GST Compliance: Year End Essentials

As the 31st March approaches, businesses must reconcile sales and purchase records, verify input tax credits, adjust for any discrepancies, prepare for audits or assessments, and fulfill any outstanding compliance obligations. By completing these tasks accurately and promptly, businesses can maintain their compliance with GST laws and avoid penalties or fines.

The essential tasks to consider before 31st March are

1. Ensure accuracy in sales 

Thoroughly review and amend invoices/credit notes which are issued during the financial year for accurate reporting in the March 2024 GSTR-1.

2. Match revenue in books with turnover reported in GST returns 

Correction can be made by matching revenue figures in books with GST returns to prevent issues during audits or annual return filing.

Matching revenue figures in book records with GST returns filed helps to rectify any discrepancies.

3. Verification of Input Tax Credits 

Businesses are required to verify that the ITC claimed are eligible and accurately recorded. By comparing the ITC recorded in the books of accounts with the corresponding balance reflected in the GST portal can be reconciled. If any discrepancies between the two seen then,  adjustments need to be made to reconcile them. This may involve reviewing transactions, invoices, and GST returns to ensure that all eligible credits have been claimed and accurately reported.

4. Verify ITC reported in GSTR 3B with book entries

Verifying  ITC reported in GSTR 3B with book entries helps to ensure accurate closure of accounts.

5. RCM Compliance 

In March 2024 GSTR 3B filing, it is crucial to address any missed liabilities under the Reverse Charge Mechanism (RCM) and claim eligible Input Tax Credits (ITC) accordingly.  By rectifying any overlooked RCM liabilities and claiming eligible ITC in the GSTR 3B return, businesses helps in maintaining accurate records and mitigating any potential penalties for non-compliance with RCM regulations.

6. Apply for LUT

Submit Letter of Undertaking  (LUT) application on GST portal by March 31, 2024, if applicable for FY 2024-25.  It is necessary for businesses, especially exporters, to facilitate the export of goods or services without paying taxes.

7. Opt for Composition Scheme

For the Composition Scheme, file CMP-02 by March 31, 2024, to opt for it in the next FY 2024-25.