GST Year-End Compliance for FY 2025-26 — What You Must Do Before March Ends

Critical GST Actions Before March 31, 2026

• 1

  Reconciliation of Sales Turnover
  Reconcile sales turnover reported in GSTR-1, GSTR-3B, and books of accounts with e-invoices and e-way bills for FY 2025-26. Additionally, verify outward credit notes rejected by customers through IMS (Invoice Management System) on the GST portal to ensure accurate turnover reporting before the year closes.
• 2

  Reconciliation of ITC
  Reconcile input tax credit between books and GSTR-3B/GSTR-2B. Follow up with suppliers for transactions not yet reflected in GSTR-2B. Ensure all transactions reflected in GSTR-2B are verified, recorded in books, and due credit is taken. Any unclaimed ITC for FY 2025-26 must be claimed before filing the September 2026 return.
• 3

  Review & Reversal of Ineligible ITC
  Review ITC claims to ensure compliance with provisions regarding ineligible or blocked ITC — including reversals under Sections 42 or 43, ITC on exempt supplies, or ITC from cancelled or suspended GSTINs. Year-end is the ideal time to identify and correct any such inadvertent credits.
• 4

  Reversal for Delayed Payments
  Reverse ITC claimed on invoices where payment to suppliers has not been made within 180 days, along with applicable interest. Simultaneously, if any ITC reversal was made earlier and payment has since been made to the supplier, re-availment of the ITC should be checked and completed accordingly.
• 5

  Export Compliances Review
  • Where a refund has been claimed on account of unutilized ITC or IGST paid on export of goods, exporters must realise export proceeds in foreign exchange within 15 months from the date of export. Non-realisation may lead to recovery of refund with interest.
  • Where exports are made under LUT, goods must be exported within 3 months from invoice date. For export of services under LUT, payment must be received within one year from invoice date. Non-compliance requires GST payment with interest within 15 days of expiry of the prescribed period.
• 6

  Reconciliation of GST TDS and TCS
  Ensure invoices on which GST TDS/TCS has been claimed are correctly reflected in books of accounts and that TDS/TCS claims have been duly accepted on the GST portal. Cross-verify with GSTR-1 reporting to ensure consistency across all records.
• 7

  Documentation for Concessional Rate Sales
  The complete set of documentation for sales undertaken at concessional rates (SEZ, Exports, Merchant Exports, etc.) should be verified and maintained in records. Incomplete documentation can lead to penal consequences if a notice or scrutiny is undertaken by the department.
• 8

  Closing Balance Reconciliation
  The final closing balance in the Cash Ledger (ECL) and Credit Ledger (ECrL) on the GST portal should match the books of accounts. Any differences should be identified and properly accounted for or reconciled before the year closes to prevent discrepancies in subsequent filings.