GST Compliance Checklist for FY 2025–26 – Monthly, Quarterly & Annual Tasks

Introduction

Staying on top of Goods and Services Tax (GST) is non-negotiable for any business in India. With constantly evolving rules and strict deadlines, missing a single step can lead to hefty penalties and disrupt your cash flow. This is where a robust GST compliance checklist becomes your most valuable tool. The intricate web of monthly, quarterly, and annual filings demands a systematic approach to ensure nothing falls through the cracks. For many small business owners, managing these obligations while running daily operations can feel like a monumental task, often leading to costly errors and unnecessary stress.

This comprehensive guide is designed for small business owners and professionals to navigate the complexities of GST for the Financial Year 2025-26. We will break down all the essential GST filing tasks in India into a simple, actionable checklist covering your monthly, quarterly, and annual responsibilities. Think of this as your roadmap to a financially sound and legally compliant business year. By following these steps diligently, you can transform GST from a source of anxiety into a seamless part of your business operations. Let’s ensure your business remains 100% compliant and penalty-free.

Why a GST Compliance Checklist is Crucial for Your Business

Before diving into the tasks, it’s vital to understand the benefits of following a structured GST compliance checklist India. Proactive compliance is not just about avoiding penalties; it’s a strategic business practice that fosters financial health, enhances credibility, and optimizes cash flow. A well-maintained checklist serves as a preventive measure, safeguarding your business from the common pitfalls of the GST regime. It ensures that every obligation is met on time, every time, building a foundation of reliability and trustworthiness in the eyes of the tax authorities and your business partners.

Avoid Hefty Penalties and Interest

Non-compliance with GST deadlines attracts late fees and interest, which can severely impact your working capital. For instance, the late fee for filing GSTR-1 or GSTR-3B can be ₹50 per day (₹20 for nil returns), capped at a certain amount based on your turnover. In addition to late fees, an interest of 18% per annum is levied on the outstanding tax liability. These charges are not just expenses; they are avoidable losses that drain your resources. A checklist acts as a constant reminder of due dates, helping you prioritize filings and payments, thereby protecting your business from a compounding financial burden and potential legal notices from the tax department.

Maintain a Healthy GST Compliance Rating

The government maintains a compliance rating for every GST-registered entity, which reflects your track record of timely filings and tax payments. This rating is increasingly becoming a critical factor in the business ecosystem. A higher rating improves your business’s credibility with suppliers, customers, and financial institutions. Potential lenders may review your GST compliance history before approving loans, and large corporate clients might prefer vendors with a clean compliance record. A consistently high rating signals that your business is reliable and well-managed, which can open doors to better business opportunities and smoother credit facilities.

Ensure Seamless Input Tax Credit (ITC) Claims

One of the core GST compliance requirements in India is the accurate and timely reconciliation of your purchase data with the information filed by your suppliers. The entire mechanism of Input Tax Credit (ITC) hinges on this alignment. Proper compliance ensures that the invoices from your suppliers appear in your GSTR-2B, making you eligible to claim ITC. Failure to follow up or maintain reconciled records can lead to the loss of genuine ITC, which directly increases your tax outgo and reduces your profitability. A systematic checklist forces you to perform these reconciliations regularly, ensuring you claim every rupee of ITC you are legally entitled to.

Your Monthly GST Compliance Checklist for FY 2025-26

For most businesses, monthly compliance forms the backbone of their GST activities. This regular cycle of reporting and payment is crucial for maintaining a healthy cash flow and staying in good standing with the tax authorities. Adhering to this GST return filing checklist India every month without fail is the most effective way to prevent the accumulation of compliance backlogs and associated penalties. It establishes a rhythm for your financial team and ensures that GST becomes a predictable and manageable part of your business operations.

1. Filing GSTR-1: Details of Outward Supplies (Sales)

• What it is: GSTR-1 is the return where you declare all the sales transactions of your business for the month. It includes details of every invoice issued to other registered businesses (B2B), a summary of sales to consumers (B2C), credit/debit notes, and export invoices. This return is the foundation of the GST system, as the data you file here directly reflects as Input Tax Credit for your customers.
• Due Date: By the 11th of the subsequent month.
• Action Items:
  • Reconcile Sales Data: Before starting the filing process, meticulously reconcile the sales register from your accounting software (like Tally, Zoho, or QuickBooks) with your internally maintained records. This ensures that no invoice is missed or duplicated.
  • Verify HSN/SAC Codes: Ensure that the correct HSN (Harmonized System of Nomenclature) codes for goods or SAC (Services Accounting Codes) for services are mentioned for all supplies. Incorrect codes can lead to incorrect tax rates and future disputes.
  • Upload Invoice Details: Accurately upload all B2B invoices with the correct GSTIN of the recipient. For B2C sales, consolidated state-wise details are required. Also, include any credit notes, debit notes, or revised invoices issued during the month.
  • Pro Tip: For businesses with a high volume of invoices, using the government’s offline utility or a GST Suvidha Provider (GSP) can facilitate a bulk upload of invoice data, saving significant time and reducing manual errors.

