As FY 2024-25 comes to a close, it’s time for every GST-registered business to roll up its sleeves and tick off a number of year-end compliance tasks. Whether you’re a CA, a business owner, or a finance manager juggling monthly returns and reconciliations, you already know — the March rush isn’t just about books and balances. It’s about cleaning up mismatches, filing the right declarations, and getting your GST returns in order before it’s too late.
To help you get it all done smoothly, we’ve compiled a complete GST year-end checklist. Here’s what you should get done before March 31, 2025.
Download GST Year-End Checklist for FY 2024-25
Reconcile GSTR-1 with GSTR-3B
Start with reconciling the turnover reported in GSTR-1 and GSTR-3B. Mismatches between these two returns may lead to unnecessary interest or scrutiny during audits.
What to do:
- Reconcile GSTR-1 and GSTR-3B for each month.
- Identify any under- or over-reporting of taxable supplies.
- Make necessary amendments in GSTR-1.
- Pay differential tax through Form DRC-03, if applicable.
Using reconciliation tools provided by Optotax can help simplify and speed up this process.
Review of Input Tax Credit (ITC)
Ensure that all eligible ITC for FY 2024-25 is correctly reflected in GSTR-3B. Any ineligible credit should be reversed to avoid future notices or penalties.
What to check:
- Match ITC claimed in GSTR-3B with GSTR-2B and purchase register.
- Reverse ineligible ITC, if any.
- Check for missed credits due to supplier non-compliance.
Optotax offers a one-click reconciliation between GSTR-2B and your purchase register.
Reconcile Your Electronic Credit Ledger (ECL)
Reconcile your Input Tax Credit (ITC) across all sources. This ensures that the ITC claimed in your returns is valid and supported by your books and portal data.
What to reconcile:
- ITC claimed in GSTR-3B vs. ITC in your Electronic Credit Ledger.
- Purchase register vs. GSTR-2B, GSTR-2A, and ECL.
- E-way Bill Register (if applicable) vs. ITC on purchases.
How to do it:
- Log in to the GST portal and download GSTR-2B for each relevant month.
- Compare it with your purchase data, supplier invoices, and credit ledger.
- Identify mismatches in invoice details, tax amounts, or reporting periods.
- Take corrective actions: Follow up with suppliers, amend GSTR-3B, and reverse ineligible ITC.
With Optotax, you can generate ready-made reports like GSTR-2B vs Purchase Register, GSTR-2A vs. 2B, and more — saving hours of manual work.
Reconcile E-Way Bill Data with GSTR-1
The GST Department compares the value of outward supplies reported in GSTR-1 with E-Way Bill data. Discrepancies may trigger notices.
What to do:
- Download E-Way Bill data from the portal.
- Reconcile it with outward supplies in GSTR-1.
- Amend GSTR-1 wherever required to ensure consistency.
Review of Tax Invoices
A comprehensive review of your tax invoices for FY 2024-25 is important to avoid compliance gaps.
Checklist:
- Verify the accuracy of recipient GSTINs.
- Ensure correct HSN codes and tax rates have been used.
- Check if e-invoices were generated where applicable.
If any e-invoices were missed, generate them now and pay applicable GST to avoid penalties.
Physical Verification of Inventory
A year-end stock verification ensures that your inventory records are in sync with physical stock and compliant with both GST and income tax laws.
What to do:
- Conduct a physical stock count as of 31 March 2025.
- Reconcile physical stock with accounting books.
- Adjust discrepancies with proper documentation.
Review Pending Credit Notes
Credit notes can be issued up to 30th October following the end of the financial year. But reviewing and issuing them now ensures your March returns are clean and final.
When should you issue a credit note?
- Excess GST was charged on the original invoice.
- Goods were returned by the buyer.
- Post-invoice discounts were offered.
- Services were not delivered as agreed.
Issuing credit notes in time ensures correct tax adjustments and avoids over-reporting of liability or ITC mismatches for your customers.
