You file GST returns from ERPNext with the free, open-source India Compliance app: it builds GSTR-1 and GSTR-3B from your sales and purchase data, compares them with the GST portal, and uploads or files through the GST API. The invoices you already booked become your return.
Short answer
ERPNext handles GST returns through the India Compliance app (Resilient Tech). It generates GSTR-1 from your Sales Invoices and a GSTR-3B report from sales and purchase data, compares GSTR-1 with the GST portal, and lets you upload and file GSTR-1 through the API with your authorised PAN and an OTP. No re-keying into a separate tool.
I am Manoj, and I lead ERPNext and Frappe delivery at MithTech, a team of Frappe specialists in Bengaluru. The pattern I see: businesses keep books in one system, then re-type everything into a filing utility. The biggest win of filing from ERPNext isn't speed: your return matches your ledger, because both come from the same invoices.
Pre-filing reconciliation steps
- GSTR-1 generated and checked against Sales Invoices for the period.
- Every B2B invoice has its IRN (if you are covered by e-invoicing).
- GSTR-1 compared with the portal; errors cleared before upload.
- Supplier records actioned in IMS before GSTR-2B is generated.
- Purchase Reconciliation run against GSTR-2B.
- ITC in the GSTR-3B report matches GSTR-2B.
- Any GSTR-1 correction made through GSTR-1A before GSTR-3B is filed.
What is the India Compliance app and why do you need it?
India Compliance is an open-source Frappe app, maintained by Resilient Tech, that adds GST features to ERPNext. Installing it pre-configures GST tax ledgers, HSN and SAC codes, and Item Tax Templates, then unlocks GSTR-1, GSTR-3B, e-invoicing and e-way bill generation from your existing transactions.
Plain ERPNext records tax on invoices, but it does not know Indian return formats or talk to the GST Portal on its own. India Compliance bridges that gap. It maps your booked GST into the government's return schemas and, once you configure GST API credentials, connects to GSTN's services so you can fetch, upload, and file data.
Because ERPNext and India Compliance are open source, there is no licence fee per return or per user. The app's API features use an India Compliance account with API credits (bundled on Frappe Cloud); check the current terms in its docs. What you get is a filing pipeline inside the same system as your accounting.
The app is only as good as the invoice discipline behind it. Correct GSTINs, correct place of supply, correct HSN codes on every line. Get those right at data entry and the returns almost write themselves.
Skimmable summary: India Compliance is the free, open-source app that turns ERPNext transactions into filable GST returns and connects to the GST Portal.
How do you generate GSTR-1 from ERPNext?
GSTR-1 is the outward-supply return, and in ERPNext it is built from your Sales Invoices for the period. Open GSTR-1 Beta, choose the company and period, and generate. The app groups each sale into its GSTR-1 section.
Before your first filing, spend time in GST Settings. Set your filing frequency to monthly or quarterly, enable "Compare Data with GST Portal" if you want API reconciliation, and turn on "Restrict Changes to Transactions After Filing" so nobody edits an invoice after the return is locked.
Configure GST Settings
Enable API access on the GST portal for your GSTIN and set up your India Compliance account. Choose monthly or quarterly filing frequency to match your registration.
Generate the report
Open GSTR-1 (Beta), select company and period, and click Generate. The process is queued and may request OTP authentication for any API operation.
Review the tabs
Check the section tabs, the net output GST from your ledgers, and the filing-status indicators. Drill into any figure that looks off and fix the source invoice.
Compare with the portal
Use the compare feature to check your unfiled data against GST Portal records. The app highlights mismatches so you resolve them before uploading.
Upload, then file
Click Upload to transmit data, clear any errors in the Error tab, review the summary, then File using your authorised PAN and OTP. Status moves to Filed and final data downloads back into ERPNext.
You can also export GSTR-1 as JSON or Excel if you prefer to upload through the portal offline utility instead of the API. Both paths use the same generated data.
Skimmable summary: Generate GSTR-1 from Sales Invoices in the GSTR-1 Beta tool, compare against the portal, then upload and file with OTP or export JSON.
How does ERPNext generate GSTR-3B?
GSTR-3B is the summary return covering output tax liability and input tax credit, and ERPNext builds it from both your sales and your purchase transactions. Navigate to Accounting, then Goods and Services Tax (GST India), then GSTR-3B Report. Create a new report, enter company, GSTIN, year, and month or quarter, and save to produce the form.
The report has two halves that matter. Outward liability comes from your sales, mirroring what you reported in GSTR-1. Input tax credit comes from your Purchase Invoices, governed by an ITC Claim Period setting that decides when credit on each purchase is claimed.
That ITC Claim Period is the feature most people miss. The app auto-sets it from posting dates and GSTR-2B availability, but you can override it manually when a supplier's invoice lands in your books in a different month than it appears in your GSTR-2B. Reverse-charge liability follows the posting date, while inward reverse-charge credit follows the claim period.
Use View Form to see the formatted GSTR-3B, and the GSTR-3B Details Report to audit every purchase transaction feeding the return. Once you file for a period, the ITC claim period for that period locks, so reconcile before you commit.
See also: GST on services bought from abroad in ERPNext for the reverse-charge tax on a foreign vendor's bill, which goes in GSTR-3B table 3.1(d) with the credit in table 4(A)(2).
