Closing FY 2025-26? Here Are Critical GST Compliances Before March 31

As FY 2025-26 comes to an end, the year-end rush is not only about completing accounts or closing the books. It is also an important time to review your GST compliance and ensure everything is in order. Taking the right steps now can help protect your business from future GST notices, disputes, or penalties.

As we move into FY 2026-27, several important GST timelines and conditions come into play. Many of these deadlines are crucial, which means if you miss them, the opportunity is gone permanently.

The following is the complete guide of all important deadlines:

1. Composition Scheme

If you want to join or leave the Composition Scheme for FY 2026-27, you must do it before March 31, 2026. This scheme is available only if your annual turnover is up to Rs 1.5 crore.

2. LUT Renewal for Exporters

Exporters should submit the Letter of Undertaking (LUT) in Form GST RFD-11 before March 31. This allows you to export goods/services without paying IGST, so your money does not get stuck in tax refunds.

3. GTA Declarations (Annexure V & VI)

If you run a Goods Transport Agency (GTA), you must choose the option for Forward Charge (FCM) or Reverse Charge (RCM). You must make this choice before March 31 for the next financial year.

4. QRMP Scheme Opt-in/Opt-out

Taxpayers with turnover below Rs 5 crore can choose the QRMP scheme. If you want to change this option for April-June 2026, the deadline is April 30, 2026.

5. Important Reconciliation

Check and match your records carefully. Do a three-way comparison between:

• Your Books of Accounts
• GSTR-1 and GSTR-3B returns
• GSTR-2B and GSTR-3B (for Input Tax Credit)
• Also check for missing credit notes, scrap sales, or sales of fixed assets.

6. E-Invoicing Requirement

If your total turnover crossed Rs 5 crore in any financial year since 2017-18, then E-Invoicing becomes compulsory from April 1, 2026.

7. Reversal of Blocked ITC (Section 17(5))

Check your Input Tax Credit (ITC) claims. If you wrongly claimed credit for things like:

• Motor vehicles
• Personal expenses
• Food & beverages

You should reverse it now; otherwise, 18% interest may apply.

8. Cross Charge & ISD Compliance

If your business operates in multiple states, make sure shared expenses like management services or common costs are properly distributed between branches using:

• Cross Charge, or
• Input Service Distributor (ISD).

9. New Invoice Series

From April 1, 2026, start a new invoice numbering series for the following:

• Invoices
• Bills of supply
• Credit/Debit notes
• This helps avoid technical errors in GST filings