with a co-existence agreement, a restriction of goods, or a modification of the mark.

Practical tips for applicants and brand owners

For applicants: monitor your application status weekly after acceptance, respond to any objection promptly (see our guide to a trademark objection reply), and keep use records from day one.
For brand owners: set up a Journal watch for your key marks and classes so you can act within the four-month window.
For both: consider commercial discussions early; a practical settlement can save time and cost.
Search before filing: a careful search, explained in our trademark registration guide, reduces the chance of opposition in the first place.

Frequently asked questions

Can the four-month opposition period be extended?

No. Under the current rules, a notice of opposition must be filed within four months of the advertisement, and there is no provision to extend this period.

What happens if I miss the counter-statement deadline?

The application is treated as abandoned. The two-month period runs from receipt of the notice of opposition, so it is best to start preparation immediately.

Can I use my brand while it is under opposition?

Yes. Opposition concerns registration; it does not by itself stop you from using the mark, though you should consider any separate infringement or passing off claims carefully.

How long does an opposition take?

It varies widely with the Registry’s workload and the parties’ conduct. The pleadings and evidence stages alone take several months; settlement can conclude a matter much sooner.

Whether you have received a notice of opposition or want to oppose a similar mark, reach out and we will help you plan a clear, well-documented response.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 26, 2026

GST for E-commerce Sellers: Registration, TCS under Section 52 and Reconciliation

Selling on marketplaces opens up a national market almost overnight, but it also brings a distinct set of GST rules. GST for e-commerce sellers covers when you must register, how the marketplace collects tax at source (TCS) under section 52 of the CGST Act, and how to reconcile your returns with the data that the platform reports about you.

This guide explains each of these in plain terms and offers a monthly routine that keeps your GSTR-1, GSTR-3B and TCS credits in agreement.

Key takeaways

Sellers supplying through an e-commerce operator that collects TCS are generally required to register compulsorily, but there are notified exemptions for small service providers and, since 1 October 2023, for small intra-State goods sellers meeting conditions.
The operator collects TCS at 0.5% of the net value of taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), a rate in force since 10 July 2024.
The operator files GSTR-8 by the 10th of the following month; the seller’s TCS then appears on the portal and, once accepted, credits the electronic cash ledger.
For notified services such as restaurant delivery and cab rides, the operator itself pays GST under section 9(5), and no TCS applies on those supplies.
Monthly reconciliation of orders, returns, settlements and GSTR-8 data is the single best protection against mismatch notices.

Registration: who needs it

Under section 24 of the CGST Act, a person supplying goods or services through an e-commerce operator required to collect tax at source must register, regardless of turnover. Over time, the government has relaxed this for smaller sellers:

Service providers selling through an operator are exempt from registration if their aggregate turnover stays within the normal threshold (₹20 lakh, or ₹10 lakh in special category States).
Goods sellers with turnover within the threshold can sell through operators without registration since 1 October 2023, but only for intra-State supplies and subject to conditions such as having a PAN and declaring the State of supply on the platform.
Composition taxpayers can supply goods through operators within their State, subject to the platform’s enrolment process, but services through TCS-collecting platforms remain restricted.

If you plan to sell across States, you will generally need GST registration from the outset.

How TCS under section 52 works

Every operator that collects consideration on behalf of sellers must collect TCS on the net value of taxable supplies made through it in a month.

Element	Detail
Who collects	The e-commerce operator
Rate	0.5% (0.25% CGST + 0.25% SGST for intra-State; 0.5% IGST for inter-State)
Base	Taxable supplies made through the operator, less supplies returned in the month, excluding GST and section 9(5) supplies
Deposit and return	By the 10th of the following month, in Form GSTR-8
Seller’s credit	Shown on the portal; accepted credit goes to the electronic cash ledger

A simple example

In a month, a seller makes taxable sales of ₹10,00,000 (excluding GST) through a marketplace, and customers return goods worth ₹1,00,000. Net value is ₹9,00,000. TCS at 0.5% is ₹4,500. The operator deducts this from the seller’s settlement and reports it in GSTR-8. The seller accepts the TCS entry on the portal and uses it from the cash ledger to pay GST in GSTR-3B, or claims a refund of any excess.

Section 9(5) services

For restaurant services delivered through apps, passenger transport through ride-hailing apps, certain accommodation services and some other notified services, the operator is treated as the supplier and pays GST itself. After GST 2.0 (effective 22 September 2025), check the current rates and notified list, including for local delivery services, since the rate structure moved to 5%, 18% and 40%.

