Year-End GST Checklist | Smooth Transition to FY 2024-25


Venturing into the FY 2024-25 brings with it a flurry of responsibilities for all GST registered firms and proprietors, particularly in the realm of GST compliance. As the curtains draw close on the 2023-24 financial year, it’s time for businesses to equip themselves with a thorough year end GST checklist. This GST checklist serves as a map, guiding GST registered firms through the labyrinth of regulatory intricacies. From reconciling Input Tax Credit (ITC) to e-invoicing, every step in the GST compliance journey is pivotal. The forthcoming FY 2024-25 beckons with new challenges and opportunities. Thus, it is essential for businesses to arm themselves with the knowledge of GST regulations and strategies outlined in this comprehensive guide. Join us on this voyage to kickstart the next financial year with complete preparedness.

  1. Navigating the ITC Maze: Mastering year end GST Compliance

Ensuring adequate Input Tax Credit (ITC) reconciliation is vital for businesses to maintain GST compliance for FY 2024-25. Here’s how you can effectively manage this process:

–        Reconcile ITC

It’s crucial to compare the ITC recorded in your accounts with what you have claimed in your GSTR-3B and GSTR-2B diligently. This ensures that all eligible credits are properly accounted for, minimizing the risk of discrepancies that could lead to penalties or audits.  For FY 2023-24, the time limit to claim ITC on invoices or debit notes is 30th November 2024. The common issue encountered by many companies is the non-reflection of ITC in their GSTR 2A form. This occurs when the supplier fails to include, misses, or incorrectly lists the invoice number. Consequently, this situation results in locked credits and financial losses for the client. Thus, for the last FY 2023-24, if any details are missing related to ITC in GSTR-3B of a company or GSTR-2A, they can claim it by 30th November 2024.

–        Follow Up with Suppliers to avoid ITC Claim hassles

Communication with suppliers is a fundamental part of the GST checklist to ensure appropriate ITC claim. As we know, the time limit to claim ITC on invoices or debit notes of a financial year is now the earlier of two dates: either November 30th of the following year or the date of filing annual returns. Imagine a scenario where a client, XYZ Pvt Ltd, notices discrepancies in their 2A form regarding ITC claims. Upon reaching out to their supplier, they discovered that invoices were mistakenly entered with incorrect details. By following up and rectifying these errors before 30th November or the annual return filing date, XYZ  Pvt Ltd prevents potential credit lockups and financial losses.

–        Timely Reversal of Ineligible ITC

Identify and reverse any ineligible ITC claimed to prevent compliance issues. If the eligible ITC was erroneously reversed, reclaim it in your March 2024 GSTR-3B. This proactive approach helps maintain accurate financial records and prevents unnecessary financial losses. For instance, if your company mistakenly claimed ITC for goods not related to business activities, reversing this claim promptly would prevent litigation costs, interests and penalties.

–        Adhering to the 180-Day Rule

Adhere to the 180-day rule by reversing ITC on invoices where payment to suppliers has not been made to suppliers even in 180 days from the invoice date as per Rule 37 of GST Act 2017. However, you can avail this ITC again upon payment. This practice ensures compliance with GST regulations and helps manage cash flow effectively. For instance, if your company experienced delays in payments to suppliers due to unforeseen circumstances, reversing ITC within the stipulated time frame would prevent any litigation costs, interests and penalties. One must note that the re-availing of ITC is not subject to any time limit. Hence, the time restriction till 30th November of the subsequent year does not apply to re-availment of ITC in case of non-payment to supplier after 180 days.

–        Reviewing Exempt Income

Reviewing any exempt income earned during the year is vital for recalculating ITC reversal accurately. Goods or services exempt from GST already have a 0% GST rate. ITC cannot be availed for materials used in producing these exempt items as it would result in negative taxation. Therefore, the input tax credit claimed for inputs used in exempted goods or services must be retracted. Excess reversal can be reclaimed in your March 2024 GSTR-3B, ensuring that your financial records align with regulatory requirements. Consider a consultancy firm that provides educational services, exempt from GST. Previously, they claimed ITC for office supplies used in delivering these services. However, upon reviewing their finances, they recognize that ITC cannot be claimed for exempted income.

  1. Harmonizing Turnover Reporting

–        Ascertaining Precise Turnover Reconciliation

Comparing turnover reported in GSTR-1/3B with internal books ensures accuracy. For instance, a service provider should meticulously reconcile consulting fees reported in GSTR-1 with their accounting records to avoid discrepancies.

