As the financial year 2025-26 approaches, businesses must ensure compliance with the latest Goods and Services Tax (GST) regulations. Several important deadlines, procedural requirements, and portal enhancements have been introduced to streamline tax administration. This article provides a detailed checklist categorized into two parts: Key Compliance Actions and New GST Portal Updates.
PART 1: KEY COMPLIANCE ACTIONS FOR FY 2025-26
1. Filing of Letter of Undertaking (LUT) for Zero-Rated Supplies
Businesses engaged in exports or supplies to Special Economic Zones (SEZs) without payment of Integrated GST (IGST) must submit a Letter of Undertaking (LUT) for FY 2025-26 by March 31, 2025 to avoid upfront IGST payments.
2. Opting for the GST Composition Scheme
Eligible small businesses wishing to avail of the Composition Scheme must submit Form CMP-02 by March 31, 2025. Those transitioning from a regular taxpayer to a composition taxpayer must reverse the Input Tax Credit (ITC) and file Form ITC-03 by May 30, 2025.
3. Opting In or Out of the QRMP Scheme
The Quarterly Return Monthly Payment (QRMP) scheme is available for businesses with an aggregate turnover of up to Rs. 5 crores. Those wishing to opt in or out of the scheme must do so by April 30, 2025 via the GST portal.
4. Resetting Invoice Number Series
Businesses must reset their invoice number series at the start of each financial year. A new series must be implemented from April 1, 2025, for compliance.
5. Recalculation of Aggregate Turnover
Businesses should reassess their aggregate turnover for FY 2024-25 to determine their eligibility for GST schemes such as Composition Scheme, QRMP Scheme, and e-Invoicing mandates.
6. Reconciliation of Input Tax Credit (ITC)
Businesses must verify their books of accounts, GSTR-2B, and GSTR-3B to:
- Ensure eligible ITC is fully claimed
- Reverse ineligible ITC
- Correct any mismatches before filing annual returns
7. Settlement of Reverse Charge Mechanism (RCM) Liabilities
Businesses should review purchases and expenses for transactions subject to RCM. Any RCM liabilities must be paid in GSTR-3B, and self-invoices should be maintained for documentation.
PART 2: NEW GST PORTAL UPDATES & CHANGES FOR FY 2025-26
1. Mandatory HSN Code Selection in GSTR-1 & GSTR-1A
From February 2025, taxpayers must select HSN codes from a dropdown list in GSTR-1 and GSTR-1A instead of entering them manually.
2. Introduction of E-Way Bill Requirement for Gold in Kerala
From January 20, 2025, businesses involved in intrastate movement of gold in Kerala must generate E-Way Bills (EWB) for transactions related to goods under Chapter 71, excluding imitation jewellery.
3. Waiver Scheme under Section 128A
The GST portal now allows businesses to file waiver applications (Forms GST SPL-01 and SPL-02). Businesses applying for waivers must withdraw any appeal applications filed against demand orders.
4. Introduction of GST DRC-03A for Demand Payment Adjustments
A new Form GST DRC-03A has been introduced to adjust payments made under DRC-03 against demand orders, ensuring accurate linking in the electronic liability register.
5. Time Limit for Reporting E-Invoices for Businesses with AATO of Rs. 10 Crores and Above
From April 1, 2025, businesses with an annual aggregate turnover (AATO) of Rs. 10 crores and above must report their e-invoices within 30 days of the invoice date.
Quick Summary of Key Compliance Deadlines
| Compliance Requirement | Details | Deadline |
| File LUT for Zero-Rated Supplies | Submit LUT for exports & SEZ supplies | March 31, 2025 |
| Opt-In for GST Composition Scheme | File Form CMP-02 if opting for Composition Scheme | March 31, 2025 |
| Transition to Composition Scheme | Reverse ITC & file Form ITC-03 | May 30, 2025 |
| Opt-In/Out of QRMP Scheme | Choose quarterly return & monthly tax payment option | April 30, 2025 |
| Reset Invoice Number Series | Start a new invoice series | April 1, 2025 |
| Recalculate Aggregate Turnover | Assess eligibility for GST schemes | Before FY 2025-26 starts |
| Reconcile ITC (Input Tax Credit) | Match GSTR-2B, GSTR-3B & books to ensure ITC accuracy | Ongoing |
| Settle Reverse Charge Mechanism (RCM) Liabilities | Identify and pay RCM liabilities | Ongoing |
| HSN Code Validation in GSTR-1 & 1A | Manual HSN entry replaced with dropdown selection | From Feb 2025 |
| E-Way Bill for Gold (Kerala) | Mandatory for gold transactions within Kerala | Effective Jan 20, 2025 |
| Waiver Scheme under Section 128A | File GST SPL-01 & SPL-02 for waiver applications | As per GST Portal timelines |
| New Form GST DRC-03A | Adjust payments made under DRC-03 against demand orders | Ongoing |
| Time Limit for E-Invoice Reporting (AATO ≥ 10 Cr) | E-Invoices must be reported within 30 days | From April 1, 2025 |
New GST Updates
E-Invoice Reporting: From April 1, 2025, businesses with an annual turnover of Rs. 10 Cr+ must report e-invoices within 30 days.
Waiver Scheme for Taxpayers: Taxpayers can file GST SPL 01 & SPL 02 under the waiver scheme, subject to withdrawal of pending appeals.
HSN Code Validation in GSTR-1 & 1A: From February 2025, HSN codes will be chosen from a drop-down menu instead of manual entry.
New E-Way Bill (EWB) for Gold in Kerala: Effective January 20, 2025, Kerala has introduced mandatory EWB for Gold, excluding imitation jewelry.
New GST Form DRC-03A: Taxpayers should use Form GST DRC-03A to adjust voluntary payments (made via DRC-03) against demand orders.