GST Compliance Checklist, For FY 2025-26, businesses must adhere to a comprehensive GST compliance checklist to ensure seamless operations and avoid penalties.
Submit Letter of Undertaking (LUT) for Zero-Rated Supplies
Businesses involved in exports or supplies to Special Economic Zones (SEZs) without paying Integrated GST (IGST) must file an LUT in Form RFD-11.
Deadline: March 31, 2025 (before the start of FY 2025-26).
Ensures tax-free exports for the upcoming year.
Opt for Composition Scheme
Eligible businesses (turnover up to ₹1.5 crore for goods or ₹50 lakh for services) wishing to opt into the Composition Scheme must file Form GST CMP-02.
Deadline: March 31, 2025.
Reverse Input Tax Credit (ITC) on stock and capital goods as of March 31, 2025, via Form GST ITC-03 by May 30, 2025.
Choose Quarterly Return Monthly Payment (QRMP) Scheme
Businesses with an aggregate turnover up to ₹5 crore can opt in or out of the QRMP scheme (quarterly filing with monthly tax payments).
Deadline: April 30, 2025.
File quarterly GSTR-1 and GSTR-3B, with monthly tax payments due by the 25th of each month.
Start a New Invoice Series
Reset invoice numbering for all documents (tax invoices, credit notes, debit notes, bills of supply) at the beginning of FY 2025-26.
Effective Date: April 1, 2025.
Ensures compliance with Rule 46(b) of CGST Rules and avoids issues with e-way bills or GSTR-1 filing.
Reassess Aggregate Turnover
Review FY 2024-25 turnover to determine eligibility for GST registration, Composition Scheme, QRMP Scheme, and e-invoicing mandates.
Impacts compliance obligations for FY 2025-26.
E-Invoicing Compliance
Businesses with an aggregate turnover exceeding ₹5 crore in any financial year from 2017-18 onwards must generate e-invoices for B2B transactions.
From April 1, 2025, businesses with turnover above ₹10 crore must report e-invoices within 30 days of issuance.
Ensure systems are updated to comply with the Invoice Registration Portal (IRP).
Input Tax Credit (ITC) Reconciliation
Reconcile ITC claimed in GSTR-3B with GSTR-2B and books of accounts for FY 2024-25.
Reverse excess ITC or claim unclaimed ITC by November 30, 2025, as per Section 16(4) of the CGST Act.
Perform annual ITC reversal under Rules 42 and 43 for exempt supplies or non-business use by March 2025 returns.
Reverse Charge Mechanism (RCM) Compliance
Review purchases subject to RCM (e.g., from unregistered vendors or specific services like GTA).
Issue self-invoices and pay GST via GSTR-3B within 30 days of receipt of goods/services.
Maintain proper documentation for FY 2025-26.
E-Way Bill Compliance
Generate E-Way Bills for goods movement exceeding ₹50,000.
From January 1, 2025, E-Way Bills are restricted to base documents not older than 180 days.
Starting April 1, 2025, mandatory Two-Factor Authentication (2FA) applies to the E-Way Bill system.
GST Return Filing
Monthly Filers: File GSTR-1 by the 11th and GSTR-3B by the 20th of the following month.
QRMP Filers: File GSTR-1 quarterly (13th of the month following the quarter) and GSTR-3B (22nd or 24th, based on state).
Annual Return (GSTR-9): Mandatory for turnover above ₹2 crore, due by December 31, 2026, for FY 2025-26.
Input Service Distributor (ISD) Registration
Businesses with branches across states distributing common ITC must register as ISD.
Mandatory from: April 1, 2025.
File GSTR-6 by the 13th of each month to distribute ITC based on turnover ratio.
HSN Code Reporting
From February 2025, manually entering HSN codes in GSTR-1 and GSTR-1A is discontinued; select from a dropdown menu.
Ensure accurate HSN classification (4-digit for turnover up to ₹5 crore, 6-digit above ₹5 crore).
Multi-Factor Authentication (MFA)
Mandatory for all taxpayers on the GST portal from April 1, 2025, regardless of turnover.
Also applies to E-Way Bill and E-Invoice systems from January 1, 2025.
GST Amnesty Scheme
Clear outstanding dues for FY 2017-18 to 2019-20 under Section 73 by March 31, 2025, to avail waiver of interest and penalties.
File waiver applications (Forms GST SPL-01 and SPL-02) by June 30, 2025.
TDS/TCS Compliance
Deduct TDS (2%) or collect TCS (0.5%-1%) as applicable (e.g., government entities, e-commerce operators).
File GSTR-7 (TDS) by the 10th of the following month; reconcile credits in the electronic cash ledger.
Goods Sent on Approval Basis
Ensure goods sent on approval are returned within 6 months or taxed appropriately in FY 2025-26.
GST Compliance Checklist -Additional Notes
Reconciliation: Regularly reconcile GSTR-1, GSTR-3B, e-invoices, and e-way bills with books of accounts to avoid mismatches.
Documentation: Maintain records of all GST-related transactions, including self-invoices for RCM and LUT references.
Portal Updates: Stay updated with advisories on the GST portal (e.g., Invoice Management System introduced October 2024) for smoother compliance.
This list covers the major compliance tasks as of April 1, 2025. For industry-specific requirements or state-specific exemptions, refer to the latest GST Council recommendations and CBIC notifications. Always consult a tax professional for tailored advice.