GST Compliance Checklist: Important Tasks Before 31st March 2025

As the financial year 2024-25 comes to a close, businesses must complete key GST-related tasks to ensure compliance and avoid penalties. Below is a GST compliance checklist of important GST obligations to be fulfilled before 31st March 2025.

GST Compliance checklist

Apply for LUT for FY 2025-26

Entities making export of goods or export of services or entering into transaction with SEZ units shall apply for Letter of Undertaking (LUT) before 31^st March 2025 for the F.Y 2025-26 for entering into transactions without payment of IGST.

Opting for the Composition Scheme

Eligible businesses wishing to opt for the Composition Scheme for FY 2025-26 should file Form CMP-02 by 31st March 2025.

Taxpayers transitioning from a regular taxpayer to a composition dealer must reverse their Input Tax Credit (ITC) on stock and capital goods by filing Form ITC-03.

Filing of Form GSTR-9C (Reconciliation Statement)

Taxpayers who have filed their form GSTR 9 for F.Y 2017-18 to 2022-23 but have failed to file form GSTR 9C (reconciliation statement) along with GSTR 9 can file the form GSTR 9C before 31^st March 2025 to avoid late fees.

ISD Registration Requirement

Entities functioning as Input Service Distributors (ISD) must obtain mandatory registration to distribute Input Tax Credit (ITC) received centrally to different branches under separate GST registrations.

Opting for the QRMP Scheme

Taxpayers those who wish to opt in or opt out of QRMP scheme for the F.Y 2025-26 are required to do so before 31^st March 2025.

GST Amnesty Scheme – Section 128A

GST Amnesty scheme (Section 128A) was introduced in the 53^rd GST council meeting to help the taxpayers by waiving interest, late fee and tax demands for demands raised under section 73 with effect from 1^st November 2024 for the F.Y 2017 -18, 2018-19 and 2019-20.

To avail the benefit under this scheme the taxpayers have to pay their taxes before 31^st March 2025 and are required to file Form SPL 02.

Changes in GST Rates for Restaurants in Hotels (Effective 1st April 2025)

The Ministry of Finance has amended GST rates for restaurants inside hotel accommodations through Notification No. 05/2025, applicable from 1st April 2025.

• The definition of “declared tariff” has been omitted, and the definition of “specified premises” has been updated.
• Hotels where the value of accommodation exceeds ₹7,500 per unit per day have the option to charge:
  • 5% GST (without ITC)
  • 18% GST (with ITC)
• Businesses must file the necessary declaration before 31st March 2025 using the relevant annexures:
  • Annexure VII – Opt-in declaration for existing registered hotel suppliers
  • Annexure VIII – Opt-in declaration for newly applying registrants
  • Annexure IX – Opt-out declaration for existing registered suppliers

(Definition of Specified premises refer to the end of the post)

Declaration by Goods Transport Agencies (GTA)

Goods Transport Agencies (GTA) can opt to pay tax under forward charge at 12% GST by filing a declaration in Annexure V before 15th March 2025.

• If this declaration is not filed, tax liability shifts to the recipient under reverse charge.

Definition of Specified premises as defined in the N.No 05/2025

“(xxxvi)“Specified premises”, for a financial year, means,-

(a)  a premises from where the supplier has  provided  in  the  preceding financial year, ‘hotel accommodation’ service having the value  of  supply of  any  unit  of  accommodation  above  seven  thousand  five  hundred  rupees per unit per day or equivalent; or

(b)    a premises   for    which a registered person supplying ‘hotel accommodation’ service has  filed  a  declaration, on or  after  the  1st  of January  and  not  later  than  31st  of  March  of  the  preceding  financial  year, declaring the said premises to be a specified premises; or

(c) a premises  for  which a  person  applying  for  registration has  filed  a declaration,  within  fifteen  days  of obtaining  acknowledgement  for the registration application, declaring  the  said  premises  to  be  a specified premises;”;

Disclaimer

The content provided in this post is for general informational purposes only and does not constitute professional advice. While every effort is made to ensure the accuracy and reliability of the information, it may not reflect the most current legal or regulatory developments. Readers are advised to consult with a qualified professional or refer to official government resources for specific advice related to Goods and Services Tax (GST).