GST Year-End Steps for FY 2025-26: Reconciliations, Reversals and Elections Due by 31 March 2026
This article lists the reconciliations, reversals, elections and housekeeping steps a registered person should complete before the financial year 2025-26 closes on 31 March 2026.
Unreconciled differences at year-end surface later as interest at 18%, blocked input tax credit, notices and penalties. Several items also carry fixed dates (31 March 2026, 1 April 2026 and 30 April 2026), so they cannot be done late without consequence.
Where your client stands: returns and the books
Outward supplies
Compare turnover and tax liability reported in GSTR-1 with GSTR-3B, and both with the books. Differences are not corrected retrospectively; they are reported in the next return filed, so the March 2026 return is the practical place to close the year.
Input tax credit
Reconcile ITC in the books and in GSTR-3B with GSTR-2B for FY 2025-26, and match the closing balance in the electronic credit ledger to the books. Two situations follow:
- Credit on the portal not yet claimed. Take it in the March 2026 return.
- Credit in the books but missing from GSTR-2B. Follow up with the supplier to file returns and report the invoice, rather than claiming it on the strength of the books alone.