GST Compliance Checklist 2025

In India, the Goods and Services Tax (GST) is an across-the-board, destination-based tax on the supply of goods and services. Originally implemented in July 2017, it has replaced several indirect taxes, including service tax, VAT, excise duty, and central sales tax; today, it serves as a single tax arrangement. Simplifying the tax system, lessening the cascading tax impact, and enhancing business convenience are among the primary objectives. GST is imposed at all levels of the supply chain from the manufacturer to the ultimate customer; nevertheless, traders are allowed to seek Input Tax Credit (ITC) on paid taxes, ensuring tax is levied only on value added at every level.

Under the GST system, taxpayers are divided into regular, composition, non-resident, and e-commerce operators with different compliance needs, including enrolment, invoicing, return filing, and tax payment. Avoiding legal action, interest, and fines calls for adherence to GST regulations. Maintaining detailed records, verifying inward and outward inventories, and producing monthly, quarterly, and annual returns on schedule are also required of businesses. Keeping current with GST compliance not only guarantees legality but also helps one to follow yearly changes in rates, shape, and rules: market openness, trust, and responsible financial planning.

GST Compliance Checklist

Prior to going into the checklist, it is important to bring to the fore some salient enhancements that affect compliance:

1. Three-Year Limit for Filing Returns

GST returns (GSTR-1, GSTR-3B, GSTR-4, GSTR-5, etc.) filed after a period of three years from their original due dates will not be accepted from July 1, 2025.

In order to prevent losing rights (including input tax credit), make sure any unfiled taxes older than three years are submitted on or before the deadline.

2. GST Return Filing Dates, Frequency, and QRMP Scheme

Some taxpayers are availing the facility of the QRMP (Quarterly Returns & Monthly Payment) scheme on the basis of their overall turnover. Return/form due dates vary depending on whether the filing frequency is monthly or quarterly under QRMP.

3. Improvements to HSN Code and Invoice Reporting

GSTN has been enhancing the HSN code disclosure standards, details reported in tables (e.g., Tables 12 and 13 of GSTR-1), and others. Mandatory reporting thresholds for HSN, etc., are turnover-based.

4. Reconciliation Obligations & Annual Returns

Filing of GSTR-9, GSTR-9C, annual returns, etc., is still important. Compliance with due dates is imperative to escape penalties.

Compliance Checklist:

1. Registry and Record Maintenance

Confirm that your GST registration is still in use and active on the GST portal.
Promptly correct any modifications to your bank information, address, or business name.
When growing, get separate registrations for each state. GST regulations demand that you retain invoices, receipts, ledgers, and documents for at least six years.

2. Evaluation of GST Rate and Class

Correctly classify your goods and services using the appropriate HSN or SAC codes.
Lay the right GST rate in accordance with government notices and amendments.
Find out whether a transaction is intra-state (CGST + SGST) or inter-state (IGST).
See if any of your purchases or services are subject to the Reverse Charge Mechanism (RCM).

3. Invoice Specifications

Create GST-compliant invoices including all required information, such as the GSTIN of the supplier and recipient, invoice number, date, item description, HSN/SAC, tax rate, and tax amount.
If your revenue goes above the appointed threshold, you must follow e-invoicing guidelines.
For transactions between states, it is essential to clearly indicate the place of supply.
Make sure that bills are raised immediately after the supply of products or services.

4. Outward and Inward Supplies Reporting

File GSTR-1 on a quarterly or monthly basis, depending on your type.
Report all outward supplies, including B2B, B2C, nil-rated, and exempted items.
Check the correctness of invoices against the GST portal data.
Periodically check supplier details to verify the correctness of GSTR-2B (ITC statement).

5. Input Tax Credit (ITC) Management

Claim Input Tax Credit only for business purchases.
Prevent disallowance of credits by synchronizing supplier submissions with ITC claims.
Reverse ITC proportionately for personal, exempt, or non-business use.
Retain purchase invoices and documents for audit records.

6. Monthly or Quarterly Return Filing

If turnover exceeds ₹5 crore, submit GSTR-3B and GSTR-1 monthly.
If you qualify under the QRMP scheme, submit quarterly returns and pay monthly taxes.
Making GST payments on schedule helps one avoid late fees and interest. Before submitting, examine draft results.

7. Filing other Unique Returns

You have to submit GSTR-6 if you are an Input Service Distributor (ISD). If you are required to deduct TDS under GST, file GSTR-7. Those operating e-commerce and collecting TCS must file GSTR-8.
If you are a non-resident taxable person or supply online services from outside India, submit GSTR-5 or GSTR-5A.

