As the new financial year 2024-25 dawns upon us, it’s crucial to ensure compliance with both GST (Goods and Services Tax) and Income Tax regulations. Here’s a comprehensive checklist covering both aspects:
GST Compliance:
Review GST Registration:
Verify if your business turnover exceeds the GST threshold limit for registration (Rs.20 Lakhs in case of supply of Services or G/S both and Rs.40 Lakhs in case of exclusive supply of Goods, Except for few states). If so, register for GST to avoid penalties.
Update GSTIN Details:
Ensure your GSTIN (Goods and Services Tax Identification Number) details are accurate and up to date in all your business documents, Like
- Address of your Business Place,
- Additional Place of Business,
- E mail id & Mobile Number,
- List of Goods and services
- Authorised Signatory etc.
Maintain Proper Invoicing:
Follow the prescribed format for GST-compliant invoices. Include all mandatory details such as
- GSTIN, HSN/SAC codes, and tax amounts,
- New & Unique invoice series for new FY
- Check if your business cross Aggregate Turnover limit of 5 Crore then start E inocing form 1st April 2024
File GST Returns Timely:
Adhere to the due dates for filing monthly, quarterly, and annual GST returns based on your turnover and registration type.
Reconcile Input Tax Credit (ITC):
Regularly reconcile your input tax credit against your purchases. Verify ITC availability and correctness to avoid discrepancies during audits.
Reversal of ITC
Make sure to comply with GST Rules for ITC Reversal Rule 37, 42, 43 and Section 17(5)
Check DRC notices
in case of Mismatch in GSTR-1, 3B and 2B, GST Department issue various DRC notice for which reply is mandatory. Do not miss these notices
Implement E-invoicing:
Embrace the E-invoicing system for applicable businesses to generate invoices in the prescribed format and ensure seamless compliance with GST regulations.
Manage E-Way Bills:
Generate E-way bills for the movement of goods as per GST provisions. Ensure accurate documentation and compliance with E-way bill requirements to prevent delays and penalties.
Cancel GST Registration:
If you do not require GST number for reasons, then cancel your GST number but make sure to do the compliances before and after applying for Cancellation as discussed in below video:
Stay Informed about Changes:
Keep abreast of any amendments or updates in GST regulations issued by the GST Council or the CBIC (Central Board of Indirect Taxes and Customs).
Subscribe to CA Guru Ji YouTube Channel to stay updated
Income Tax Compliance:
File Income Tax Returns (ITR):
Determine your tax liability and file your income tax returns accurately before the due date based on your income sources and category.
Avail Tax Deductions:
Explore and utilize available tax deductions under various sections such as 80C, 80D, and 80G to minimize your tax liability.
Maintain Financial Records:
Keep comprehensive records of your income, expenses, investments, and tax-saving instruments for accurate reporting and compliance.
Missed ITR filing:
In case you forgot to file ITR for Past Financial year then use ITR U, watch below video to know in detail:
Cash Transactions
Monitor how much you are spending or accepting in cash as income tax department put limits in cash transactions, watch below video to know:
Monitor TDS Deductions:
Ensure timely deposit of TDS (Tax Deducted at Source) by deductors and verify TDS credits reflected in Form 26AS and AIS for claiming tax credits.
MSME 45 Days payment Rule
Make sure to comply with new section 43B(H) of income tax and make timely payment of your creditors who are MSEM:
Plan for Advance Tax Payments:
Estimate your tax liability for the financial year and pay advance tax installments as per the prescribed due dates to avoid interest penalties.
Kindly note this is very small Checklist there may be more compliances to do, make sure to make your own checklist and keep near your work desk so that you will not miss any compliance.
Thank you
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