This time the government vide Notification No. 18/2022-Central Tax dated 28.09.2022 r.w. the provisions of sections 100 to 114, except clause (c) of section 110 and section 111, of the Finance Act, 2022, has extended the time limit for claiming of the ITC (for the previous period) from the due date of filing September’s return to 30th November.
Thereby, the time limit for the following compliances in respect of a particular financial year has been extended and fixed as 30th November of the next financial year, or furnishing of the relevant annual return, whichever is earlier:
The following are the sections for which the due date has been extended and the now the due date is 30th November
| Relevant section of the Finance Act, 2022 | Corresponding provision of the CGST Act, 2017 | Corresponding compliance requirements |
| Clause (b) to Section 100 | Section 16(4) | Claiming of ITC in respect of any invoice or debit note in the return |
| Section 102 | Section 34(2) | Declaration of the details of credit notes in the return |
| Clause (c) to Section 103 | Proviso to Section 37(3) | Rectification of particulars in details of outward supplies |
| Clause (c) to Section 105 | Proviso to Section 39(9) | Rectification of particulars furnished in a return |
| Section 112 | Proviso to Section 52(6) | Rectification of particulars in the statement furnished by a TCS operator |
As the notification was issued on 28.09.2022, there was a confusion in the market with respect to whether the said amendment has been made applicable in respect of compliances for FY 2022-23 onwards or whether the same are also applicable to the compliances for FY 2021-22.
To answer the said question the CBIC has come up with a press release dated 04.10.2022 wherein they have clarified that the timelines for the all the above compliances stand extended to the date of filing/ furnishing of the return/ statement for the month of November 2022 and the said is applicable from FY 2021-22 onwards.
Now from the above it is clear that the last date for claiming any missed ITC, disclosing any outward supplies which were missed or rectifying the errors made while filing GSTR-3B or GSTR-1 for the FY 2021-22 is 20th Nov 2022 [practically we may consider 20th November 2022 to avoid late fee and interest implication as there is no extension in the due date for filing of October months returns]
Further do file all the pending GST returns for the FY 2021-22 before 30th November 2022, if not the department shall raise an objection for claiming the ITC even if any return for the FY 21-22 is kept pending i.e. suppose you have not filed the return for the period March 2022 till 30.11.2022 & your filing the said return on 01.12.2022, the department would disallow the credit even if the same is appearing in GSTR-2A/2B and would be leading to unwanted litigation. [ Disallowing the ITC as per Section 16(4)]
In this article, we have tried to figure out few important points that need to be checked before filing October 2022 returns
Outward Supplies
- Reconciliation & rectifying the differences in the GST liabilities appearing in books of accounts with that of the details disclosed in the GSTR 3B & GSTR-1 for the FY 2021-22.
- Verify & rectify the Zero-Rated Sales are disclosed properly in GSTR-1 & GSTR-3B if not the refund for the said period have some difficulties.
- Verify, raise or & rectify the GST credit notes pertaining to the invoices raised in the FY 2021-22.
- Verify & rectify the Invoices which are not reported.
- Verify whether all the amendment have been made with respect to the outward invoices especially GSTINs of customers, invoice number, and other details(under reporting /over reporting) – to enable ITC for customers and ensure payment receipts.
Reverse Charge Liability
- Verify correctly as to whether all the taxes which are liable to be paid under Reverse Charge mechanism has been paid and claimed in the GSTR-3B returns
- Verify the availment of the ITC w.r.t. the RCM liability paid under RCM
- Verify whether the RCM liability on NIL valued transactions from related parties (associated enterprises – Outside India) have been paid or not
Availing of Input Tax Credit
- Verify the ITC availment in GSTR-3B pertaining to the invoices/debit notes/bill of entry/RCM paid eligible inputs with Books and GSTR-2A /2B to avoid loss of ITC benefit.
- Verify whether the ITC availed on ineligible ITC was reversed or not.
- ITC reversed on monthly basis under Rule 42 & 43 – verify accuracy for FY’21-22
- Reconciliation with Bill of entries and ICEGATE portal in order to effectively avail the IGST inputs on imports
- Compute the Annual ITC reversal under Rule 42 to avoid higher interest which is applicable from 1st April’22.
- Verify the compliance with Rule 36(4) – Reconciliation of ITC availed from April’21 to December’21 (not crossing 110%/105%) with details as per GSTR 2A. ITC claim beyond GSTR 2A reflection can be disputed as the rule did not have an enforcing Section in the GST Act as yet.
- Verify the compliance with Section 16(2)(aa) – Reconciliation of ITC availed from January to March 2022 with details as per GSTR 2A/2B. (from 1st April 2022 onwards GSTR 2B reconciliation is mandated)
- Verify if the payments to the vendors/ suppliers are made within 180 days from the date of issuance of the invoice.
Miscellaneous
- Reconciliation of tax liability w.r..t. the advances paid & advance adjustments made for the invoices raised
- Cross charge for support services or stock transfer of goods not subject to tax provided between GSTINs having the same PAN
- ISD GSTR 6 filing in an appropriate manner to transfer credits in the manner provided between GSTINs having the same PAN
- Identification of services between related parties (or to employees) for NIL consideration which could be liable to GST
- Reconciliation of goods lying at job worker premises not returned within the time limits prescribed which may be liable to tax.
For any further information/clarification, feel free to mail @ ajay@mundadaandco.com
Author Bio
HIGHLY USEFUL. WE WILL USE THIS CHECK LIST FOR COMPLIANCE PURPOSE.
THANKS TAXGURU FOR THE ELUCIDATION