GST Returns for the month of Sep-22 and Oct-22 are very important considering these are the last months to make corrections/ amendment / Transition / Closure of GST Compliance for FY 21-22.
Mis-match in the GST return w.r.t. – excess ITC claim & underreporting of Sales leads to issuing of Notices by the GST Department.
To avoid such discrepancies & Notices in future, refer Checklist w.r.t GST Compliances for FY 21-22
Category A:
Input Tax Credit (ITC)
- Reconciliation of ITC as is in GSTR-3B v/s Books v/s GSTR-2B of FY 21-22.
- Claim missed out ITC pertaining to FY 21-22 till 30th November 2022 i.e. GSTR-3B of the month of October 2022.
- .Reverse excess ITC claimed pertaining to FY 21-22 till 30th November 2022 i.e.GSTR-3B of the month of October 2022
- Cross check eligibility of ITC claimed, reverse if any ineligible ITC is claimed for FY 21-22.
- Claim missed out RCM ITC pertaining to FY 21-22 if any unclaimed till 30th November 2022 i.e. GSTR-3B of the month of October 2022.
- Claim/Reverse ITC claimed short/excess in GSTR 3B calculated as per Rule 42 and 43 based on annual reconciliation
- Issuance of self generated invoice to claim ITC for RCM pertaining to FY 21-22
Category B:
Outward Supply
- Reconcile outward supply and RCM liability as in GSTR-3B v/s GSTR-1 v/s Books and take the necessary action.
- Add amendments and credit notes in GSTR-1 for effects of outward supply reported short / excess / not reported in GSTR-1 in FY 21-22. Adjustment of Credit Note on account of negative liability if any in GSTR-3B during 2021-22.
- Amendments for any wrong furnishing of Customer’s GSTIN, Invoice no., Date, Taxable Value, Taxes for Invoices and Credit Notes pertaining to FY 21-22.
- Add in GSTR-3B effects of outward supply or RCM reported short / excess / not reported in GSTR-3B for FY 21-22.
- Review whether GST liability on open advances received against supply of services is discharged or not and whether adjustment of GST paid on advances is made properly in GSTR-3B and GSTR-1.
- Reconcile e-way bills generated in FY 21-22 with invoices reported in GSTR-1, e-invoices and tax invoices, give prior intimation to department in case of any deficiency
- Reconcile e-invoices generated in FY 21-22 with e-way bills generated, invoices reported in GSTR-1 and tax invoices, generate e-invoices for invoices which are not generated. Take necessary actions in GSTR-1 if any.
Category C :
Others
- In case of material sent for job work, check whether same is returned within prescribed time limit (inputs-1 year and capital goods – 3 years )and same has been reported in ITC-04.
- If material sent for job work is not returned within prescribed time limit, invoice to be issued on vendor as if supply is made along with the interest from the date of material sent.
- Reconciliation of exports at 6A of GSTR-1 vis-a-vis details of shipping bills submitted on ICEGATE, take the necessary action in GSTR-1 for any differences. Note : Differences if any can lead to complications in refund processing.
- Match Table of exports at 6A of GSTR-1 vis-a-vis Corresponding declaration in GSTR-3B
- Inter company cost allocation and their respective reportings in GSTR-1 and GSTR-3B
- Review of transaction made without consideration (Free samples, FOC supplies), Goods lost/destroyed, Short quantity of physical stock and possible reversals of ITC under section 17(5)
- Review of transactions covered in schedule I (Supply without consideration) with related parties (Employees, directors, sister concerns) and discharge of liabilities with accurate valuation.
- Review of acceptance of TDS and TCS amounts appearing on the GSTN portal and reconciliation with the actual amount deducted/collected by respective customers/e-commerce operators.
Grab the last opportunity to claim missed out ITC; to make corrections w.r.t sales; to do reversals of ITC and many more as listed above pertaining to FY 2021-22.
Disclaimer
The information provided in this presentation does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This presentation is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi-judicial authorities may not take a position contrary to the views mentioned herein.
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