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

FY 2023-24 serves as a comprehensive guide for businesses and professionals to ensure adherence to Goods and Services Tax (GST) regulations as they approach the conclusion of the financial year. This checklist encompasses a range of crucial compliance tasks and strategic considerations necessary for a smooth transition into the upcoming financial year.

Key GST Compliance Deadlines

Filing of Letter of Undertaking (LUT): Businesses must submit their Letter of Undertaking for zero-rated supplies by 31st March 2024.

Opting for the Quarterly Return Monthly Payment (QRMP) Scheme: Eligible registrants can choose to join or opt out of the QRMP scheme between 1st February 2024 and 30th April 2024.

Enrollment in the Composition Scheme: Businesses intending to enroll in the Composition Scheme must do so by 31st March 2024. The subsequent reversal of Input Tax Credit (ITC) filing is due by 30th May 2024.

Goods Transport Agency (GTA) Declarations: Declarations for opting into the Forward Charge Mechanism (FCM) by Goods Transport Agencies must be made between 1st January 2024 and 31st March 2024.

Financial Year-End Adjustments

Annual Reversal of Input Tax Credit (ITC): Adjustments based on Rule 42 and Rule 43 of the CGST Rules, 2017, must be finalized in the March 2024 GST returns. Late reporting may result in interest charges from 1st April 2024.
Reconciliations: Ensuring accuracy through reconciliations between books and GST returns, physical versus book stock, e-way bills, and review of HSN/SAC codes and GST rates.
Matching ITC and Reversals: Comparing ITC in books and as per GST returns, with adjustments for any discrepancies by March 2024.

Additional Considerations

New Invoice Series Requirement: From 1st April 2024, taxpayers must adopt a unique invoice series for each financial year to comply with GST rules.
Aggregate Turnover Calculation: Critical for determining eligibility for various schemes and GST compliance requirements for FY 2024-25.
E-Invoice Registration: Mandatory for taxpayers with an aggregate turnover exceeding Rs. 5 crores in FY 2023-24, effective from 1st April 2024
Machine Registration for Specified Manufacturers: Manufacturers of specified goods like tobacco must register their machines by 30th April 2024, following new GST procedures effective from 1st April 2024.

Comprehensive List of Year-End Checklist under GST

As businesses approach the end of FY 2023-24, it’s essential to comply with GST implications, including regulatory requirements and strategic decision-making. Due Dates of Various Declarations and Options under the GST Act
Ensure awareness of due dates for various provisions for FY 2024-25, such as LUT filing, QRMP scheme opt-in/opt-out, composition scheme enrollment, filing GST ITC-03, and opting FCM by GTA.

Closure of Books of Accounts

Make necessary adjustments in books of accounts and returns to prevent discrepancies, including the annual reversal of common ITC and various reconciliations for accuracy in reporting outward supplies.

Other Important Points

Consider the requirement of a new invoice series, calculation of aggregate turnover, registration for generating E-Invoice, and machine registration for specified goods manufacturers to comply effectively with GST regulations.