Reconciliation: where most problems start

The operator’s GSTR-8 tells the tax department, month by month, how much you sold through that platform. If your GSTR-1 shows a different figure, you may receive a notice. A clean monthly reconciliation should compare:

Order report from the seller panel (gross sales, cancellations, returns).
Invoices issued by you or on your behalf through the platform’s tax invoice feature.
GSTR-1: B2C supplies reported with the operator’s GSTIN in the relevant table, and B2B invoices where the buyer gave a GSTIN.
GSTR-8 data shown in your TCS credit section.
Settlement reports: payouts after commission, shipping fees, TCS and TDS.

Differences usually come from returns in a later month, cancelled orders, timing of invoices near month-end, or wrong State or GSTIN mapping in multi-warehouse setups. Fix them in the next return and keep a reconciliation working file for every month.

Remember also that the platform’s commission and fees are services to you, with GST charged by the operator. That GST is eligible input tax credit if it appears in your GSTR-2B, so include it in your GSTR-2B vs GSTR-3B reconciliation.

Multi-State warehouses and income-tax TDS

Marketplaces that store your stock in fulfilment centres in other States create a place-of-business issue: each State where your goods are stored generally requires registration or an additional place of business. Plan your registrations before enabling multi-State fulfilment.

Separately from GST TCS, the operator also deducts income-tax TDS on the gross amount of sales (the provision earlier known as section 194-O, now in section 393 of the Income-tax Act 2025). Track both, as they appear in different places: GST TCS on the GST portal, and income-tax TDS in your annual tax credit statement.

Monthly checklist for online sellers

Download order, return and settlement reports from every platform by the 3rd.
Reconcile sales with invoices and prepare GSTR-1 data platform-wise.
Accept or query TCS entries on the portal after GSTR-8 is filed.
Review input tax credit on platform fees in GSTR-2B.
File GSTR-3B using TCS credit in the cash ledger where helpful.
Keep month-wise reconciliation working papers for audits and notices; our guide on GSTR-1 vs GSTR-3B mismatch notices explains why this matters.

Frequently asked questions

Do I need GST registration to sell on a marketplace?

Generally yes, unless you fall within a notified exemption, such as a small service provider within the threshold, or a small goods seller making only intra-State supplies and meeting the prescribed conditions.

What is the current TCS rate under section 52?

0.5% of the net value of taxable supplies, split as 0.25% CGST and 0.25% SGST, or 0.5% IGST for inter-State supplies, effective from 10 July 2024.

How do I use the TCS collected by the marketplace?

Once the operator files GSTR-8, accept the TCS entries on the GST portal. The amount is credited to your electronic cash ledger and can be used to pay GST or claimed as a refund.

Is TCS charged on returned goods?

TCS is charged on the net value, so goods returned during the month reduce the base on which TCS is collected.

If you sell through one or more marketplaces and want your GST returns, TCS credits and settlements reconciled every month, we would be glad to help.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 25, 2026

Vietnam Accounting for Foreign Companies: Books, E-Invoicing and Filings

Vietnam continues to attract manufacturing, technology and services investment, and many foreign groups now run a subsidiary or representative office there. Getting Vietnam accounting for foreign companies right means working with Vietnamese Accounting Standards (VAS), a real-time electronic invoicing system and a regular tax calendar, while still producing numbers that make sense to the parent company.

This guide sets out the essentials for foreign-invested enterprises (FIEs) as of 2026: the new accounting regime under Circular 99/2025, e-invoicing rules, the main tax filings, and practical tips for bridging local books to group reporting.

Key takeaways

Circular 99/2025/TT-BTC replaced the long-standing Circular 200/2014 for financial years beginning on or after 1 January 2026, giving enterprises more flexibility in documents, books and accounts, with documented justification.
Books follow VAS; the functional currency is normally the Vietnamese dong (VND), and a foreign currency can be used only where it reflects the company’s primary economic environment and conditions are met.
E-invoicing is mandatory for domestic sales, under Decree 123/2020 as amended by Decree 70/2025 (effective 1 June 2025).
FIEs generally need audited annual financial statements, due within 90 days of the financial year-end.
A monthly close with VAS-to-IFRS (or Ind AS) mapping keeps local compliance and group reporting in step.

The accounting framework: VAS and Circular 99

Vietnamese enterprises keep their books under the Law on Accounting, VAS and the accounting regime issued by the Ministry of Finance. For most businesses, that regime is now Circular 99/2025, in force from 1 January 2026.

What changed in practice:

More autonomy: companies can design their own accounting vouchers, books and even sub-accounts, provided they document the basis and keep them consistent.
Updated chart of accounts: new or clarified accounts for items such as biological assets, business cooperation contracts and global minimum tax.
Revised statements: the balance sheet is now titled the Statement of Financial Position, bringing terminology closer to IFRS.

