The start of a new financial year brings fresh compliance responsibilities for businesses under the GST regime. Ensuring timely adherence to GST regulations is crucial to avoid penalties and maintain seamless business operations. To make your compliance journey easier, here’s a comprehensive GST Compliance Checklist for FY 2025-26 that you must follow.
GST Compliance Checklist for FY 2025-26
📌 1. File LUT for Zero-Rated Supplies
If your business deals with exports or zero-rated supplies, ensure that you file the Letter of Undertaking (LUT) by March 31, 2025, to continue making tax-free supplies without paying IGST.
📌 2. Opt for the Composition Scheme via CMP-02
Small businesses with a turnover below the prescribed limit can opt for the GST Composition Scheme by filing Form CMP-02 before March 31, 2025. This scheme reduces compliance burdens and offers a lower tax rate.
📌 3. File ITC-03 for Composition Transition
If you are transitioning from the regular GST scheme to the Composition Scheme, you must file Form ITC-03 by May 30, 2025, to reverse any input tax credit (ITC) on stock.
📌 4. Choose QRMP Scheme
Businesses with a turnover of up to ₹5 crores can opt for the Quarterly Return Monthly Payment (QRMP) Scheme by April 30, 2025, to simplify GST return filing and tax payments.
📌 5. Collect GTA Declarations for RCM Compliance
If your business avails Goods Transport Agency (GTA) services, ensure that you collect the necessary RCM declarations from transporters to comply with Reverse Charge Mechanism (RCM) rules.
📌 6. Reset Invoice Number Series
Start the new financial year with a fresh invoice number series from April 1, 2025, to maintain systematic records and ensure compliance with GST invoicing rules.
📌 7. Recalculate Aggregate Turnover
Re-evaluate your aggregate turnover to make crucial GST-related decisions such as eligibility for the Composition Scheme, applicability of e-invoicing, and TCS/TDS under GST.
📌 8. Reconcile ITC with GSTR-2B & GSTR-3B
To avoid mismatches and ITC denials, businesses must reconcile their Input Tax Credit (ITC) with GSTR-2B and GSTR-3B before filing returns.
📌 9. Settle RCM Liabilities in GSTR-3B
Ensure timely settlement of Reverse Charge Mechanism (RCM) liabilities in your GSTR-3B return to avoid interest and penalties.
📌 10. Update HSN Codes & Comply with Phase-III Reporting
As per GST norms, businesses must update their HSN codes and comply with Phase-III e-invoicing rules, which mandate the separate reporting of B2B and B2C invoices.
Why is GST Compliance Important?
✅ Avoid penalties – Late filings and non-compliance attract hefty fines.
✅ Smooth ITC claims – Proper reconciliations ensure seamless input tax credit utilization.
✅ Business growth – Following GST regulations helps maintain credibility with clients and tax authorities.
Conclusion
Staying compliant with GST is essential for every business, big or small. By following this checklist, you can ensure smooth operations and avoid unnecessary hassles.
