Tax Updates

Tax & Compliance Updates

Deadlines, rule changes, and practical guidance from the ACSOL team — kept simple and up to date.

The GST return process is being rewritten — here's what changed and what to do now

A working brief for business owners and finance teams on what has actually changed in GST return filing across India this year — and what to fix before the portal fixes it for you.

3 yrsHard filing time-bar
0Tolerance under Zero Mismatch
₹5 Cre-Invoicing threshold, FY25–26

Eight changes reshaping how you file

Each item below reflects a live rule, portal enforcement, or scheduled change — not a proposal. Dates matter here more than usual, since several carry hard cut-offs.

01 Dec 2025 — Enforced
The 3-year filing bar goes live

The GST portal now permanently blocks any return more than three years past its due date. Monthly periods from October 2022 and FY 2020-21 annual returns were the first casualties. An "Unbarring" application exists, but it needs jurisdictional-officer approval and moves slowly — treat it as a last resort, not a plan.

Permanent lock risk
01 Jan 2026 — Effective
Simplified slabs carried into the new year

The two-tier structure — largely 5% and 18%, with 40% reserved for luxury and sin goods — continues as the baseline for every return filed in 2026. HSN/SAC codes must be checked against the current list before charging or reporting.

Rate structure
01 Feb 2026 — Sector-specific
Tobacco and pan masala rates revised

Tobacco-related products were split between the 18% and 40% slabs, with the compensation cess removed and excise/valuation mechanisms revamped. Businesses in this category need to re-check every affected line item before filing.

Sector watch
Feb 2026 tax period — Corrected
Interest miscalculation in Table 5.1, GSTR-3B

A system glitch failed to account for the minimum cash balance under CGST Rule 88B(1), producing incorrect auto-calculated interest in March 2026 filings. The portal added a "RE-COMPUTE INTEREST" button — anyone who filed in that window should verify their figures, not assume the auto-fill was right.

Requires manual check
16 Mar 2026 — Structural
Tax Liability Breakup now auto-populates

From the February 2026 period onward, GSTR-3B auto-fills a "Tax Liability Breakup" tab for liabilities carried over from an earlier period. It has to be opened and explicitly saved — skipping it stalls the filing.

Process step
01 Apr 2026 — Hard enforcement
Zero Mismatch Policy replaces warning-only checks

Any gap between GSTR-2B (what your supplier reported) and GSTR-3B (what you claimed) now blocks filing outright. ITC can only be claimed against invoices your supplier has actually filed — supplier compliance is no longer someone else's problem.

Filing blocker
01 Apr 2026 — Threshold change
e-Invoicing mandate widens, IRP window tightens

e-Invoicing becomes mandatory for GSTINs with AATO above ₹5 crore in FY 2025-26. For those above ₹10 crore, invoices must reach the IRP within 30 days — anything later is invalid for ITC purposes, with no exceptions on record.

ITC eligibility
01 Aug 2026 — Scheduled
Mandatory Ship-to GSTIN in e-Way Bill & IRN APIs

Originally set for June 2026, this was pushed back after industry pushback over ERP and API readiness. Once live, Ship-to GSTIN becomes mandatory wherever Ship-to details exist, and a new voluntary e-Way Bill closure feature goes live alongside it.

Upcoming

What this means for your filing desk this quarter

01
Clear the backlog first

Anything within striking distance of the 3-year bar takes priority over routine monthly work — there is no recovering a return once it's locked.

02
Move ITC review upstream

Reconcile against GSTR-2B before filing, not after. Under Zero Mismatch, a discrepancy caught post-filing means a blocked return, not a correction.

03
Score your suppliers

Your ITC is only as reliable as your weakest supplier's filing habits. A simple compliance scorecard catches this before it reaches your return.

04
Recheck March filings

If Table 5.1 interest was auto-calculated for the February 2026 period, re-run it with the recompute tool before assuming it's correct.

05
Confirm your e-invoicing tier

Turnover crossing ₹5 crore or ₹10 crore this financial year changes your obligations from 1 April — check your AATO now, not at year-end.

06
Watch the 57th GST Council

Registration, refund, and audit process changes are on the agenda. Nothing to file yet — but worth tracking before you lock in next quarter's process.

Not sure where your filings stand?

ACSOL runs GST health checks that map your backlog, ITC exposure, and e-invoicing readiness against every rule above.

Request a GST Health Check →

ITR Filing for AY 2026-27 (FY 2025-26) is now open

Income Tax Return filing for Assessment Year 2026-27 has started. Here's what to keep ready before you file:

  • Form 16 (for salaried individuals)
  • Bank statements and interest certificates
  • Investment proofs for deductions (80C, 80D, etc.)
  • Details of any capital gains or additional income

Filing early helps you avoid last-minute errors, penalties, and processing delays.

ITR Document Checklist — Know What You Need for Each ITR Form

Not sure which documents apply to your filing? Here's a quick reference by ITR form type:

  • ITR-1 (Sahaj) — for salary/pension income: PAN & Aadhaar, Form 16, AIS/Form 26AS, bank interest certificates, investment proofs (80C, 80D)
  • ITR-2 — for capital gains/multiple house properties: all ITR-1 documents plus capital gain statements, property sale/purchase documents, foreign income details
  • ITR-3 — for business/profession: books of accounts, P&L and balance sheet, bank statements, GST returns, TDS certificates
  • ITR-4 (Sugam) — for presumptive income: PAN & Aadhaar, turnover summary, bank statements, investment proofs, loan interest certificates
  • ITR-5 — for LLP, partnership firms, AOP, BOI: partnership deed/LLP agreement, books of accounts, P&L and balance sheet, GST and TDS details
  • ITR-6 — for companies: audited financial statements, tax audit report, GST returns, TDS/TCS details, board resolution
  • ITR-7 — for trusts, NGOs, political parties: registration certificates/trust deed, audit report, income & expenditure statement, exempt income details

Not sure which form applies to you? Get in touch and our team will help you identify the right one and the exact documents you'll need.