Saturday, March 23, 2024

Year-End GST Compliance: Checklist for FY 2023-24

As the fiscal year 2023-24 draws to a close, the importance of adhering to GST compliance cannot be overstated. Ensuring that your business meets these obligations is akin to conducting a thorough maintenance check on a vehicle before embarking on a long journey. It's about avoiding the pitfalls of non-compliance and ensuring a smooth transition into FY 2024-25. This guide aims to simplify the complex web of GST compliance into a straightforward checklist, ensuring that you're well-prepared for the year ahead.

1. File Your LUT for FY 2024-25

The Letter of Undertaking (LUT) is a critical document for businesses engaged in the export of goods or services, allowing them to bypass IGST payments. Ensure that your LUT for FY 2024-25 is filed by April 1, 2024, to continue enjoying this benefit.

2. Assess E-Invoicing Requirements

The mandate for e-invoicing, applicable to businesses with an aggregate turnover exceeding INR 5 crores in any previous FY starting from 2017-18, necessitates a review of your turnover for FY 2023-24. If applicable, prepare to implement e-invoicing from the beginning of FY 2024-25.

3. File GST Refund Applications Promptly

The deadline for filing GST refund applications is two years from the relevant date. Review any potential refunds and ensure applications are submitted before this deadline to recover any excess GST paid.

4. Opt for the QRMP Scheme if Eligible

The Quarterly Return Monthly Payment (QRMP) scheme offers a more manageable compliance process for smaller taxpayers with an aggregate turnover of up to INR 5 crores. Evaluate your eligibility and consider opting in to streamline your GST filings.

5. Initiate a New Series for Invoice Numbers

As per GST regulations, a unique invoice number series is required for each FY. Ensure that you start a new series from April 1, 2024, to maintain compliance and organizational integrity.

6. Undertake Thorough Reconciliations

  • Sales Reconciliation: Reconcile sales invoices and GST filings to identify discrepancies. Ensure all sales invoices are issued before the end of March 2024 and accurately reflected in your GST returns.
  • ITC Reconciliation: Verify your Input Tax Credit claims against your purchases and GST filings. Avail of all eligible ITC for FY 2023-24 and ensure accurate reporting in GSTR 3B.

7. Address RCM Obligations

Review your purchases and expenses to identify transactions subject to Reverse Charge Mechanism (RCM). Ensure these transactions are accurately accounted for and reported in your GST filings.

Chart Overview:

Before concluding, let's visualize the key actions in a simplified chart for ease of reference:

File LUTApril 1, 2024For exporting without IGST.
Assess E-InvoicingBefore April 2024For businesses with turnover > INR 5 crores.
File GST Refunds2 years from dateEnsure timely submission of refund applications.
Opt for QRMP SchemeFY 2024-25For smaller taxpayers with turnover ≤ INR 5 crores.
New Invoice SeriesApril 1, 2024Start a new series for FY 2024-25.
Reconciliations (Sales & ITC)March 2024Reconcile invoices, GST filings, and ITC claims.
Address RCM ObligationsFY 2023-24Ensure accurate accounting and reporting of RCM transactions.


By systematically following this checklist, you can ensure that your business remains compliant with GST regulations, avoiding penalties and facilitating a smoother operational flow into the new financial year. Remember, proactive preparation and early action are the keys to navigating GST compliance with confidence.