Skimmable summary: GSTR-3B is built from sales and purchase data, with an ITC Claim Period setting deciding when credit is taken; the outward liability now comes locked from GSTR-1 and GSTR-1A.
How do you reconcile before filing?
Reconciliation means matching three things before you file: your books, your GSTR-1, and the credit the portal shows in GSTR-2B. Skipping it is a common cause of mismatch notices and blocked input tax credit.
GSTR-2B is the auto-drafted input tax credit statement generated on the 14th of each month from your suppliers' filed data and your IMS actions. Your job is to confirm that the credit you claim in GSTR-3B genuinely appears in GSTR-2B, because credit not reflected there is credit you may not be allowed to take.
Since 14 October 2024 the Invoice Management System (IMS) sits at the centre of this. On the portal you Accept, Reject or keep Pending each supplier record before GSTR-2B is generated; a record left without action is deemed accepted. From the October 2025 tax period, credit notes can also be kept Pending for one tax period. Treat IMS as the gate: what you accept feeds your GSTR-2B. India Compliance has an IMS tool for this.
| Reconciliation check | What you compare | Why it matters |
|---|---|---|
| GSTR-1 vs books | ERPNext Sales Invoices vs generated GSTR-1 | Confirms every sale is reported correctly |
| GSTR-1 vs GSTR-3B | Outward liability in both returns | They must agree; 3B Table 3 is locked to GSTR-1 and 1A |
| GSTR-3B ITC vs GSTR-2B | Claimed credit vs portal statement | Prevents claiming credit you cannot support |
| Purchases vs IMS | Booked purchases vs accepted invoices | Ensures supplier invoices are actioned in IMS |
India Compliance includes a Purchase Reconciliation tool that matches your purchase records against downloaded GSTR-2B data, flagging invoices that are missing, mismatched or on one side only. Run it every month before GSTR-3B.
Skimmable summary: reconcile books, GSTR-1 and GSTR-2B before filing, action supplier records in IMS, and use the app's Purchase Reconciliation tool.
What changed for GST filing in 2025-2026?
Several changes reshaped GST filing, and all of them reward clean ERPNext data: the portal leaves less room to patch returns by hand, so accuracy at source matters more. The three that matter most:
GSTR-3B hard-locking
From the July 2025 tax period, the liability in GSTR-3B Table 3 comes from GSTR-1 and GSTR-1A and can't be edited. Get GSTR-1 right, or correct it in GSTR-1A.
GSTR-1A correction window
GSTR-1A (Notification 12/2024-Central Tax, 10 July 2024) is the optional route to fix or add to a period's GSTR-1. It opens after GSTR-1 is filed and closes when GSTR-3B for that period is filed.
IMS and ITC direction
Your IMS actions drive your GSTR-2B. A record you don't act on is deemed accepted, and a credit note you reject raises the supplier's liability in its next GSTR-3B.
For ERPNext users the practical response is unchanged in spirit but stricter in execution: enter GSTINs, place of supply, HSN codes, and reverse-charge flags correctly, file GSTR-1 early enough to use the GSTR-1A window if needed, and reconcile GSTR-2B every month. The India Compliance app follows these changes through its releases, which is one reason to keep it current.
If you also need e-invoicing wired up, that feeds GSTR-1 too, and I covered the full setup in the e-invoicing setup guide. For a broader compliance checklist, see the ERPNext GST 2026 readiness guide.
Skimmable summary: the locked GSTR-3B liability, GSTR-1A and IMS mean accuracy at source decides your filing; keep India Compliance current and reconcile monthly.
Frequently asked questions
+Is the India Compliance app free?
The app is open source, like ERPNext and Frappe, with no licence fee per return or per user. Its API features (filing, comparing with the portal, e-invoicing) use an India Compliance account with API credits; on Frappe Cloud, API access is bundled. Check the current terms in its docs.
+Can I file GSTR-1 directly from ERPNext without the portal?
Yes, once API access is set up: upload, then file with your authorised PAN and an OTP, inside ERPNext. If you prefer, export JSON or Excel from the same report and upload it on the GST portal.
+What are the GSTR-1 and GSTR-3B due dates?
Generally, GSTR-1 is due by the 11th of the following month for monthly filers, or the 13th of the month after the quarter for QRMP filers. GSTR-3B is generally due by the 20th of the following month, or the 22nd or 24th after the quarter for QRMP filers, depending on the state. Dates can be extended by notification, so confirm the current calendar on the GST portal.
+Does ERPNext handle GSTR-2B reconciliation?
Yes. India Compliance's Purchase Reconciliation tool downloads GSTR-2B and matches it against your Purchase Invoices, flagging missing, mismatched or one-sided entries. It matters because GSTR-3B input tax credit should align with GSTR-2B, and your IMS actions decide what appears in GSTR-2B.
+What happens if I edit an invoice after filing?
If you enabled "Restrict Changes to Transactions After Filing" in GST Settings, ERPNext blocks edits to transactions once GSTR-1 is filed. For genuine corrections, use GSTR-1A for the same period before GSTR-3B, or amend in a later period's return under the normal amendment rules; your CA decides which.
+Do I need e-invoicing before I can file GSTR-1?
No. If your aggregate turnover has exceeded ₹5 crore in any year since 2017-18, e-invoicing applies to your B2B invoices and their details flow into GSTR-1. Either way, GSTR-1 is generated from your Sales Invoices in ERPNext.
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Manoj · Published on 20 July 2026
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