ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


As we know that the due date of GST Annual return GSTR 9 is approaching, there is sense of confusion around. I spoke to some professional and there are of opinion or I would say are under impression that the omission, errors in monthly or Quarterly GST returns can be corrected in GSTR 9 or 9A. While on plain reading of format of GST annual return, it does not appear that particulkars filed in GST returns can be changed in Annual return instead it is just a consolidation of GSTR 3b, GSTR 1 or GSTR 4 as the case may be. Even the guidelines for filling of GSTR 9/9A are suggesting to fill the details as per GSTR 1, 3B or 4. So what actually can be done or could have been done for errors or omission of transaction in GSTR filled for financial year 2017-18. Since most the errors are figured out during the conduct of Tax audit of financial statement as per section 44AB of Income Tax Act, it is imperative to note those errors and declare the additional tax liability, utilize unclaimed GST input credit as per the options available with us. We know the due date of filing of GST return 1 for the month of September is extended upto October 31, 2018. This is done with a specific purpose cause the omission, errors made in GSTR 1 for the financial 2017-18 can be rectified upto filing of GSTR 1 for the month of September only. Also, the unclaimed input credit of GST could be claimed only upto filing of GSTR 3B for the month of September only due date of which was October 20 only.  There below I have mentioned the action need to be taken on figuring out, during conduct of audit:

Verification of Supply / Tax amount    
I Reconciliation of books of accounts and GST Returns    
    Outcomes Example Corrective measure
  1 An invoice missed to be declared in GSTR 1 but recorded in books of accounts. It may be due to number of reasons such as invoice is received after filing of GSTR 1, invoice booked in books of accounts but remained undeclared in GST return etc. Liability should be paid with interest. Invoices left to be declared in GST returns can be declared in GSTR 1 till 31 October 2018. The details omitted to be entered in GSTR 1 for the period July 17 to September 2018 can be entered. The time limit of GSTR 1 for the month of September was extended in NN 43/2018 and 44/2018 to enter the invoice omitted to be entered in previous GSTR 1
  9 A invoice left to be booked in books of accounts and GST returns An invoice received in next FY or received in the FY only but left to be entered in books of accounts. Liability should be paid with interest and Invoice can be entered in GSTR 1 up to October 31, 2018 and the same invoice can be booked in books of accounts in next FY as prior period item.
  2 The amount of invoice declared in GSTR 1 is less than amount of invoice - Amendment in invoices such as invoice number, invoice value, invoice date, GST rate can be made in GSTR 1. The same will be reflected in GSTR 2A amended of the receiver of supplies.
  3 The rate of GST taken in GSTR 1 is less than correct rate of GST - Amendment in invoices such as invoice number, invoice value, invoice date, GST rate can be made in GSTR 1. The same will be reflected in GSTR 2A amended of the receiver of supplies.
  4 Inward supply on which reverse charge is applicable but reverse charge liability is not booked Fees paid to advocates and reverse charge liability is not booked Reverse charge liability and credit should be booked in books of accounts. GST under RCM will be paid. The credit can be availed only after payment of GST hence GST credit will be entered in GSTR 3B of the month in which it was paid.
  6 B2B invoice booked under B2C - The B2B invoice can be entered in GSTR 1 but only up to 31 October 2018 and for B2C invoice credit note can be issued.
  7 Invoice value declared in GSTR 1 is higher. - Amendment in invoices such as invoice number, invoice value, invoice date, GST rate can be made in GSTR 1. The same will be reflected in GSTR 2A amended of the receiver of supplies.
  8 Invoice declared in  GSTR but not shown in books of accounts Iut may be due to:1)There might be invoice given to whom supply is made but the invoice is cancelled afterewards 2) Invoice booked twice in books of accounts. Since there is no option to enter the cancel invoice, the invoice should be nullified by issue of credit note and the same should be entered in GSTR 1 of the month in which credit note is issued. The invoice issued and declared in GSTR 1 should be booked in books of accounts.
Verification of input credit    
I Reconciliation of input credit booked in books of accounts and GSTR 3B    
    Outcomes Example Corrective measure
  1 Input credit not booked There are eligible input supplies but the same are not booked in books of accounts and not entered in GSTR 3B or say correctly booked in books of accounts but not entered in GSTR 3B. Input credit can be utilized in GSTR 3B of September month due date of which is 20 October 2018. But if assessee has switched from casual Tax payer scheme to composite scheme, credit not taken cnnot be taken.
  2 Ineligible input credit booked Ineligible input credit such  as building repair cost (capitalized in books), expenses on food and beverages etc booked in books of accounts and also taken in GSTR 3B. Such credits should be transferred to block credits.
  3 Input credit of Service tax, VAT not taken in GST and balance of these credits is lying in books of accounts. GST Trans not filed, GST trans filed but full credit is not carried forward. Such credit can be carried forward up to March 2019. As per NN 48/2018 due date of GST Trans 1 is extended to 31 March 2019. The due date of Trans 2 is extended to 30 April 2019.
  4 GST is not taken in proportion If the assessed is providing exempt supply or supply on which input credit is not available. Most commonly this will be in case of hotel and restaurants where GST is being charged at 5% on supplies from restaurant and input credit is not available Credit directly attributable to exempted supply, personal usage, supply of goods or services on which GST credit is not available should be reversed. For common input proportion (calculated on the basis of turnover of total, exempted and taxable supplies) of credit should be reversed.
  5 An input credit left to be booked in books of accounts and also not utilized in GSTR 3B - Credit can be utilized in GSTR 3B up to October 20, 2018 and the same invoice can be booked in books of accounts in next FY as prior period item.
II Reconciliation of input credit in GSTR 1 and GSTR 2A    
    Outcomes Example Corrective measure
  1 Eligible credit as per our calculation is higher Invoice is not reflected in GSTR 2A The same must be communicated to the client so that the sane can be entered in GSTR 1 by the receiver of supplies and credit can be utilized.
      Invoice is reflected at lesser value The same must be communicated to the client so that the same can be adjusted in GSTR 1 by the receiver of supplies and credit can be utilized.
  2 Eligible credit as per our calculation is lower There is ineligible input credit GST credit on ineligible supplies will also be reflected in GSTR 2A. Mismatch due to these supplies is of no effect and no action need to be taken.
      Some invoices left to be booked in books of accounts Invoice should be booked in books of accounts and input credit can be utilized in GSTR 3B of September month due date of which is 20 October 2018
      Debit notes left to be booked in books of accounts Such debit notes issued by supplier of service to the client need to be booked in books of accounts and credit should be availed in books and must be utilized in GSTR 3B of September month.

Above mentioned actions are based on my understanding. Since the format of anual return is not available on portal yet, you are advised to your on research too. Also,  I know I should have written this article earlier befrore the due date of filing of GSTR 3B of September month. But we still have time to make correctiuons in GSTR 1.

Hope it was helpful.

"Loved reading this piece by CA shanky pahoja?
Join CAclubindia's network for Daily Articles, News Updates, Forum Threads, Judgments, Courses for CA/CS/CMA, Professional Courses and MUCH MORE!"




  



Category GST, Other Articles by - CA shanky pahoja 



Comments


update