To verify digital GST compliance during an acquisition, buyers should review the seller’s GST registration status, filed returns, and input tax credit claims, cross-check them with GSTN portal records, and confirm timely payments and absence of notices or disputes. This ensures accuracy and reduces post-acquisition tax risks.

During due diligence, buyers should scrutinize the seller’s GST registration, review past GST returns filed on the GST portal, verify input tax credits claimed, and check for any pending notices or disputes with the tax authorities. It’s also wise to cross-check invoices, reconcile sales and purchases, and ensure compliance with e-way bills and digital record-keeping. Emotionally, this can feel tedious and nerve-wracking, but it’s critical overlooking GST issues can saddle you with unexpected liabilities, so thorough verification brings confidence and peace of mind before closing the deal.

Buyers should reconcile GST returns (GSTR-1, GSTR-3B) with financial statements and sales records to ensure consistency. It is important to verify input tax credit claims against supplier filings (GSTR-2B). Reviewing GST notices, assessments, or pending liabilities on the GST portal helps confirm full digital compliance.