goods and service tax
Published on 9 April 2025
Essential GST Compliance Checklist for March 2024: Finalizing FY 2023-24
Checklist for GST Compliance in March 2024 for F.Y. 2023-24
Introduction
The adage “A stitch in time saves nine” remains relevant as we transition into the new financial year, FY 2024-2025. It is crucial for businesses to address GST implications during the annual closure of accounts for FY 2023-24, considering their subsequent effects in the new fiscal year. Below is a comprehensive checklist to assist in finalizing the accounts for FY 2023-24.
Checklist for FY 2023-2024
A. Activities Pertaining to Inward Supplies
| Particulars | Deliverables | Remarks |
|---|---|---|
| Reconciliation of Input Tax Credit | Conduct a year-end reconciliation of ITC availed against the credit reversed in Table 4(B)(2) of GSTR-3B and GSTR-2B. | Consolidate any unreconciled ITC for further action. |
| Communication with Vendors | Coordinate with vendors regarding supplies not appearing in GSTR-2B and obtain timely confirmations. | Maintain prompt communication. |
| Reversal of ITC for Exempt Income | Recalculate ITC reversals for exempt income per Rule 42 & 43 of the CGST Rules and report in GSTR-3B. | Account for any short or excess ITC reversals. |
| Verification of Creditors Aging Report | Review creditors aging reports for overdue invoices beyond 180 days and reverse ITC accordingly. | Ensure timely action to reclaim in subsequent returns. |
| Identification and Treatment of Ineligible ITC | Determine the treatment of ineligible ITC: expense or capitalize. Reverse ineligible ITC and declare in Table 4B (1) of GSTR-3B with applicable interest. | Reverse ineligible ITC with a 24% interest rate. |
| Verification of RCM Transactions | Validate RCM transactions for ITC claims, ensuring proper issuance of self-invoices and compliance with time of supply provisions. | Verify accuracy in GSTR-3B reporting for RCM. |
| Reverse Charge Mechanism Supplies | Check all RCM subject expenses for correct liability discharge in GSTR-3B; rectify any discrepancies with interest. | Reconcile transactions on which GST is liable under RCM. |
| Validation of ITC Balance | Reconcile ITC balances in the electronic credit ledger with books of account. | Ensure accuracy in reporting. |
B. Activities Pertaining to Outward Supplies
| Particulars | Deliverables | Remarks |
|---|---|---|
| Reconciliation w.r.t Outward Supplies | Reconcile turnover, tax amounts, credit notes, and debit notes in GSTR-1/GSTR-3B with the accounts. | Identify and resolve any discrepancies. |
| Review of HSN Summary | Ensure the HSN summary for outward supplies is accurately represented in GSTR-1. | Maintain compliance with reporting requirements. |
| Ensure Reporting Accuracy | Capture amendments related to outward supplies reported from April 2024 to October 2024 in GSTR-9 & GSTR-9C. | Must be completed by 30th November 2024. |
| Confirm issuance and reporting of bill of supply for exempt supplies. | Validate export details for necessary refund claims. | |
| E-invoicing Compliance | For mandatory e-invoicing, ensure all B2B tax invoices are reported and IRNs generated within the timeline. | Report discrepancies promptly to the e-invoice portal. |
| Reporting of E-way Bills | Reconcile generated e-way bills for FY 2023-24 with tax invoices in GSTR-1. | Notify authorities of any discrepancies. |
Checklist for FY 2024-25
| Requirements | Tools/Resources | Due Date |
|---|---|---|
| Reset Invoice Series Number | Start new series | |
| File LUT for Zero-Rated Supplies | Application in Form GST RFD-11 | 31/03/2024 |
| Opt-in for GST Composition Scheme | File CMP-02 | 31/03/2024 |
| QRMP Scheme Election | Opt-in or opt-out of Quarterly Report | 30/04/2024 |
| Transition to Composition Scheme | File ITC-03 | On or before 30/05/2024 |
Conclusion
Adhering to GST compliance is essential, particularly when transitioning to a new financial year. Businesses should meet compliance deadlines, such as filing LUT for zero-rated supplies and considering the GST Composition Scheme, to ensure a seamless closure for FY 2023-24. Seeking professional guidance is highly recommended to navigate the complexities of GST compliance effectively.