GST, Income Tax: Tasks to do before 31st March 2024

In this article we have discussed important GST and Income-tax-related Tasks to be done in March itself, for smooth working and planning at later stages.

Drawing of Financials:

One is required to make the important entries, close the financials, find out the approximate profit, and pay the Advance Tax Accordingly. Those who have missed the deadline of 15th March for Payment of Advance Tax can still pay it by 31st March on payment of 1% Interest u/s 243C.

Input Tax Credit Reconcilliation:

Although the Due Date for claiming Input Tax Credit (ITC) of Tax Invoices or Debit Notes for Financial Year 2023-24 is 30th November 2024, it’s beneficial if you do the reconciliation of ITC booked in Books and claimed in GSTR-3B for the whole year in March 2024 itself. It helps smooth Tax Audit and GST Annual Return Filing at later stages.

Additionally, we need to check the credit as per rule 42/43, Section 17(5) and reverse the credit as per the provisions of GST Law.

GST Outward Tax Liability Reconcilliation with Books

We should reconcile GSTR-1, GSTR-3B, and the books in order to ensure that appropriate GST has been paid and the amount shown in GST Returns reconciles with the books.

Applicability For E-Invoicing

If your client’s Turnover was more than Rs. 5Cr in Financial Year 2023-24, then from 1st April 2024 E-Invoicing Provisions are applicable and you need to ensure that it is implemented well in Advance.

Applicability of Section 43B(h)

Be prepared for the applicability of Section 43B(h) of the Income Tax Act form 1st April 2024 for Disallowance of Expense on Non-Payment or Late Payment to Micro and Small Enterprises.

Applicability of TDS U/S 194Q or TCS u/s 206C(1h)

TDS U/S 194Q: Any person having T/O of more than Rs. 10 Cr in the Last Financial Year, being a buyer who is responsible for paying any sum to any resident Seller for the purchase of any goods of the value or aggregate of such value exceeding Rs. 50 lakh in any previous year, shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1% of such sum exceeding Rs. 50 lakh as income tax.

TCS u/s 206C(1h): Every person having T/O of more than Rs. 10 Cr in the Last Financial Year, being a seller, who receives any amount as consideration for the sale of any goods of the value or aggregate of such value exceeding Rs. 50 Lahks in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1% of the sale consideration exceeding Rs. 50 lakh as income tax.

If your client’s Turnover was more than Rs. 10Cr in Financial Year 2023-24, then from 1st April 2024 these Provisions are applicable and you need to ensure that it is implemented well in Advance.

Filing Letter of Undertaking

All Exporters exporting without payment of GST in FY 2024-25 should file the Letter of Undertaking (Form GST RFD-11) for the year to avail this facility.

Filing ITR-U for AY 2021-22

31st March 2024 is the last chance to file an Updated Income Tax Return (ITR-U) for the Financial Year for AY 2021-22 (FY 2020-21). Please ensure that the same is done if required in your case.

Review 26AS/AIS

Kindly reconcile the TDS deducted as per books and the TDS reflecting in Form 26AS/AIS. In case of Short reporting of TDS in AIS/26AS one might required to communicate with the vendor.

Investment for Deduction u/s 80C/80D

Taxpayers who wish to continue with the old tax regime should make appropriate investments before 31st March 2024 as per section 80C, Section 80D, etc. to avail the benefit.