1. Outward Supplies Compliance
- E-Invoicing Requirement: If your turnover exceeded ₹5 crore in any financial year since July 2017, generate e-invoices for the new financial year.
- Renew Letter of Undertaking (LUT): If exporting goods/services without tax payment, renew your LUT for the next financial year.
- Fresh Invoice Series: Assign new, unique series numbers for invoices, credit/debit notes, and other GST documents.
- Reconcile GSTR-1, GSTR-3B & Books: Ensure sales figures match across tax returns and books. Correct discrepancies such as incorrect GSTIN, POS, or invoice values before October.
- E-Invoice & E-Way Bill Reconciliation: Cross-check records to ensure all issued e-invoices and e-way bills match your books.
- GST Liability Check: Verify the GST portal’s ledgers for outstanding liabilities.
- Credit Notes Issuance: Issue credit notes for the previous financial year before October 30 and report them by November 30.
2. Input Tax Credit (ITC) & Reverse Charge (RCM) Compliance
- Reconcile ITC in Books vs GSTR-3B: Ensure no eligible ITC was missed or misreported.
- Reconcile ITC in GSTR-2B vs Books: Match books with GSTR-2B and claim any missing ITC before November 30.
- Import ITC Reconciliation: Verify IGST paid on imports is correctly classified and claimed.
- Common ITC Reversal: Adjust ITC for exempt supplies and non-business use as per GST rules.
- ITC on Lost or Destroyed Goods: Reverse ITC on any lost, stolen, or damaged goods.
- GST Ledger Reconciliation: Ensure electronic credit, cash, and reclaimable ITC ledgers match your books.
- Reverse Charge Payments: Reconcile expenses attracting RCM and ensure taxes are paid correctly.
3. Other Key Compliance Areas
- Input Service Distributor (ISD) Registration: If distributing input services across branches, check if ISD registration is required from April 2025.
- Vendor E-Invoice Declarations: Ensure vendors liable for e-invoicing comply.
- GTA Vendor Declarations: Confirm if Goods Transport Agencies (GTAs) opt for forward charge; otherwise, pay under RCM.
- Claim GST TDS/TCS Credit: Check and claim any pending GST TDS/TCS credit.
- Job Work Compliance: Verify goods sent for job work are returned within 1 year (inputs) or 3 years (capital goods) and reported in ITC-04.
- Approval-Based Goods: Ensure goods sent on approval are returned or sold within 6 months.
- Opting for Composition Scheme: Small businesses must file CMP-02 by March 31 to opt for the Composition Scheme.
- QRMP Scheme Selection: Businesses with turnover up to ₹5 crore can choose quarterly GST returns under QRMP; opt-in or out accordingly.
- Export Compliance (Rule 96A): Ensure exports are completed within 3 months of the invoice date and foreign payments received within 1 year.
- GST Refund Claims: Apply for pending refunds within two years from the relevant date.
Final Thoughts
By following this checklist, businesses can ensure GST compliance, correct errors before deadlines, and smoothly transition into the new financial year. Staying proactive helps prevent penalties and maximizes tax benefits. Plan ahead for a compliant and efficient tax season!
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