Financial Year 2022-23 is about to end! And with this, it becomes important for the taxpayers to carry out certain tasks before the new financial year begins. In this blog, we have focused on Key Year End GST Compliances. Also, we have discussed about the compliances to be implemented from the beginning of the new financial year.
1. Sales Reconciliations
This includes reconciliation of sales and tax thereon between GSTR-1, GSTR-3B,
E-Way Bills and books of accounts. This helps to identify any kind of amendments that needs to be made and avoid any interest or penalty.
The tax payer is also required to track credit notes, treatment of assets sold under GST and compliances for entities with multiple registration.
In case of advance received during the year for supply of service, tax payer needs to ensure GST is paid on it.
2. Purchase Reconciliations
This includes reconciliation of ITC between GSTR-2A, GSTR-2B, GSTR 3B, and books of accounts. This helps in making decisions relating to the following-
- Avail pending ITC
- ITC reversal
- Follow up with vendors
- Annual effect of ITC reversal under Rule 42 and 43 of CGST Rules 2017
- Payment of pending RCM liability and claiming of ITC thereon.
- Claiming of cross charge ITC
- Reconciliation of E-Invoices issued with tax invoices generated during the year.
- E-Invoicing applicable from 1st April, 2023 to entities whose turnover crossed Rs. 10 crores in FY 2022-23 for the first time since 2017.
- For companies to whom E-Invoicing is already applicable, IRN is generated for all invoices w.r.t. B2B Supplies, Exports and Supplies to SEZ needs to be checked.
- E-Invoice gateway will not accept less than 6-digit HSN code for which applicability date yet to be announced.
4. Other Compliances
- Reconciliation of goods sent to job worker and filing of ITC-04 by 25th April, 2023
- Reconciliation of TDS/TCS credit with electronic cash ledger
- New 16-digit alphanumeric invoice series to begin from 1st April
- LUT to be filed for tax payers making exports and SEZ supplies by 31st March, 2023
- Tax payers opting for composition scheme need to file Form CMP-02 by 31st March, 2023
- Opting of QRMP scheme for tax payers with turnover less than 5 crores
- For discontinued businesses, GST registration need to be cancelled to avoid compliances in FY 2023-24
- Filing of refund claims within 2 years from date of payment of tax for Exports and SEZ supplies
It is always better for the tax payers to ensure that all the compliances have been made well in advance. This helps in avoiding any kind of departmental intervention and penalties in the future.
Though it becomes a bit difficult to keep track of all the compliances within the mandated timeframe, implementation of technology, automation and regular training will ensure doing compliances smoothly.
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.