Other framework points to keep in mind:

The accounting language is Vietnamese; bilingual books are common and helpful for foreign owners.
A chief accountant (or a person in charge of accounting) must be appointed, and the role can be outsourced to a licensed accounting service provider in many cases.
The financial year is normally the calendar year, although another quarter-end year-end can be chosen, which is useful for aligning with an Indian parent’s April to March year.

E-invoicing in Vietnam

Vietnam operates one of Asia’s most comprehensive e-invoicing systems, run by the General Department of Taxation (GDT).

Feature	What it means for your business
Mandatory e-invoices	All domestic sales, B2B and B2C, are invoiced electronically
Invoices with tax authority code	Data is sent to the GDT and a code is issued before the invoice goes to the buyer
Invoices without code	Allowed for eligible businesses; data must be sent to the GDT by the day the invoice is delivered
Cash-register e-invoices	Retail and similar sectors, including larger household businesses, issue invoices from connected POS systems
Retention	Electronic invoices are archived in original format for 10 years

Decree 70/2025 tightened several areas from 1 June 2025, including rules on the timing of issuance, handling of errors and adjustments, and invoicing from cash registers. It also opened a route for some foreign digital suppliers to issue e-invoices voluntarily.

Practical tips:

Integrate your ERP or billing system with a licensed e-invoice service provider rather than keying invoices manually.
Issue invoices at the correct time: for goods, at transfer of ownership; for services, on completion or collection, depending on the case.
Use the prescribed adjustment or replacement procedures for errors; do not simply cancel and reissue.
Reconcile the GDT e-invoice data with your sales ledger each month, as VAT returns are not pre-filled.

Tax filings for foreign-owned companies

A typical FIE calendar includes:

VAT returns: monthly, or quarterly for smaller enterprises that qualify. The standard VAT rate is 10%; reduced rates and temporary reductions apply to specific goods and services, so check the current resolution before invoicing.
Corporate income tax (CIT): provisional quarterly payments during the year and an annual finalisation return. The standard CIT rate is 20%, with incentives for qualifying projects and locations.
Personal income tax: monthly or quarterly withholding on salaries, plus an annual finalisation.
Foreign contractor tax: withholding on certain payments to overseas service providers, including many intra-group charges. This is an area where Indian parents are often surprised.
Transfer pricing: related-party disclosures with the CIT finalisation, and documentation where thresholds apply.

Annual financial statements and audit

FIEs are generally required to have their annual financial statements audited by an independent audit firm licensed in Vietnam. The audited statements, together with the audit report, are submitted to the relevant authorities, typically within 90 days after the year-end.

Preparation tips:

Close the year in VAS with full reconciliations of banks, receivables, payables, fixed assets and inventory.
Prepare supporting schedules for related-party balances and transactions.
Reconcile VAT and CIT accounts with filed returns.
Agree the audit timetable early; March is a busy month for local auditors.

Bridging VAS to group reporting

Parent companies usually report under IFRS, Ind AS or US GAAP. A few differences tend to recur: leases, revenue recognition timing, provisions, deferred tax, and foreign exchange treatment.

A practical approach is to keep a permanent mapping from the Vietnamese chart of accounts to the group chart, and a short list of standing adjustments reviewed every month. This avoids a painful year-end conversion and gives management timely numbers. Offshore finance teams can manage much of this work, as we explain in our note on offshore accounting support.

Frequently asked questions

Does Circular 99 apply to my 2025 financial statements?

No. Circular 99/2025 applies to financial years beginning on or after 1 January 2026. Statements for 2025 were prepared under the earlier regime.

Can a foreign company keep its books only in English?

Books must be kept in Vietnamese. Many companies keep bilingual records so that the parent can review them easily.

Are e-invoices required for sales to individual consumers?

Yes. E-invoicing covers B2C as well as B2B sales, and retail businesses may need invoices generated from connected cash registers.

Is an audit mandatory for a foreign-owned company in Vietnam?

Generally yes. Foreign-invested enterprises must have their annual financial statements audited by a licensed audit firm in Vietnam.

If your group is setting up or running a company in Vietnam, we would be happy to help you build reliable books, a smooth monthly close and clean group reporting.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 25, 2026

TDS on Rent: Sections 194-I and 194-IB, Thresholds and Compliance

TDS on rent affects almost every business and many salaried families who pay high rent. The rules differ depending on who pays the rent, what is being rented and, from 1 April 2026, which Income-tax Act governs the payment. Getting the basics right avoids interest, late fees and awkward conversations with landlords about missing credits.

This guide explains the two regimes carried over from sections 194-I and 194-IB, the thresholds and rates, how GST and advances are treated, and the new forms under the Income-tax Act 2025.

