“Ensure seamless Year-End GST compliances for FY 2022-23. Stay updated on new billing series, e-invoicing, letter of undertaking, composition scheme, QRMP scheme, and essential reconciliations for a hassle-free transition.”
NEW BILLING SERIES:
New billing series for F.Y. 2023-24 w.e.f 1st April 2023 should be started.
Reset the Invoice numbers series and start a fresh sequence.
E-INVOICING:
Businesses with an annual aggregate turnover of more than ₹10 crore in any of the preceding Financial Year (FY) from 2017-18 up to 2022-23 must begin generating e-invoices from 1st April 2023.
Non-generation of E-invoices will imply non-intimation of supply transactions to the government. Any invoice issued by the applicable taxpayer without the IRN is considered as an invalid invoice under GST law. In other words, it is regarded as a non-issue of the invoice as per sub-rule (5) of Rule 48 of the CGST Rules. Thus, it attracts a penalty for non-generation of E-Invoice as given in the next section.
LETTER OF UNDERTAKING:
Any registered person availing the option to supply goods or services for exports or SEZ without payment of IGST should apply for Letter of undertaking (LUT) for F.Y. 2023-24 in form GST RFD 11 under rule 96 A, whereby the exporter declares that he or she will fulfil all the requirements that is prescribed under the GST Act.
COMPOSITION SCHEME:
Small taxpayers having a turnover less than 1.5 crores should calculate tax liability under the composition scheme and normal option, and accordingly may opt for the option which is beneficial to them considering all the conditions.
QRMP SCHEME:
Taxpayers having Turnover below ₹ 5 Crores shall have the option to select the frequency of GST return i.e., Quarterly Return Monthly Payment (QRMP) Scheme filing for FY 2023-24 till 30th April 2023
RECONCILIATION OF TURNOVER BETWEEN GSTR-1 AND GSTR- 3B AND BOOKS
Prepare and reconcile of the turnover as reported in GSTR 1/GSTR 3B with books of accounts for FY 2022-23.
RECONCILIATION OF OUTWARD GST LIABILITY BETWEEN GSTR 1 AND GSTR 3B AND BOOKS
Compile and reconcile the amount of taxes paid in GSTR- 1 and GSTR-3B filed during the FY 2022-23 with books of accounts and pay the tax if there is any shortfall vide filing Form DRC-03 to avoid any litigation and penalty.
RECONCILIATION OF ITC BETWEEN BOOKS AND GSTR 3B AND GSTR 2B
Prepare the yearly reconciliation of ITC accounted in books and ITC availed in GSTR-3B during the FY 2022-23 and reconcile the same with ITC reflecting in GSTR-2B.
If transactions are not populated in GSTR-2B, the taxpayer should follow up with suppliers to furnish/report transactions in their GSTR-1 with payment of taxes in GSTR-3B.
Further, if ITC has been availed and the transactions are not reflected in GSTR 2B then ITC should be reversed.
RECONCILIATION OF TRANSACTIONS REFLECTING IN GSTR-2A WITH THE BOOKS PURCHASES FOR IDENTIFYING MISSING INVOICES
- ITC shall be availed by the recipient only if the supplier had furnished the details of Invoices in their GSTR-1 and the supplier has paid the tax in his GSTR 3B.
- Do reverse the ITC not reflecting in GSTR 2A or is the supplier has not paid the tax in his GSTR 3B.
- Identify the suppliers whose registration has been either cancelled or suspended for any reasons during the FY 22-23.
- Reverse the ITC along with Interest.
- Do check yearly GSTR 2A for the above matters.
RECONCILIATION OF TRANSACTIONS REFLECTING IN GSTR-2A WITH THE BOOKS PURCHASES AND TAKING PENDING ITC:
Do check the yearly GSTR-2A of F.Y. 22-23, if any ITC which is reflected in GSTR-2A and you have not claimed credit in any previous months GSTR-3B then its better you avail this ITC in 22-23 only i.e. March GSTR-3B.
Examples: ITC of bank charges, Shipping line charges, Telephone charges etc.
INELIGIBLE ITC:
Identify the ineligible ITC under Sec 17(5), Rule 42, 43, etc. (Blocked credit/ ITC on exempt supplies) already availed in GSTR 3B of the FY 2022-23 and reverse/pay the same along with interest thereon to avoid any litigation and demand of interest & penalty in future. Further, note that no interest is leviable on the reversal of wrongly availed credit which has not been utilized.
