With the onset of the financial year 2025-26, it is imperative to take note of key indirect tax compliance requirements. Below is a concise overview of the significant compliance obligations to consider for the year ahead.
A. GST Law
- LUT: Furnish the letter of undertaking (LUT) for exporting goods or services without payment of IGST – Ideal to furnish by March 31, 2025.
- Document series: New series for the invoices, debit notes, credit notes etc. to be issued during the financial year.
- ISD registration: Obtain ISD registration and undertake ISD related compliance – ISD is made mandatory effective from April 1, 2025.
- E-invoice restriction: Effective from April 1, 2025, taxpayers with an Annual Aggregate Turnover (AATO) of Rs. 10 crores and above would not be allowed to report e-invoices older than 30 days from the date of reporting on e-invoice portal.
- Declaration by restaurants in specified premises: Restaurants located within specified premises to file declaration by March 31, 2025, to charge GST at 18% with ITC.
- Reconciliation: Review and reconcile income reported in books of accounts with GST returns, and ITC claimed in books with GST returns and GSTR-2A/2B.
- Credit notes: Issue and furnish the GST credit notes for FY 2024-25 in the GST returns not later than November 30, 2025.
- Common ITC reversal: Undertake final computation of ITC availment/reversal pertaining to FY 2024-25 as provided under Rules 42 and 43 of the GST Rules - To be done by September 2025.
- Declaration by GTA: Goods Transport Agency (GTA) to exercise the option to GST under forward charge or reverse charge for FY 2025-26 by March 31, 2025.
- 2FA for e-way bills: Effective April 1, 2025, 2 Factor Authentication (2FA) will be mandatory for generating e-way bills, requiring OTP verification in addition to username and password.
- GST Amnesty Scheme: Taxpayers availing GST Amnesty Scheme under Section 128A of the GST Act must pay outstanding taxes by March 31, 2025, and file the required forms by June 30, 2025.
B. Foreign Trade Policy (FTP)
- Filing the Annual RoDTEP Return by June 30, 2025, for exporters (IECs) whose total RoDTEP claim exceeds Rs. 1 crore for the Financial Year 2023-24 (Deadline of March 31, 2025, extended vide Public Notice No. 51/2024-25)
- Update or confirm the Import Exporter Code (IEC) on the DGFT portal between April 2025 to June 2025 to avoid deactivation
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
