Arjun (Fictional Character): Krishna, the financial year 2018-19 is about to end, and the new financial year is about to start. During the year many changes were made in GST. So now in March 2019, what precautions the taxpayer needs to take in respect of GST?
Krishna (Fictional Character): Arjun, This financial year was an important one. Many important changes were brought in GST this year. Soon, taxpayers would be filing their Annual return and getting their accounts audited. This would be the first time taxpayers would file annual return and also their last chance to rectify mistakes if any in FY 2017-18. So, as March end approaches the taxpayers should reconcile their books with returns.
Arjun: Krishna, what are points on which the taxpayers need to pay attention at the end of financial year?
1. Amendments/ rectification: One should note that the return for March 2019 is the last chance to amend or rectify mistakes done, or things omitted in GSTR-1 or GSTR 3-B return for FY 17-18.
So, The taxpayers should reconcile their books of accounts and returns uploaded and adjust their differences in March GSTR-3B. Also, if any mistake is made in GSTR-1, like B2C shown as B2B, or wrong GSTIN uploaded, invoices omitted to be uploaded etc. can be amended.
2. Last chance to Avail pending Input tax credit- The taxpayer should reconcile their Input tax credit as reflected in GSTR 2-A with GSTR 3B filed by them and also books of accounts.
Taxpayers should also take supplier follow up for the invoices not uploaded by them, as ITC cannot be taken by taxpayer if the same is not auto populated in GSTR 2A.
3. Return ITC-04 in relation to jobwork- Taxpayers should ensure that they have filed ITC-04 for all quarters from July 17 to December 18, giving details of goods sent to jobworker and goods received from jobworker.
4. TDS returns- TDS deductors should file TDS returns from October 18 to February 19, so that the counterparty can receive TDS credit before filing their last GST 3B of FY 18-19.
5. TDS credit- Taxpayers should accept the TDS credit as reflected on GST portal on monthly basis so that the amount of TDS deducted can be credited to the cash ledger.
6. Letter of Undertaking (LUT) - All the exporters who make exports without paying tax under LUT should apply for LUT for FY 19-20.
7. Opting for Composition Scheme – The taxpayer must also workout whether he wants to convert to Composition scheme (Limit is Rs. 1.5 Cr. Now) from FY 19-20.
Arjun: Krishna, what other things should the taxpayer keep in mind before 31st March 2019?
Krishna: Arjun, following are the things to keep in mind-
- In Income tax, 31st March is the last date to file belated return for FY. 17-18.
- 31st March is the last date for filing Revised returns for FY. 16-17/17-18.
- Aadhaar-PAN linking is now mandatory for the PAN holders requiring filing of Income Tax Return. The last date to link Aadhaar number and PAN is 31.03.2019.
- If deduction u/s 80 is to be claimed in Income tax, then every taxpayer should verify the limits of Income tax and their tax liability and should invest, donate, etc. before 31st March 2019.
- If Taxpayers have not paid Advance tax before 15th March then it should be paid before 31st March so that less interest will be levied.
- Last date to file Professional tax return for FY 18-19 is 31st March 2019.
Arjun: Krishna, What lesson the taxpayer should take from this?
Krishna: Arjun, All the taxpayers should complete their pending work before 31st march. The taxpayers, who are liable to make payment, should do the payment on time. Everyone should follow the correct tax system from this new financial year. So, pay the tax as per provisions of the Act. Otherwise taxpayers will have to face consequences in the future.