GST in India is known for extensions. Since 2001 when the than government talked about its implementation, it has story of date extensions and it’s implementation got extended many times. Similarly, after its introduction w.e.f 1st July, 2017 extensions of dates for different provisions continued and at many times things failed to happen.
First ever return of GST for the month of July, 2017 i.e GSTR-1, 2 & 3 could not be filed as GST portal could not take off and landed into sea of technical glitches. GSTR-3B, which was nowhere in law took front seat and rescue the government for tax collection. After that ITC-04 could not see the light of the day during financial year 2017-18 and 2018-19. Similarly, ITC reconciliation faces lot of criticism from trade and industry and still in doldrums. E-way mechanism bill got so many extensions before becoming reality. Refunds for ITC against export of goods and services rocked the industry and hit the liquidity of the exporters especially MSMEs badly. So many rounds took place to get the GST rates streamline and still continue. TDS and TCS provisions could not be introduced from the very date and made effective wef 01.10.2018. Many other sections which have been made effective at different dates created lot of confusion among industry and trade and it is till continue. Faulty GSTR-9 & 9C forms for filling annual returns for the F/Y 2017-18 released after fifteen months of introduction of GST achieved highest level of criticism from end users. The same got amended and when failed to implement, got many optional fields to somehow file the same after many extensions. It was a challenge for everyone to conduct audit for the f/y 2017-18 as registered persons were not aware at all how the data asked for under GSTR 9 & 9C is suppose to be captured in their books of accounts. Digging data or information at voucher level was very tedious and practically impossible task. Legally also so many provisions, sections and rules have been amended in last two and half years some are from retrospective and some are from prospective effect.
Apart from amendments that took place after every GST Council meeting, provisions and rules also got changed through Finance Budgets-2018 and 2019. There are so many sections which though have been introduced but are not made effective yet or have gone in litigation.
On the other side, for governments, both centre and states, reduced tax collection, fake invoicing, ITC frauds, GST portal, inflation, centre–state relations etc are the challenges being faced which have not been settled yet and failed to get results which were claimed otherwise when GST was advocated.
In process of amendments during F/Y 2018-19 many changes took place under law which are important to know before start of audit for the F/Y 2018-19. Though many fields have been made optional in GSTR-9 & 9C but their impact on business transactions need to be understood. Period between 23.03.2018 to 31.03.2019 governments issued 82 notifications under CGST Act, 2017 out of which 28 are related with extension of date or late fee waiver for different returns and 14 notifications are related with amendment in rules and rest are related with amendment in other notifications or provisions.
Apart from the main Act notified w.e.f 01.07.2017 and amendments there to during 2017-18, amendments in sections, rules, provisos, clauses and FORMS made thereafter will definitely impact GST audit for the F/Y 2018-19. Changes brought through Budget -2018 also need to be considered while working on the audit 2018-19. Following are the Sections or rules which have been amended through various notifications between 23.03.2018 to 31.03.2019 which have impact on GST Audit for the F/Y 2018-19.These are indicative in nature and one should refer respective laws acts, notifications circulars etc while undertaking the audit for the F/Y 2018-19.
Amendments under IGST Act, 2017
| Notification | Rules | Remarks |
| Notification No. 04/2018-IGST Dated: 31.12.2018 | Rule-3 clause (h)
Rule-4 to 9 |
Amendment
New insertions |
Issue related to reopening of Trans-1, reopening of GSTR-2A and change of auto populated amount on daily basis, reconciliation of books of accounts with return filed, Interest calculation etc remain there in audit. At many times interpretation of law by clients become headache for auditors. But auditors have no choice except to complete the audit and submit the same at GST Portal in–spite-of technical glitches of e-signer, special characters, validation of sheets, error reports etc. etc.
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