GST: 4 important tasks you must do before March end

MARCH END

Within a few days 31st March 2024 is arriving, with that many deadlines will be arriving under GST as well. It’s gonna be hectic for both the professionals and their clients to get things completed. Therefore, to avoid the last minute chaos, let us find out what are the things that needs our attention by March end.

1. Reconciliation of turnover between GSTR1 and GSTR 3B and books:

Prepare and reconcile the turnover as reported in GSTR 1/GSTR 3B with books of accounts for FY 2023-24. Reconciliation of Outward liability between GSTR 1 and GSTR 3B and books: Compile and reconcile the amount of taxes paid in GSTR 1 and GSTR 3B filed during the FY 2022-23 with books of accounts and pay the tax if there is any shortfall vide filing DRC 03 to avoid the litigation and penalty.

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2. Letter of Undertaking:

Application for LUT for FY 2024-25 needs to be done prior to 31st March 2024, when you are an Exporter of Goods or Service and wants to Export without paying IGST for FY 2024-25 then you are obligated to apply for LUT (Letter of Undertaking).

3. Start fresh invoice number series

With the start of the new financial year, GST taxpayers should start a new invoice series, unique for the financial year as per the GST advisory released in 2019. A similar provision is there in Rule 49 of the CGST Rules 2017, in respect of the issue of Bill of Supply by registered taxpayers availing Composition Scheme or supplying exempted goods or services or both.

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If the provisions of Rule 46 or Rule 49 are not adhered to, apart from being a compliance issue, taxpayers may face problems while generating E-Way Bill on the E-way bill system or furnishing their Form GSTR 1 or applying for a GST refund.

4. Opt-in or out of composition scheme

Composition Scheme under GST is an alternative method of tax levy designed for small taxpayers. As per GST Notification 14/2019, the threshold turnover limit to qualify as a small taxpayer was revised to Rs. 1.5 Crores from previous Rs. 1 Crore under notified circumstances. If you wish to opt for the Composition Scheme for the financial year 2024-25, the last date to opt-in or opt-out from the Composition Scheme is 31st March 2024. Form CMP-02 must be used to opt into the composition scheme (both supplier of goods and service provider).