Insights

Dated 26 October 2026 · CA Reddem Naveen Reddy

GSTR-3B: system-computed interest and the Invoice Management System

From the January 2026 return period, the interest shown in Table 5.1 of GSTR-3B is computed by the GST portal. Taxpayers can no longer edit this figure downward. The calculation takes into account the cash balance available in the electronic cash ledger, in line with the proviso to Rule 88B of the CGST Rules. Table 6.1 is also auto-populated with a liability breakup, and the auto-populated values in Table 3.2 have been locked since the November 2025 period.

Separately, the Invoice Management System (IMS) now decides which supplier invoices reach GSTR-2B. Only invoices the recipient accepts, or that are deemed accepted, flow into GSTR-2B. Invoices kept pending are deferred, but not beyond the time limit in section 16(4) of the CGST Act.

In practice, this means two monthly habits. First, correct outward supplies in GSTR-1 before filing GSTR-3B, because GSTR-3B increasingly follows GSTR-1. Second, review IMS before every GSTR-3B, so that eligible input tax credit is not missed and ineligible credit is not taken. Businesses with many suppliers benefit from reconciling the purchase register with IMS every month rather than at year end.

Sources: GSTN advisory on interest calculation (tutorial.gst.gov.in/downloads/news/advisory_on_interest_calculator.pdf); GSTN revised advisory on IMS (tutorial.gst.gov.in/downloads/news/revised_advisory_on_ims.pdf).

Ind AS amendments applicable from FY 2026-27

The Ministry of Corporate Affairs notified the Companies (Indian Accounting Standards) Amendment Rules, 2026 by G.S.R. 725(E) dated 12 August 2026. The amendments apply to annual reporting periods beginning on or after 1 April 2026, so they affect the financial statements of Ind AS companies for FY 2026-27.

The changes touch Ind AS 101, 107, 109, 110 and 7. Under Ind AS 109 and 107, they cover the classification and measurement of financial instruments, contracts referencing nature-dependent electricity, and derecognition of financial liabilities settled through electronic payment systems. Ind AS 101, 110 and 7 receive annual improvements.

Companies on Ind AS should review their accounting policies, financial instrument classifications and disclosures before the first quarter or year-end close of FY 2026-27, and update their reporting templates. Contracts for renewable power and payment-settlement processes deserve a specific look.

The ICAI has also issued an exposure draft of Ind AS 118 on presentation and disclosure. It is only a proposal at this stage and is not yet notified.

Sources: MCA notification G.S.R. 725(E), 12 August 2026 (mca.gov.in; Gazette of India CG-DL-E-12082026-275402); ICAI exposure draft of Ind AS 118 (icai.org).

GSTR-9 and GSTR-9C for FY 2025-26: due 31 December 2026

The annual return in Form GSTR-9 and, where applicable, the self-certified reconciliation statement in Form GSTR-9C for FY 2025-26 are due on 31 December 2026. As of 26 October 2026, I have not seen any notification extending this date. Representations seeking an extension are not extensions until notified.

The annual return brings together the year's outward supplies, input tax credit, tax paid and amendments. Many differences arise only at this stage: GSTR-1 versus GSTR-3B, credit claimed versus GSTR-2B, and turnover in the books versus returns. Some of them can still be corrected in the returns for the following months, within the time limits in the law.

A practical approach is to finish the reconciliation in November. That means reconciling books, GSTR-1, GSTR-3B and GSTR-2B for the full year, identifying any tax payable through DRC-03, and keeping the working papers for GSTR-9C. Whether your turnover is below the threshold for exemption from filing GSTR-9 should be checked against the notification that applies to FY 2025-26.

Sources: CGST Act, 2017, section 44 and CGST Rules, rule 80 (cbic-gst.gov.in); GST portal (gst.gov.in).

Compliance calendar

Recurring due dates · updated 26 October 2026

Dates are listed as set out in the law and the official portals. Income-tax dates are for AY 2026-27 under the Income-tax Act, 1961. From tax year 2026-27, the Income-tax Act, 2025 applies, and the department's FAQs state the ITR due dates remain the same.

Statutory audit checklist

Documents usually needed. The final list depends on your business and is confirmed at the start of the engagement.

