Financial Year-End GST Compliance 2025: Key Deadlines and Required Actions

As the financial year 2024-25 comes to a close, businesses must ensure they meet all compliance obligations to avoid penalties, interest charges, or disruptions in operations. Here’s a detailed guide on the key deadlines and actions required before March 31, 2025.

1. LUT Renewal for Exporters

Deadline: Before April 1, 2025

Action Required: Businesses engaged in the export of goods and services without payment of tax must renew the Letter of Undertaking (LUT) for the financial year 2025-26. Failing to renew on time may lead to tax liabilities on exports.

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2. Adoption of a New Invoice Series

Effective From: April 1, 2025

Action Required: As per Rule 46(b) of the CGST Rules, 2017, businesses must adopt a new invoice numbering system at the beginning of each financial year. A unique invoice series must be maintained to ensure compliance with GST rules.

3. Declaration for Goods Transport Agency (GTA) under Forward Charge

Deadline: March 15, 2025

Action Required: Goods Transport Agency (GTA) service providers can opt to pay GST under the forward charge mechanism instead of the default reverse charge. To opt for this, they must submit Annexure V (Option to pay tax under forward charge) before the deadline.

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4. Annual Common ITC Reversal Calculation

Deadline: March 2025 GST Return Filing

Action Required: Businesses that claim Input Tax Credit (ITC) on common inputs, input services, and capital goods must:

• Perform an annual ITC reversal calculation as per Rule 42 or 43 of the CGST Rules, 2017.
• Adjust any excess or shortfall in ITC reversal in the March 2025 GST return.
• Report additional reversals by April 1, 2025, to avoid interest charges on delayed reporting.

5. Amnesty Scheme for Past GST Liabilities

Tax Payment Deadline: March 31, 2025

Form Submission Deadline: June 30, 2025

Action Required: Under Section 128A of the CGST Act, 2017, taxpayers can settle outstanding GST demands for FYs 2017-18, 2018-19, and 2019-20 and avail waivers on interest and penalties.

• Payment must be made before March 31, 2025.
• The relevant forms must be filed before June 30, 2025.
• Any appeals filed against tax demands must be withdrawn to benefit from the scheme.

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6. Late Fee Waiver for GSTR 9 & GSTR 9C

Deadline: March 31, 2025

Action Required:

If GSTR 9 (Annual Return) has been filed but GSTR 9C (Reconciliation Statement) is pending, businesses must file GSTR 9C before March 31, 2025 to avail late fee waiver under Section 47 of the CGST Act, 2017.

If GSTR 9 was filed late, any late fees from the filing date of GSTR 9 until GSTR 9C filing will be waived, provided it is filed by the deadline.

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7. Filing of Annual RODTEP Return (ARR) for Exporters

Deadline: March 31, 2025

Grace Period: Until June 30, 2025 (with a Rs. 10,000 composition fee)

Action Required:

As per Public Notice No. 27/2024-25, Import-Export Code (IEC) holders with RODTEP claims exceeding Rs. 1 crore for FY 2023-24 must submit an Annual RODTEP Return (ARR) before the deadline.

A three-month grace period is available for late filing, subject to a Rs. 10,000 composition fee.

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Final Checklist for Financial Year-End Compliance 2025

• Renew LUT for tax-free exports before April 1, 2025.
• Adopt a new invoice numbering system from April 1, 2025.
• Submit GTA forward charge declaration by March 15, 2025.
• Reconcile and adjust annual ITC reversals in March 2025 GST returns.
• Pay pending GST demands under the Amnesty Scheme by March 31, 2025.
• File pending GSTR 9C before March 31, 2025, to avoid late fees.
• Submit ARR for RODTEP claims over Rs. 1 crore before March 31, 2025

Conclusion

By adhering to these deadlines and completing the necessary filings on time, companies can mitigate risks, optimize tax benefits, and stay compliant with GST and financial regulations.

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