Key takeaways

Businesses and other specified payers deduct TDS on rent at 2% for plant, machinery or equipment and 10% for land, building or furniture, where rent exceeds ₹50,000 for a month or part of a month.
Individuals and HUFs who are not covered by the old section 194-I deduct 2% where monthly rent exceeds ₹50,000, generally once a year; no TAN is needed.
From 1 April 2026 both are part of the TDS table in section 393(1) of the Income-tax Act 2025; rates and thresholds were retained.
Individual tenants now use Form 141 (replacing Form 26QC) and issue Form 132 to the landlord; business payers report in Form 140 and issue Form 131.
Where GST is charged separately on rent, TDS is deducted on the rent excluding GST.

Two regimes for TDS on rent

Rent for this purpose is broadly defined. It covers payments under any lease, sub-lease, tenancy or arrangement for the use of land, building (including factory buildings), land appurtenant to a building, machinery, plant, equipment, furniture or fittings, whether or not owned by the payee.

Point	Business payers (old section 194-I)	Individual/HUF tenants (old section 194-IB)
Who deducts	Companies, firms, LLPs, and individuals/HUFs whose accounts must be audited under the tax audit provisions	Individuals and HUFs not covered in the first column
Threshold	Rent above ₹50,000 for a month or part of a month	Rent above ₹50,000 for a month or part of a month
Rate	2% plant/machinery/equipment; 10% land/building/furniture	2%
When	At credit or payment, whichever is earlier	Generally once, on rent for the last month of the tax year or of the tenancy, if earlier
TAN	Required	Not required; PAN-based filing
Return/statement	Quarterly return (Form 140 from tax year 2026-27)	Challan-cum-statement (Form 141 from 2026-27)

The ₹50,000-per-month test for business payers applies from 1 April 2025. Before that, the threshold was an annual figure, so older rent agreements and ERP settings may need updating.

What changed from 1 April 2026

The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026. Non-salary TDS provisions are now set out in a table under section 393(1), and rent appears as separate entries in that table. The substance of the rules was carried over, but forms and references changed.

A practical point for March 2026: the Act that applies depends on the earlier of credit or payment. Rent for March 2026 credited on 31 March 2026 remains under the 1961 Act, even if paid in April, and is reported in the old forms. For a broader view, see our TDS rate chart for FY 2026-27.

Item	Up to 31 March 2026	From 1 April 2026
Individual tenant’s challan-cum-statement	Form 26QC	Form 141
Certificate by individual tenant	Form 16C	Form 132
Business payer’s quarterly return	Form 26Q	Form 140
Business payer’s certificate	Form 16A	Form 131
Landlord’s credit statement	Form 26AS	Form 168

Worked examples

Example 1: a company renting an office

A company pays office rent of ₹1,20,000 per month plus 18% GST shown separately. Rent exceeds ₹50,000 for the month, so it deducts 10% of ₹1,20,000, that is ₹12,000 each month, and deposits it by the 7th of the next month.

Example 2: a salaried family renting a flat

A salaried individual pays ₹60,000 per month for a flat. Rent exceeds ₹50,000 per month, so TDS at 2% applies. Deducted once on the March rent, the TDS for a full year is 2% of ₹7,20,000, that is ₹14,400, deducted from the last month’s rent and paid through Form 141.

If the landlord does not furnish a PAN, a higher rate applies, but for individual tenants the deduction is capped at the rent for the last month of the year or tenancy.

Practical issues and how to handle them

Security deposits: a refundable deposit is not rent and does not attract TDS. A non-refundable or adjustable deposit that is really advance rent generally does.
Advance rent: TDS applies at the time of payment, since the earlier of credit or payment triggers deduction.
Common area maintenance: if charged separately under a distinct arrangement, it may fall under the TDS provision for contracts rather than rent; review the agreement.
Multiple landlords: where a property is jointly owned and each co-owner receives a defined share, the threshold is generally tested on each owner’s share.
Non-resident landlords: rent paid to a non-resident is dealt with under the separate non-resident TDS provisions, often at higher rates and with a TAN requirement.
Lower deduction certificate: a landlord with lower tax liability can apply for a certificate for lower or nil deduction; the tenant then deducts at the certified rate.

Due dates and consequences

Business payers deposit TDS by the 7th of the following month (30 April for March) and file quarterly returns.
Individual tenants file Form 141 within 30 days from the end of the month of deduction and issue the certificate after downloading it from the TRACES portal.
Late deduction or deposit attracts interest; late statements attract a fee; and for businesses, non-deduction can lead to a partial disallowance of rent expense until TDS is paid. Our note on TDS default notices explains how to correct defaults.

Frequently asked questions

Do I need a TAN to deduct TDS on house rent?

No. An individual or HUF tenant not covered by the business-payer rules uses a PAN-based challan-cum-statement, now Form 141, without a TAN.

Is TDS deducted on the GST portion of rent?

