IMPORTANT COMPLIANCES BEFORE MARCH 2026 END

As the FY 2025-26 draws to its inexorable close on 31st March 2026, taxpayers, business enterprises, companies, and professionals across the length and breadth of India stand at a critical juncture of fiscal and statutory accountability. The transition from one FY to another is not a mere calendar event, it is a solemn moment of legal reckoning, wherein compliance lapses and procedural omissions crystallise into penalties, interest liabilities, and litigation.

PART I : GOODS AND SERVICES TAX (GST) COMPLIANCES

• LUT for Exporters - Annual Renewal

Exporters of goods and services who supply without payment of IGST are required to furnish a Letter of Undertaking (LUT) in Form GST RFD-11 at the commencement of each FY, in accordance with Rule 96A of the CGST Rules, 2017. Therefore, exporters must file a fresh LUT for FY 2026-27 before making any export supplies from 1st April 2026.

• Opting for GST Composition Scheme - Annual Renewal

An eligible registered person desirous of opting for the Composition Levy u/s 10 of the CGST Act, 2017 for FY 26-27 must file an intimation in Form GST CMP-02 - must be filed before the commencement of the FY.

Form GST ITC-03 to reverse all ITC availed on stock in hand as on the date of opting in, within 60 days.

• GTA - Annual Declaration for Forward Charge

Goods Transport Agencies (GTAs), by default, fall under the Reverse Charge Mechanism under Notification No. 13/2017-Central Tax (Rate). However, a GTA may opt to pay GST on a Forward Charge basis by filing a declaration in Annexure V. This declaration must be made on or before 31st March of the preceding FY and is valid for the entire next FY.

• Declare hotel premises as "Specified Premises"

GST has started an online facility to declare hotel premises as "Specified Premises" for applicable taxpayers. Existing hotels must file Annexure VII between 1st Jan to 31st Mar 2026.

For FY 2026-27 onwards, electronic filing is mandatory even if previously filed manually.

• Compliance with 86B - Annual compliance

GST Rule 86B restricts taxpayers with a monthly taxable turnover exceeding Rs 50 lakhs from using Input Tax Credit (ITC) to pay more than 99% of their output tax liability. At least 1% of the tax must be paid in cash, aiming to curb fraudulent ITC usage. Annual compliance should be ensured.

• Reconciliation of GSTR-1 and GSTR-3B

Before the financial year closes, every registered taxpayer must undertake a meticulous reconciliation of their outward supply data reported in GSTR-1 against the tax actually discharged in GSTR-3B. Any discrepancy between the two returns, if left unaddressed, may attract scrutiny notices

• Input Tax Credit (ITC) Reconciliation — GSTR-2A/2B vs Books

Pursuant to Rule 36(4) of the CGST Rules, 2017, and the mechanism of auto-population in GSTR-2B, taxpayers are required to avail Input Tax Credit only to the extent reflected in GSTR-2B or as otherwise permissible. Year-end is the recommended effective window to claim any ITC pertaining to FY 2025-26 that may have been missed, or reversal of ITC may be pursuant to section 17(5) or rule 42 or 43 etc.

PART II: INCOME TAX ACT, 1961 - COMPLIANCES

• REVISION OF TDS RETURN - LAST DATE 31.3.2026

According to section 397(3)(f) of the Income Tax Act, 2025, a deductor or collector can submit a correction statement within two years from the end of the tax year in which the original statement was required to be delivered. After 31st March 2026 revision of FY (Q4) 18-19, FY 19-20 TO FY 22-23, FY (Q1 - Q3) 23-24 will be barred by limitation and will no longer be accepted by the authorities.

• ITR-U OF AY 21-22 : LAST CHANCE

Section 139(8A) of the Income Tax Act, 1961 permits taxpayers to file an Updated Return (ITR-U) within two years from the end of the relevant Assessment Year upon payment of additional tax. For AY 2021-22 (FY 2020-21), the last date for filing ITR-U is 31st March 2026. Additional tax payable : 70% of the aggregate tax and interest as computed.

• Advance Tax - Final Instalment

The fourth & final instalment of advance tax for FY 2025-26 is due on or before 15th March 2026 for all taxpayers (other than those opting for the presumptive taxation scheme under Sections 44AD and 44ADA, who are required to pay 100% advance tax by 15th March 2026.

• Tax-Saving Investments and Deductions

The 31st of March 2026 is the final date by which qualifying investments and payments must be made to claim deductions under Chapter VI-A of the Income Tax Act, 1961 for FY 25-26. Taxpayers opting for the Old Tax Regime must ensure all such investments are made before midnight of 31st March.

• Income Tax Act 2025: A New Era of Tax Compliance Begins

With the Income Tax Act, 2025 coming into effect from 1st April 2026, taxpayers should start preparing for the new compliance framework. Individuals and businesses are advised to stay informed about updated provisions, documentation, and filing procedures.