Books and ledgers

• ☐ Trial balance at year end (and previous year)
• ☐ Chart of accounts / ledger list
• ☐ General ledger for the year or accounting software backup
• ☐ Cash book, bank book and journal register

Bank and cash

• ☐ Bank statements for all accounts for the full year
• ☐ Bank reconciliation statements at year end
• ☐ Fixed deposit advices and interest certificates
• ☐ Closing cash certificate

Sales, purchases, receivables, payables

• ☐ Sales and purchase registers
• ☐ Ageing of trade receivables and payables
• ☐ Invoices for large or unusual items (on request)

Payroll, loans, related parties

• ☐ Payroll register and PF / ESI / TDS challan summaries
• ☐ Director and shareholder loan ledgers and confirmations
• ☐ List of related-party transactions
• ☐ Contingent liabilities, guarantees and litigation note (or nil confirmation)

Fixed assets and inventory

• ☐ Fixed asset register with additions, deletions and depreciation
• ☐ Inventory valuation statement at year end
• ☐ Bills for capital additions

Statutory and prior period

• ☐ Previous year audited financial statements and audit report
• ☐ GST returns and reconciliation to books
• ☐ TDS returns, Form 26AS / AIS
• ☐ Previous year income-tax computation and ITR acknowledgement
• ☐ MCA filings for the year

Board and secretarial

• ☐ Board and general meeting minutes
• ☐ Statutory registers
• ☐ Auditor appointment resolution and ADT-1 SRN

Closing

• ☐ Management representation letter (format provided)
• ☐ Note on subsequent events up to the date of approval

Tax audit checklist

Documents usually needed. The final list depends on your business and is confirmed at the start of the engagement.

Books and records

• ☐ Bank statements for all accounts and loan statements for the year
• ☐ Sales, purchase and expense records; closing stock
• ☐ Previous year signed financial statements and ITR acknowledgement
• ☐ Capital account, drawings and loan details

Tax and GST

• ☐ Form 26AS, AIS and TIS
• ☐ GSTR-1, GSTR-3B and electronic credit ledger (if registered)
• ☐ TDS / TCS returns and challans (if applicable)

Identity and access

• ☐ PAN and Aadhaar
• ☐ Income-tax e-filing portal access (shared securely in person, not by email)

Clause-specific

• ☐ Details of payments to related persons
• ☐ Loans and deposits taken or repaid above prescribed limits
• ☐ Fixed asset additions with dates of use

GST registration checklist

Documents usually needed. The final list depends on your business and is confirmed at the start of the engagement.

Business details

• ☐ Legal name, trade name and constitution (proprietor / firm / company / LLP)
• ☐ Description of goods or services with HSN / SAC codes

Persons

• ☐ PAN of the business and of proprietor / partners / directors
• ☐ Aadhaar, photograph, mobile number and email of each
• ☐ Authorisation letter or Board resolution for the authorised signatory (firm / company)

Place of business

• ☐ Rent agreement and owner NOC, or ownership proof
• ☐ Recent electricity bill or property tax receipt

Bank and constitution

• ☐ Cancelled cheque or first page of bank statement
• ☐ Partnership deed or certificate of incorporation (if applicable)

Earlier registration (if any)

• ☐ Old GSTIN and cancellation order
• ☐ Proof that final return and all returns were filed and no dues are pending

Company incorporation checklist

Documents usually needed. The final list depends on your business and is confirmed at the start of the engagement.

Name and business

• ☐ Two or more proposed names with their meaning
• ☐ Main objects of the business
• ☐ Proposed authorised and paid-up capital and shareholding

Directors and subscribers

• ☐ PAN, Aadhaar, photograph, address proof, mobile and email of each
• ☐ Digital signature certificate (DSC) and DIN, if already held

Registered office

• ☐ Rent agreement and owner NOC, or ownership proof
• ☐ Recent utility bill (not older than two months)

After incorporation

• ☐ Bank account opening documents
• ☐ First Board meeting and first auditor appointment within 30 days
• ☐ Commencement of business declaration (INC-20A) within 180 days

Internal controls review checklist

Documents usually needed. The final list depends on your business and is confirmed at the start of the engagement.

Organisation

• ☐ Organisation chart and delegation of authority matrix
• ☐ Existing policies and SOPs (procurement, sales, payroll, inventory, treasury)
• ☐ List of key accounting and ERP systems

Processes

• ☐ Process notes or flowcharts for key cycles
• ☐ Existing risk and control matrix, if any
• ☐ Approval workflows and authorisation limits

IT general controls

• ☐ User access list and role matrix for key systems
• ☐ User creation, change and removal procedure
• ☐ Backup and change-management procedures

Evidence for testing

• ☐ Transaction listings for the period (for sampling or full-population analysis)
• ☐ Reconciliations (bank, vendor, customer, inventory)
• ☐ Previous internal / statutory audit observations and their status