Navigating GST obligations can be complex and time-consuming for Indian businesses. Non-compliance can attract penalties, interest, and even prosecution. Here is a practical compliance checklist to keep your business audit-ready throughout FY 2025-26.
1. GST Registration and Profile Updates
Ensure your GSTIN registration is active and all business details are up to date on the GST portal. Any change in address, authorised signatory, or business nature must be updated within 15 days of the change. Failure to update can lead to cancellation of registration.
- Verify your principal place of business and additional places of business on the portal
- Confirm the correct HSN/SAC codes are mapped to your products and services
- Check and update bank account details linked to your GSTIN
- Ensure your Digital Signature Certificate (DSC) is valid and renewed on time
2. Return Filing — Monthly, Quarterly, and Annual
GST compliance involves filing multiple returns at different frequencies. Missing deadlines attracts late fees of Rs. 50 per day (Rs. 20 for nil returns) and interest at 18% per annum on outstanding tax liability.
- GSTR-1: Monthly (by 11th of following month) or quarterly under QRMP scheme
- GSTR-3B: Monthly summary return (by 20th) or quarterly for QRMP taxpayers
- GSTR-9: Annual return — due by December 31 each year
- GSTR-9C: Reconciliation statement (self-certified) for businesses with turnover above Rs. 5 crore
Important Deadline
GSTR-9 and GSTR-9C for FY 2024-25 are due by December 31, 2025. Businesses should begin the reconciliation process at least 3 months before the deadline to avoid last-minute errors.
3. Input Tax Credit (ITC) Reconciliation
Correctly claiming and reconciling Input Tax Credit is one of the most critical compliance activities under GST. As of Rule 36(4), ITC is restricted to credits reflecting in GSTR-2B. Businesses must regularly reconcile their purchase register with GSTR-2B to avoid excess ITC claims.
- Reconcile purchase register with GSTR-2B every month before filing GSTR-3B
- Follow up with suppliers whose invoices are not reflecting in GSTR-2B
- Reverse ITC on goods/services used for exempt supplies or personal use
- Ensure annual ITC reconciliation for GSTR-9 is completed accurately
4. E-Invoicing and E-Way Bill Compliance
E-Invoicing is now mandatory for businesses with aggregate annual turnover above Rs. 5 crore. Generating an IRN (Invoice Reference Number) for every B2B supply is compulsory, and failure to do so makes the invoice invalid under GST law.
- Integrate your accounting software with the Invoice Registration Portal (IRP)
- Ensure E-Way Bills are generated for every movement of goods exceeding Rs. 50,000
- Maintain a log of all cancelled and amended e-invoices
5. GST Audit and Departmental Notices
The GST department has been increasingly issuing scrutiny notices and conducting audits. Businesses should maintain proper documentation to respond to notices promptly. A typical GST notice must be responded to within 30 days of receipt.
- Maintain organised records of all invoices, credit/debit notes, and payment evidence
- Keep a register of all GST notices received and responses submitted
- Engage a GST professional for complex matters involving ITC disputes or demand orders
6. Common Mistakes to Avoid
The following are the most frequently observed GST compliance errors among Indian businesses:
- Filing nil GSTR-1 when outward supplies exist
- Claiming ITC on blocked credits under Section 17(5) — such as food, club memberships, and certain vehicles
- Incorrect classification of goods or services leading to wrong tax rates
- Not reporting inter-state supplies under the correct IGST head
- Delay in depositing collected GST into the government account
Concore’s Recommendation
Engage a qualified GST practitioner to conduct a quarterly health check on your GST filings. Early identification of errors prevents interest, penalties, and costly rectifications at the time of annual filing or audit.
Concore’s Recommendation
Engage a qualified GST practitioner to conduct a quarterly health check on your GST filings. Early identification of errors prevents interest, penalties, and costly rectifications at the time of annual filing or audit.