GST New Financial Year Checklist: 10 Things Every Business Must Do in April 2026

Last updated: 1 April 2026. The new financial year 2026–27 begins today. For GST-registered businesses, the start of a financial year is not just an accounting milestone — it comes with specific compliance actions that must be completed in April itself. Miss them now and you may face penalties, blocked filings, or lost credits that cannot be recovered later. This checklist covers every mandatory and recommended action for April 2026.

Applicability Note: This guide is based on GST provisions applicable as of 1 April 2026. Always verify the current position on gst.gov.in or with a GST professional before acting.

1. Reset Your Invoice Series (Mandatory — Rule 46(b))

Why it's mandatory: Under Rule 46(b) of the CGST Rules, invoice numbers must be unique within a financial year. They do not need to carry over from the previous year — and in practice, starting a fresh series on 1 April avoids confusion, duplicate numbering, and filing errors.

What to do:

• From 1 April 2026, all invoices must follow a new, unique numbering series for FY 2026–27
• Update your billing software, ERP, or accounting software to start the new series today
• If you use e-invoicing, ensure the IRP portal is also configured for the new series
• Common formats: INV/2026-27/001 or 2627/001 — keep it consistent across all GSTINs you operate

Important: Using an FY 2025–26 invoice number (e.g. INV/2025-26/847) for an April 2026 transaction will cause a mismatch in GSTR-1 and may be flagged during scrutiny. Update this today.

2. Review Your QRMP Scheme Status — Opt-In or Opt-Out by 30 April 2026

The Quarterly Return Monthly Payment (QRMP) scheme allows businesses with aggregate turnover up to ₹5 crore to file GSTR-1 and GSTR-3B quarterly instead of monthly, while paying tax monthly via a simple challan. At the start of each financial year, you have a window to change your QRMP status.

Deadline: 30 April 2026 (last date to opt in or opt out for the April–June 2026 quarter)

How to decide:

• Opt in if your FY 2025–26 aggregate turnover was ₹5 crore or below and you want reduced filing frequency
• Opt out if your turnover crossed ₹5 crore during FY 2025–26 — you are no longer eligible and must switch to monthly filing
• Also opt out if your business has complex B2B invoicing and your customers need ITC reflected in GSTR-2B faster than quarterly filing allows

How to change: GST Portal → Services → Returns → Opt-in for Quarterly Return

3. Verify Your E-Invoicing Applicability for FY 2026–27

E-invoicing is mandatory for all registered businesses whose aggregate annual turnover in any financial year from 2017–18 onwards is ₹5 crore or more. This threshold is assessed on an ever-green basis — once you cross ₹5 crore in any year, you are liable for e-invoicing from the following financial year regardless of whether your turnover drops below.

Action in April 2026:

• Check your FY 2025–26 GSTIN-consolidated turnover (available in GSTR-9 or from your GSTN dashboard)
• If turnover crossed ₹5 crore for the first time in FY 2025–26, e-invoicing becomes mandatory for you from 1 April 2026 — you must start generating IRN (Invoice Reference Numbers) for all B2B invoices, export invoices, and supplies to government entities immediately
• If you are already on e-invoicing with turnover ≥ ₹10 crore, ensure your system is set up to upload invoices to the IRP within 30 days of the invoice date — this 30-day upload rule has been in force from 1 April 2025

4. Complete Your FY 2025–26 ITC Reconciliation — Deadline Is 30 November 2026

The start of a new financial year is the best time to do a full ITC audit of FY 2025–26. Under Section 16(4) of the CGST Act (as amended by the Finance Act 2022), the last date to claim any missed ITC for FY 2025–26 is 30 November 2026 — or the date you file your GSTR-9 annual return for FY 2025–26, whichever comes first.

What to do now:

• Download all 12 GSTR-2B statements for FY 2025–26 (April 2025 to March 2026)
• Compare against your purchase register — identify invoices that appeared in GSTR-2B but were not claimed in GSTR-3B
• Claim any missed ITC in the April 2026 or subsequent GSTR-3B returns — before 30 November 2026
• Do NOT file GSTR-9 for FY 2025–26 until all missed ITC is claimed — filing GSTR-9 closes your ITC window for that year

5. Identify and Reverse Any Excess ITC from FY 2025–26

The flip side of the missed-ITC exercise is identifying ITC that was wrongly claimed. Common sources of excess ITC:

• ITC claimed on blocked credits under Section 17(5) — vehicles, food, construction, insurance
• ITC claimed on invoices that were later cancelled by the supplier
• ITC on credit notes not reversed in GSTR-3B
• ITC on capital goods that needs proportionate reversal if the goods are also used for exempt supplies

Reverse any wrongly claimed ITC in your April 2026 GSTR-3B under Table 4(B)(2). Pay the associated interest at 18% per annum under Section 50(3) of the CGST Act (rate reduced from 24% to 18% by Finance Act 2022, retrospective from 1 July 2017) before a notice is issued — self-reversal before notice generally attracts lower scrutiny.

