Arjuna (Fictional Character): Krishna, this is the last month of the financial year 2017-18. So many changes were made in taxation of the current year. So now in March 2018, what precautions the taxpayer needs to take in respect of GST?

Krishna (Fictional Character): Arjuna, This financial year was an important one. Many important changes in the indirect taxation have been made in this year. Now as march end is appearing. In a New financial Year, to do the business without any discrepancy, all the adjustment should be done in March itself. GST is a new Act. So to do the business without any problem in new financial year 2018-19, all rectification in the books of accounts should be done before 31st March, 2018.

15 Important works of GST to be done on March ending!

Arjuna: Krishna, what 15 points you think on which the taxpayers should pay attention at the end of financial year?

Krishna: Arjuna,

1. Reversal of Input tax credit – As per the rules of Input tax credit, after issuance of tax invoice if receiver does not made the full payment of amount  within 180 days then the credit taken on that invoice is to be reversed. And whenever the payment is made, the receiver can take the credit of the amount. Therefore the aging analysis of the debtors and creditors is to be done. all old invoices  issued before 1st October, 2017, should be paid before 31st March 2018.

Ex. Suppose the fees Rs. 10000 is payable to the Chartered Accountant on 15th September, 2017, and the credit on that of Rs. 1800 has been taken in the return of that month, then the fees should be paid before 31st Marsh, 2018. Otherwise the extra payment of Rs. 1800 is to be made in the month of March.

2. E way bill – It is compulsory to issue E way bill from 1st April, 2018 for inter state transport.  In case of inter state supply, the goods are in transit as on 1st April, 2018, it is compulsory to generate e way bill for them. Therefore, it is necessary to take the registration under E way bill system before 31st March.

3. Reconciliation – All the taxpayers should reconcile the cash ledger, credit ledger and liability ledger with their books of accounts. All the entries should be done before the year end. Also debit note, credit note, rate difference, discount, etc also to be reconciled.

4. HSN Code in the Invoice – Before preparing first invoice in the new financial year, taxpayers should check the turnover for the year 2017-18. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2-digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4-digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices.

5. New series for tax invoice – If anyone wants to change the series for billing in the new year, then he can do that from 1st April. New numbering should be started form 1st April.

6. Composition scheme – If any taxpayer wants to register under composition scheme then he can apply in Form GST CMP – 02 before 31st March. Similarly, those who wants to cancel the registration under composition scheme, they have to apply in Form GST CMP – 04 before 7th April. They have to calculate the effects of ITC on closing stock.

7. Due dates of the returns – There are various due dates in the April month for filing the returns relating to 31st march. Such as GSTR 3B for March is to be filed up to 20th April. GSTR 1 is to be filed up 10th April. GSTR 4 is to be up to 18th April and GSTR 6 is to be filed up to 13th April.

8. Monthly/ Quarterly returns – Taxpayers should check the turnover for the year 2017-18. If the aggregate turnover is above Rs. 1.5 Crore then the taxpayers have to file monthly return. If the aggregate turnover is below Rs. 1.5 Crore then the taxpayers have an option to file the quarterly GST returns. Taxpayer can choose any of the option.

9. Form GST TRAN 2 – The taxpayers who have filed the TRAN 1 and have taken the credit of Excise duty paid, without any documents, they have to file the details of outward supplies for six months in TRAN 2 before 31st March 2018 for availing 40%/ 60% credit.

10. GSTR 6 – Input service distributor has to file GST return in form GSTR 6. So 31st March is the due date to file GSTR 6 from July 2017 to February 2018.

11. Refund – As in Maharashtra VAT, there was a provision of refund for excess input tax credit, there is no such provision in GST law. Excess credit needs to be carried forward compulsorily.

12. GSTR 2 – Details of purchases are reflecting on the portal in the form GSTR 2A. All the taxpayers should check the details of purchases before 31st March.

13. Valuation of the closing stock – At the time of valuation of closing stock as on 31st March, the input tax credit taken on raw material, consumables, semi finished goods is to be calculated. In Excise, there was a concept of making provision for the tax payable on the finished goods as on 31st March, no such concept was introduced in the GST.

14. Depreciation on the capital asset – At the time of calculating depreciation on the capital goods (other than building), if ITC has been claimed, then the tax amount needs to be ignored at the time of calculating depreciation.

15.  Anti profiteering – Do the comparative check of the gross profit earned for March 2018 with the gross profit of financial year 2016-2017 or gross profit for April 2017 to June 2018. If the gross profit ratio for the March 2018 is higher, then taxpayer should check whether he is trapped in the Anti profiteering or not?

