CA Umesh Sharma
Arjuna (Fictional Character): Krishna, what is the notification issued regarding extension of date for claiming ITC and amendment of invoices by CBIC?
Krishna (Fictional Character): Arjuna, On 28th September 2022, CBIC issued a notification to extend the time limit for completion of major compliances of previous financial year 21-22 under GST Act till 30th November 2022 or furnishing of the relevant annual return (GSTR-9), whichever is earlier.
Arjuna (Fictional Character): Krishna, what things should be kept in mind if return not filled for Oct-22?
Krishna (Fictional Character): Arjuna, the following actions should be taken by the taxpayer with respect to Inward supply-
1. Availment of Input Tax Credit for F.Y 2021-22
As per Section 16(4), a registered person shall not be entitled to take ITC in respect of any invoice or debit note for supply of goods or services or both after 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. Therefore, if any ITC in relation to any invoice/debit note pertaining to F.Y 2021-22 have not been claimed by the taxpayer then the same should be claimed in month of Oct-2022.
2. Reconciliation of ITC appearing in GSTR-2A/ 2B with Inward Register
Input tax credit appearing in GSTR-2A/ 2B but not booked in purchase register should be identified and reconciled accordingly or in case the input tax credit has been availed in books of accounts but not reflected in GSTR-2A/2B should be reconciled and follow up for the same may be undertaken with the supplier so that it is reflected in GSTR-2A/ 2B.Also, the taxpayer shall ensure compliance with the limits specified under 36(4) for claiming ITC.
3. Apportionment of ITC as per Rule 42 & 43
In case the taxpayer is engaged in exempt supply and taxable supply, input tax credit availed is required to be reverse in the proportion of exempt supply to total turnover under rule 42 & 43 while filing GSTR-3B. Such reversal shall be calculated finally for the financial year before the due date for furnishing of the return for the month of October following the end of the financial year to which such credit relates. However, if reversal made in GSTR-3B is short/excess then the same shall be reversed/claimed respectively.
4. Reversal of ITC as per Rule 37 (Non-Payment of Consideration within 180 days)
The taxpayer should ensure whether the payment in respect of all the purchases made upto 31st March 2022 has been made to the supplier.
Following actions should be taken by the taxpayer with respect to Outward supply-
1. Reconciliation of Outward Supply as per books of Accounts and GSTR-3B filed for the FY 2021-22
The taxpayer should reconcile the outward supply as per books of accounts and filed GSTR-3B so that any modification/rectification can be done till Oct-2022
2. Amendment in GSTR-1
If any amendment is to be done in relation to outward supply, then such amendment can be done in Oct-22.
3. Issuance of Credit Notes
As per Sec 34(2) of CGST Act, Credit notes pertaining to invoices issued in F.Y.2021-22 cannot be issued after filing the return for the month of Oct-2022. Therefore, any credit note for FY 2021-22 should be issued by the month of Oct 2022.
Taxpayers have to take note that there is no extension of the due date for filing GSTR-1, GSTR-3B or IFF for the October 2022 or Jul-Sep 2022 quarter. Now taxpayers can claim ITC by delaying the return by 10 days.
Arjuna (Fictional Character): Krishna, what should the taxpayer learn from this?
Krishna (Fictional Character): Arjuna, Even though the government extended the due date for claiming ITC for FY 2021-22 till 30th November 2022, taxpayers must make amendments while filing GSTR-1 and GSTR-3B. Taxpayers shall note the 30th November 2022 deadline for ITC claims as taxpayers can not revise either GSTR-1 or GSTR-3B once filed, and the pending ITC for FY 2021-22 may be lapse .
CAclubindia
