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Delhi · PracticalGST for Delhi traders: wholesale market compliance guide
Delhi's wholesale markets – Chandni Chowk, Sadar Bazar, Karol Bagh, Wazirpur, Naya Bazar, Gandhi Nagar – run on thin margins and high volumes. GST errors here quickly become notices. Here is a practical compliance guide for Delhi traders.
Delhi traders face a specific mix of risks: fake-invoice networks, cash sales, frequent inter-State dispatches to Haryana, UP, Punjab and Rajasthan, and data-driven scrutiny by both the State and CGST.
Core monthly compliance
| Task | Due |
|---|---|
| GSTR-1 (monthly) / IFF (QRMP) | 11th / 13th |
| GSTR-3B (monthly) | 20th |
| GSTR-3B (QRMP, Delhi – Category Y) | 24th after the quarter |
| PMT-06 payment (QRMP months 1–2) | 25th |
| E-way bills | Before movement |
| GSTR-2B / IMS review | Before filing 3B |
B2B vs B2C sales
- Collect buyer GSTINs for B2B and validate them – your buyer's ITC depends on your GSTR-1.
- B2C cash sales: issue invoices; for inter-State B2C above ₹1 lakh, report invoice-wise (B2CL).
- Avoid "kaccha" bills – unreported sales show up in e-way bill and bank data.
ITC discipline
- Claim only on invoices in GSTR-2B, for goods actually received.
- Pay suppliers through bank within 180 days.
- Check supplier GSTIN status and filing history; avoid paper dealers offering "bills" without goods.
- Reverse ITC if suppliers do not file GSTR-3B by 30 September of next year (Rule 37A) – see supplier non-filing.
E-way bills
- Required for inter-State consignments above ₹50,000; intra-State as per Delhi rules.
- Update Part B on vehicle change; carry invoice and e-way bill.
- Detention penalties are 200% of tax – see e-way bill rules.
Stock and books
- Maintain stock registers (quantity-wise), especially for traders with many SKUs.
- Physical stock should match books – departmental inspections often verify stock.
- Reconcile GST turnover with income-tax turnover; Form 3CD reports GST turnover.
Worked example
Example: A hardware wholesaler in Wazirpur (turnover ₹8 crore) receives an ASMT-10 showing ITC of ₹6.4 lakh from three suppliers whose registrations were cancelled retrospectively.
| Step | Action |
|---|---|
| 1 | Pull invoices, e-way bills, lorry receipts, GRNs and bank payments for those suppliers |
| 2 | Check supplier status on transaction date (active) and GSTR-2B reflection |
| 3 | Reply in ASMT-11 with evidence of genuine purchase and payment |
| 4 | If any invoice lacks movement proof, pay that portion through DRC-03 with interest |
| 5 | Strengthen vendor onboarding |
Common Delhi notices
- ASMT-10 for GSTR-1 vs 3B or 2B vs 3B mismatches.
- DRC-01 for ITC from fake/cancelled suppliers.
- MOV-07/09 for e-way bill defects.
- REG-17 for non-filing or non-existence at address.
Use the Tax Notice Navigator for each.
Composition for small retailers
Small retail traders selling only within Delhi with turnover up to ₹1.5 crore may consider composition (1%), but cannot make inter-State sales. See composition vs regular.
Key takeaway
For Delhi traders, clean ITC (genuine suppliers, GSTR-2B, bank payments), accurate B2B reporting, correct e-way bills and stock records are the best defence against notices. Our GST team supports traders in Wazirpur, Sadar Bazar, Karol Bagh and Narela with returns and notice replies.
Official references
Official sources to verify the current text, notifications and circulars:
- CBIC GST – CGST/IGST Acts, Rules, notifications and circulars ↗
- GST portal – returns, notices and advisories ↗
- GST Council – meeting recommendations ↗
- Income Tax Department – Acts, Rules, circulars and section mapping ↗
- Income-tax e-Filing portal ↗
- Department of Trade and Taxes, Govt of NCT of Delhi ↗
- FSSAI FoSCoS – food licences ↗
Frequently asked questions
Who administers GST for Delhi traders – State or Centre?
Taxpayers are allocated either to the Delhi Department of Trade and Taxes (State) or to CGST Delhi (Centre) for administration. Notices can come from the authority to which you are allocated, though enforcement actions like inspections can be by either.
Is e-way bill needed for intra-Delhi movement?
Rules for intra-State movement depend on the Delhi notification in force; inter-State movement above ₹50,000 always needs an e-way bill. Check the current Delhi threshold and exemptions before moving goods.
Can a trader claim ITC on purchases from a supplier whose registration was later cancelled?
If the purchase was genuine and the invoice appeared in GSTR-2B while the supplier was active, ITC is claimable, but the department may question it if the supplier did not pay tax. Keep e-way bills, transport proof and bank payments.
Should a small trader opt for QRMP?
Traders with turnover up to ₹5 crore can file quarterly returns with monthly payments under QRMP, reducing filing frequency. B2B buyers may prefer monthly GSTR-1 (or IFF) for faster ITC.
What is the late fee for GSTR-3B in Delhi?
The same national rates apply: ₹50 per day (₹20 for nil) with turnover-based caps.
Can Delhi traders opt for QRMP with B2B customers?
Yes; use IFF in the first two months of the quarter to report B2B invoices so buyers get ITC monthly.
Are cash sales above ₹2 lakh allowed?
Receiving ₹2 lakh or more in cash in a single transaction or day from a person is prohibited under Section 269ST of the Income-tax Act.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
Have a tax, GST or business question?
Call, WhatsApp or email CA Dilbagh Singh and team, from Delhi, anywhere in India or abroad.