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GST Return for March 2025–Key Points to Remember Before You File!

As the financial year 2024-25 draws to a close, the GST return for March 2025 becomes one of the most important compliance milestones for every registered taxpayer. March isn't just another return period—it's the final month of the fiscal year and a chance to ensure all GST filings are in perfect order before closing your books.

Filing an accurate March return helps avoid future complications during:

Annual return (GSTR-9) preparation
Audit proceedings
Finalization of accounts

Let’s walk through a systematic checklist to help you ensure your March GST return is complete, accurate, and compliant.

Sales Reconciliation (Books vs. GSTR-1/ GSTR 3B)

Before filing GSTR-1 for March:

Reconcile your sales as per books with data reported in GSTR-1.
Ensure all tax invoices, debit notes, and credit notes up to March 31 are accounted for and uploaded.
Verify B2B invoices are correctly mapped with GSTIN, invoice numbers, and tax amounts.
Correct any mismatches or missed entries by amending previous months, if needed.

Why it matters: This helps avoid turnover mismatches during GSTR-9 and keeps your records audit-ready.

GSTR-2B Reconciliation for full year (Input Tax Credit)

One of the most crucial steps is reconciling your Input Tax Credit (ITC).

Check the following:

Match ITC as per books with auto-drafted GSTR-2B.
Claim only eligible ITC—ensure all suppliers have filed their GSTR-1 on time.
Reconcile for:
- Unclaimed credits
- Duplicate entries
- Blocked credits under Section 17(5)

Action Point: Adjust ITC for ineligible or excess claims and ensure reversals where applicable.

Reversals of ITC – Clean up the Books

March is your final chance to perform year-end ITC reversals.

Key scenarios for ITC reversal:

Personal or exempt supplies under Rule 42/43
Non-payment to vendors within 180 days
Capital goods used partly for exempt activities
Ineligible credits (e.g., employee perks, vehicles, etc.)

Pro tip: Document each reversal with workings—this helps during audits and annual returns.

Opportunity to Amend Previous Errors

March returns allow you to fix past errors in:

Incorrect invoice numbers or tax rates
Wrong GSTIN entries
Amendments to B2B/B2C supply details
Reversal of excess ITC claimed

Action Point: After March, amendments can only be made till the due date of GSTR-3B for September 2025 or the date of filing GSTR-9, whichever is earlier.

Composition Scheme Transition (if applicable)

If you're planning to opt into or out of the Composition Scheme for FY 2025-26:

File CMP-02 to opt in by March 31, 2025
File CMP-04 to opt out by March 31, 2025

Pro tip: This choice is valid for the entire next financial year—plan ahead!

Verify Tax Payments & Cash/ITC Ledger

Before filing:

Ensure proper utilization of Input Tax Credit vs. cash balance.
Pay any outstanding interest, late fees, or penalties.
Download and review the electronic cash/credit ledger.

Document Management & Audit Trail

Prepare for the year-end audit by organizing:

Invoices and supporting documents
ITC computation sheets
GSTR-1, GSTR-3B, and GSTR-2B summaries
Reconciliation reports

Pro tip: Save backups of all workings and returns filed—it makes GSTR-9 much easier.

Conclusion

Filing GST returns for March 2025 isn’t just another compliance task—it’s the gateway to a clean financial year closure and smooth annual return filing. Taking a systematic approach with reconciliations, reversals, and amendments ensures that your GST filings reflect your actual business transactions, reduce risk, and keep you stress-free during audits.