Primary Reasons Why Corporates Fail In Timely Compliance

Primary Reasons why Corporates fail in Timely Compliance

GST (Goods & Service Tax) has been the biggest tax reform in India since the Independence of the country. There is a myth that all businesses will be able to pay their GST on time, but many are failing in timely compliance. There are some definite challenges corporates face to be on time and to abide by the laws.

Top reasons Corporate fail in timely compliance

Improper Education on GST Requirement

The data entry person has little or no knowledge of the GST requirements and the way data must be entered into the system. It is important that as business owners you have trained staff and data entry people who understand the criticalities of the same.

Change in the Business Software

Before GST came into existence everyone was using accounting software or ERP to file their tax return that comprised of excise, VAT, & service tax too. This transition of GST required them to bring some changes in their ERP. They needed to either purchase a new one or upgrade the same to make it a GST compliant software. Ending up to increase their cost, plus extra training to the employees for using it in the correct manner. These businesses need software that makes the transition smooth and hassle-free for them.

Absence of pre-verification & automation prior to vendor invoice entry in ERP

Those who have started using some software for the same have been missing on the pre-verification & automation that is necessary before the vendor’s invoice entry in the ERP. If this verification is not done there is a possibility of errors and rejection. Hence being on the same platform where the vendor and business can upload their invoices makes it easier to file on time.

A decentralized approach towards Vendor Invoice receipts

Not having a common or a centralized platform where you can check all vendor invoices leads to a delay in GST filing. To be able to file on time it is important that you have a centralized platform or ERP software that is GST compliant and has visibility of invoices that are matched for payment.

GST reports generated from ERP do not adequately address GST data requirement

The GST reports that are generated from ERP do not effectively address the GST data requirements hence there is a need to do manual work and make entries in the excel sheet. This can be a very daunting task and takes a lot of time to make entries in excel while you still need to verify the same.

Being Dependent on CA firms for data uploads

This is a major problem in many corporates. They are totally dependent on the CA firms to do the filing for them. Incase they are busy with other clients, there is a possibility that your due date might be missed, and you would fall in the category of late submissions. Having software that would be easy to use by your own staff who would be able to upload data on their own is a necessity that helps save time and money too

Habit of defaulting

This is one reason that many don’t file timely compliance. As per the GST Act, it is important to file on time, but some people have been defaulting since the beginning, they think the government will not do anything about it. But now there are consequences one might face; hence it is better to be on time than repent later. If these businesses had software or team in place, then they would never have missed any dates.

Finding Short Cuts

There are many companies who like to take the shorter route and often miss out on following the GST law. When the law is not followed or ignored, there are some important things that we miss out on. Like the format or pre-verification of vendor invoices, etc. Hence it is not advisable to find short cuts for taking care of your monthly compliance or you might on the important GST law you need to follow for the same.

Not Using GST compliant software

One more reason to not be able to file GST on time is not using Cygnet GSP. Cygnet GSP is a licensed and one of the first GST Suvidha Providers. Our GSP software is your one-stop solution to all GST filing requirements. We help you embrace technology for your Tax requirements and yet stay compliant. We provide you with end-to-end solutions to stay compliant and do timely GST compliance.

Cygnet GSP can help

Cygnet GSP is an award-winning solution that helps its clients for filing GST returns and is a one-stop solution for your GST compliance. Don’t be in the defaulting list and decrease your credibility, rather go with Cygnet GSP. As a popular Fintech company, Cygnet has varied GST solutions to ease return filing for the taxpayers. Here’s a glimpse of the solutions:

ASP GSP Solution: It helps in GST returns preparation, validation, & filing.

E-Way Bill Solution: It helps to generate and manage your e-way bills for the business and the transporter. Easily integrate your e-way bill with our ERP and see the magic happen.

GSTR 9 & 9C: Automates & digitizes GSTR-9 Tax return preparation by auto-populating various fields with reference to your previous returns.

Vendor Portal: A centralized portal that reconciles vendor invoices for correct ITC claims and has a seamless payment process.

FACE Accounting: A GSTN approved accounting software that aids in generating GST compliant vouchers, generate reports, etc.

GRC Score: GRC stands for GST Returns Compliance and the GRC Score is calculated based on the pattern that a company exhibits in its monthly GST returns filing behavior. Most companies will have a score between 0 and 100.


Be it your need for accounting software, or you wish for a timely GST return we have it all for you. Our experts help you in more than one to give you the best solution catering to all your GST return needs. 

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