Financial year books closing is a very tedious job for every accountant in GST perspective. Now, we wish to highlight few check points which should be considered while financial year books closing.
• If E-invoice is not applicable on your GSTN during the financial year 2024-25, Please check whether your aggregate turnover has been crossed Rs. 5 Crores during the financial year 2024-25. If yes, then the E-invoicing rules are applicable on your GSTN from 1st April,2024.
• If you wish to change the frequency of GSTR-1 & 3B returns filing for the next financial year 2025-26, you may amend the same on your GST portal before 30th April,2025.
• Reconciliation of turnover between GST returns (GSTR-1 & 3B) and books of accounts should be done for the whole financial year and if there is any difference, the same should be rectified in the March month GST return. However, any transaction reported on GST portal for FY 2024-25 could be rectified till October,2025.
• Please check whether the registered person have disclosed other incomes (Non-business) in their GST returns like Rent, Commission, Interest etc. The GST registration is PAN Based, not for any specific business. It means, all receipts on any PAN, whether business or non-business, whether taxable or exempt, should be part of GST returns.
• Please also check that the e-invoices have been prepared for all the sales invoices, debit & credit notes issued during the year as applicable. If any document found for which e-invoice was required to be issued but not issued yet, you may prepare the e-invoice now, if your turnover is below 100 Crores.
• If any GST input for the FY 2024-25 are not showing in GSTR-2A/2B on your GST portal, you should immediately follow up with your suppliers & strictly instruct them to furnish their invoices in their GSTR-1 return for the March month, for which last date is 11/13 April. Otherwise, the supply receiver are not eligible to claim ITC for such invoices.
• Please check, whether any ineligible ITC has been claimed in the GST returns of the FY 2024-25. If yes, then such inputs should be reversed in the GST returns & pay interest thereon to avoid the litigation.
• As per GST law, if any payment is not made to the suppliers within 180 days of the invoice date, the proportionate ITC should be reversed with interest. However, such ITC reversed could be claimed again once payment made to the supplier.
• Payment of RCM: Taxpayers should check the expenses in books like legal fees to advocate, rent paid for residential premises, Payments to Goods Transport Agency etc. and the GST RCM liability should be calculated on such amount paid for the year. The taxpayer should also check the GSTR-2A for inward supplies marked as tax payable under reverse charge.
• If the registered person made any GST exempt supplies (excluding interest) during the year, the common GST inputs should be reversed in GSTR-3B return in the ratio of GST taxable & exempt supplies made during the year.