REVERSAL OF ITC
Rule 37- Reversal of ITC if payment is not done to suppliers within 180 days REVERSAL OF ITC
If any ITC is availed without making payment within 180 days from date of issuance of invoice, then the said ITC needs to be reversed along with interest @ 18%.
Further, re-avail such ITC in subsequent month’s GSTR-3B if payment has been made without any time limit.
If wrongly availed ITC which is not reversed it i.e. wrongly CLAIMED ITC u/s 17(5) i.e. ITC for FOOD & BEVERAGES | MOTOR CAR if less than 13 PERSONS | Construction Or Works Contract | Goods Destroyed/ lost/ Stolen/ Disposed/ Free samples | Paid tax under 74/129/130 i.e. fraud cases | Employee or own expenses like Beauty Treatment , Membership of a club, health and fitness Centre, Life Insurance, Health Insurance, Travelling etc. then liable to reverse it along with interest.
Wrongly Claimed IGST instead of CGST + SGST or wrongly claimed CGST + SGST instead of IGST, also needs to be reversed.
Wrongly claimed IGST OF IMPORT claimed in ALL OTHER ITC (Domestic) or all other ITC wrongly shown IMPORT IGST, also needs to be reversed.
PAYMENT OF RCM:
Taxpayer should check and rework RCM liability as per books of accounts with RCM paid in GSTR-3B. Further, RCM as reflecting in GSTR-2B should also be checked.
PHYSICAL STOCK CHECKING
On 31st March, Physical stock needs to be reconciled with the stock as per books of accounts. This would come in handy with both income tax and GST audit.
In case of any discrepancies, the possibility of ITC reversal or missed sales details may be checked. This will help to decide Closing stock valuation when Finalization of Books.
DEBIT NOTE / CREDIT NOTE:
Transactions like sale returns or purchase returns or price revision or volume discount, the required necessary Debit note or Credit notes may be raised in March 2023. So it will form part of F.Y. 22-23.
Remember Time Limit to correct GSTR-1 /3B by issuing credit note, for FY 22-23 is 30th Nov 2023. However, correcting in Feb / March 2023 return is better than doing in F.Y. 23-24.
FETCH BILL OF ENTRY
Import Bill Of Entry (BOE) Data. Do fetch for all imports made in FY 22-23 by “SEARCH BILL OF ENTRY” facility on portal – For those whose import IGST not appearing in GSTR-2A.
There are many importers clients who have received notice for import IGST not appearing in GSTR-2A. Therefore the same needs to be checked.
GST REFUND
GST REFUND FOR F.Y. 2022-23 i.e. CURRENT YEAR Refunds of the following can be applied if pending, Do file refund application (RFD-01) as soon as possible in April month itself GST REFUND
- ITC refund for Inverted duty structure
- ITC in case of Export under LUT
- ITC refund in case of Merchant Export 0.01%
- IGST in case of SEZ with pay
- ITC in case of SEZ under LUT
- Refund of tax when supplied goods under deemed export
MATCH CASH / CREDIT LEDGER
Reconciliation of E-Credit ledger & E-Cash ledger with books of accounts for F.Y. 2022-23 after filing March 2023 GSTR-3B return. Do match balances on portal with Books.
MISTAKES TO RECTIFY
If GST is to be charged, but not charged on incomes like Sale of fixed asset, sale of car, rent on commercial property received, Freight charged by supplier on goods sold, commission income earned, then this need to be discharged in March 2023 return.
Any mistake like Purchase return shown as “Sales” and discharged GST as “Outward tax” wrongly, then do rectify such mistakes in March return. MISTAKES TO RECTIFY
REAL ESTATE DEVELOPERS & RCM ON URD:
For Real Estate Developer, purchase from Unregistered Dealers (URD) if > 20% of project cost, then pay RCM.
In case of Cement, it should be 100% Registered Dealers (RD) purchases, if not then pay RCM.
Review this position in case of Builders/Developers in March, 2023 return if possible.
As per GST law, cases where the procurements from registered person to the extent it falls short of 80% of total amount, the computation is to be done at the end of the financial year and liability, if any, is to be added to his output tax liability in the month not later than the month of June following the end of the financial year. However, better pay in March return itself.
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