No, where GST is shown separately in the invoice, TDS is deducted on the rent excluding GST.

My rent is ₹45,000 a month. Do I deduct TDS?

No. The obligation arises only where rent exceeds ₹50,000 for a month or part of a month.

Which form should I use for rent paid in April 2026?

Individual tenants use Form 141 and business payers report in Form 140, as the payment falls under the Income-tax Act 2025.

If you would like help setting up rent TDS for your offices or reviewing your tenancy payments for the year, our team would be glad to assist.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 25, 2026

E-Way Bill Rules and Section 129 Penalty: A Business Guide

For businesses that move goods, the e-way bill is as important as the invoice. A missing, expired or incorrect e-way bill can lead to goods being stopped on the road, and the e-way bill penalty under section 129 of the CGST Act is steep: in most taxable cases it equals 200% of the tax payable on the goods. The good news is that almost every detention is preventable with simple controls.

This guide covers when an e-way bill is required, how validity works, what happens when goods are detained, how the penalty is calculated, and how to respond calmly if a vehicle is intercepted.

Key takeaways

An e-way bill is generally required for movement of goods where the consignment value exceeds ₹50,000, subject to exemptions and State-specific rules for intra-State movement.
Validity depends on distance: for normal cargo, one day for every 200 km or part of it.
Under section 129, goods and the vehicle can be detained for contravention of the Act or rules during transit; release requires payment of penalty.
Where the owner comes forward, penalty for taxable goods is 200% of the tax payable; otherwise it is the higher of 50% of the value of goods or 200% of the tax.
If the penalty is not paid within 15 days of the order, the goods or conveyance can be sold or disposed of under the amended provisions.

When an e-way bill is required

Rule 138 of the CGST Rules requires an e-way bill before movement of goods of consignment value above ₹50,000, whether the movement is for a supply, for reasons other than supply (such as job work or branch transfer), or because of an inward supply from an unregistered person. Consignment value is the invoice value including GST but excluding the value of exempt supplies billed together.

The e-way bill has two parts:

Part A: invoice details, GSTINs of supplier and recipient, place of delivery, HSN and value.
Part B: transporter and vehicle details.

Part B can be left blank where goods move up to 50 km within the same State from the supplier’s place of business to a transporter’s premises, but it must be updated before onward movement. Certain goods are exempt from the e-way bill requirement, and some States prescribe their own thresholds for intra-State movement, so check the rules that apply to your routes.

Validity and extension

Type of cargo	Validity
Normal cargo	1 day for every 200 km or part thereof
Over-dimensional cargo	1 day for every 20 km or part thereof

Validity can be extended by the generator before expiry (within the window allowed by the portal) where goods could not reach on time for genuine reasons, such as a breakdown. The portal also limits how old the underlying document can be and how long an e-way bill can be extended overall, so generate e-way bills promptly after invoicing.

Recent system changes

GSTN announced changes during 2026, including making ship-to GSTIN details mandatory in bill-to/ship-to cases and a facility to close an e-way bill on delivery. These were subsequently placed on hold. Keep an eye on the advisories on the e-way bill portal and make sure your ERP or API integration is ready when a revised date is announced.

When goods can be detained under section 129

Proper officers can intercept vehicles and verify documents and goods in transit. Common reasons for detention include:

No e-way bill, or an e-way bill that has expired.
Goods in the vehicle not matching the invoice or e-way bill (quantity, description or HSN).
Vehicle number in Part B different from the vehicle carrying the goods, without an update.
Movement without a valid invoice or delivery challan.

Minor, clerical errors such as a small spelling mistake in a name, an error in the pin code where the address is otherwise correct, or a one-digit mistake in the document number have been clarified by CBIC as not warranting proceedings under section 129; a small general penalty may be levied instead. Keep that distinction in mind when discussing a mismatch with the officer.

How the section 129 penalty is calculated

Section 129 was substantially amended with effect from 1 January 2022. Tax and penalty are no longer separate; the penalty is the release amount.

Situation	Taxable goods	Exempt goods
Owner of goods comes forward	200% of tax payable	2% of value of goods or ₹25,000, whichever is lower
Owner does not come forward	Higher of 50% of value of goods or 200% of tax payable	5% of value of goods or ₹25,000, whichever is lower

Worked example: goods worth ₹4,00,000 at 18% GST are detained because the e-way bill expired. Tax payable is ₹72,000. If the owner comes forward, the penalty is ₹1,44,000. If the owner does not, it is the higher of ₹2,00,000 (50% of value) and ₹1,44,000, so ₹2,00,000.

Goods can also be released against a bond and security equal to the penalty, where permitted.

