As the financial year 2024-25 approaches its end, businesses must prioritize key GST compliances to ensure seamless operations in FY 2025-26. Timely adherence to these requirements helps avoid penalties and maintain compliance with evolving GST provisions. Below are the nine critical GST tasks businesses should complete before 31st March 2025.
Businesses engaged in zero-rated supplies, including exports and supplies to Special Economic Zones (SEZs) without paying IGST, must renew their Letter of Undertaking (LUT) in Form RFD-11 for the upcoming financial year. Filing this before 31st March 2025 ensures uninterrupted tax-free exports.
Eligible businesses seeking to opt for the Composition Scheme must submit Form GST CMP-02 on the GST portal by 31st March 2025. Additionally, Form GST ITC-03 must be filed within sixty days (by 30th May 2025) to reverse input tax credit (ITC) as per Rule 44(4) of the CGST Rules.
From 1st April 2025, businesses must start a fresh invoice series for tax invoices, credit notes, debit notes, and bills of supply. A structured and sequential invoice format enhances record-keeping and ensures compliance with GST documentation norms.
Businesses must assess whether they need to generate e-invoices for FY 2025-26. Entities with an aggregate turnover exceeding INR 5 crore in any financial year from July 2017 onward are required to issue e-invoices. Non-compliance can lead to penalties and disruptions in operations.
Credit notes for returns or refunds related to FY 2024-25 must be issued before 30th November 2025. Timely issuance ensures accurate tax records and smooth reconciliation with GST filings.
Businesses receiving invoices for input services on behalf of different entities must evaluate their need for ISD registration. As per the revised ISD provisions effective from 1st April 2025, businesses must distribute common ITC through ISD registration.
The GST Amnesty Scheme 2025 provides relief on pending GST dues from FYs 2017-18, 2018-19, and 2019-20. Under Section 128A of the CGST Act, businesses can avail waivers on interest and penalties if payments are made by 31st March 2025. Required forms must be submitted by 30th June 2025.
Businesses should reconcile various GST filings to ensure compliance:
Align GSTR-1, GSTR-3B, and Income Tax Returns (ITR): Cross-check sales reported in GST returns with turnover in Form 26AS and ITR.
Validate ITC Claims: Match the ITC register with GSTR-2B and reverse ITC for unpaid invoices beyond 180 days.
Reconcile Electronic Credit Register: Ensure consistency between books of accounts and electronic credit ledger.
Exporters supplying goods or services under LUT or bond must adhere to Rule 96A requirements to avoid tax liabilities:
Goods must be exported within three months from invoice issuance.
Payment for exported services must be received in convertible foreign exchange or permitted Indian rupees within one year from the invoice date.
Regular compliance checks are essential to prevent defaults and penalties.
Completing these GST compliances by 31st March 2025 is vital for businesses to ensure smooth operations and tax efficiency in the upcoming financial year. Proper planning, timely filings, and thorough reconciliations will help maintain compliance and optimize tax positions. Seeking professional guidance can further ensure businesses meet all GST obligations without errors or delays.
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