2. Reconciling ITC with GSTR-2B

• What it is: GSTR-2B is a crucial auto-drafted, static statement that shows the Input Tax Credit available to you for a particular month. It is generated based on the GSTR-1 returns filed by your suppliers. Unlike the dynamic GSTR-2A, GSTR-2B is fixed and becomes the official document for determining your eligible ITC for that tax period.
• Action Items:
  • Download GSTR-2B: The statement becomes available on the GST Portal on the 14th of every month. Your first step should be to download it.
  • Compare with Purchase Register: Perform a detailed invoice-by-invoice comparison between your own purchase register and the details appearing in GSTR-2B. This is one of the most critical monthly GST tasks in India.
  • Follow-Up on Missing Invoices: Identify any discrepancies, such as invoices that are in your books but not in GSTR-2B. This usually means your supplier has either not filed their GSTR-1 or has made an error while filing. You must immediately follow up with these suppliers to rectify the issue. Claiming ITC for invoices not present in your GSTR-2B is a violation and can attract notices and demand for reversal of credit along with interest.

3. Filing GSTR-3B: Summary Return and Tax Payment

• What it is: GSTR-3B is a monthly summary return where you declare your consolidated sales figures, the total ITC you are claiming, and make the payment for your net GST liability. It is the culmination of your monthly compliance process where you settle your tax obligations with the government.
• Due Date: By the 20th of the subsequent month. Note that for taxpayers with an annual turnover of up to ₹5 crore in the previous financial year, the due dates are staggered to the 22nd or 24th of the month, depending on the state of registration.
• Action Items:
  • Ensure Data Consistency: The total sales and tax liability figures you declare in GSTR-3B must be consistent with the detailed data you provided in your GSTR-1 for the same month. Any mismatch can be a red flag for the tax authorities.
  • Claim Eligible ITC: Claim Input Tax Credit strictly based on the eligible credit reflected in your GSTR-2B and your books of accounts. Avoid claiming any provisional or ineligible credit.
  • Pay Tax Liability: After setting off the available ITC against your output tax liability, pay the remaining amount through your electronic cash ledger. Ensure your ledger has a sufficient balance before the due date to avoid last-minute payment failures.
  • File the Return: After successful payment, submit and file the GSTR-3B return using a valid Electronic Verification Code (EVC) for proprietors/partnerships or a Digital Signature Certificate (DSC) for companies.

Quarterly GST Obligations India: The QRMP Scheme

To ease the compliance burden on small taxpayers, the government introduced the QRMP (Quarterly Return Monthly Payment) scheme. This scheme is a significant relief for small businesses, allowing them to focus more on their core operations rather than getting caught up in monthly filing cycles. It’s important to evaluate all options available, such as Understanding the Composition Scheme Under GST, to choose the best compliance path for your business. It is designed for registered persons having an aggregate annual turnover of up to ₹5 crore in the preceding financial year.

Understanding the QRMP Scheme

Under this scheme, eligible taxpayers can file their key returns, GSTR-1 and GSTR-3B, on a quarterly basis instead of monthly. However, it’s crucial to understand that while the returns are filed quarterly, the tax liability must still be paid every month. This structure balances the need for simplified compliance for small businesses with the government’s requirement for a steady flow of tax revenue. These quarterly GST obligations India are a key consideration for any eligible business looking to streamline its tax processes.

Monthly Tasks under QRMP

• Tax Payment (Form PMT-06): For the first two months of any given quarter (e.g., April and May), taxpayers under the QRMP scheme must pay their due tax by the 25th of the next month. There are two methods to calculate this monthly tax liability:
  • Fixed Sum Method: This is the simpler option. You can pay an amount equal to 35% of the tax paid in cash in the preceding quarter’s GSTR-3B. The GST portal provides a pre-filled challan (Form PMT-06) for this.
  • Self-Assessment Method: You can pay the actual tax liability after considering your sales and eligible ITC for that month. This method is suitable if your tax liability fluctuates significantly.
• Invoice Furnishing Facility (IFF): This is an optional facility. For the first two months of the quarter, you can choose to upload your B2B invoices using the IFF by the 13th of the following month. The primary benefit of using the IFF is that your B2B customers can see these invoices in their GSTR-2B and claim ITC in the same month, which helps maintain good business relationships.

