India accounting guide
Ind AS, ledgers, month-end, evidence and audit touchpoints in one hub · framed as the operating system that links GST, TDS, payroll, banking and group reporting.
This page is a general operating overview. Actual accounting treatment, tax positions and audit expectations vary by structure, industry, ERP, group policy and Ind AS scope · pair with the glossary and your advisers.
India accounting is rarely “bookkeeping only”: GST, TDS, payroll, banking, group reporting and audit cycles interlock in one stack.
ERP, evidence, approvals and return data have to reconcile · initial chart design and a disciplined month-end rhythm drive speed and risk as much as compliance calendars.
Core checklist · COA, evidence & consolidation
COA & HQ reporting map
- Align India COA with group reporting maps early · not as a post-go-live patch.
- Trace how GST, TDS, payroll and import costs post into ERP and group accounts.
- Design intercompany, advances and import-clearing accounts together with treasury.
- [Field] Local vs HQ account naming drift
- [Field] GST ledgers / tax segments
- [Field] Vendor advances and prepayments
- [Field] Project codes / cost centres when needed
Evidence, approvals & spend flow
- Wire expense approvals into posting logic so audit trails stay intact.
- Reconcile invoices, POs, payments and bank lines routinely.
- Cash, advances and employee claims need clear policy and cut-offs.
- [Field] Costs posted without approval
- [Field] Missing GST invoices / e-invoice gaps
- [Field] Vendor PAN/GST mismatches
- [Field] Thin employee claim evidence / weak trails
Consolidation vs statutory books
- Track consolidation adjustments separately from India statutory ledgers.
- Review IFRS, Ind AS and Korean GAAP differences where relevant.
- Align group reporting cadence with India tax and statutory close dates.
- [Field] Revenue recognition timing
- [Field] Forex remeasurement
- [Field] Deferred tax / temporary differences
- [Field] Leases, assets and useful-life gaps
Monthly operating rhythm
Revenue
- Invoice review & export/domestic split
- GST mapping & exempt chains
- E-invoicing applicability
- Revenue recognition & cut-off
Purchases
- Vendor invoice booking
- GST ITC & GSTR-2B alignment
- Advance adjustments
- Import cost allocation (duty/freight)
Treasury
- Bank reconciliation
- Forex transaction review
- Intercompany payments / loans
- Expense approvals vs payments
Tax stack
- GST returns, payments & reconciliations
- TDS (e.g. Form 26Q)
- PT / PF / ESI where applicable
- Advance tax estimates
Close & HQ reporting
- Trial balance & accruals
- MIS packs to HQ templates
- Aging, cash flow, budget vs actual
- Closing checklist & evidence lock
Common operating issues
- GST vs ledger / return misalignment
- ITC loss when vendors do not file
- Group MIS vs India statutory books diverge
- Missing or inconsistent forex valuations
- TDS mismatches vs Form 26AS
- Fixed asset capitalization or useful-life errors
- Employee advances left open for long periods
- ERP inventory or sub-ledgers vs GL drift
Audit, ERP & HQ MIS linkage
- 1
Audit & year-end readiness
- Statutory and tax audit calendars with evidence bundles
- GST reconciliations (returns vs books)
- Related-party transaction files
- Fixed asset verification and stock counts
- Balance confirmations
- [Field] Slow vendor confirmations
- [Field] Inventory discrepancies
- [Field] GST mismatches / TDS short deductions
- [Field] Intercompany reconciliations
- 2
ERP & operations linkage
- Map GL to GST/TDS codes and segments
- Purchasing, inventory and finance module alignment
- Dropbox/approval flows and retention policy
- [Field] Excessive manual journals
- [Field] Duplicate invoices
- [Field] GST code mismatches
- [Field] Weak approval trails
- 3
HQ reporting & MIS
- Monthly close calendar vs HQ deadlines
- Budget vs actual with variance commentary
- Cash-flow and liquidity views
- Intercompany matching
- AR/AP ageing
- Payroll summaries and cost allocation
- GST/TDS exposure tracking
- [Field] Close delays / approval bottlenecks
- [Field] FX swings on reported results
- [Field] Korean GAAP presentation differences
Manufacturing accounting hotspots
| Theme | Pressure-test |
|---|---|
| Raw-material imports | Duty, freight, FX and clearing vs COGS allocation |
| WIP valuation | Stage costing, standards vs actuals |
| Scrap & wastage | Write-offs, GST and inventory reserves |
| Job work | Sub-contract GST, stock moves and documentation |
| Capex depreciation | Capitalisation timing, useful lives, ITC on capital goods |
| GST on advances | Advances, rates, refunds and ledger bridges |
| EPCG assets | Duty-free assets, EO, utility proofs and reconciliations |
| Inventory ageing | Provisions, valuations and count variances |
| Production variance | Standard vs actual manufacturing variance |
How MSV can help
- Bookkeeping and month-end close
- GST & TDS filings with reconciliations
- Payroll-linked compliance support
- Monthly MIS / HQ reporting packs
- HQ reporting maps and COA design
- ERP account and tax-code reviews
- Audit and scrutiny support
- Manufacturing and export-heavy accounting operations
Linked pages
Often read together in the same operating stack.
India accounting is an operating domain where GST, banking, trade, payroll and HQ reporting interlock · how you design the chart of accounts and approval spine upfront materially changes close speed and downstream risk.