Puntos a tener en cuenta antes del cierre del ejercicio fiscal 2024-25, es decir, el 31 de marzo de 2025 | Parte 1

As the last date of the Financial Year 2024-25 is approaching, it is imperative for every business to undertake various measures to ensure the seamless operation of their activities and to maintain legal compliance. Businesses need to take care of various aspects such as payments to MSMEs, Filing of forms and declarations with the authority, etc. before the commencement of the new financial year.

Following are the key action points that need to be taken care of before the end of the Financial year:

1. Payment to MSME for claiming deduction under Section 43B(h) of Income Tax Act, 1961:

• As per Section 43B(h) of Income Tax Act, 1961, any entity liable to make payment to Micro and small enterprises (SME) (Not Medium enterprises) shall make the payment before the due date specified under Section 15 of MSME Act to claim deductions under Section 43B(h) of Income Tax Act.

• If any sum is payable to the MSE at the end of the financial year and payment of such amount is made beyond the due date, as specified under MSME Act, then deduction for expense shall be allowed during the year in which payment is made.

• Following are the due dates of making payment under MSME Act:

‍

• Any addition under Section 43B(h) can result in huge Income Tax liability. Therefore, it is suggested to clear the due before the specified due date for claiming deductions. 

2. Filing of Letter of Undertaking for export of goods without payment of IGST

• Under Goods and Service Tax, the exporter is allowed to export goods or services without payment of IGST subject to filing of Letter of Undertaking (“LUT”) with GST authorities. If any export is made without filing of LUT, then the exporter is liable to pay IGST on export of goods and services.

• A separate LUT is filed for every financial year. Therefore, as the new Financial year is about to commence, the exporters are required to file a new LUT before 31st March, 2025 for FY 2025-26.

• LUT can be filed post login at the GST portal by furnishing details of two witnesses. LUT is not required to be accompanied with any Bank Guarantee. 

Read Also: Points to be taken care of before the end of Financial Year 2024-25, i.e., 31st March 2025| Part-2

3. Furnish Annexure-V by Goods Transport Agencies (GTA)

• In earlier years, the GST on GTA services was payable under Reverse Charge Mechanism, i.e., GST was required to be paid by the service recipient under RCM.

• However, the GTA provisions have undergone a drastic amendment with effect from 18th July, 2022. Post July, 2022, the GTA was given an option to pay GST under Forward Charge or Reverse Charge Mechanism. However, to exercise this option, the GTA is required to furnish a declaration in Form Annexure-V.

• Annexure-V can be filed post login at GST portal. Accordingly, the GTA shall have the following options under Annexure-V:
  • Payment of GST under Forward Charge Mechanism;
  • Payment of GST under Reverse Charge Mechanism;

• If the GTA opts for payment of GST under Forward charge, then GST can be charged at either of the following Rates:
  • 5%: No ITC of Inward supplies shall be available to the GTA;
  • 12%: ITC of inward supplies shall be available to the GTA

• Option can be opted by filing a declaration in Annexure-V post login on the GST portal. Such annexure is to be filed before 31st March, 2025 for FY 2025-26.

4. Filing of Pending Form GSTR-9C upto FY 2022-23

• There are many taxpayers who have filed form GSTR-9 but did not file Form GSTR-9C. So, the GST Department has opened an amnesty scheme for filing of pending Form GSTR-9C up to FY 2022-23 up to 31st March, 2025.

Lea también: Recomendaciones de la 55.ª reunión del Consejo del GST | Cambios y aclaraciones sobre las tasas del GST

• Según la Notificación n.º 08/2025-Central Tax del 23 de enero de 2025, el gobierno ha concedido la siguiente exención de recargos por presentación tardía del GSTR-9C:
  • se ha condonado el recargo por la presentación fuera de plazo de las declaraciones anuales completas (es decir, GSTR-9 y GSTR-9C) para cualquier ejercicio fiscal hasta el 2022-23, el cual se suma al recargo pagadero hasta la fecha de presentación de la declaración en el FORMULARIO GSTR-9.
  • La condición para solicitar esta exención es que todos los GSTR-9C pendientes hasta el ejercicio 2022-23 deben presentarse antes del 31 de marzo de 2025.

P. ej., para el ejercicio 2020-21,

5. Inversiones para el ahorro fiscal

Existen muchas inversiones que se realizan exclusivamente con el fin de ahorrar impuestos en virtud de la Ley del Impuesto sobre la Renta. Sin embargo, la fecha en la que se realiza dicha inversión es fundamental para poder reclamar los beneficios. A medida que se acerca el fin de año, todos los contribuyentes deben realizar los pagos correspondientes a inversiones para el ahorro fiscal, donaciones, etc., antes del 31 de marzo de 2025.

Cualquier pago realizado a partir del 1 de abril de 2025 se considerará para el ejercicio 2025-26 y podría no servir para reducir la carga fiscal del ejercicio 2024-25.

Conclusion:

The date is of paramount importance under legal statutes, and any actions undertaken after this specified date may lead to penalties or the forfeiture of benefits. Consequently, taxpayers must complete a range of necessary actions prior to March 31, 2025, in order to secure deductions and avoid penalties.