Reverse Charge Mechanism (RCM) Reconciliation
RCM transactions are often missed or incorrectly reported. This is the time to go back and check every inward supply under reverse charge.
Steps to reconcile RCM:
- Identify all transactions where RCM is applicable.
- Ensure GST was paid and ITC was claimed in GSTR-3B.
- Reconcile RCM invoices with GSTR-2B, if available.
- Cross-check payment dates, tax amounts, and timing of ITC claim.
Common RCM issues to fix:
- RCM was not applied where it should’ve been.
- Tax paid, but ITC was not claimed (or vice versa).
- Mismatches in invoice numbers, tax rates, or reporting periods.
Imports & GST Reconciliation
If you import goods, reconciling your import data with GST returns is a must before year-end.
What to reconcile:
- BOE (Bill of Entry) from ICEGATE vs. import invoices.
- Import invoices vs. GSTR-3B.
- BOE details vs. GSTR-2B (if applicable).
Common discrepancies:
- Mismatch in values or descriptions between BOE and invoice.
- ITC claimed on ineligible imports.
- Recording BOEs and invoices in different tax periods.
- Errors in filing or accounting entries.
Opt for Composition Scheme (if applicable)
If you’re eligible and planning to switch to the Composition Scheme for FY 2025-26, don’t forget to file GST CMP-02 by March 31, 2025.
Why opt for composition scheme?
- Lower tax rates.
- Quarterly returns (vs. monthly).
- Less compliance hassle, better cash flow.
Execute LUT for Exporters (for FY 2025-25)
If you’re exporting goods or services without paying IGST, you must file the Letter of Undertaking (LUT) in Form GST RFD-11 for FY 2025-26 by March 31, 2025.
Failing to file LUT means you may have to pay IGST on exports and claim a refund later — which can delay cash flow and create reconciliation issues.
Collect Declarations from GTAs Opting for Forward Charge
If you’re availing transport services from a Goods Transport Agency (GTA), check whether they’ve opted to pay GST under forward charge.
What to do:
- Collect formal declarations from GTAs choosing forward charge.
- If no declaration is provided, you (the recipient) must pay GST under RCM.
- Maintain proper records to support your RCM or non-RCM treatment.
This is especially important for businesses that deal with logistics and bulk freight movement.
Settle Dues Under GST Amnesty Scheme (if applicable)
The GST Amnesty Scheme is a golden chance to clear past dues without interest and penalties under Section 128A of the CGST Act.
Applicable for:
- Dues under Section 73 for FY 2017-18, 2018-19, and 2019-20.
Conditions:
- Pay pending GST dues by March 31, 2025.
- Submit the relevant forms by June 30, 2025.
If you have old notices or pending tax amounts, now’s the time to clear the slate and avoid additional costs.
Prepare for E-Invoicing (from April 1, 2025)
From April 1, 2025, e-invoicing will be mandatory for businesses with aggregate turnover exceeding ₹5 Cr in any financial year from 2017-18 onwards.
What to do:
- Check your turnover for all past years.
- Register on the Invoice Registration Portal (IRP).
- Update your ERP or billing software to auto-generate e-invoices.
- Train your team on e-invoicing workflows.
Getting ready now will prevent disruptions in billing and GSTR-1 reporting in April.
Reset Invoice Series for FY 2025-26
As per GST rules, your invoice series must be reset at the beginning of the new financial year.
Ensure:
- A new, unique invoice series starting 1 April 2025.
- Maximum of 16 alphanumeric characters.
- Consistency in all accounting and billing tools.
Download GST Year-End Checklist for FY 2024-25
Closing Remarks
GST compliance isn’t just about meeting deadlines—it’s about avoiding future notices, penalties, and blocked credits. Whether you’re reconciling ITC, issuing credit notes, or preparing for e-invoicing, doing it before March 31, 2025, gives you the clarity and control to start FY 2025-26 on the right note.
At OPEN, we’re here to help businesses stay compliant, and with tools like Optotax, you can automate your reconciliations, reduce manual errors, and ensure you’re always a step ahead in GST compliance.
