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CA Umesh Sharma

CA Umesh SharmaArjuna (Fictional Character): Krishna, GST Law came into force from 1st July 17. It means the school of GST is started and the last exam of school of VAT have to be given. So please tell about how to do the preparation of this last exam.

 Krishna (Fictional Character): Arjuna, the government has given the admission to the taxpayer of VAT in the school of GST but taxpayer should pass the exam of VAT school. It means the quarterly return of April to June month have to be submitted. Similarly, the taxpayers required to file monthly returns have to submit return of June month.

Arjuna: Krishna, When the return of VAT to be submitted?

 Krishna: Arjuna, Every taxpayer should file the return for April to June quarter on or before 21st July, 2017. In this correct information relating to sales and purchase should be given. If any invoice of purchase of before 30th June is left or skipped to be mentioned in the return then it will become difficult to avail the credit of that invoice as from 1st July GST law is applicable. Similarly if the VAT return is submitted after 21st July, late fees of Rs. 1000 is payable. That is if the student give exam on proper time, he will not face problems in the GST School.

Last Vat Return of 2017 Arjuna: Krishna, In GST how the taxpayer will get credit on the basis of VAT returns?

 Krishna: Arjuna, if the input credit is more than the output liability in the VAT returns of June month then in GST its credit will be allowed in SGST. If there is credit available in the VAT return of taxpayer then he will have to file Form TRAN- 01. In this it is to be declared that Form C, H, F Forms of VAT and CST law are yet to be received and liability of that forms will reduced from that. Remaining amount will be reflected in the Electronic credit Ledger of GST of that taxpayer and he can use it against the liability of SGST. Taxpayer have to submit this form within 90 days with government. Ex. If the VAT is payable on sales in June months return amounting to Rs. 110,000 and VAT on purchase is Rs. 1,80,000 then in that return Rs. 70,000 will be carry forward and its setoff will be available in GST against SGST.

Arjuna: Krishna, What care the taxpayer should take at the time of filing of VAT return?

 Krishna: Arjuna, the taxpayer should take care about following things.

  1. The Sales and Purchases of Year 2016-17 should be verified and if any corrections are required then revised return should file.
  2. Sales, Purchase and VAT for the period April to June 2016 should be verified properly.
  3. If debit note or credit note are to be given then give them and record it or if debit note and credit note received then record them along with amount of VAT.
  4. If there is interstate sales, then collect C, E, H Forms.
  5. If there is interstate purchase, then issue C, E, H Forms.
  6. Reconcile all debtors and creditors.

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

 Krishna: Arjuna, Because of GST, student is going from one school to another school. As the formalities of old school to be fulfilled similarly returns, assessment, audits etc. under VAT law to be fulfilled. Every taxpayer should follow the rules in the GST school otherwise hard punishment can be done.

What is Composition Scheme Under GST?


Author Bio

1. Central Council Member of ICAI. 2. Vice-Chairman of WIRC of ICAI for the period 2015-2021. 3. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 4. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNEETI” published in Lokmat on every View Full Profile

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July 2024