15 basic mistakes that are related to Charging of GST or Reversing ineligible ITC, that Taxpayer should Avoid making
Normally These are areas that an Auditor would be checking in first stage while filling GSTR 9 . Of Course the scope is vast looking in GST Audit & annual return.
So here I pointed out Bullet points which I have felt to share the experience while dealing preparing for GST Annual & Audit assignments (Mostly looking to Profit Loss account)
Better one should identify these basic mistakes before Year end only.
Outward side
GST needs to be charged on following incomes but Not charged.
- Sale of fixed asset or sale of car - Forgot to charge GST On these
- Rent On Commercial Property received But GST has been collected & paid
- Freight Charged By Supplier On Goods Sold But forgot to charge GST on that
- Commission Income earned but GST NOT CHARGED
- Purchase return shown as "Sales" and discharged GST as "Outward tax" wrongly.
RCM
If any GST needed to be paid under RCM but not paid
- (1) Advocate Fees
- (2) Security Services
- (3) Import of services
- (4) Transportation / Freight (Whether On Inward Or Outward)
ITC SIDE
If wrongly taken ITC but not reversed IT
- CLAIMED wrong ITC (u/s17(5) of "FMCG PE" FOOD & BEVERAGES | MOTOR CAR IF less THAN 13 PERSONS | construction | Goods Destroyed/lost | Personal Expenses or Exempted Goods Manufactured then you need to reverse it (R.42/43)
- Wrongly claimed ITC twice. Expenses/Purchase bill entered twice So claimed ITC twice
- Wrongly Claimed IGST instead of CGST + SGST
- Wrongly claimed CGST + SGST instead of IGST
- RECONCILIATION OF 2A VS BOOKS ITC = NOT CLAIMED ANY ITC OR FORGOT TO CLAIM ITC LIKE bank charges, ICD freight charges, Air Freight charges, Shipping Bill company charges, Telephone charges, etc. These Expenses on which Accounting entries are done normally done in total.
- Sales return shown as Purchase & Claimed ITC on that. Wrongfully.
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