The GST Council and CBIC have introduced several important changes effective from FY 2025–26. These affect businesses of all sizes — from MSMEs to large corporates. Here's everything you need to know to stay compliant and avoid penalties.
1. e-Invoicing Threshold Lowered
The government has progressively lowered the e-invoicing threshold. Businesses with aggregate annual turnover above ?5 crore are now mandatorily required to generate e-invoices through the Invoice Registration Portal (IRP) for all B2B transactions.
- e-invoices must be generated before the invoice date (or within the prescribed time limit).
- Failure to generate e-invoices can result in ITC denial to buyers and penalties for suppliers.
- Exempted categories include banks, NBFCs, GTA services, and passenger transport.
Action Required: Ensure your accounting software (Tally Prime, Zoho Books, etc.) is integrated with the IRP portal.
2. Strict ITC Reconciliation — GSTR-2B is Mandatory
Input Tax Credit (ITC) can now only be claimed based on GSTR-2B (auto-drafted statement). Businesses must reconcile their purchase registers with GSTR-2B every month before filing GSTR-3B.
- ITC claimed in excess of GSTR-2B will be reversed with 18% interest.
- Ensure all vendors file GSTR-1 on time — if they don't, your ITC gets blocked.
- Run monthly GSTR-2B reconciliation reports using your accounting software.
Tip: Chase defaulting vendors early in the month. Late vendor filings impact your working capital.
3. GSTR-9 / GSTR-9C Due Date and Changes
Annual GST Return (GSTR-9) and Reconciliation Statement (GSTR-9C) for FY 2024–25 are due by 31st December 2025.
- GSTR-9C is now mandatory for turnover above ?5 crore (self-certified).
- Key reconciliation areas: ITC as per books vs GSTR-2B, turnover as per books vs GSTR-1.
- Errors in GSTR-9 cannot be corrected after filing — review carefully before submission.
4. New GST Penalty Provisions
CBIC has tightened enforcement provisions for FY 2025–26:
- Fake ITC claims attract penalty of 100% of tax evaded + prosecution in cases above ?2 crore.
- Late filing fees for GSTR-3B: ?50/day (?20/day for NIL returns), capped at ?5,000.
- Cancelled GST registrations: Outstanding ITC must be reversed with interest before cancellation.
5. GST Compliance Calendar – Key Dates
- GSTR-1: 11th of the following month (monthly) / 13th for QRMP filers
- GSTR-3B: 20th of the following month (monthly)
- GSTR-9/9C: 31st December (for previous FY)
- GSTR-7 (TDS): 10th of the following month
- GSTR-8 (TCS): 10th of the following month
Need Help with GST Compliance?
KS Raghu Consulting Group handles GST registration, monthly filings, reconciliation, and GST notices for businesses in Bengaluru and across India.