Arjuna: Krishna, What lesson the taxpayer should take from this?

Krishna: Arjuna, All the taxpayers should complete their pending work before 31st march. The taxpayers, who are liable to make payment, should do the payment on time. Everyone should follow the correct tax system from this new financial year. So, pay the tax as per provisions of the Act. Otherwise taxpayers will have to face consequences in the future.

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22 responses to “15 Important works of GST to be done on March ending!”

  1. Kedar Ashtekar says:

    Thanks Sir, very useful information….T

  2. E BASKAR says:

    monthly / quarterly return from APRIL 2018. When to choose the option ?

  3. K DURGA says:

    Sir ,
    input tax credit on building materials can we claim or not as a builder or as sub contractor..
    please guide us

  4. Lokesh Kumar Tiwari says:

    Small correction..
    In point no.15, it should be jun-17 instead of jun-18.
    Period prior to GST..
    Anyway, thanks for the valuable info..

  5. K.S.SHAH says:

    R/SIR,
    VERY USEFUL DETAILS GIVE ON TIME,
    UP TO DT.30-9-2017 CREDITORS PAYMENTS NOT PAID,SO WHAT EFFECT IN GST RETURN AND WHERE AMOUNT SEEN IN RETURN PL.HELP ME ON MY MAIL .

  6. Sivasankaran says:

    Sir ,
    I am GST Practitioner. In one of my client GST , i have uploaded GST Tran1 form before due date itself. But not submitted on due date. Still shows the uploaded entries in portal. But unable to submit or not able to file. How to do so.. ?? Please guide me.
    Thanks and regards , SIVASANKARAN

  7. Bharat Parikh says:

    Dear Sir,
    3 B for the month of August 17 was submitted with less amount of 94000/- but GSTR-1 was filed with correct tax. and same 94000/- was deposited. which is showing in closing balance in my cash ledger till today.
    How to reduce / debit this amount from cash ledger ?

  8. SUBHASH DHANWANI says:

    Thank you Sir,
    Very useful.

  9. K V A Reddy says:

    Dear sir,

    We are health care service providers(hospitals). Could you please provide me the system of taxation under GST?

  10. Pawnesh Gupta says:

    Dear Sir
    Point No. 1 If the supplier does not receive the payment within 6 months. Does he requires to report it to authorities about the default on the part of his customer.
    Thanks

  11. Pawnesh Gupta says:

    sir
    i am being a broker in real estate, I get commission on finding buyers for real estate developers.
    While getting commission I am being charged GST @ 18 % from my comission under SAC 99722.
    being a small broker, this is too much for me.
    Kindly suggest how to avoid GST or the ways to get it refunded
    thanks
    Pawnesh gupta

  12. rajesh bansal says:

    GSTR 1 of March is to be filed up 10th April or 10th May. pl. clarify

  13. rajiv mangrulkar says:

    the tax provisions are on higher active spree -needless to mention that, gst with its unending notifications has created total confusion and counter productive to the business particularly in rural setup.

    gradually along with the e-way bill the c-e-f forms will also find their way in gst regime. ultimately the lord krishna will also realise that hapazard web based indirect tax system will be counter productive to the business will adversely affect both micro and macro economics of the nation. Is the arjuna listening???????????????????????

  14. Rohidas Patil says:

    Thanks, very good information which is usable to every one who’s working under GST

  15. Pramod Thakar says:

    Thanks for updates and reminder.

    I would like to know as regards to Reversal of input tax credit. As explained by you herein, the Receiver is to make the extra payment of Rs. 1800/-. In that case can Service provider [CA] if he/she does not receive money within six months, can he/she claim credit of Rs. 1800/- in the March Return and will make that payment upon the actual receipt of the said amount from client.
    Kind Regards

  16. EKTA says:

    thanku sir

  17. Ravindra Shinde says:

    Point no 16 If you are exporter you can online apply GST RED 11 for LUT certificate

  18. R Thirukumaran says:

    Really Super sir. Thanks for the udpdate

  19. CA Rachit Agrawal says:

    Hi Umesh,
    Please clear the point number 14(Depreciation point w.r.t sections & rule notified).Whether we can claim deprecation or not, if we are taking ITC for it.

  20. Ruhi says:

    Really helpful. Thanks…

  21. Pradip Kumar Saha says:

    Dear Sir,

    All GST holder are have to raise so many Supplementary Invoices as per GST Law.(one sup. invoice against one invoice)
    It is time and paper loss of all GSt holder.
    So we can request to GST Councile to change rule regarding Supp. Invoice. Please do needful

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