What GST returns and rules does GSTBuddies support?

GSTBuddies audits GSTR-1, 2A, 2B, 3B, 9 and 9C. Checks include Rule 37 (180-day ITC reversal), Rule 42/43 common-credit reversal advisories, Rule 86B, Section 16(4) ITC time-bar, Section 50 interest, Section 47 late fees, reverse-charge (RCM) checks, the annual Table 8 ITC reconciliation and the three-way GSTR-1 vs 3B vs 9 reconciliation. Every figure is cited to the CGST Act and Rules. Section 17(5) blocked credits depend on what each expense was, which a GST return does not carry, so that review stays with your books.

What file formats can I upload?

PDF, Excel, JSON and ZIP. Upload GSTR PDFs from the GST Portal, Excel ledgers from Tally, Busy or any party ledger (.xlsx/.xls), JSON exports for GSTR-2A/2B/3B/9/9C, or the portal's ZIP downloads — GSTBuddies extracts and classifies them automatically.

Is GSTBuddies free to try?

Yes. Sign up to get free credits every month, no credit card required, and run GST compliance checks to see the results before you buy.

Yes. GSTBuddies uses AES-256 encryption on AWS infrastructure and never shares your data. Uploaded files are processed and deleted after 7 days.

Rule 42 & Rule 43, CGST Rules · Section 17(2)

Rule 42 & 43: reversing common ITC

If your inputs are used partly for taxable and partly for exempt supplies (or non-business), you can't keep the full credit. Rules 42 and 43 set the reversal — with an annual true-up.

Why common credit is reversed

Under Section 17(2), ITC is available only to the extent inputs are used for taxable (including zero-rated) supplies. Where common inputs serve both taxable and exempt supplies, the exempt proportion of the credit must be reversed.

Rule 42 — inputs and input services

Common credit (C2) is apportioned monthly. The reversal attributable to exempt supplies is:

D1 = (E ÷ F) × C2 — where E = exempt-supply turnover, F = total turnover. A further D2 = 5% of C2 is reversed for non-business use. The balance (C3) is the eligible common credit.

Rule 43 — capital goods

For common capital goods, the credit is spread over the useful life of 60 months; the exempt proportion of the monthly credit (Tm) is reversed each month.

The annual true-up

The monthly reversals are provisional. After year end (by the September/November return of the following year), the reversal is recomputed on annual figures: if the final reversal exceeds the provisional, pay the difference with interest under Section 50; if less, claim the excess back.

How GSTBuddies handles Rule 42/43

GSTBuddies flags every GSTR-1 and GSTR-3B period where taxable and exempt supplies appear together — the situations where a Rule 42/43 reversal is attracted — and surfaces the exempt ratio (E ÷ F) alongside the reversal you actually declared, so you can verify the quantum from your ITC ledger. The reversal amount itself depends on your books, so this is a cited advisory, not an auto-computed demand. Explore the full compliance suite or Section 17(5) blocked credits.

FAQ

What is the difference between Rule 42 and Rule 43?

Rule 42 reverses common credit on inputs and input services; Rule 43 deals with common credit on capital goods, spread over 60 months.

When is the Rule 42/43 annual true-up done?

By the return for September (now up to 30 November) following the end of the financial year, with interest on any additional reversal.