GST Checklist for Financial Year End FY 2023-2024

GST Year-End Compliance in a Nutshell
GST Checklist - Financial Year End FY 2023-2024 - taxscan

As we approach the end of the financial year FY 2023-2024 and prepare for a new one, businesses and professionals must undertake various Goods and Services Tax compliance related tasks to ensure regulatory and tax compliances.

These tasks, ranging from registration and invoicing to returns filing and documentation, are crucial for maintaining smooth and lawful functioning of the business.

Let’s delve into the essential activities to be carried out under GST for year-end and the new financial year to adhere to regulatory requirements and optimize business processes.

1. GST Composition Scheme:

   – To opt for the Composition Scheme under GST, registered persons/eligible taxpayers can do so online by filing Form CMP-02 before the 31st of March of the financial year.

   – Review and update the GST Registration Certificate to include any new business places or closed locations promptly.

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2. Invoice Related Tasks:

   – Generate a new unique series/serial number for invoices for the upcoming financial year to avoid duplication from the previous year.

   – Ensure invoices contain all required information per GST laws, including GSTIN of the Recipient and Supplier, Address, Place of Supply, GST Amount Bifurcation, and appropriate HSN Codes based on turnover.

   – Note that E-invoicing is mandatory for businesses with an aggregate turnover exceeding Rs. 5 crores in the preceding financial year, requiring a 6-digit HSN code for issuing invoices.

3. Documentation for Supplies Received:

   – Create self-invoices for supplies received from unregistered persons under Reverse Charge Mechanism ( RCM ) to avoid potential issues during assessments or audits.

   – Maintain payment vouchers for all payments made to RCM vendors, whether registered or not.

4. GST Returns and Books of Accounts:

   – Reconcile sales turnover, credit notes, and output tax with GST returns filed (GSTR-1 & GSTR-3B) for the previous year.

   – Verify Input Tax Credit ( ITC ) claimed in returns with ITC in Books of Accounts and GSTR-2B, ensuring all reconciliations are completed by November 30 of the following year.

   – Confirm with suppliers regarding their GST filings (GSTR-1 & GSTR-3B) to avoid ITC disallowance issues.

   – Review and reverse any ineligible or blocked ITC claimed in GST returns and settle any pending reverse charge liabilities with appropriate interest.

5. Other Important Considerations:

   – Renew the Letter of Undertaking (LUT) for exporters wishing to export goods or services without IGST payment for the next financial year.

   – File GST refund applications within the specified timeframe and submit ITC-04 as required.

   – Evaluate the Opt-in or Opt-out options for the QRMP Scheme for the first quarter of the upcoming financial year.

   – Ensure compliance with GST laws regarding record-keeping and documentation.

In conclusion, adherence to GST regulations is crucial for businesses to operate smoothly and avoid penalties. By completing the necessary tasks outlined for year-end and the new financial year, businesses can enhance efficiency, mitigate risks, and focus on their core operations confidently. It’s essential to stay updated with regulatory changes and seek professional advice when needed to ensure seamless compliance with GST laws.

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