Staying compliant with the latest GST regulations is crucial for businesses in India. The financial year 2025–26 brings several updates that businesses must be aware of to ensure seamless operations and avoid penalties. This comprehensive checklist will guide you through the essential steps and changes in GST compliance for the current fiscal year.
📌 Key Updates for FY 2025–26
1. Mandatory E-Invoicing for Turnover Above ₹5 Crore
Effective from April 1, 2025, businesses with an aggregate turnover exceeding ₹5 crore in any financial year since 2017–18 must implement e-invoicing for B2B and export transactions. (linkedin.com)
2. New Invoice Series Requirement
All registered taxpayers are required to start a fresh, unique invoice series from April 1, 2025. The series should be sequential and non-repetitive for each financial year. (indiafilings.com)
3. HSN Code Reporting
From February 2025, reporting 6-digit HSN codes via dropdown is mandatory, as manual entry is disabled. The HSN master description will auto-fill the “Description as per HSN Code” field. (steadfastconsultants.in)
4. Multi-Factor Authentication (MFA)
Mandatory Multi-Factor Authentication (MFA) for all GST portal users has been implemented from FY 2025–26 to enhance security.
✅ Comprehensive GST Compliance Checklist
A. Reconciliation of GST Data
- GSTR-1 vs. Books of Accounts: Ensure that the sales reported in GSTR-1 match your books.
- GSTR-3B vs. Books of Accounts: Verify that the tax paid matches your financial records.
- GSTR-2B vs. Purchase Register: Cross-check Input Tax Credit (ITC) claimed with GSTR-2B.
B. Input Tax Credit (ITC) Management
- Match ITC with GSTR-2B
- Identify Ineligible ITC: Reverse ITC on exempt, personal, and blocked credits.
- Verify ITC for Capital Goods: Check depreciation treatment and eligibility.
C. GST Payments and Liabilities
- Timely GST Payments: Ensure full payment of GST liability before due dates.
- Reverse Charge Mechanism (RCM): Verify tax payments for RCM transactions.
- Adjust Credit/Debit Notes: Incorporate adjustments in GSTR-1 & GSTR-3B.
D. Annual Returns and Reconciliation
- GSTR-9 Filing: Mandatory for taxpayers with turnover > ₹2 crore.
- GSTR-9C Filing: Required for turnover > ₹5 crore; includes audit report.
- Cross-Check Turnover and ITC: Verify data before filing annual returns.
E. E-Way Bills and E-Invoicing
- Generate E-Way Bills
- E-Invoicing Compliance: Verify adherence to e-invoicing requirements.
F. Pending GST Notices and Replies
- Respond to Notices: Address any pending GST notices promptly.
- Review Show-Cause Notices (SCN)
G. GST Refunds and Claims
- File Refund Claims: For excess ITC, exports, or inverted duty structure.
- Verify Export Documentation
H. Stock Valuation and Year-End Adjustments
- Conduct Stock Audit
- Reverse ITC on Unsold Goods: If applicable under Rule 42 & 43.
I. Books of Accounts and Record-Keeping
- Maintain GST Records: Retain records for at least 6 years.
- Proper Documentation
🗕️ Important GST Filing Deadlines for May 2025
| Date | Return/Form | Description |
|---|---|---|
| 10 May 2025 | GSTR-7 | TDS return for April 2025 |
| 10 May 2025 | GSTR-8 | TCS return for April 2025 |
| 11 May 2025 | GSTR-1 | Outward supplies for April 2025 |
| 13 May 2025 | GSTR-6 | ISD return for April 2025 |
| 20 May 2025 | GSTR-3B | Summary return for April 2025 |
❓ Frequently Asked Questions (FAQs)
Q1: What is the threshold for mandatory e-invoicing in FY 2025–26?
Businesses with an aggregate turnover exceeding ₹5 crore must implement e-invoicing. (linkedin.com)
Q2: Is it necessary to start a new invoice series every financial year?
Yes, all registered taxpayers must initiate a new, unique invoice series from April 1, 2025. (indiafilings.com)
Q3: How should I handle ITC mismatches between GSTR-2B and my purchase register?
Identify discrepancies, communicate with vendors, and adjust ITC claims.
Q4: Are there any changes in HSN code reporting for FY 2025–26?
Yes, 6-digit HSN code dropdown is now mandatory with auto-filled descriptions. (steadfastconsultants.in)
Q5: What is the due date for filing GSTR-3B for April 2025?
20 May 2025 for monthly filers. (blog.saginfotech.com)
📞 Need Assistance with GST Compliance?
Navigating the complexities of GST compliance can be challenging. Our team of experts is here to help you with accurate filings, timely submissions, and strategic tax planning.
Contact Us:
- Email: info@taxmsme.com
- Phone: 9830038840
- Website: www.taxmsme.com
Stay compliant and focus on growing your business while we handle your GST needs.