The procedure and timelines

Verification: the officer records a statement of the person in charge of the vehicle and conducts physical verification, recorded in the MOV series of forms.
Detention order: if a contravention is found, a detention order is issued in Form GST MOV-06.
Notice: a notice in Form GST MOV-07 is issued within 7 days of detention, specifying the penalty proposed.
Order: the officer must pass an order in Form GST MOV-09 within 7 days of service of the notice, after giving an opportunity of being heard.
Payment and release: once the penalty is paid, goods are released and proceedings are concluded.
Non-payment: if the penalty is not paid within 15 days of the order, the goods or conveyance may be sold or disposed of.

If you pay under protest and believe the detention was wrong, an appeal under section 107 remains available. Our guide on GST demand orders and appeals explains the process.

What to do if your vehicle is stopped

Stay calm and cooperative: ask the driver to share the invoice, e-way bill and transport documents promptly.
Send documents immediately: many detentions end at verification when correct documents are produced quickly.
Check the reason in writing: request copies of the physical verification report and MOV-06.
Reply to MOV-07 on time with evidence, such as proof that the e-way bill expired due to a breakdown or that the mismatch is clerical.
Decide on release: weigh the cost of detention against paying under protest and appealing.

Checklist to prevent detention

Generate the e-way bill after the invoice and before goods leave.
Match HSN, quantity and value on invoice, e-way bill and packing list.
Update Part B whenever the vehicle changes, including at transhipment.
Track expiry dates for long routes and extend before expiry.
Train drivers to carry the invoice or its reference and the e-way bill number.
Where e-invoicing applies, generate e-way bills from the e-invoice data; our e-invoicing applicability guide explains the linkage.

Frequently asked questions

Is an e-way bill needed for goods below ₹50,000?

Generally not for inter-State movement, but some movements, such as certain job work consignments and handicraft goods, need one regardless of value, and States may set their own intra-State rules.

Can the penalty under section 129 be reduced?

The rates are fixed by the section. However, clerical errors should not lead to section 129 proceedings at all, and a well-supported reply to MOV-07 can result in the proceedings being dropped.

How long can the officer take to pass the order?

The order in MOV-09 must be passed within seven days of service of the MOV-07 notice.

Can I appeal after paying the penalty?

Yes. Paying to secure release does not take away your right to appeal against the order under section 107.

If your goods have been detained or you want a quick review of your e-way bill controls, our GST team is ready to help you respond with confidence.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 24, 2026

Trademark Objection Reply: Responding to an Examination Report in India

Seeing the status “Objected” on your trademark application can feel discouraging, but it is a very common stage of the process. A well-prepared trademark objection reply addresses each concern raised by the Trade Marks Registry and, in many cases, moves the application to acceptance without a hearing.

This article explains how to read the examination report, the usual grounds of objection under sections 9 and 11 of the Trade Marks Act 1999, the timeline for filing a response, and how to build a reply that is both persuasive and well supported.

Key takeaways

An examination report lists objections on absolute grounds (section 9) and/or relative grounds (section 11); each must be answered separately.
The reply is generally due within one month of receiving the report; the Registrar may allow a short extension on request.
If no reply is filed, the application can be treated as abandoned, so track the date from when the report is sent, including by email.
Strong replies combine legal arguments with evidence such as prior use, sales figures, a user affidavit or a consent letter.
If the reply is not accepted, a show cause hearing is scheduled, which can be attended by video conference.

Understanding the examination report

After an application is filed, an examiner checks it against the Act and the Registry’s records. The resulting examination report is available on the IP India portal against your application number and is also sent to the applicant or agent on record.

Read the report line by line. It usually contains:

The grounds of objection, with the section relied on.
For section 11 objections, a search report listing earlier conflicting marks, their classes and proprietors.
Any formal requirements, such as clarification of the goods or services description, a request for translation or transliteration, or a power of authority.

Formal requirements are often the simplest to fix, but leaving them unanswered can delay an otherwise acceptable application.

Common grounds of objection

Ground	What the examiner is saying	Typical response approach
Section 9(1)(a): lacks distinctiveness	The mark cannot identify your goods or services as coming from you	Show the mark is inventive or has become distinctive through use
Section 9(1)(b): descriptive	The mark describes quality, kind, purpose or other characteristics	Argue the mark is suggestive rather than directly descriptive; consider a disclaimer
Section 9(1)(c): customary in trade	The words are commonly used in the trade	Show your particular combination or stylisation is distinctive
Section 11(1): similar to an earlier mark	Likelihood of confusion with a cited mark for similar goods or services	Compare the marks as a whole, distinguish the goods, trade channels and customers, or obtain consent

At the examination stage, the Registry raises only the relative ground in section 11(1). Wider arguments based on a well-known mark or reputation are usually raised by third parties at the opposition stage.