6. File All April 2026 Returns on Time

April itself is one of the busiest compliance months. Do not let the new year checklist distract from the live deadlines:

7. Understand the Budget 2026 GST Amendments

The Union Budget 2026 introduced several GST changes that take effect in FY 2026–27. Key ones to know:

Amendment to Sections 15 and 34 — Post-Sale Discounts

Businesses will no longer need a pre-existing agreement to claim GST adjustment benefits on post-sale discounts and credit notes. This is a significant relief for FMCG, retail, and distribution businesses that offer volume discounts after supply. Consult your CA on how to restructure your credit note documentation under the revised provisions.

Strengthened Refund Timelines

The Budget 2026 strengthens provisional refund mechanisms, particularly for inverted duty structure refunds and export refunds. If your business has pending refund applications, this is a good time to follow up with the GST department — the new provisions improve CBIC's accountability on timelines.

Clarification on Intermediary Services Place of Supply

The Budget 2026 aligns the place-of-supply rules for intermediary services (agents, commission agents) with general principles. If your business earns commissions from overseas clients, verify whether the updated rules change your GST liability or refund eligibility.

8. Check for Pending Notices and Demands from FY 2024–25

CBIC routinely issues scrutiny notices, demand notices, and assessment orders at the start of a new financial year for the returns of two to three years prior. Log in to the GST portal and check:

• Services → User Services → View Notices and Orders — for any pending DRC-01, DRC-01A, DRC-01C, or SCN (Show Cause Notice)
• Any pending response deadlines — missing a notice deadline triggers ex-parte orders and higher demands
• Any ASMT-10 (scrutiny intimation) that has been issued but not yet responded to

9. Set Up Your IMS Workflow for FY 2026–27

The Invoice Management System (IMS), launched on the GST portal on 1 October 2024 (with invoice review available from 14 October 2024, per GSTN advisory), is a standard part of the monthly GST compliance workflow. Every month, suppliers upload invoices in GSTR-1 and they appear in your IMS dashboard. You must Accept, Reject, or keep them Pending — only Accepted invoices flow into GSTR-2B for ITC claims.

Best practice for FY 2026–27:

• Review IMS between the 11th and 14th of each month (after GSTR-1 filing deadline, before GSTR-2B is generated)
• Accept all valid invoices promptly — delayed acceptance pushes ITC to the next month
• Reject supplier invoices that contain errors immediately — this notifies the supplier to amend and refile
• Do not leave invoices permanently Pending — it does not give you extra time; Pending invoices do not flow into GSTR-2B until Accepted

10. Archive FY 2025–26 Records

Under Section 35 of the CGST Act, every registered person must maintain records and as per section 36 of the CGST Act these records required to retain for a minimum of 72 months (6 years) from the due date of filing the annual return for that year. FY 2025–26 records are therefore required to be preserved until at least December 2032.

What to archive:

• All purchase and sales invoices (physical or digital)
• All GSTR-1, GSTR-2B, GSTR-3B filed returns — download and save PDFs from the portal
• All e-invoices and their IRN acknowledgements
• All ITC reversal workings, GSTR-2B reconciliation sheets
• All notices received and replies submitted
• Bank statements and payment challans for GST paid

April 2026 New FY Checklist — Summary

1. ✅ Reset invoice series from 1 April 2026 (Rule 46(b))
2. ✅ Decide QRMP scheme status — opt in/out by 30 April
3. ✅ Verify e-invoicing applicability for FY 2026–27
4. ✅ Start FY 2025–26 ITC reconciliation — deadline 30 Nov 2026
5. ✅ Reverse any excess ITC from FY 2025–26 in April GSTR-3B
6. ✅ File all April 2026 returns on time (first deadline: 10 April)
7. ✅ Understand Budget 2026 GST amendments
8. ✅ Check GST portal for pending notices and demands
9. ✅ Set up IMS review routine for FY 2026–27
10. ✅ Archive all FY 2025–26 GST records

Frequently Asked Questions

Is it compulsory to reset invoice numbers at the start of a financial year?

You are not required to restart from 001, but your invoice series must produce unique numbers within FY 2026–27 under Rule 46(b). Starting a fresh series on 1 April is the cleanest way to ensure uniqueness and avoid confusion with last year's invoices. Most businesses use a format like INV/2026-27/001 or 2627-001.

My turnover in FY 2025–26 was ₹4.8 crore. Do I need e-invoicing?

No — the current mandatory e-invoicing threshold is ₹5 crore aggregate annual turnover. At ₹4.8 crore, you are below the threshold and e-invoicing is not mandatory. However, voluntary adoption is allowed and may help with ITC reconciliation if your customers are large businesses who require IRN-based invoices.

Can I opt into QRMP after 30 April 2026?

Yes — the QRMP opt-in/out window is available throughout the year, but changes made after 30 April will apply from the next quarter (July–September 2026), not the current April–June quarter. To be on QRMP for April–June 2026, you must opt in by 30 April 2026.

When is GSTR-9 for FY 2025–26 due?

GSTR-9 (annual return) for FY 2025–26 is due by 31 December 2026 under Section 44 of the CGST Act, subject to any extensions notified by CBIC. Do not file it early — wait until all FY 2025–26 ITC claims have been made in GSTR-3B (deadline: 30 November 2026).

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