Published: 1 April 2026 | Reading time: 10 minutes
Today is 1 April 2026 — the new financial year has officially begun. Every year, this day marks a fresh start for businesses across India. But for GST compliance, it is also the time to close the books on last year and prepare for the year ahead.
If you are a small business owner, this checklist is for you. Complete these 10 tasks in April — so you can focus on running your business for the rest of the year without GST surprises.
हिंदी में: आज 1 अप्रैल 2026 है — नया वित्तीय वर्ष शुरू हो गया है। यह 10 कामों की checklist April में पूरी कर लें — ताकि बाकी साल GST की चिंता न हो।
1. Reconcile GSTR-1 and GSTR-3B for FY 2025-26
This is the most critical task. Before filing your March 2026 return, reconcile GSTR-1 (detailed sales data) and GSTR-3B (summary return) for the entire FY 2025-26.
Why it matters: GSTR-1 vs GSTR-3B mismatch is the #1 reason businesses receive GST notices from the department. (Read our detailed guide on this)
How to do it:
- Download GSTR-1 and GSTR-3B for each month from the GST portal
- Compare total taxable values and tax amounts (CGST, SGST, IGST) across both returns
- Check credit notes, debit notes, and amendments separately
- If you find any differences, adjust them in your March 2026 return
हिंदी में: सबसे पहला काम — पूरे साल की GSTR-1 और GSTR-3B का मिलान करें। यह 2-3 घंटे का काम है लेकिन लाखों की पेनल्टी से बचा सकता है।
2. Reconcile Input Tax Credit (ITC) with GSTR-2B
The total ITC you claimed in GSTR-3B for FY 2025-26 must match the ITC available in your GSTR-2B. Any excess claim is a red flag for the GST department.
How to do it:
- Download GSTR-2B for each month from the GST portal
- Total the available ITC across all 12 months
- Compare with the total ITC claimed in your GSTR-3B filings
- If you over-claimed ITC, pay the difference voluntarily via DRC-03 before a notice arrives
Important deadline: The last date to claim any remaining ITC for FY 2025-26 is 30 November 2026 (GSTR-3B of September 2026 or GSTR-9 filing, whichever is earlier).
हिंदी में: ITC reconciliation बहुत ज़रूरी है। अगर आपके supplier ने अपनी GSTR-1 नहीं भरी, तो वह ITC आपके GSTR-2B में नहीं आएगा — और आप उसे claim नहीं कर सकते। अभी जांचें।
3. Renew Your Letter of Undertaking (LUT) — For Exporters
If you export goods or services without payment of IGST, you must renew your LUT at the beginning of every financial year. The LUT for FY 2025-26 has expired — you need a fresh one for FY 2026-27.
Deadline: There is no strict statutory deadline, but the LUT must be filed before your first export invoice of FY 2026-27. Get it done in April.
How to do it: GST Portal → Services → User Services → Furnish Letter of Undertaking (LUT) → Select FY 2026-27 → Submit
हिंदी में: अगर आप exporter हैं, तो सबसे पहले LUT renew करें। बिना LUT के निर्यात करने पर IGST भरना पड़ सकता है — बाद में refund माँगना मुश्किल हो जाता है।
4. Composition Scheme — Decide Whether to Opt In or Opt Out
To opt into Composition Scheme: If your previous year turnover is below Rs. 1.5 crore (Rs. 50 lakh for services) and you want to switch from regular to composition scheme, you should have filed Form CMP-02 by 31 March 2026. If you missed this deadline, you can only opt in next year.
To opt out of Composition Scheme: If your turnover has crossed the threshold or you want to switch to the regular scheme, file Form CMP-04 and begin filing regular returns (GSTR-1, GSTR-3B).
Key restrictions of Composition Scheme: Composition dealers cannot make inter-state supplies, cannot sell on e-commerce platforms, and cannot claim ITC.
हिंदी में: Composition scheme वाले व्यापारी — सुनिश्चित करें कि आपका टर्नओवर सीमा के अंदर है। अगर सीमा पार हो गई है तो तुरंत CMP-04 भरें, नहीं तो पेनल्टी लगेगी।
5. Start Preparing for GSTR-9 / GSTR-9C (Annual Return)
GSTR-9 (annual return) for FY 2024-25 was due by 31 December 2025. If you have not filed it yet, do it immediately — late fees of Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) are accruing, subject to a maximum of 0.5% of turnover.
