2025 Year-End GST Compliance Checklist

The most important To-Do before this financial year ends:-

As the financial year comes to a close, businesses must review their GST compliance to ensure accuracy and avoid penalties. Here’s a simplified checklist to help you stay on track and prepare for the new financial year.

1. Outward Supplies Compliance

• E-Invoicing Requirement: If your turnover exceeded ₹5 crore in any financial year since July 2017, you must generate e-invoices in the new financial year.
• Renew Letter of Undertaking (LUT): If you export goods/services without paying tax, renew your LUT for the next financial year.
• Fresh Invoice Series: Assign new, unique series numbers for invoices, credit/debit notes, and other GST documents.
• Reconcile GSTR-1, GSTR-3B & Books: Ensure your sales figures match across tax returns and books to correct errors like incorrect GSTIN, POS, or invoice values before October.
• E-Invoice & E-Way Bill Reconciliation: Cross-check records to ensure all issued e-invoices and e-way bills match your books.
• GST Liability Check: Verify the GST portal’s ledgers for any outstanding liabilities.
• Credit Notes Issuance: Issue credit notes for the previous financial year before October 30 and report them before November 30.

2. Input Tax Credit (ITC) & Reverse Charge (RCM) Compliance

• Reconcile ITC in Books vs GSTR-3B: Ensure no eligible ITC was missed or misreported.
• Reconcile ITC in GSTR-2B vs Books: Match invoices in books with those in GSTR-2B to claim any missing ITC before November 30.
• Import ITC Reconciliation: Verify IGST paid on imports is correctly classified and claimed.
• Common ITC Reversal: Adjust ITC for exempt supplies and non-business use as per GST rules.
• ITC on Lost or Destroyed Goods: Reverse ITC on any lost, stolen, or damaged goods.
• GST Ledger Reconciliation: Ensure electronic credit, cash, and reclaimable ITC ledgers match your books.
• Reverse Charge Payments: Reconcile expenses attracting RCM and ensure taxes are paid correctly.

3. Other Key Compliance Areas

• Input Service Distributor (ISD) Registration: If you distribute input services across branches, check if ISD registration is required from April 2025.
• Vendor E-Invoice Declarations: Ensure vendors liable for e-invoicing comply.
• GTA Vendor Declarations: Confirm if Goods Transport Agencies (GTAs) opt for forward charge; otherwise, you must pay under RCM.
• Claim GST TDS/TCS Credit: Check and claim any pending GST TDS/TCS credit.
• Job Work Compliance: Verify that goods sent for job work have returned within the permitted time (1 year for inputs, 3 years for capital goods) and are reported in ITC-04.
• Approval-Based Goods: Goods sent on approval must be returned or sold within 6 months to avoid compliance issues.
• Opting for Composition Scheme: Small businesses opting for the Composition Scheme must file CMP-02 by March 31.
• QRMP Scheme Selection: Businesses with turnover up to ₹5 crore can choose quarterly GST returns under QRMP; opt-in or out accordingly.
• Export Compliance (Rule 96A): Ensure exports are completed within 3 months of the invoice date and foreign payments are received within 1 year.
• GST Refund Claims: Check pending refunds and apply within two years from the relevant date to avoid loss of eligible claims.

Final Thoughts

By following this checklist, businesses can ensure compliance with GST laws, correct errors before deadlines, and start the new financial year smoothly.   Stay compliant to prevent penalties and maximize tax benefits thus plan ahead!