THINGS TO DO BEFORE 31ST MARCH 2025

As we approach March 31, 2025, it’s crucial for business owners and tax professionals to be aware of important compliance requirements that could have significant implications if overlooked. This article outlines essential tasks that must be completed before the end of the financial year to ensure compliance with current tax regulations. Let’s delve into the key compliance tasks that need your immediate attention.

Why March 31, 2025, Is a Deadline to Remember

The end of the financial year often prompts a review of compliance, but 2025 is unique. There are critical deadlines and new requirements that must be addressed before March 31, which haven’t been a concern in the past. Failing to meet these deadlines could result in penalties or interest charges that could impact financial health.

Key Compliance Deadlines

Here are the major compliance tasks that must be completed before the deadline:

1. Section 128A – Amnesty Scheme
   If you want to benefit from the amnesty scheme under Section 128A, which waives interest and penalties, ensure that your tax amount is paid by March 31, 2025. You can make this payment via the DRC 03A form or by setting off your liability in the payment terms of the demand plan.
2. Small Taxpayer Compliance – CMP 02
   If you are a small taxpayer looking to opt for the composition scheme for the financial year 2025, you must file the CMP 02 form before March 31, 2025. Without this, you will be unable to avail of the composition scheme. It is also important to select the correct category while filing, based on your nature of business—trader, manufacturer, or service provider.
3. GTA (Goods Transport Agency) Compliance
   For clients providing services under GTA, ensure that any shift from Reverse Charge Mechanism (RCM) to Forward Charge Mechanism (FCM) is documented via filing Annexure F. This must be completed before March 31, or you risk remaining in RCM for the next financial year.
4. Input Tax Credit (ITC) Reconciliation
   Effective reconciliation of your Input Tax Credit is essential. Review your ITC claims based on the Invoice Management System (IMS). Check if there are any pending invoices and ensure you reverse any ineligible ITC claims before the March deadline.
5. GSTR 3B Adjustments
   You can declare negative liabilities in GSTR 3B for the financial year 2025. Double-check your annual sales summary and tax liability. Any pending adjustments should be done by March 2025, as the portal now allows for these adjustments to be made.

Importance of Annual Aggregate Turnover

It is also crucial to check your annual aggregate turnover for FY 2025. If your turnover exceeds ₹5 crores,

• Ensure that the e-invoicing regulations apply to you for B2B and export invoices.
• Prepare for e-invoicing to avoid missing any regulations.

ITC Reversal and Related Compliance

Review outstanding invoices with suppliers. If any ITC claims are based on invoices that are older than 180 days, ensure that reversals are performed to avoid interest liabilities. Additionally, communicate with suppliers to ensure they are complying with their GSTR filings as necessary for your ITC.

Additional Compliance Considerations

In addition to the tasks outlined above, there are several other considerations:

• Maintain constant communication with your tax professionals to ensure all conditions are met for your filings.
• Utilize automation tools to manage and streamline compliance processes. Having dedicated tools for depreciation calculations and bank statement imports can save you time and reduce errors.
• It’s also advisable to consider subscribing to tax magazines that keep you updated on compliance and tax-related news.

Conclusion

As the March 31, 2025 deadline approaches, being proactive about these compliance tasks will not only keep you in good standing with tax authorities but will also help you avoid unnecessary financial burdens. The implications of failing to comply can be significant, resulting in penalties and interest that could impact your business operations. Keep track of these deadlines and ensure that all required filings are completed on time.

Embrace these steps, connect with your accountants, and stay informed. Engaging in proper compliance practices will set your business up for a successful year ahead. For any further assistance, don’t hesitate to reach out through our contact provided, or engage with our materials to guide you through the process. It’s better to be prepared now than to face challenges later!