GST Compliance Checklist for FY 2024-25: Important Tasks to be Completed Prior to March 2025:

GST Compliance Checklist for FY 2024-25: Important Tasks to be Completed Prior to March 2025 With the financial year 2024-25 coming to a close, organizations need to complete some important GST-related tasks. These actions will allow them to adhere to tax rules properly and enjoy a smooth start to the new financial year.

Important points to remember

1. Filing of Letter of Undertaking (LUT) Firms exporting goods or providing to special economic zones (SEZs) without payment of GST are required to submit the letter of undertaking (LUT) in form RFD-11. This must be submitted prior to 31st March, 2025, for the next financial year. 2. Comply with Rule 96A of CGST Rules 2017 Firms exporting without payment of GST must comply with certain conditions:

• Exports must be done within 3 months from the invoice date.
• Payment for services exported should be made within 1 year in foreign exchange or Indian rupees (as permitted by RBI).

Regularly checking these details, particularly before the end of the financial year, is recommended.

3. Selecting the Composition Scheme

Small businesses eligible for the composition scheme for FY 2025-26 are required to apply by filing form GST CMP-02 on or before April 1, 2025. They also need to file form GST ITC-03 on or before May 30, 2025. 4. Quarterly Return Monthly Payment (QRMP) Scheme Small enterprises with turnovers of up to Rs. 5 crores can choose to file GST returns on a quarterly basis while paying tax monthly. They have to choose whether to opt for or opt out of this scheme by April 30, 2025.

5. Release of a New Series of Invoices

A fresh series of invoices should be implemented from April 1, 2025, for tax invoices, credit notes, debit notes, and bills of supply. This will maintain records in place. 6. Turnover Verification on an Annual Basis Firms should verify their overall turnover for FY 2024-25. This will determine whether they are registered under GST, are eligible under schemes like QRMP and the composition scheme, or whether they need to generate e-invoices. 7. E-invoice Applicability Any business whose turnover is greater than Rs. 5 crore in any financial year from July 2017 onwards is required to generate e-invoices. 8. E-way Bill Applicability E-way bills are required to transport goods worth more than Rs. 50,000. The thresholds are different in other states, therefore, the laws should be cross-checked. As of February 11, 2025, e-way bills can be issued by unregistered dealers on form ENR-03, said a government notice. 9. Matching Sales records with GST returns Firms must check whether data in GSTR-1, GSTR-3B, and their books of accounts is identical. In case errors are found (such as GSTIN, tax value, or place of supply errors), they must correct them. 10. Issuance of Credit Notes in Due Time If firms need to issue credit notes for returns or refunds, they must issue credit notes by November 30, 2025, to comply with GST. 11. Availing GST TDS/TCS Credit Companies should look for any available GST TDS or TCS credits in the GST portal and claim them after verifying with their accounts. 12. Input Tax Credit (ITC) Reconciliation ITC records must be reconciled with financial records to prevent discrepancies. All legitimate ITC must be claimed, and incorrect claims reversed to remain compliant. 13. Reversal of Common ITC at the end of the year According to GST law, ITC availed on goods/services utilized for non-business purposes or exempted supplies is required to be reversed at the end of the year. 14. Management of goods provided on an approval basis Companies providing goods on an approval basis should have good documentation and early return of such goods in order to escape additional tax payment. 15. Verification of need for Input Service Distributor (ISD) Registration If a business has branches that get tax invoices for services availed by other branches, it can be forced to register as an ISD. New ISD regulations will be applicable from April 1, 2025, so businesses need to register on time. 16. GST Ledgers Reconciliation Businesses are required to reconcile their GST electronic credit/cash ledgers on the GST portal with the books of accounts. They are also required to verify any ITC not utilized. 17. Payment of Reverse Charge Mechanism (RCM) Charges Firms need to review transactions where they are required to pay GST under the reverse charge mechanism (RCM). They should pay taxes on time, report them in GSTR-3B, and avail of ITC wherever permitted. 18. Receipt of declarations by Goods Transport Agencies (GTA) For FY 2025-26, businesses need to receive GTA declarations if transport agencies opt to pay GST under the forward charge mechanism rather than RCM. 19. Utilizing GST Amnesty Scheme 2025 The government has launched an amnesty scheme to facilitate businesses in paying pending GST dues for the years 2017-18, 2018-19, and 2019-20. For this, the businesses need to pay their dues by March 31, 2025, and submit the forms as required by June 30, 2025. They can avoid interest and penalty charges under this scheme. By completing these important GST-related tasks before March 2025, businesses can avoid penalties and smoothly transition into the next financial year.