GST Compliance Checklist: 9 Key Tasks to Finish Before March 31, 2025

Overview

Businesses must make sure they have complied with all GST requirements by March 31, 2025, as the fiscal year 2024–2025 draws to a conclusion, in order to avoid fines, interest, or legal problems. In addition to keeping companies tax-compliant, timely compliance facilitates accurate financial reporting, easier audits, and seamless input tax credit (ITC) applications.

The nine crucial GST compliances that companies need to finish by March 31, 2025, are described in this blog.

1. FY 2025–2026 Letter of Undertaking (LUT) Submission

LUT: What is it?

Businesses who export goods or services without paying IGST must have LUT. It enables them to export without preventing them from paying taxes on their working capital.

Requirement for Compliance

Taxpayers who export or provide to SEZs without paying IGST are required to submit their FY 2025–2026 LUT via the GST portal by March 31, 2025.

Businesses will have to pay IGST on exports and then request refunds if they don't submit.

Who Must Send in?

• Companies that export products or services.
• Companies that supply SEZs with goods and services.

2. Selecting the Composition Scheme (If Relevant)

What is the scheme of composition?

Instead of filing frequent GST returns and adhering to compliance requirements, small taxpayers can pay GST at a set rate under the Composition Scheme.

Requirement for Compliance

Companies having annual sales up to Ôé╣1.5 crore (Ôé╣75 lakh in some states) are need to sign up for the Composition Scheme by March 31, 2025.

Form CMP-02 can be submitted on the GST site to do this.

Who Should Take It Into Account?

• Small companies that choose a set tax rate and minimal compliance.
• Manufacturers, traders, and eateries (not include service providers, with the exception of restaurant services).

3. Submitting the FY 2024–2025 Annual GST Return (GSTR-9)

GSTR-9: What is it?

The yearly return that offers a comprehensive overview of all GST transactions for the fiscal year is called GSTR-9.

Requirement for Compliance

Regular taxpayers have till December 31, 2025, to file their GSTR-9. Nonetheless, it is recommended that all reconciliations be finished by March 31, 2025.

GSTR-9C (Reconciliation Statement & Certification) must also be filed if appropriate.

Who Must Submit a File?

• Companies with a total revenue of more than Ôé╣2 crores.
• Companies that generate more than Ôé╣5 crores in revenue must have their GSTR-9C audited.

4. Issuing FY 2024–2025 Credit and Debit Notes

What Makes It Important?

Tax obligations are adjusted for returns, price reductions, or incorrect invoicing using credit and debit notes.

Requirement for Compliance

Make sure that by March 31, 2025, all credit and debit notes for FY 2024–2025 are issued.

Before the deadline, these changes must be recorded in GSTR-1 and GSTR-3B.

5. Compliance with E-Invoicing for Qualified Companies

Describe e-invoicing.

Businesses with annual revenue exceeding Ôé╣5 crore are required to use e-invoicing, which entails creating invoices using the Invoice Registration Portal (IRP).

Requirement for Compliance

Companies with annual revenue over Ôé╣5 crore are required to generate authentic IRNs (Invoice Reference Numbers) in order to assure e-invoicing compliance.

Penalties and ineligibility for ITC claims may result from noncompliance.

6. GST Data Reconciliation with Books of Accounts

What Makes Reconciliation Vital?

Reconciliation guarantees that there are no discrepancies among:

• GSTR-1 (sales data) and GSTR-3B.
• Purchase registrations (ITC claims) and GSTR-2B.
• Financial statements and GST returns.

Requirement for Compliance

For businesses to avoid receiving notifications or fines from the GST administration, their books of accounts and GST data must match.

Any inconsistencies must to be fixed prior to submitting the yearly return (GSTR-9).

7. Fulfilling any outstanding GST obligations

What Makes This Significant?

Companies need to settle any outstanding GST debt in order to prevent:

• Interest on late payments is 18% annually.
• Penalties for failure to pay.

Requirement for Compliance

Make sure that all GST obligations are paid off by March 31, 2025.

If you have any additional tax obligations, pay them using Form DRC-03.

8. Reversal of ITC for Failure to Pay Suppliers

What is Reversal of ITC?

If suppliers are not paid within 180 days, the Input Tax Credit (ITC) will be refunded in accordance with Rule 37 of the CGST Rules.

Requirement for Compliance

Examine any outstanding supplier payments by March 31, 2025.

Reverse the ITC under GSTR-3B.9 if invoices are not paid within 180 days.

9. Updating business details and confirming GST registration

What Makes This Significant?

Maintaining current GST registration information helps prevent:

• GST notifications for inaccurate company data.
• Problems with ITC claims because to inaccurate information.

Requirement for Compliance

Visit the GST portal to view your GST registration data.

If necessary, update your address, authorized signatory, and bank information.

In conclusion

Businesses must ensure timely GST compliance by March 31, 2025, in order to avoid fines and continue operating smoothly. Submitting LUT, choosing the Composition Scheme, filing GSTR-9, sending credit/debit notes, making sure e-invoicing is compliant, balancing data, settling tax obligations, reversing ITC if necessary, and updating GST registration information are the crucial processes.

Businesses may guarantee smooth GST compliance and save needless hassles by remaining proactive and doing these activities on schedule.

You can depend on myITRonline and eITRfiling for professional help with hassle-free GST filing and compliance management.