Quarterly Tasks under QRMP

• GSTR-1 Filing: At the end of the quarter, you must file a consolidated quarterly GSTR-1. This return will include details of all your outward supplies for the entire three-month period. The due date for filing the quarterly GSTR-1 is the 13th of the month following the end of the quarter.
• GSTR-3B Filing: You must file your quarterly GSTR-3B, which summarizes your sales, ITC, and finalizes the tax payment for the quarter. You can adjust the tax already paid in the first two months and pay the remaining balance, if any. The due date is the 22nd or 24th of the month following the quarter-end, depending on your state.

The Essential Annual GST Compliance Guide for FY 2025-26

Beyond the regular cycle of monthly or quarterly filings, annual GST compliance tasks are of paramount importance. These year-end activities involve consolidating the entire financial year’s data, reconciling it with your audited accounts, and reporting it to the government. This annual GST compliance guide India is critical for ensuring that any discrepancies that may have occurred during the year are identified and rectified, providing a true and fair view of your tax liabilities and compliance.

1. Filing GSTR-9: The Annual Return

• What it is: GSTR-9 is an annual return that consolidates the information furnished in all your monthly/quarterly returns (GSTR-1 and GSTR-3B) filed during the financial year. It’s an opportunity to review and report any supplies or ITC that were missed during the year. Our detailed Annual Return Filing: Compliance Checklist for Section 92 can help you navigate this process smoothly. It provides a comprehensive overview of your business’s GST transactions for the entire year in one place.
• Due Date: 31st December 2026 for the financial year 2025-26.
• Applicability: Filing GSTR-9 is mandatory for all regular taxpayers with an aggregate annual turnover exceeding ₹2 crore.
• Action Items:
  • Thorough Reconciliation: The most crucial step is to conduct a detailed reconciliation of the data declared in all GSTR-1 and GSTR-3B returns filed throughout the year.
  • Comparison with Audited Financials: Compare the sales, purchases, and ITC figures from your GST returns with your audited books of accounts. This helps in identifying any gaps, such as revenue booked in financials but not declared in GST returns, or vice-versa.
  • Reporting Additional Liability: If the reconciliation reveals any additional tax liability that was not reported in your GSTR-3B, you must declare it in GSTR-9 and pay it using Form DRC-03. This is your last chance to voluntarily pay tax to avoid future demand notices.

2. Filing GSTR-9C: The Self-Certified Reconciliation Statement

• What it is: GSTR-9C is a statement that reconciles the turnover, tax paid, and ITC claimed as declared in the annual return (GSTR-9) with the figures mentioned in your audited annual financial statements. It acts as a bridge between your GST filings and your statutory audit, ensuring there are no inconsistencies between the two.
• Due Date: 31st December 2026 for the financial year 2025-26.
• Applicability: Filing GSTR-9C is mandatory for taxpayers with an aggregate annual turnover exceeding ₹5 crore.
• Action Items:
  • Preparation and Self-Certification: This statement must be prepared and then self-certified by the taxpayer. It involves a detailed, point-by-point reconciliation of gross turnover, taxable turnover, tax liability, and ITC.
  • Identify Reasons for Differences: The form requires you to state the reasons for any un-reconciled differences in turnover or ITC between the audited financials and the GSTR-9. Proper documentation and reasoning are essential.

3. Filing Letter of Undertaking (LUT) for Exporters

• What it is: For businesses engaged in exporting goods or services, filing a Letter of Undertaking (LUT) is a vital annual task. The LUT allows you to export goods or services without having to pay Integrated GST (IGST) first. This is a significant cash flow advantage, as it avoids the need to pay tax upfront and then wait for a refund.
• Action Items:
  • File Before the Financial Year: The LUT must be filed online using Form GST RFD-11 on the GST Portal for each new financial year. The ideal time to file it is before 1st April 2025, to ensure your exports for the new year are covered from day one.
  • Consequences of Missing Deadline: If you miss the deadline, you lose the facility to export without tax payment. You will be required to pay IGST on all your export transactions and then go through the process of claiming a refund, which can temporarily block your working capital.

Beyond Returns: Other Key Tasks for GST Compliance in India

Effective GST management goes beyond just the timely filing of returns. A truly compliant business pays attention to several other operational aspects of the GST law. These tasks for GST compliance in India are integrated into the daily functioning of the business and are crucial for avoiding disruptions, ensuring transparency, and maintaining a robust compliance framework. Neglecting these areas can lead to operational hurdles and scrutiny from tax authorities, even if your return filing is on time.