–        Tackling Discrepancies with Debit and Credit Notes:

According to Section 34 of the CGST Act, businesses must issue debit and credit notes for any adjustments in taxable value or tax amount of outward supplies. Checking for any mismatches between internal notes and GST returns is important. For instance, a manufacturer should ensure that debit and credit notes for returned goods accurately reflect in both their books and GST filings to maintain consistency.

–        Ensuring Compliance with Exempt Supplies:

In line with CGST Act, businesses must issue a bill of supply for exempt supplies. For instance, a local farmer’s market sells organic produce exempt from GST. To comply with regulations, they diligently provide a Bill of Supply for each sale. However, if they fail to do so, they risk facing penalties under the CGST Act 2017, potentially incurring fines.

–        Streamlining E-Way Bills

As per Rule 138 of the CGST Rules, businesses must generate e-way bills for the movement of goods exceeding specified limits. Consider, a manufacturing company that dispatches goods worth over Rs. 50,000 to its distribution center, triggering the need for an e-way bill as per Rule 138 of the CGST Rules. However, failure to generate the e-way bill results in a penalty of Rs. 10,000 or the amount of tax evaded, whichever is higher, as per section 122 of the CGST Act 2017. Additionally, if an incorrect e-way bill is generated, the penalty is 50% of the tax amount or the value of the goods, with a minimum of Rs. 10,000.

–        Harnessing the Power of E-Invoicing

Validating a tax invoice with an Invoice Reference Number (IRN) is critical for businesses under e-invoicing regulations, as mandated by CGST Rule 48. The CBIC extended e-invoicing to businesses with over Rs 5 crore turnover starting August 1, 2023. For instance, a technology firm with a turnover of Rs. 6 crore annually has to ensure that all electronic invoices are reported with a valid IRN to comply with e-invoicing requirements.

  1. Other Vital Activities for enhancing GST Compliance

–        Crafting a New Tax Invoice Series: Promoting Transaction Identification

Establishing a unique document series for FY 2024-25 transactions is necessary for accurate record-keeping and GST compliance in line with Section 31 of the CGST Act. Consider a manufacturer of furniture setting up a new invoice series for the upcoming financial year to differentiate transactions and maintain organized financial records to sustain GST compliance.

–        Empowering Exporters: Securing Letter of Undertaking (LUT)

Exporters must apply for a Letter of Undertaking (LUT) for FY 2024-25 using Form GST RFD-11 before March 31st, 2025, to continue exporting goods without paying GST, thereby streamlining international trade operations and avoiding the blockage of funds otherwise held in GST refunds.

–        Crucial Deadline regarding the QRMP Scheme

Taxpayers with turnover below ₹5 crores have until April 30th, 2024, to opt-in or out of the Quarterly Return Monthly Payment (QRMP) scheme for FY 2024-25. This scheme offers flexibility and simplifies tax compliance for small businesses.


  1. Key GST Portal Updates

–        Revolutionizing GTA Functionalities: Smoothening Tax Declarations

Goods Transport Agency (GTA) taxpayers can now file declarations online, opting for either forward charge or reverse charge mechanisms. This enhancement, aligned with Section 52 of the CGST Act, simplifies tax processes for transporters. Let’s understand with the illustration of ABC Logistics, a Goods Transport Agency. It previously faced challenges in filing tax declarations due to manual processes. With the recent implementation of online declaration filing, ABC Logistics can now conveniently choose between forward or reverse charge mechanisms.

–        Expanding Payment Options

The GST portal now supports payment via credit/debit cards and Unified Payments Interface (UPI), enhancing convenience for taxpayers. This development, in line with Section 49 of the CGST Act, modernizes payment methods and promotes digital transactions. Now, a service provider effortlessly settles their GST dues using modes such as a credit card on the GST portal.

–        Updated Submission of Bank Account Details

Mandatory for all GST registered firms and individuals, up-to-date submission of bank account details on the GST portal is essential to avoid suspension of GSTIN. This requirement, outlined in Section 25 of the CGST Act, ensures transparency in financial transactions.


Our exhaustive Year-End GST Checklist for FY 2024-25 furnishes businesses with the tools to deftly navigate the intricate terrain of GST regulations with finesse and precision. From reconciling Input Tax Credit (ITC) to embracing cutting-edge e-invoicing and e-waybill systems, each stride is pivotal in ensuring a seamless confluence of compliance and operational efficacy. By adhering to our GST checklist and remaining attuned to regulatory metamorphoses, GST registered firms can confidently embark upon the new financial frontier, poised for triumph in the ever-evolving realm of GST compliance. Sharpen your year-end tax management skills with USAIndiaCFO. Our firm possesses an adept team of tax mavens who will enable complete conformity to varied GST regulations effortlessly to enable a slick transition to the next financial year. Schedule a call now!