8. Reconciliation of Annual Return

Submit GSTR-9 (annual return) and GSTR-9C (reconciliation statement) on or before 31st December 2025 for FY 2024–25.
To check accuracy, reconcile books of accounts, returns, and invoices.
Detect and correct the discrepancies between supplier data and ITC claims before filing the annual return.

9. Payment and Challan Management

Use genuine payment challans (Form GST PMT-06) to pay GST dues on time.
Pay taxes on a monthly basis under the QRMP scheme, although you file quarterly returns.
Apply the Input Tax Credit (ITC) properly while remitting taxes.

10. Agreement with E-Way Billing and E-Invoicing

Issue invoices using the Invoice Registration Portal (IRP) if your turnover surpasses the e-invoicing threshold.
All e-invoices ought to include a valid invoice reference number (IRN) as well as a QR code.
Create E-Way Bills for items valued beyond the permissible limit.

11. Time-Barred Returns and Restrictions

From July 1, 2025, returns older than three years from the due date will not be accepted.
File all pending returns by the specified deadline to prevent permanent blocking and loss of ITC.
Track pending returns and deadlines on a calendar or tracking system.

12. Auditing, Evaluations, and Notices

Answer GST audits and departmental notifications promptly.
Keep suitable documents to back ITC claims, invoices, and tax paid.
Supply requested information and cooperate on audits.

13. Penalties, Late Fees, and Interest

Be aware of penalties for non-filing, late filing, or incorrect reporting.
Interest will be charged for late payments, even if returns are delayed.
Nil returns should also be filed on time to avoid paying late fees.
Misclassification or false ITC claims will attract serious penalties.

14. Compliance for Composition Scheme Taxpayers

Comply with the special provisions under the composition scheme, including quarterly payment of tax through CMP-08.
Avoid collecting tax from customers or availing of ITC.
Submit an annual return in Form GSTR-4 on or before April 30.

15. E-Commerce, TDS, and TCS Requirements

Deposit and pay TCS on behalf of e-commerce operators for GST and file GSTR-8.
Government officials and notified individuals must deduct TDS and file GSTR-7.
Check TDS/TCS returns at regular intervals and make timely payment.

16. Compliance in Software and Systems

Update your accounting or ERP program to meet current GST rules and HSN code standards.
Eliminate hand mistakes by automating invoice reconciliation and reporting.
For audit and security reasons, digitally back up GST papers and data.

17. Key 2025–26 Fiscal Year Due Dates

The due date for GSTR-1 (Quarterly / QRMP) is the 13th of the month following the conclusion of the quarter.
20th of the next following month for GSTR-3B (Monthly).
As stated, GSTR-3B (quarterly) has a due date on the 22nd or 24th of the month.
On the tenth of the next month, GSTR-7 and GSTR-8 (TDS/TCS) have to be submitted.
GSTR-6 (ISD) has a filing date of the 13th of the following month.
To be submitted on the 18th of the month following the quarter, CMP-08 (Composition).
December 31, 2025, is the deadline for GSTR-9 and 9C annual returns.

18. Effect of Non-compliance

Input Tax Credit denial if supplier returns are not in order.
Permanent disqualification to file old returns after three years.
Extensive penalties, interest, and notifications by GST authorities.
Suspension or cancellation of GST registration due to consecutive defaults.

19. Best Practices for Effective GST Compliance

Reconciliation of accounts with GSTR-2B and the portal on a monthly basis.
Regularly check filings by suppliers to prevent disallowance of ITC.
Utilise effective software for automating GST return filing and reconciliation.
Store GST documents in an organized manner digitally and safely.
Get notifications for rate or form changes from CBIC and GSTN.
Train your employees on e-invoice, return filing, and reconciliation processes.

Conclusion

All business houses must follow the GST checklist in order to run their operations effectively, prevent fines, and preserve legal credibility. Companies must have greater e-invoicing standards, a three-year window for submitting pending returns, and better return matching, as there have been recent revisions in legislation. always be prepared to manage their GST matters.

Compliance means on-time tax payments, correct invoicing, regular return filing, and proper reconciliation of Input Tax Credit. Having current records, meeting due dates, and timely responding to reminders all help to improve transparency and confidence between tax departments. Further reducing errors is the use of trustworthy accounting software and adherence to regulatory changes.

Last but not least, continuous adherence to GST regulations not only shields a company from legal and financial consequences but also improves its brand and operational efficiency. Effective business governance and support for a country’s open and systematic tax system are provided by a GST compliance approach based on discipline.