E-invoicing & E-Way Bills

E-invoicing is a system where B2B invoices are electronically authenticated by the GST Network (GSTN) for further use on the common GST portal. It is mandatory for businesses with a turnover exceeding the prescribed threshold (currently ₹5 crore). Compliance ensures real-time reporting of invoices and minimizes the scope for errors and tax evasion. Similarly, generating an e-way bill is mandatory for the movement of goods where the consignment value exceeds ₹50,000. Our Guide to GST E-Way Bill Generation provides detailed steps on this process. It is a critical document that must accompany the goods in transit, and failure to generate one can lead to the detention of the vehicle and goods, along with heavy penalties.

Maintaining Records

As per the GST Act, every registered person must maintain proper records and books of accounts at their principal place of business. This includes records of production, inward and outward supplies, stock of goods, input tax credit availed, and output tax payable. These records, along with supporting documents like invoices, bills of supply, credit notes, and debit notes, must be preserved for a period of at least 72 months (6 years) from the due date of filing the annual return for that year. Maintaining Accurate Accounting Records for Tax Purposes is not just a suggestion but a legal mandate. Proper record-keeping is your primary defense during any departmental audit or assessment.

Reverse Charge Mechanism (RCM)

Businesses must be extremely vigilant about transactions that fall under the Reverse Charge Mechanism (RCM). In a typical transaction, the supplier collects GST from the recipient and pays it to the government. Under RCM, this responsibility is reversed; the recipient of the goods or services is liable to pay the GST directly to the government. This applies to specific goods and services, such as services from a Goods Transport Agency (GTA), legal services from an advocate, or purchases from an unregistered person. It is crucial to identify these transactions, calculate the correct tax, pay it to the government, and then claim ITC (if eligible).

Conclusion: Simplify Your GST with TaxRobo

Managing GST compliance can be a complex and time-consuming process, requiring meticulous attention to detail and a deep understanding of the law. However, by following this detailed GST compliance checklist, you can stay organized, avoid common errors, and ensure complete peace of mind. From monthly reconciliations and tax payments to comprehensive annual filings, each step is critical for the financial health and legal standing of your business. A systematic approach demystifies the process and turns it into a manageable routine.

If you find these tasks for GST compliance in India overwhelming or simply wish to dedicate more time to growing your business, you’re not alone. The expert team at TaxRobo is here to help. We provide end-to-end GST services, from registration and filing to advisory and representation, ensuring your business is always compliant and financially optimized for growth. Let us handle the complexities of GST so you can focus on what you do best—running and expanding your enterprise. Contact TaxRobo Today for a Hassle-Free GST Consultation!

Frequently Asked Questions (FAQs)

1. What happens if I miss a GST return filing deadline?

If you miss a GST return filing deadline, you will be liable to pay a late fee for every day of delay. This fee is calculated separately for CGST and SGST and can accumulate quickly. Additionally, you will be required to pay interest at a rate of 18% per annum on the outstanding tax amount, calculated from the due date until the date of actual payment.

2. Is filing the annual return (GSTR-9) mandatory for all businesses?

No, GSTR-9 is not mandatory for all businesses. It is mandatory only for taxpayers whose aggregate annual turnover exceeds ₹2 crore in a financial year. For businesses with a turnover up to ₹2 crore, filing the annual return is optional. It is always advisable to check the official GST Portal (https://www.gst.gov.in/) for the latest rules and turnover thresholds as they can be subject to change.

3. Can I revise my GSTR-3B return after filing it?

No, a GSTR-3B return cannot be revised once it has been filed. However, the GST framework allows for the correction of mistakes or omissions from a previous tax period. You can report any corrections, such as under-reported liability or wrongly claimed ITC, by making adjustments in the GSTR-3B of a subsequent month.

4. What is the main difference between GSTR-2A and GSTR-2B?

GSTR-2A is a dynamic, real-time statement that gets updated whenever a supplier files their GSTR-1. It provides a view of all the purchase-related data reported by your suppliers. GSTR-2B, on the other hand, is a static statement that is generated on the 14th of every month and cannot be changed. It contains the ITC details from your suppliers’ GSTR-1 filings made between two specific dates. GSTR-2B has become the official and authoritative document for determining your eligible Input Tax Credit (ITC) for a given tax period. You should always use GSTR-2B for reconciliation before filing your GSTR-3B.