How to draft a strong trademark objection reply

A good reply is organised, specific and supported. We suggest this structure:

Background: the applicant, the mark, the class and the date of first use claimed.
Response to each ground: one heading per objection, with arguments tied to the facts of your mark.
Comparison tables: for section 11 objections, compare your mark and each cited mark on visual, phonetic and conceptual grounds, and on the goods or services covered.
Evidence: invoices, advertisements, website and marketplace listings, social media reach and sales figures, ideally organised by year and region.
Relief sought: a clear request that the objection be waived and the mark accepted for advertisement.

Evidence that carries weight

User affidavit confirming the date of first use, annual turnover and promotional expenditure, supported by documents.
Consent letter from the proprietor of a cited mark, where a commercial understanding is possible.
Status of cited marks: if a cited mark is abandoned, refused or withdrawn, point this out; if it appears unused, a separate rectification action may be possible.
Co-existence on the register of similar marks in the same class, which can show that the common element is not exclusive to anyone.

Acquired distinctiveness must be shown from use before the application date, so organise older evidence carefully.

Narrowing the specification

Sometimes the simplest solution is to restrict the goods or services, for example from “clothing” to a specific category, to move away from a cited mark. Amendments are requested on Form TM-M with the prescribed fee.

Timeline and what happens next

Reply window: generally one month from receipt of the examination report. Where the report is sent by email, it is treated as served when sent, so monitor the portal and your inbox closely.
Extension: the Registrar may grant additional time on a request made on Form TM-M, but this is discretionary.
After filing: the examiner reviews the reply. If satisfied, the mark is accepted and advertised in the Trade Marks Journal, where third parties may file an opposition.
Hearing: if the reply does not resolve the objection, a show cause hearing is fixed. Hearings are commonly held through video conferencing, and a short written submission after the hearing helps.
Refusal: if the mark is refused, the applicant can seek a written statement of grounds and consider an appeal to the High Court within the prescribed time.

For the wider journey from filing to certificate, see our trademark application status and registration timeline guide.

Practical tips for a smoother outcome

Search before filing: a pre-filing search, explained in our trademark registration guide, avoids many section 11 objections.
Keep use records from day one: dated invoices and campaign material are the backbone of any distinctiveness argument.
Answer every point: a reply that ignores even one ground can lead to a hearing.
Be concise: examiners handle large volumes; a clear, well-indexed reply is easier to accept.
Track the application weekly on the IP India portal until acceptance and advertisement.

Frequently asked questions

What is the deadline for a trademark objection reply?

Generally one month from receipt of the examination report. An extension may be requested on Form TM-M, but it is at the Registrar’s discretion, so aim to file within the original period.

What happens if I do not reply?

The Registrar can treat the application as abandoned. Revival may still be possible in some cases, but it is far easier to file the reply on time.

Can I use my brand while the application is objected?

Yes. An objection does not stop you from using the mark, and continued, well-documented use can strengthen your position.

Is a hearing always required?

No. Many objections are resolved on the written reply alone. A hearing is scheduled only if the examiner is not satisfied or the applicant asks for one.

If your trademark application has received an examination report, reach out and we will help you prepare a clear, well-supported reply.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 24, 2026

Australia BAS Lodgement and GST: A Bookkeeping Guide for Small Businesses

For most Australian small businesses, Australia BAS lodgement is the most regular conversation they have with the Australian Taxation Office (ATO). The business activity statement (BAS) brings together GST, PAYG withholding, PAYG instalments and a few other taxes in one form, usually every quarter. Done well, it becomes a routine that takes a few hours; done in a rush, it becomes a source of penalties and stress.

This guide explains how GST works for small businesses, the 2026-27 lodgement calendar, the labels you will actually use, and a simple bookkeeping routine that keeps each BAS accurate and on time.

Key takeaways

A business must register for GST once its GST turnover reaches A$75,000 (A$150,000 for non-profits); taxi and ride-sourcing drivers must register regardless of turnover.
GST is charged at 10% on most taxable sales, and GST credits can be claimed on business purchases supported by valid tax invoices.
Most small businesses lodge quarterly; Q1 of 2026-27 (July to September) is due on 28 October 2026, with a later date for online lodgement through a registered agent or eligible channel.
Businesses with GST turnover under A$10 million can use Simpler BAS, which reports only total sales, GST on sales and GST on purchases.
General interest charge incurred from 1 July 2025 is no longer tax-deductible, which makes on-time lodgement and payment even more valuable.

GST basics for small businesses

Goods and services tax is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Once registered, a business charges GST on its taxable sales, claims credits for the GST included in its business purchases, and pays (or is refunded) the difference through the BAS.

Some supplies are GST-free, such as most basic food, some health and education services and exports. Others are input-taxed, such as residential rent and most financial supplies, where no GST is charged and related credits generally cannot be claimed. Correct tax codes in your accounting software are the foundation of an accurate BAS.

