GST Year-End Checklist (Before 31st March Closing)

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1️⃣ Reconcile GSTR-1 vs Books (Sales Reconciliation)

• Match Sales as per Books vs GSTR-1
• Check:
  • Missing invoices
  • Wrong GST rates
  • B2B vs B2C classification errors
  • Debit/Credit notes properly reported
• Ensure amendments (if any) are done before September deadline.

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2️⃣ Reconcile GSTR-3B vs GSTR-1

• Tax payable as per GSTR-1 should match GSTR-3B
• Check:
  • Underreported liability
  • Excess liability paid
  • RCM properly discharged

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3️⃣ Input Tax Credit (ITC) Reconciliation

Reconcile:

• ITC as per Books
• ITC as per GSTR-2B
• ITC claimed in GSTR-3B

Check:

• Missed ITC
• Ineligible ITC (blocked credits u/s 17(5))
• Vendor not filed GSTR-1 (ITC not reflecting)
• Reversal required (180 days non-payment rule)

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4️⃣ Check 180 Days Payment Rule (ITC Reversal)

• If supplier payment not made within 180 days → ITC must be reversed with interest.
• Identify unpaid creditors older than 180 days.

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5️⃣ Reverse ITC for:

• Personal expenses
• Motor vehicles (if not eligible)
• Exempt turnover proportion (Rule 42 & 43)
• Capital goods adjustments

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6️⃣ RCM (Reverse Charge Mechanism) Check

Verify:

• GTA expenses
• Advocate fees
• Import of services
• Unregistered purchases (if applicable)

Ensure:

• RCM paid
• ITC claimed properly

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7️⃣ E-invoicing & E-way Bill Compliance

• All applicable invoices generated with IRN
• No missed e-way bills
• Cancelled IRNs properly recorded

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8️⃣ GST Payable on:

• Advances (if applicable)
• Unbilled revenue
• Deemed supplies
• Stock transfers

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9️⃣ Annual Turnover Verification

Check turnover for:

• GST Audit applicability (if applicable)
• E-invoicing threshold
• Composition eligibility

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✅ Income Tax Year-End Checklist

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1️⃣ TDS Compliance Check

• TDS deducted on:
  • Contractor payments (194C)
  • Professional fees (194J)
  • Rent (194I)
  • Salary (192)
  • Commission (194H)
• TDS deposited before 31 March
• No short deduction

Late deduction = Disallowance u/s 40(a)(ia)

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2️⃣ Advance Tax Review

• Calculate total tax liability
• Pay 100% advance tax by 15th March
• Avoid 234B & 234C interest

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3️⃣ MSME (Section 43B(h)) Compliance

• Outstanding to MSME beyond 45 days?
• If unpaid → expense disallowed
• Identify MSME creditors separately

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4️⃣ Section 43B Expenses

Ensure payment before 31st March for deduction:

• GST payable
• PF/ESI
• Bonus
• Leave encashment
• Interest on loan

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5️⃣ Provision vs Actual Expense Review

• Avoid excess provisions
• Ensure supporting documents
• Check year-end expense cut-off

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6️⃣ Depreciation Planning

• Add fixed assets before 31 March to claim depreciation
• Put to use before 31 March
• Review block of assets

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7️⃣ Inventory Valuation

• Value at Cost or NRV (whichever lower)
• Remove obsolete stock
• Check consistency with previous years

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8️⃣ Related Party Transactions

• Verify compliance u/s 40A(2)(b)
• Arm’s length pricing
• Proper documentation

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9️⃣ Loan & Interest Compliance

• Interest properly accrued?
• TDS deducted on interest?
• 269SS & 269T (cash loans compliance)

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🔟 Cash Transactions Review

• Cash payments > ₹10,000 (disallowed u/s 40A(3))
• Cash receipts > ₹2 lakh (penalty risk)

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🚨 Very Important Cross-Checks (GST + Income Tax Link)

• Turnover as per GST = Turnover as per Books
• Gross profit reasonable vs last year
• ITC ledger matches expense accounts
• GST receivable/payable reconciled
• RCM expenses added to turnover if applicable