Arjun (Fictional Character): Krishna, what should the taxpayer keep in mind on the Outward side while filing GST Returns of September 2020 month?
Krishna (Fictional Character): Arjuna, the return of September month is the most significant one in GST.As it is the last chance for rectification of few mistakes in previous returns. Taxpayers need to check whether there are any differences in the outward supplies between the books and that as per GST Returns. If any differences exist, then taxpayers need to rectify the same, by making adjustments in September’s return.
In case the sales are under-reported in returns, report the same by adding the respective invoice in GSTR-1, and increase the taxable value & taxes in GSTR-3B. In case the sales are over-reported in returns, report the same by issuing credit notes, and reduce the taxable value & taxes in GSTR-3B.
Taxpayers are also required to ensure that all the credit notes for supplies made in FY 2019-20 have been declared in the returns, and if not, should be declared in September month’s return.
Arjun (Fictional Character): Krishna, what should the taxpayer keep in mind on the Inward side while filing GST Returns of September month?
Krishna (Fictional Character): Arjuna, taxpayers should check with their books, the ITC availed in GSTR-3B, and that available in GSTR-2A. If ITC for any of the previous months of FY 2019-20 is not availed, avail the same in the month of September. In case any of the invoices are not uploaded by the supplier, you can reconcile it from your books & GSTR-2A, and ask the supplier to upload the same.
Taxpayers are required to reverse the proportionate ITC as per rule 42, 43 of the CGST rules (on capital goods, inputs & input services) which was used for making both taxable and exempt supplies or used for both business and non- business purpose.
To comply with rule 36(4) of the CGST Rules, taxpayers need to prepare a reconciliation of GSTR-2A with that of ITC availed in the books for the period of February 2020 to September 2020, cumulatively. The effect of the same can be taken in the GST Return of September 2020.
Arjun (Fictional Character): Krishna, what is the importance of September month’s return?
Krishna (Fictional Character): Arjuna, September is the important month of reconciliation for all the GST taxpayers. Taxpayers need to check whether they are complying with the Input tax credit rules (i.e. section 16(4), Rule 42/43, & Rule 36(4)) and availing the appropriate credit. With respect to outward supplies, taxpayers need to check whether they have over-reported or under-reported the sales and make corrections thereunder. In the case where the sale has been made by the taxpayers, but the same is returned later on by the taxpayer and debit note is issued, the taxpayer needs to check whether the ITC on the same has not been missed by the taxpayer.
Arjun (Fictional Character): Krishna, what should the taxpayer learn from this?
Krishna (Fictional Character): Arjuna, as of now, there is no option for revising a return in the GST Law. But, the GST department has given the taxpayers, sufficient time to rectify their errors & mistakes, of which September is the deadline. Once the return of September 2020 is filed, no changes or rectifications can be made further except in Annual Return. So, taxpayers must reconcile their books and returns & make the final adjustments, if any within the time frame to save interest, and save themselves from many other further troubles.