To claim a GST credit on a purchase of more than A$82.50 (including GST), you need a valid tax invoice. For smaller purchases, other records such as a receipt are usually enough.

Australia BAS lodgement due dates for 2026-27

Quarterly lodgers follow a fixed calendar. The standard dates below apply to self-lodgers; businesses that lodge online or through a registered tax or BAS agent may receive additional time under the ATO’s lodgement arrangements, so confirm your own dates in Online services for business or with your agent.

Quarter	Period	Standard due date
Q1	July to September 2026	28 October 2026
Q2	October to December 2026	28 February 2027 (moves to the next business day if it falls on a weekend)
Q3	January to March 2027	28 April 2027
Q4	April to June 2027	28 July 2027

Monthly lodgement is compulsory for businesses with GST turnover of A$20 million or more, and some smaller businesses choose it to improve cash flow from refunds. Monthly BAS is due on the 21st of the following month. Very small voluntarily registered businesses may be eligible to report GST annually.

The BAS labels you will actually use

A full BAS can look intimidating, but most small businesses use only a handful of fields.

GST section

G1 Total sales: all sales including GST.
1A GST on sales: GST you owe.
1B GST on purchases: GST credits you are claiming.

Under Simpler BAS, available where GST turnover is under A$10 million, these three are all you report for GST. Your software still needs correct tax codes behind the scenes, but the form itself is shorter.

PAYG sections

W1 and W2: total salary and wages paid, and the amount withheld from them. Businesses using Single Touch Payroll will find these figures in their payroll reports.
T7 or 5A: PAYG instalments towards the business’s own income tax, if the ATO has placed the business in the instalment system.

Other labels, such as fuel tax credits, fringe benefits tax instalments and wine equalisation tax, apply only to specific businesses.

A quarterly bookkeeping routine that works

A calm BAS starts well before the due date. We suggest a simple rhythm:

Weekly: code bank feed transactions in your software and attach receipts or tax invoices.
Month-end: reconcile every bank account, credit card and payment gateway, and review unusual tax codes.
Quarter-end, week one: run the GST reconciliation report, check that GST on sales matches your invoicing system and that capital purchases are coded correctly.
Quarter-end, week two: reconcile payroll figures to Single Touch Payroll, review PAYG instalments and prepare the draft BAS.
Before lodgement: compare the draft with the prior quarter; investigate large movements rather than lodging and hoping.
After lodgement: pay by the due date and file the lodged BAS and working papers together.

Our comparison of QuickBooks Online vs Xero covers how both platforms prepare BAS drafts directly from coded transactions.

Cash or accruals: choosing a GST accounting method

Businesses with GST turnover below A$10 million can generally account for GST on a cash basis, reporting GST only when payment is received or made. Larger businesses use the accruals basis, reporting GST when an invoice is issued or received.

The cash basis often suits service businesses with slow-paying customers, because GST is not paid to the ATO before the customer pays. The accruals basis gives an earlier claim for credits on purchases. Whichever method you choose, make sure your software settings match what you have told the ATO.

Common BAS errors and how to avoid them

Claiming GST on non-registered suppliers’ invoices: check the supplier’s ABN and GST status for larger purchases.
Coding private or input-taxed expenses as taxable: bank fees, residential rent and personal expenses carry no GST credit.
Missing capital purchases: vehicles and equipment should be reported correctly; a coding slip here can distort a quarter significantly.
Payroll mismatches: W1 and W2 should agree with Single Touch Payroll records.
Late lodgement: failure-to-lodge penalties and general interest charge add up, and GIC is no longer deductible.

Errors in a lodged BAS can usually be corrected in a later BAS within set limits, or by revising the original statement. The ATO is generally supportive of businesses that correct mistakes promptly.

Frequently asked questions

When is the BAS for July to September 2026 due?

The standard due date for Q1 of 2026-27 is 28 October 2026. Businesses lodging online or through a registered agent may have a later date, so confirm yours in ATO online services.

Do I have to register for GST if my turnover is under A$75,000?

Generally no, unless you provide taxi or ride-sourcing services. You can still register voluntarily, which lets you claim GST credits but means you must charge GST and lodge a BAS.

What is Simpler BAS?

It is the default GST reporting method for businesses with GST turnover under A$10 million. You report only total sales, GST on sales and GST on purchases.

Can an offshore bookkeeper prepare my BAS?

An offshore team can do the bookkeeping, reconciliations and draft BAS working papers. Lodgement on behalf of clients for a fee must be done by a registered tax or BAS agent, or by the business itself.

If you would like reliable remote bookkeeping and BAS-ready working papers for your Australian business, we would be glad to help you set up a smooth quarterly routine.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 23, 2026