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As we approach March 31, 2024, it's crucial for businesses in India to tackle their year-end compliance tasks. This guide simplifies the must-do's for legal adherence and financial health, ensuring you're ready for the fiscal close related to your GST and MSME Compliance.
GST Compliances:
GST LUT Filing for FY 2024-25: For businesses engaged in exports, filing the Letter of Undertaking (LUT) for the upcoming financial year is imperative to avail GST exemptions on exports.
You can read our previous post which lays out the benefits of LUT by clicking here.Composition Scheme: A manufacturer, trader, or small restaurant service provider can opt for composition scheme for FY-2024-25 before 31st March 2024, for reduced tax rates and fewer compliance requirements. Criteria to opt in is your business's turnover in the previous financial year must be below INR 1.5 crores (INR 75 lacs for special category states).
QRMP Scheme: Any registered person can opt for the QRMP scheme for FY-2024-25 before 31st March 2024. The scheme allows small taxpayers to file GST returns quarterly instead of monthly, while still paying taxes on a monthly basis, simplifying compliance.
The Opt-In Criteria:
Turnover Limit: Your business' aggregate turnover in the previous financial year must be less than INR 5 crores.
Filing History: You must have filed your last due GSTR-3B return.
Invoice-related Compliances: Before 31st March 2024, please ensure the following Invoice-related compliance are seen through so that you have a smooth FY-2024-25:
New Invoice Series: Businesses must start a fresh invoice series for the financial year 2024-25, ensuring a clear distinction from the previous year's invoices.
Deadline for Old Invoices: All invoices pertaining to the financial year 2023-24 must be issued by March 31, 2024.
Limited Window for E-Invoice Error Correction: Businesses filing E-Invoices have just 48 hours after submission to fix any errors identified by the portal. This highlights the critical nature of March 30th and 31st for timely rectification and avoiding potential GST non-compliance penalties.
MSME Compliance:
Clear Outstanding Dues: Businesses must settle any outstanding dues with MSME creditors exceeding 45 days as of March 31, 2024, to evade interest, penalties, the disallowance of expenses, and foster healthy business relationships.
From the 2023-24 financial year, any amounts payable to MSMEs as of 31st March that remain outstanding for more than 45 days will be disallowed as expenses during your income tax calculation.
Review your accounts payable and make provisions for potential tax implications due to this change.
This structured approach will help your business have a painless, year-end compliance experience. By leveraging the comprehensive features of Effortless, from accounting and compliance to invoicing and payments, you can ensure that your business remains compliant, efficient, and ready for growth in the coming fiscal year.
Need Help?
Feeling overwhelmed? Effortless is here to support you with a tailored compliance plan that fits your business needs. Let's step into the new financial year confidently and compliantly!
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