Important work before 31st March 2025

Summary

In this informative video, the speaker emphasizes key tasks that accountants, chartered accountants, and advocates must complete before March 31st to avoid complications. These tasks include filing LUT for export without tax payment, opting for the composition scheme, filing declarations for changes in GST taxation mechanisms, and calculating aggregate turnover for the year. The speaker also discusses crucial updates on reverse charge mechanisms (RCM), TDS, and ITC reversal under GST rules. The video aims to help professionals stay ahead by managing deadlines, ensuring compliance, and optimizing tax benefits. The speaker also promotes their monthly magazine for further insights.

Takeaways

• 😀 Ensure all accountants, chartered accountants, and advocates complete important tasks before March 31st to avoid potential issues.
• 😀 Export businesses need to file a Letter of Undertaking (LUT) if they wish to export without paying taxes. Make sure your client has filed it before March 31st.
• 😀 If a client wants to opt for the Composition Scheme for FY 2025-26, they must fill out the necessary form and opt for it before March 31st.
• 😀 Transporters (GTA) wishing to switch to the Forward Charge Mechanism (FCM) for tax payment must file a declaration on the portal before March 31st.
• 😀 Reverse Charge Mechanism (RCM) is applicable for commercial rents paid to unregistered suppliers. Make sure your clients are complying with this from October 2024.
• 😀 Clients must check whether they are required to reverse ITC as per Rule 42 and 43 for any personal use supplies.
• 😀 Verify whether clients need to reverse ITC due to unpaid supplier payments older than 180 days, following Rule 37.
• 😀 Calculate the aggregate turnover for FY 2024-25 on the basis of the PAN to decide on GST requirements, such as GSTR-1, GSTR-3B, and other obligations for FY 2025-26.
• 😀 Ensure clients are following the provisions of Section 128A for the scheme benefits and tax payment before March 31st to avoid penalties.
• 😀 Keep track of all due dates for March 2025, especially for compliance with GST, income tax changes, and other necessary actions to avoid penalties and issues.

Q & A

What is the first important task to complete before March 31st, 2025?

The first important task is to file the Letter of Undertaking (LUT) if your client is in the export business and plans to export without paying tax.

What does LUT stand for, and when is it required?

LUT stands for Letter of Undertaking. It is required when a person wishes to export goods or services without paying GST or when supplying goods to an SEZ developer or an SEZ unit.

What is the 'Composition Scheme,' and what should be done to opt for it before March 31st, 2025?

The Composition Scheme allows businesses to pay tax at a lower rate. To opt for the Composition Scheme for the financial year 2025-26, the form must be filed before March 31st, 2025.

How can a client switch from the Reverse Charge Mechanism (RCM) to the Forward Charge Mechanism (FCM)?

A client can switch from RCM to FCM by filing a declaration on the portal before March 31st, 2025, and opting for the Forward Charge Mechanism for the financial year 2025-26.

What happens if a client moves from FCM to RCM?

If a client switches from FCM to RCM, they must inform the authorities before March 31st, 2025. This change requires filing a declaration on the portal.

What is the significance of calculating aggregate turnover before March 31st, 2025?

Calculating the aggregate turnover helps determine various GST obligations, such as whether e-invoicing, HSN code requirements, and GST registration apply. It must be calculated based on PAN to ensure compliance for the 2025-26 financial year.

What new GST rule related to commercial rent was introduced in 2024?

A new rule came into effect from October 9, 2024, stating that GST under Reverse Charge Mechanism (RCM) is applicable on rent paid for commercial premises rented from an unregistered supplier.

What is the '128A scheme,' and why should it be completed before March 31st, 2025?

The '128A scheme' is a GST scheme for small businesses. If a client is eligible, the tax should be paid under this scheme before March 31st, 2025, to avail of its benefits.

What does Rule 42 and 43 entail in the context of ITC reversal?

Rule 42 and 43 require businesses to reverse Input Tax Credit (ITC) if the goods or services are used for personal purposes or for exempted supplies. The reversal must be done before the year-end.

What is Rule 37, and when should it be applied regarding ITC reversal?

Rule 37 requires the reversal of ITC if payment to the supplier is not made within 180 days. Businesses must ensure to reverse ITC for unpaid dues beyond this period before March 31st, 2025.