GSTR-9 for FY 2025-26 is due by 31 December 2026, but start preparing now while the data is fresh:
- Download your full-year GSTR-1, GSTR-3B, and GSTR-2B data
- Reconcile sales, purchases, ITC, and tax payments
- If your turnover exceeds Rs. 5 crore, prepare GSTR-9C (self-certified reconciliation statement) as well
Who needs to file GSTR-9:
| Turnover | GSTR-9 | GSTR-9C |
|---|---|---|
| Above Rs. 2 crore | Mandatory | Not required |
| Above Rs. 5 crore | Mandatory | Mandatory (self-certified) |
| Below Rs. 2 crore | Optional | Not required |
हिंदी में: GSTR-9 का काम अभी से शुरू करें — दिसंबर में भागदौड़ न करें। अभी डेटा ताज़ा है, गलतियाँ पकड़ना आसान है।
6. Reply to Pending GST Notices — Check Your Deadlines
With the new financial year, the GST department will begin fresh scrutiny and audits for FY 2025-26. But first — do you have any pending notices from previous years that still need a reply?
How to check:
- Log in to the GST portal → Services → User Services → View Notices and Orders
- Check the status and reply deadline for every notice
- If any notice shows "Reply Pending", respond immediately
Special opportunity for old Section 73 notices: For demand notices under Section 73 relating to FY 2017-18, 2018-19, and 2019-20, the government has offered a conditional waiver of interest and penalty under Section 128A — provided you pay the full tax amount by the notified date. This is a limited-time opportunity.
हिंदी में: पुराने नोटिस की जांच करें — कोई डेडलाइन न चूकें। Section 73 के पुराने नोटिस के लिए Section 128A के तहत माफी योजना का लाभ उठाएं।
7. Check E-Invoice Threshold — Does It Apply to You?
E-invoicing thresholds have been progressively lowered and may be reduced further from FY 2026-27. Current mandatory thresholds:
| Turnover | E-Invoice Mandatory? |
|---|---|
| Above Rs. 5 crore | Yes (from 1 August 2023) |
| Above Rs. 10 crore | Yes (from 1 October 2022) |
If your previous year turnover crossed Rs. 5 crore for the first time, e-invoicing is now mandatory for every B2B invoice from FY 2026-27. Update your billing software and test the e-invoice generation process before issuing your first invoice.
Without a valid e-invoice, your buyer will not be able to claim ITC on your invoices.
हिंदी में: E-invoice सीमा जांचें — अगर पहली बार लागू हो रहा है, तो अपना सॉफ्टवेयर और प्रक्रिया तैयार रखें। बिना e-invoice के खरीदार को ITC claim नहीं मिलेगा।
8. Update Your HSN Codes
HSN code reporting requirements are getting stricter from FY 2026-27:
- Turnover above Rs. 5 crore: 6-digit HSN code mandatory on all invoices
- Turnover below Rs. 5 crore: 4-digit HSN code mandatory on all invoices
If you have not been using correct HSN codes, find the right HSN/SAC codes for all your products and services and update your billing software before issuing your first invoice of FY 2026-27.
Incorrect HSN codes can cause GSTR-1 filing rejections and block your buyer's ITC claims.
हिंदी में: HSN कोड गलत डालने पर GSTR-1 reject हो सकता है और खरीदार का ITC अटक सकता है। April में ही सही कर लें।
9. File Any Pending Returns from FY 2025-26
If any monthly or quarterly return (GSTR-1, GSTR-3B, CMP-08) for FY 2025-26 is still pending, file it before anything else. Pending returns cause a cascade of problems:
- You will not be able to file new returns for FY 2026-27 (cascading block)
- Late fees keep accumulating — Rs. 50 per day for regular returns (Rs. 20/day for nil returns)
- You may receive a GSTR-3A notice (non-filing notice)
- 6 consecutive months of non-filing can lead to cancellation of your GST registration
हिंदी में: सबसे पहले सभी pending returns file करें। बिना पुराने returns के नए returns file नहीं होंगे। Late fee बढ़ती जाएगी — जितनी जल्दी करें, उतना बेहतर।
10. Update Your GST Registration Details
New year, fresh start. Verify that the following details in your GST registration are accurate and up to date:
- Business address
- Bank account details
- Authorized signatory
- Nature of business activities
- HSN/SAC codes (if you added new products or services during FY 2025-26)
How to update: GST Portal → Services → Registration → Amendment of Registration (Core / Non-Core)
Incorrect registration details can cause problems with ITC claims, refund processing, and communication from the GST department.
