GST Checklist Before March 2025 & Closure of Books

As the financial year 2024-25 is coming to an end, businesses and professionals must ensure that their GST compliance is in order. A proper GST checklist helps in avoiding penalties, interest, and scrutiny from the tax department. Below is a detailed GST checklist to follow before March 31, 2025, to ensure smooth closure of books and compliance with the GST law.

1. Reconciliation of GST Data with Books of Accounts

✅ Reconcile GSTR-1 (Sales) with books of accounts
✅ Reconcile GSTR-3B (Tax Paid) with books of accounts
✅ Reconcile GSTR-2B (Input Tax Credit)/IMS with purchase register
✅ Check for mismatches between GST returns and financial statements

2. Reconciliation of Input Tax Credit (ITC) & Claims

✅ Verify ITC claimed in GSTR-3B matches with GSTR-2B
✅ Identify and rectify ineligible ITC, excess claims, or missing ITC
✅ Reverse ITC on exempt, personal, and blocked credits (if any)
✅ Ensure all invoices are available for ITC claimed
✅ Verify ITC for capital goods and check depreciation treatment

3. GST Payment & Liability Adjustments

✅ Ensure full payment of GST liability before due dates
✅ Verify tax payments for RCM (Reverse Charge Mechanism) transactions
✅ Adjust credit notes, debit notes, and amendments in GSTR-1 & GSTR-3B
✅ Pay any pending interest or late fees (if applicable)

4. GST Annual Return (GSTR-9) & Reconciliation Statement (GSTR-9C)

✅ Prepare and file GSTR-9 (if turnover > ₹2 crore)
✅ Prepare and file GSTR-9C (if turnover > ₹5 crore) – Requires audit
✅ Cross-check turnover, ITC, tax paid, and adjustments before filing
✅ Verify Table 8A of GSTR-9 with GSTR-2B for ITC claims

5. Verification of E-Way Bills & E-Invoicing Compliance

✅ Ensure all e-way bills are generated and reconciled with books
✅ Verify compliance with e-invoicing (if turnover > ₹5 crore)
✅ Correct any discrepancies in e-invoices and tax invoices

6. Pending GST Notices & Replies

✅ Respond to any pending GST notices before year-end
✅ Review any show-cause notices (SCN) or demand notices
✅ Verify compliance with audits and assessments by the GST department

7. GST Refund & Claim Adjustments

✅ File GST refund claims for excess ITC, exports, or inverted duty structure
✅ Verify export documentation and LUT (Letter of Undertaking) status
✅ Ensure that all refund claims are processed before closing the books

8. GST Rate Changes & Amendments

✅ Verify if any GST rate changes affect your business transactions
✅ Implement latest amendments, circulars, and notifications

9. Stock Valuation & Year-End Adjustments

✅ Conduct a proper stock audit and reconcile with GST returns
✅ Reverse ITC on unsold goods if applicable under Rule 42 & 43
✅ Verify ITC reversal for expired or obsolete stock

10. Books of Accounts & Record-Keeping

✅ Ensure all GST records are maintained as per law
✅ Retain records for at least 6 years (as per Section 36 of CGST Act)
✅ Keep proper documentation for future audits and litigation

CONSLUSION

A thorough GST compliance check before March 2025 will help businesses avoid interest, penalties, and legal complications. Ensure that you reconcile, pay dues, and file necessary returns before the March 31st deadline.

📢 Need Professional Assistance? If you need help with GST compliance, annual return filing, or reconciliation, feel free to reach out to us 9693601228. Timely compliance is key to a hassle-free financial year-end! 🚀

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