Thiruvananthapuram, March 14 (UNI) The Kerala State Goods and Services Tax (SGST) Department has issued a detailed advisory to GST-registered traders and businesses ahead of the 2026–27 financial year, highlighting several key compliance requirements. These include the March 31 deadline for opting into the Composition Scheme, mandatory e-invoicing for businesses with aggregate turnover above Rs5 crore, the option to enrol in the QRMP quarterly return scheme, submission of LUT for exporters, tax options for Goods Transport Agencies, and revised GST provisions applicable to hotel and restaurant services.
According to the department, eligible taxpayers who wish to newly opt for the Composition Scheme for the 2026–27 financial year must submit their option on or before March 31, 2026.
However, taxpayers who are already operating under the scheme and intend to continue are not required to file a fresh option, a release said.
The department also directed all taxpayers to ensure compliance with GST Rule 46(b), which requires the use of tax invoices meant for the new financial year. Businesses have been instructed not to continue using invoice formats intended for the previous financial year.
A major compliance requirement relates to e-invoicing. Taxpayers whose aggregate turnover under a single PAN exceeded Rs5 crore in any financial year between 2017–18 and 2025–26 will be required to implement mandatory e-invoicing for all business-to-business (B2B) supplies of goods or services from April 1, 2026.
The department warned that if such taxpayers fail to generate e-invoices, the recipient will not be eligible to claim Input Tax Credit (ITC) on those transactions, and the supplier may face legal and penal action under GST provisions.
The department also pointed out that taxpayers filing GSTR-1 and GSTR-3B returns can opt for the Quarterly Return Monthly Payment (QRMP) scheme for the 2026–27 financial year. The scheme will take effect from April 1, 2026, and the option to enrol will remain available on the GST portal until April 30, 2026.
Businesses whose aggregate turnover during the 2025–26 financial year does not exceed Rs5 crore will be eligible for this facility. Those already under the QRMP scheme can continue without filing monthly returns.
Exporters supplying goods or services to foreign countries or Special Economic Zone (SEZ) units without payment of Integrated GST (IGST) must submit a Letter of Undertaking (LUT) in Form GST RFD-11 before undertaking exports for each financial year. For exports during the 2026–27 financial year, the LUT submission facility will be available on the GST portal from April 1, 2026.
The advisory also covers Goods Transport Agencies (GTAs) registered under GST. GTAs opting to pay GST under the forward charge mechanism from April 1, 2026 must submit the prescribed Annexure V under Central Notification 06/2023-CT (R) by March 31, 2026.
Those wishing to continue under the reverse charge mechanism must submit Annexure VI before the same deadline. However, businesses that have already opted for a particular system during the 2025–26 financial year and wish to continue with it need not file the annexure again.
The department further clarified changes relating to the hospitality sector. Hotels that provided accommodation where at least one room was priced at Rs7,500 or more per day during the 2025–26 financial year will be treated as “specified premises”. Restaurant services provided in such establishments will attract 18 per cent GST with Input Tax Credit from April 1, 2026.
Hotels where all rooms were priced below Rs7,500 per day during the 2025–26 financial year may voluntarily choose to be classified as “specified premises” and charge 18 per cent GST with Input Tax Credit on restaurant services. For this option, they must file Annexure VII on the GST portal before March 31, 2026.
The State GST Commissioner urged all concerned taxpayers to complete the required procedures within the stipulated deadlines and ensure strict compliance with GST regulations for the upcoming financial year.
Kerala GST issues key compliance advisory for taxpayers ahead of FY 2026–27
