What are the key GST compliance changes for FY 2025-26?

Key changes include mandatory ISD registration for multi-GSTIN businesses, 30-day e-invoice reporting deadline, new invoice series requirement from April 1, MFA for GST portal, and Track and Trace mechanism from October 2025.

When should I reset my invoice series for the new financial year?

Reset your invoice series on April 1, 2026 (start of FY 2026-27). GST Rule 46(b) requires unique invoice numbers within a financial year. Configure this in TallyPrime under Gateway of Tally > Alter > Voucher Types.

Is ISD registration mandatory for all businesses?

ISD registration is mandatory only for businesses with multiple GST registrations under the same PAN that receive common input services. If your head office receives invoices for services used by branches, ISD registration is required from April 1, 2025.

What are the GST return filing due dates for FY 2025-26?

GSTR-1 is due by the 11th of the following month (13th for QRMP). GSTR-3B is due by the 20th (22nd/24th for QRMP based on state). Annual return GSTR-9 is due by December 31 following the financial year.

How do I prepare my TallyPrime for FY 2025-26?

Update to the latest TallyPrime release, configure new invoice series, verify GST rates match GST 2.0 slabs, enable e-invoice if applicable, and ensure your company's financial year is set correctly.

FY 2025-26 GST Compliance Checklist for Indian Businesses

The start of a new financial year brings a comprehensive list of GST compliance requirements for Indian businesses. FY 2025-26 introduces several critical changes including mandatory ISD registration, stricter e-invoicing deadlines, fresh invoice series requirements, and enhanced security protocols. This exhaustive checklist ensures your business stays compliant and avoids penalties, interest charges, or ITC reversals. Whether you're a small business crossing the Rs 5 crore threshold or a large enterprise managing multiple GSTINs, this guide covers everything you need to know before April 1, 2025.

Pre-April 2025: Year-End Close Activities

Complete FY 2024-25 return filings: GSTR-1, GSTR-3B for March 2025
Perform year-end ITC reconciliation: Match GSTR-2B with books of accounts
Reverse ineligible ITC under Rule 37 (if supplier payment pending >180 days)
File GSTR-9 (if AATO > Rs 2 crore) and GSTR-9C (if AATO > Rs 5 crore) by December 31, 2025
Finalize annual accounts and conduct GST audit if required

Invoice Series Reset (Effective April 1, 2025)

Mandatory: Start fresh invoice series for FY 2025-26
Rule 46(b) CGST Rules: 16-character alphanumeric invoice number unique to financial year
Best practice: Use prefix like /25-26/ to distinguish from previous year
TallyPrime setup: Update voucher numbering series in F11 settings
Separate series for different document types: invoices, credit notes, debit notes
Avoid: Starting invoice numbers with 0, /, or - (rejected by IRP)
Case-insensitive handling: IRP converts all invoice numbers to uppercase from June 2025

Aggregate Turnover Assessment

Calculate AATO for FY 2024-25: Include all supplies across all GSTINs under same PAN
Impact on: GST registration threshold, Composition Scheme eligibility, QRMP scheme participation
E-invoicing applicability: Rs 5 crore (mandatory), Rs 10 crore (30-day reporting)
Rule 86B compliance: 1% cash payment restriction if AATO implications apply
Document assessment: Maintain calculation worksheet for audit purposes

Input Service Distributor (ISD) Registration (Mandatory from April 1, 2025)

New requirement: Businesses with multiple GSTINs under same PAN must register as ISD
Legal basis: Finance Act 2024, Notification No. 16/2024-CT dated August 6, 2024
Who must register: Any office receiving input services on behalf of multiple branches
ITC distribution: ISD mechanism allows sharing of ITC across locations
RCM inclusion: ISD can now distribute reverse charge ITC (previously restricted)
Registration process: Select ISD status in GST REG-01 form (Serial No. 14)
Compliance: File GSTR-6 by 13th of following month, recipients view ITC in GSTR-6A
No threshold limit: Mandatory regardless of turnover

