As the financial year 2024-25 comes to a close, businesses must prioritize GST compliance to avoid penalties, optimize tax benefits, and ensure smooth operations. Meeting regulatory requirements before March 31, 2025, is crucial for a hassle-free transition into the new financial year. This article outlines the key deadlines, necessary actions, and expert insights to help businesses stay compliant.
In This Article:
Renewal of LUT for Exporters
Deadline: Before April 1, 2025
Action Required: Exporters operating without tax payment must renew their Letter of Undertaking (LUT) for the financial year 2025-26. Failure to renew can lead to tax liabilities on exports, affecting cash flow and operational efficiency.
Adoption of a New Invoice Series
Effective From: April 1, 2025
Action Required: As per Rule 46(b) of the CGST Rules, 2017, businesses must implement a new invoice numbering system at the beginning of each financial year. This ensures structured record-keeping, prevents duplication, and aligns with GST regulations.
Declaration for Goods Transport Agency (GTA) Under Forward Charge
Deadline: March 15, 2025
Action Required: Goods Transport Agency (GTA) service providers opting for GST under the forward charge mechanism must submit Annexure V before the deadline. This enables a seamless tax credit claim process and compliance with GST norms.
Annual ITC Reversal Calculation
Deadline: March 2025 GST Return Filing
Action Required: Businesses that claim Input Tax Credit (ITC) on common inputs, input services, and capital goods must:
- Perform an annual ITC reversal calculation as per Rule 42 or 43 of the CGST Rules, 2017.
- Adjust any excess or shortfall in ITC reversal in the March 2025 GST return.
- Report additional reversals by April 1, 2025, to avoid interest charges.
Amnesty Scheme for Past GST Liabilities
Tax Payment Deadline: March 31, 2025
Form Submission Deadline: June 30, 2025
Action Required: Under Section 128A of the CGST Act, 2017, taxpayers can settle outstanding GST demands for FYs 2017-18, 2018-19, and 2019-20 with waivers on interest and penalties. Payments must be completed before March 31, 2025, and forms submitted by June 30, 2025. Additionally, any appeals filed against tax demands must be withdrawn to benefit from the scheme.
Late Fee Waiver for GSTR 9 & GSTR 9C
Deadline: March 31, 2025
Action Required: Businesses that filed GSTR 9 (Annual Return) but have pending GSTR 9C (Reconciliation Statement) must file it before March 31, 2025, to avail late fee waivers under Section 47 of the CGST Act, 2017. Any late fees incurred between the filing dates of GSTR 9 and GSTR 9C will be waived if compliance is met before the deadline.
Filing of Annual RODTEP Return (ARR) for Exporters
Deadline: March 31, 2025
Grace Period: Until June 30, 2025 (subject to Rs. 10,000 composition fee)
Action Required: As per Public Notice No. 27/2024-25, Import-Export Code (IEC) holders with RODTEP claims exceeding Rs. 1 crore for FY 2023-24 must submit an Annual RODTEP Return (ARR) before March 31, 2025. A three-month grace period is available, subject to a Rs. 10,000 composition fee.
Final Checklist for Year-End GST Compliance 2025
- Renew LUT for tax-free exports before April 1, 2025.
- Adopt a new invoice numbering system starting April 1, 2025.
- Submit GTA forward charge declaration by March 15, 2025.
- Reconcile and adjust ITC reversals in March 2025 GST returns.
- Settle outstanding GST liabilities under the Amnesty Scheme by March 31, 2025.
- File pending GSTR 9C before March 31, 2025, to avoid late fees.
- Submit ARR for RODTEP claims over Rs. 1 crore before March 31, 2025.
Adhering to GST compliance deadlines is crucial for businesses to avoid penalties, optimize tax benefits, and ensure a seamless transition into the next financial year. Proper planning, timely filings, and proactive actions can help businesses stay compliant while maintaining financial efficiency. For detailed guidance and professional tax advisory, businesses should consult with GST experts or chartered accountants.
By – Jyothi
