Limitation Period under GST & Compliance Calendar November 2023

Time is running out towards last date to file Annual return (GSTR-9/9C) for the financial year 2022-23. Before the last date to file GSTR-9 another due date is coming 30^th November 2023. This due date is very important to those, if any error or omission or mistake done by you as a registered person or by your supplier then this is high time you read below article/must listen and this video will very important for you. When we talk about closer of FY 2022-23.

Limitation Period- A maximum period set by statute within which a legal action can be brought or a right enforced. A statute may prohibit, for example, any individual or legal entity from bringing an action for breach of contract more than one year after the breach occurred. Also called prescription period.

GST Act, 2017 also have made some on the taxpayer, after that period logically the taxpayer may not avail his benefit. Below are some major issues need to understand.

This is the last chance to amend/correct/avail/reversal of GST Returns for the Financial year 2022-23.

GSTR-1 (Output Supply)

Section-37(3) Any registered person, who has furnished the details under sub-section (1) for any tax period , shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after the thirtieth day of November following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

Generally, below are the error while filling GSTR-1

i. Recipient GST Number wrongly Mentioned

ii. B to B Supply wrongly mentioned B to C

iii. Taxable or Tax rate wrongly mentioned

iv. Short supply reported by mistake

v. Credit/debit note not reported

vi. Any other mistake.

Input Tax Credit: – Inward Supply

Below is the condition to avail Input Tax Credit as per Section-16(2):

i. Possession of Tax Invoice

ii. Tax Invoice communicated to GSTR-2B

iii. Received Good or Services

iv. Supplier made tax payment to Government

v. Recipient shall file his GSTR-3B u/s 39

Section-16(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.

i. Input tax credit wrongly availed

ii. Input Tax Credit not availed

iii. Reversal of Rule-37/42/43

iv. Reversal of ITC under Rule-37A

GSTR-2B is value reported by the supplier in his GSTR-1 under section-37 which is autogenerated in form GSTR-2B of the Recipients.

Section-16(2)(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37; Rule-36(4) No input tax credit shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under subsection (1) of section 37 unless,-

(a) the details of such invoices or debit notes have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility; and

(b) the details of input tax credit in respect of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under sub-rule (7) of rule 60.

Rule 37. Reversal of input tax credit in the case of non-payment of consideration. –

Rule 37A. Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof. –

Hence it is mandatory to avail input tax credit as per above rule and regulation.

GSTR-3B- Tax Payment

If any details corrected in GSTR-1/or reported in GSTR-2B which is related to financial year 2022-23 also need to adjust in GSTR-3B.

Section-39(9) Where any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or subsection (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars in such form and manner as may be prescribed, subject to payment of interest under this Act: 

Provided that no such rectification of any omission or incorrect particulars shall be allowed after the thirtieth day of November following the end of the financial year to which such details pertain, or the actual date of furnishing of relevant annual return, whichever is earlier.

Electronic Credit Reversal and Re-claimed Statement on GSTN

i. Taxpayers are being provided a facility to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for “Electronic Credit Reversal and Re-claimed Statement”, if any. The navigation to report ITC reversal balance:

ii. Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023.

iii. Quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period.

iv. The taxpayers have the opportunity to declare their opening balance for ITC reversal Until 30th November 2023.

By default, the due date as per limitation provision under GST, but practically these dates may vary as per normal provision of GST Law. These dates tabulated below.

Conclusion

In conclusion, understanding the limitation period and compliance calendar for November 2023 is essential for all GST filers. Rectify any errors or omissions in your GST returns and take full advantage of the limitation period. After the expiry of the limitation period for the financial year 2022-23, any discrepancies may result in unnecessary liabilities for registered persons. Stay compliant and avoid any last-minute rush by addressing these issues within the specified timeframes.

Disclaimer: The information provided in this article is intended to offer general knowledge to the readers. It is advisable to seek professional advice for specific issues and decisions related to investments or financial obligations based on this content.