GST Compliance Checklist: 9 Tasks to Complete by March 31, 2025

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.

Renewal of Letter of Undertaking (LUT) for Exports

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.

Opting for the Composition Scheme for FY 2025-26

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.

Implementing a New Invoice Series

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.

Verifying E-Invoice Applicability

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.

Issuing Credit Notes for FY 2024-25 Transactions

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.

Registering as an Input Service Distributor (ISD)

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.

Availing Relief Under the GST Amnesty Scheme 2025

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.

Conducting Comprehensive GST Reconciliation

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.

Ensuring Compliance with Rule 96A for Exporters

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.

Learn More