Here's a checklist of tasks that businesses should consider before finalizing their financial statements for FY 2023-24 and transitioning to FY 2024-25:

Various Registration for opting GST benefits

1. LUT for Export without payment of GST - File letter of undertaking for FY 2024-25 on or before 31st March 2024.

2. E-Invoice - Register for e-invoicing on https://einvoice1.gst.gov.in/ if aggregate turnover exceeds INR 5 crores in FY 2023-24.

3. Composition Taxpayer - Opt-in for composition scheme by filing CMP-02 on or before 31st March 2024.

4. In case of transition from regular to composition taxpayer, ITC-03 is to be filed within 60 days from commencement of financial year i.e., on or before 30th May 2024.

5. QRMP (Quarterly Return Monthly Payment)- Opt-in our Opt-out of QRMP scheme for FY 2024-25 on or before 30th April 2024. The QRMP allows the taxpayer with aggregate turnover below INR 5 crores to file their returns on quarterly basis with monthly payment of tax liability.

6. Additional GST registration requirement - Aadhar Authentication of authorized person.

7. Additional GST registration requirement - GEO Code updation.

8. Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers - To comply with the above notification, online filing in Annexure V Form and Annexure VI Form is available on the portal for the existing GTA taxpayers for filing declaration in Annexure V Form or Annexure VI Form for the succeeding FY 2024-25 from 01.01.2024 to 31.03.2024.


Before finalizing accounts please consider following points related to Outward Supply- 

1. Reconcile the revenue from operations, other income as per financial statement and sale of fixed assets as per financials with GSTR 1 and GSTR-3B. In case of any differences, do appropriate correction in the books of accounts or disclosure in the GST returns, as the case maybe.

2. Reconcile the debit notes and credit notes as per books with GSTR-1 and GSTR-3B and differences, if any, shall be accounted for accordingly.

3. In case of exempt supplies, ensure bill of supply is issued and reported in GST returns.

4. In case of supply between related parties, verify whether provisions of Section 15 – Valuation of CGST Act, 2017 read with Rule No 28 of CGST Rules, 2017 is followed by the taxpayer.

5. Reconcile the invoices / credit notes / debit notes as per books with e-invoice portal to ensure that IRN is generated for all B2B, exports and SEZ supplies. The non-generation of e-invoice will render the tax invoice invalid, resulting in possible loss of ITC to the purchaser and penalty for non-issuance of valid invoice to Seller. The government has made it mandatory to generate e-invoice within 30 days from the date of invoice. 

6. In case of goods, reconcile the tax invoice data with e-way bill data to identify discrepancies, if any. 

7. In case of export of goods, reconcile the shipping bills details with GSTR-1. This is necessary for claiming the refund of unutilized ITC/GST paid on export.

8. In case of supply of services, reconciliation of advances received and adjusted as per financials with details disclosed in GSTR-1 and whether applicable tax has been discharged / adjusted in respect of same. In case of any difference, the tax shall be promptly discharged / adjusted on such advances, as the case maybe. Calculate the aggregate turnover of the Company as per GST law and reconcile the same with aggregate turnover generated by system on GSTN portal. Any difference therein can be updated on the GSTN portal. Aggregate turnover is also crucial for various other GST provisions such as applicability of e-invoice provisions, Composition Scheme, QRMP scheme, number of HSN / SAC codes applicability etc.


In case of ITC availment and utilization

1. Reconcile the ITC available as per GSTR-2B with ITC availed as per financials and GSTR-3B. If any differences, appropriate action (availment or reversal) shall be undertaken.

2. Communicate the vendors for supplies not reflecting in the GSTR-2B of the Company. ITC in respect of invoices not reflected in GSTR-2B is not allowed.

3. If there is any exempt income undertaken during the financial year, ITC reversal shall be re-calculated and considered in accordance with Rules 42 and 43 of CGST Rules at the end of year. Any additional reversal required shall be accounted for in GSTR-3B of March 2024 or thereafter. Alternatively, if excess ITC has been reversed by the Company during the year, such excess ITC can be reclaimed in March 2024 GSTR-3B or thereafter.

4. Verification of creditors aging report to identify invoices wherein payment is due for more than 180 days and ITC claimed in respect of supplies from such vendors shall be reversed in Table 4B of GSTR-3B. The ITC reversed by the Company can be re-claimed upon making payment to the vendor in subsequent GSTR-3B.

5. To identify the ineligible ITC recorded in books and ensure same is expenses off or capitalized (as the case maybe). If such ineligible ITC has been availed and utilized, same shall be reversed along with interest @ 18%. Further, it must be ensured that all ineligible ITC is correctly declared in Table 4B(1) of GSTR-3B.


Also follow CBIC circular No.170/02/2022- GST which has highlighted incorrect reporting of reversal and ineligible Input Tax Credit by Taxpayers and the mechanism for correct  reporting has been given. It has been advised that entire ITC available in GSTR-2B be first reported in Table 4A of GSTR3B [In the respective fields of Table 4A(1), 4A(2), 4A(3), 4A(4) and 4A(5)]. The ITC which is eligible as well as ineligible shall be reported first in this Table 4A. ITC which is ineligible and liable to be reversed on account of section 17 (4), 17(5) [Rule 37, 38, 42 & 43] of out reported in 4A should be reported in Table 4B of GSTR3B. It has further been clarified that all permanent reversal of ITC like rule 38, 42 & 43 and section 17 (5) shall be reported in Table 4B (1) and rest temporary reversal or temporarily ineligible ITC shall be reported in Table 4B(2).