E-invoicing and 30-Day Reporting

Mandatory e-invoicing: Businesses with AATO Rs 5 crore+ (August 1, 2023 onwards)
30-day deadline: Rs 10 crore+ AATO businesses must report e-invoices within 30 days (April 1, 2025)
IRP rejection: Invoices older than 30 days cannot generate IRN
ITC impact: Buyers lose ITC claim on rejected e-invoices
TallyPrime monitoring: Use e-invoice pending report to track deadlines
Immediate action: Configure IRP credentials and test e-invoice generation

HSN Code Compliance

6-digit HSN mandatory: Businesses with turnover Rs 5 crore+ must use 6-digit HSN
Applicable on: Invoices, e-Way Bills, e-invoices, credit/debit notes, GST returns
Accuracy requirement: Correct HSN classification prevents notices and audits
TallyPrime setup: Update HSN codes in stock item master
Reference: GST HSN code book and CBIC notifications for updates

Multi-Factor Authentication (MFA)

Mandatory from April 1, 2025: All GST portal users must enable MFA
Authentication methods: SMS OTP, Sandes App, NIC-GST-Shield App
Extended coverage: MFA required for e-Way Bill and e-Invoice portal access
Additional security: Biometric authentication for company promoters/directors at GST Suvidha Kendras
Action: Enable MFA in GST portal profile settings immediately

Timely Return Filing and ITC Claims

GSTR-1 deadline: 11th of following month (monthly), varies for quarterly
GSTR-3B deadline: 20th of following month (monthly), varies for quarterly
Rule 21A risk: Delayed filing can trigger GST registration cancellation
ITC time bar: Claim ITC for FY 2024-25 by November 30, 2025 (GSTR-3B due date)
Reconciliation: Match GSTR-2B with purchase register monthly
TallyPrime feature: Use GST reconciliation reports to identify mismatches

ITC Reversal and Annual Recalculation

Rule 37 reversal: If supplier payment not made within 180 days, reverse ITC
Rule 42 & 43: Annual reversal for mixed supplies (taxable + exempt)
Deadline: Complete annual recalculation by September 2025 for FY 2024-25
Interest charges: Additional ITC liability attracts interest from April 1, 2025
TallyPrime tracking: Use ITC reports to monitor payment timelines and reversals

QRMP Scheme and GTA Declarations

QRMP eligibility: Businesses with AATO up to Rs 5 crore
Decision deadline: Opt in/out by April 30, 2025 for FY 2025-26
GTA declarations: Collect forward charge declarations from Goods Transport Agencies
Documentation: Maintain GTA declarations for audit and ITC claim validation

Record Keeping and Audit Preparedness

Retention period: Maintain all records (digital/physical) for minimum 6 years
Document types: Invoices, purchase orders, e-Way Bills, IRP confirmations, bank statements
Year-end reconciliation: Match books of accounts with GST returns to identify mismatches
Audit triggers: Mismatches can lead to notices, penalties, or ITC claim rejection
TallyPrime backup: Regular data backups to prevent loss

Time Bar on Filing (Effective December 1, 2025)

New rule: GST portal will permanently block filing of returns older than 3 years past due date
Action required: File any pending old returns before December 1, 2025
Impact: No further amendments or late filings after 3-year cutoff
Check pending returns: Review GST portal for any unfiled returns from FY 2021-22 or earlier

TallyPrime Configuration Checklist

Update company details: Verify GSTIN, address, and HSN codes
Configure invoice series: Set up fresh numbering for FY 2025-26
Enable e-invoicing: Test IRP connectivity and IRN generation
Set up ISD: If applicable, configure ISD distribution mechanism
Update GST rates: Implement GST 2.0 rate changes (September 2025)
Configure MFA: Ensure all users can access GST portal with MFA
Train team: Conduct training on new compliance requirements and TallyPrime features

Overwhelmed by FY 2025-26 compliance changes? Mark IT Solutions provides end-to-end GST compliance support, TallyPrime implementation, and ISD registration assistance. Our Tally-certified consultants can audit your current setup, configure compliance workflows, and train your team. Contact us for a comprehensive compliance assessment.