हिंदी में: अगर पिछले साल कोई बदलाव हुआ है — पता, बैंक, या साझेदार — तो GST रजिस्ट्रेशन में अपडेट करें। गलत विवरण से ITC claim और refund में दिक्कत आती है।
Quick Reference: April GST Checklist at a Glance
| # | Task | Deadline | Priority |
|---|---|---|---|
| 1 | GSTR-1 vs GSTR-3B reconciliation | Before March return filing | Critical |
| 2 | ITC reconciliation (GSTR-2B) | Before March return filing | Critical |
| 3 | LUT renewal (exporters) | Before first export invoice | High |
| 4 | Composition Scheme decision | CMP-02 by 31 March (for entry) | High |
| 5 | GSTR-9 preparation | 31 Dec 2026 (start now) | Medium |
| 6 | Pending notice replies | Check immediately | Critical |
| 7 | E-invoice threshold check | April 2026 | Medium |
| 8 | HSN code update | Before April invoicing | Medium |
| 9 | File pending returns | Immediately | Critical |
| 10 | Update GST registration | April 2026 | Low |
Frequently Asked Questions
What GST tasks should I do first in April?
The most urgent tasks are: (1) file any pending returns from FY 2025-26, (2) reconcile GSTR-1 vs GSTR-3B for the full year, and (3) reconcile ITC claimed in GSTR-3B with GSTR-2B. These three tasks prevent the most common GST notices and should be completed before filing your March 2026 returns.
When is GSTR-9 for FY 2025-26 due?
GSTR-9 (annual return) for FY 2025-26 is due by 31 December 2026. However, it is strongly recommended to start data reconciliation in April-May while the data is fresh, rather than waiting until the last minute in December when errors are harder to trace.
What happens if I don't renew my LUT?
If you export without a valid LUT for FY 2026-27, you will be required to pay IGST on your exports and then claim a refund — which can take months. It is much simpler to file the LUT before your first export invoice of the new financial year.
Can I switch from Composition Scheme to regular scheme?
Yes, you can file CMP-04 and switch to the regular scheme at the beginning of any quarter. After switching, you must begin filing GSTR-1 and GSTR-3B. Note that you cannot claim ITC for the composition period, but you can claim ITC on stock held on the transition date through ITC-01.
How can I check if I have any pending GST notices?
Log in to the GST portal (www.gst.gov.in) → Services → User Services → View Notices and Orders. All notices and orders issued against your GSTIN will appear here with their status and reply deadlines. Check this at least once a month.
How do I get the interest and penalty waiver on old Section 73 notices?
Under Section 128A of the CGST Act, interest and penalty for demand notices under Section 73 for FY 2017-18, 2018-19, and 2019-20 can be waived — provided you pay the full tax amount by the government-notified date. This is a limited-time relief measure. Consult your CA for the exact procedure and deadlines applicable to your case.
Got a GST Notice? Understand It Before You Respond
The start of a new financial year is the best time to clear up any pending GST notices. But notices are written in dense legal language — sections, sub-sections, form numbers, penalty calculations. For a regular business owner, it is hard to understand what is actually being demanded and what to do next.
GST Clarity AI can help. Upload your GST notice (PDF or image) and get a clear, personalised explanation in plain Hindi or English within 2 minutes. For just Rs. 99, you will know:
- Your notice type and risk level
- The exact reply deadline
- How much tax, interest, and penalty is being demanded
- Step-by-step next actions to take
Start the new financial year with clarity, not confusion.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. GST laws and procedures are subject to change. For specific advice regarding your GST compliance, please consult a qualified Chartered Accountant or GST practitioner. Information in this article is accurate as of April 2026.
About GST Clarity AI
GST Clarity AI is an AI-powered tool that helps Indian small business owners understand their GST notices instantly. Founded by Sulata Patra and Sunil Pradhan, the platform was built with one mission: no business owner should have to pay thousands of rupees just to understand a piece of paper from the government. Learn more at gstclarityai.in.