As the Indian financial year draws to a close on March 31, businesses nationwide get ready for the meticulous exercise of tax compliance. For those dealing with Goods and Services Tax (GST), the annual rituals can be particularly arduous. But fear not, entrepreneurs and accountants! This comprehensive guide is packed with all the insights you need to know and strategies you need to adopt to master the GST year-end.
Setting the Stage: Understanding the Landscape
Before we delve into specifics, it is important to lay out the landscape we are navigating. As it stands currently, India’s GST regime has a multitude of deadlines and associated compliance proceedings. For instance, some of the important dates are as follows:
GSTR-9 (Annual Return): December 31 of the following financial year
GSTR-9C (Reconciliation Statement): within 7 days of filing GSTR-9
Audited Financial Statements: Within 30 days of completing the audit.
Please note, these are merely indicative deadlines – you could potentially have to meet other filing requirements, depending on the nature of your business and your registration. Always confer with a tax professional to obtain specific guidance.
A Roadmap to GST Readiness
Now, let’s go to the core – actionable steps to ensure smooth and compliant GST year-end:
Organize Your Records. This might seem self-evident but careful record-keeping is the foundation of efficient GST compliance. Ensure that you have all purchase and sales invoices, e-way bills, bank statements, and payment challans in order and that they’re accurate, complete, and easily accessible.
Reconcile Your Accounts. Reconcile your GSTR-1 (sales) and GSTR-3B (return) to your accounting records as carefully as you’re able. If you find discrepancies, resolve them immediately as mismatches can attract penalties.
Review Input Tax Credit (ITC) Claims. Scrutinize all your ITC claims to ensure their validity and that they are backed by proper documentation. Pay particular attention to invoices received after filing your returns as you will be able to claim them in later filings.
Clear Any Outstanding Dues. Pay off any outstanding tax dues before the deadline so that you can save on penalties and interest. Investigate government amnesty schemes such as the Late Fee Remission Scheme (LFRS) where appropriate.
Leverage Technology Make use of the different tools and automation that the GST portal offers.
Use the pre-filing validation facility to catch any errors before you file. Take advantage of the pre-filing validation facility to catch any errors before you submit your return.
- Consider investing in GST-compliant accounting software to make your life simpler.
Seek Professional Help There’s no shame in reaching out to a tax consultant or chartered accountant for help. Their expertise will save you time, money, and a lot of headaches.
Stay Updated It’s very important you stay on top of any rule or regulatory changes. This shouldn’t be a problem as several official government websites and advisories have all the information you need.
Prepare for the GSTR-9 According to the official GST website, the GSTR-9 is the first ever annual return under the new tax regime which you will have to file. It will be followed up by many more, most likely. To avoid any last-minute panic and spending days and nights gathering information, begin your preparation from the start of the financial year. Make sure you have all the required information such as your annual turnover, exempt supplies, ITC claimed, and tax liabilities from July 2017 to March 2018.
Also Read: How to File GSTR-9?
Conduct an Internal Audit
It’s always a good idea to conduct an internal audit before an external one is conducted. Check and identify any loopholes and issues in your compliance system. This mistake might save you from months of running around and endless back and forth.
File on Time
you should dot all your i’s and cross all your t’s by the time the last day of the month rolls around. Timely filing of returns and reconciliations will save you from penalties and more importantly, legal issues. Late filing will cost you and you know how the saying goes; ‘Time is money’. Late filing also attracts an interest and a late fee.
Follow these steps closely and you will head towards the year’s end with a lot of confidence and ease in terms of GST and march into the new financial year with no problem at all.
GST Deadlines and Resources: Key GST Deadlines (*Reminder: Specific dates can vary depending on your registration type)
| Return Form | Due Date | Description |
| GSTR-1 (Sales) | 10th of the next month | Monthly statement of outward supplies |
| GSTR-3B (Return) | 20th of the next month | Monthly return summarizing taxable supplies and ITC claimed |
| GSTR-9 (Annual Return) | December 31st of the following year | Annual summary of all outward and inward supplies, ITC claimed, and tax liabilities |
| GSTR-9C (Reconciliation Statement) | 7 days after GSTR-9 filing | Reconciles GSTR-9 data with audited financial statements |
Useful Resources for GST Compliance
| Resource | Description |
| GST Portal | Official website for GST registration, filing returns, and accessing information |
| GST Suvidha Kendra | Helpdesk for GST-related queries and assistance |
| CBIC Website | Website of the Central Board of Indirect Taxes and Customs |
Also Read: Integrating GST Compliance Into Your Business Strategy
In Conclusion: A Smooth Transition… No Sweat!
The coming year marks the first GST year-end, so you’ll need to prepare for both month-end and year-end deadlines. By following the advice and strategies outlined in this article, you can move into the year with the confidence of a person with a plan, rather than hoping for the best. Take the time necessary to get your records organized, accounts reconciled, and due dates circled on a calendar – preferably with a countdown. Enlist the help of your accounting coordinator (if you have one), controller, and/or CFO. If you don’t, it’s time to consult with a professional, if you haven’t already. Before you know it, year-end will be behind you and GST compliance will be old hat.
Also Read: GST Return Filing-Types of Returns and Process of Filing
Frequently Ask Questions (FAQ’s)
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What type of penalties can I expect for late GST return filing?
The penalty for late filing depends on the form and the period of delay. Visit the GST portal or contact a tax professional for specifics.
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How do I claim the Input Tax Credit (ITC) efficiently?
You should keep all your documentation in order, take note of the filing time limit for claiming ITC on invoices received after filing your returns, and look at available GST-compliant accounting software to smooth over ITC operations.
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What are common GST year-end filing mistakes to avoid?
Common errors include poor record maintenance, mismatching of GSTR forms, and failure to claim ITC on eligible inputs. Be vigilant, double-check your details, and seek further details on anything you find confusing.
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What changes in GST rules do I need to look for in the new financial year?
Keep checking sites like the GST Suvidha Kendra, the GST portal, and the CBIC website for any new audits, policy changes, and alerts. Additionally, consulting with an in-house tax adviser can help you identify and interpret any changes in both tax law and the corresponding regulatory changes.
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Where do I find good GST compliance resources?
Using the table from February should be a good start, for instance, the GST Suvidha Kendra, the GST portal, and one of the various websites under the CBIC umbrella can provide you with FAQs, e-books, research, videos, help ticketing systems, and various other extensive GST support.
