Financial year just ended!! Do follow this financial Check List by Adv. Ronak Jain

-By Ronak Jain, Advocate

Year End Checklist for GST

Letter of Undertaking [LUT]

• All the exporters or who supplies goods or services to SEZ without payment of GST should apply for LUT in form GST RFD 11 for FY 2026-2027 before 31.03.2026.

E-Invoice

• Businesses with an annual aggregate turnover of more than Rs.5 crore, as calculated in any preceding financial year from 2017-18 up to 2025-26, must begin generating e-invoices.

Mandatory of mentioning HSN code in GSTR 1, E way bill and E Invoice as specified below:

Invoice Series

• A new billing series for FY 2026-2027 W.E.F 01.04.2026 for all supplies including Credit notes, Debit notes, Delivery Challans, Job work, etc. Such series may contain alphabets, numerals & special character “-” and “/” but not exceeding 16 characters.

For Example: – GST/001/26-27, DC/001/26-27, JW/001/26-27, etc.

GST Refund

• Refund can be applied within 2 years from the date of filing of GSTR 3B of respective month. If pending, do file refund application.

Self-Invoicing under Reverse Charge Mechanism [RCM]

• Maintenance of self-invoice or payment voucher in case of RCM tax. This seems to be an ignored act where in, it is required to issue self-invoices and payment vouchers.

Expenses to check in RCM:

• Renting of Residential Property for commercial use and Commercial Property
• Security Service
• Cab renting Service
• Import of Service
• Advocate Service
• Goods Transport Agency [GTA]
• Services from Government
• Sponsorship Expense

If not paid till now then pay in March 2026 return.

Income need to check on Supply, whether GST paid or not:

• Sale of fixed asset or sale of car
• Rent on Commercial property received
• Freight charged by Supplier on Goods sold
• Commission Income earned
• Purchase return entered as “Sales” and charge GST as an “Outward tax” wrongly.

If any such cases, then rectify such mistakes in March 2026 return

Composition Scheme

• Opting into or opting out Composition till 31.03.2026 for FY 2026-2027 for those whose turnovers are below 1.5 crores.

QRMP Scheme

• Taxpayers having Turnover below Rs. 5 Crores shall have an option to select the frequency of GST return i.e., opting into / opting out QRMP Scheme filing for FY 2026-2027 till 30.04.2026.

Reconciliation of Outward liability between GSTR 1 and GSTR 3B and books

• Compile and reconcile the amount of taxes paid in GSTR 1 and GSTR 3B filed during the FY 2025-26 with books of accounts and pay the tax if there is any shortfall vide filing DRC 03 to avoid the litigation and penalty.

Reconcile the Input Tax Credit [ITC]

• Prepare the yearly reconciliation of ITC accounted in books and ITC availed in GSTR 3B during the FY 2025-26 and reconcile the same with GSTR 2B/2A.
• If transactions are not populated in GSTR 2B/2A, the taxpayer should follow up with suppliers to furnish/report transactions in their GSTR 1 with payment of taxes in GSTR 3B. Further if ITC has been availed and the transactions not reflected in GSTR 2B then ITC should be reversed.

Things need to be check on ITC side:

Reversal of ineligible ITC:                   

Identify the ineligible ITC u/r 42,43, etc. (Blocked credit/ ITC on exempt supplies) already availed in GSTR 3B of the FY 2025-26 and reverse/pay the same along with interest thereon to avoid the litigation and demand of interest & penalty in future. Further, note that no interest leviable on reversal of wrongly availed credit but not utilized.

 Reversal of ITC if Payment not done to suppliers within 180  days:

Prepare and Review that any payment to suppliers is not pending beyond 180 days from the date of issuance of supplier’s invoice to avoid reversal of ITC u/s 16(2).

If any such cases, then rectify such mistakes in March 2026 return

ITC 4 – For Goods sent on Job work

• If pending for 25-26 or Earlier year, file As soon as possible.

The frequency of filing the ITC-04 form is as below:

• Turn over exceed 5 Crores Rs. Then file return =>  Half-yearly
• Turn over below 5 Crores Rs. Then file return => Yearly

Miscellaneous Points

• Register New Branches/Godown, Additional place of Business in the state within 15 days from the date of the documentation.
• Update Aadhaar E KYC of Authorised Signatory.
• Accept the TCS Credit received & file the TCS return.
• Bank accounts if any which has been added.
• All registered taxpayers under GST are required to display the GST registration certificate at their place of business and additional place. He is also required to display GSTIN, Trade Name, Address on its name board at its principal place of business and additional place of business as mentioned in its registration certificate.

• As per DGFT Notification 58/2015-2020 dated 12th February 2021, Import Export Code (IEC) is required to be renewed/updated/corrected once a year from April to June. Please submit revised details of the Import Export Code (IEC), if any, otherwise, confirm to update current details on or before 20.06.2026.

Note: Due date is 30.06.2026. Only for Import Export Code (IEC) holders.

(Author is a well known Tax Advocate practicing on direct and indirect taxes at Ahmedabad)