GST annual return and reconciliation

Define the GST work

We compare books, periodic returns and adjustment records, identify the applicable annual reporting requirements for the period and prepare the agreed workings. Unresolved differences are explained rather than buried in totals.

Agree the financial year, GSTINs and version of the accounts before building the reconciliation. Where the financial statements cover several registrations, prepare a bridge to the registration-level records. Keep later accounting adjustments identifiable so the annual working can explain which version it uses.

Records needed for a useful assessment

• Year-end accounts
• GSTIN-level registers
• periodic returns
• credit workings
• debit/credit notes
• export and reverse-charge records.

Organise the return history and supporting schedules by period, with a separate list of amendments and year-end entries. Trace each material difference to a document, calculation or unresolved question. Avoid using an unexplained balancing amount merely to make the books and reported totals agree.

A transaction detail that matters

Revenue in financial statements may differ from return turnover for identifiable reasons. A useful reconciliation names the reason and evidence for each difference.

For example, a year-end accounting entry may change revenue after the monthly sales register was exported. Establish what the entry represents and compare it with the relevant transaction and reporting history. The accounting date alone does not explain how the difference should be treated in GST reporting.

What your proposal will cover

Applicable exemptions and filing requirements are checked for the financial year. Statutory assurance, old-year repairs and disputes are separately agreed.

For FY 2024–25, the GST Council’s October 2025 newsletter records GSTN’s advice that all GSTR-1 and GSTR-3B returns for that year must be filed to enable the GSTR-9/9C tile. Check the periodic-return history early. This is a year-specific portal prerequisite, not a statement that every taxpayer must file both annual forms.

The written engagement confirms the GSTINs, periods, deliverables and responsibilities. Government payments and professional charges are identified separately.

The handover includes the books-to-returns bridge, supporting schedules, unresolved differences and the available filing evidence for the agreed annual work. Identify any separate correction or payment decision and its owner. Preparing an annual reconciliation does not, by itself, amend a previously filed periodic return or settle a disputed position.