Chartered Accountant | Blogger | Business Analyst | Virtual CFO
GST - THINGS TO BE TAKEN CARE BEFORE SEPTEMBER 2019
GST has completed its second
financial year and there are certain critical issues we have faced while
compiling GSTR-9 for 2017-18. So it is necessary to be consider following
critical areas by the taxpayers on or before 30 September 2019.
1. Any Amendment of Invoices or Credit Note relating to Financial
The Invoices related to last financial year uploaded in GSTR-1
cannot be amended or altered later filing the GSTR-1 for the month of Sep
2019. Any corrections to be done has to be taken care now. Otherwise we
would face mismatches while compiling the GSTR-9 for 2018-19
2. Any differences between Books and 3B Return has to be adjusted
(increase or decrease) before September
The difference between 3B and Books or any errors in 3B returns
has to be corrected in the forthcoming 3B returns for the month of August
and September. If the corrections are not done, we would face differences
while compiling GSTR-9 for 2018-19 and it would create differential tax
liability and unwanted additional Interest.
3. Credit Notes in relation to supplies made upto 31st March 2019
cannot be issued after 30th Sep 2019
The Credit notes in relation to supplies for the previous
financial year 2018-19 on account of any reasons (like variance in
price, discount, cancellation of contract, return of supplied goods )
have to be issued before 30th Sep 2019.
4. Availing of Input Tax Credit for Invoices/supplies relating to
last year should be taken before 30th Sep 2019
Any credit on account of Inward supplies , which was not availed
has to be availed before 30th Sep 2019. If not availed, then the Credit
would be lapsed. Please also note the other conditions that credit on a
invoice cannot be taken after one year from the date of Invoice. It is
also to be noted that any excess credit availed also has to be reversed
before 30th September along with Interest.
5. Reconciliation of Books, GSTR-1,GSTR-3B and GSTR-2A
The Complete and through reconciliation of the data reported in
GSTR-1, GSTR 3B and GSTR-2A with the books of accounts would be great
saviour to us. We may not face any huge difference while compiling GSTR-9
and we wont miss any unavailed Input credit.
The Finance Bill, 2020 requiring every seller (whose previous year turnover exceeds Rs.10 crore) to collect tax at source (TCS) at the rate of 0.1% of the sale consideration exceeding Rs.50 lakhs in respect of sale of any goods. If there is no PAN or Aadaar, then the TCS Rate would be 1%. In simple sense, It means that if your are buying any goods from big seller (Turnover more than 10 Crore), then you will be charged TCS 0.1% on the Invoice and same would be credited to your PAN account and same would reflect in Form 26 AS. The same tax can be taken credit in your income tax return. The effect / intent of this amendments is that all your significant purchases of yours would be reported to income tax authorities. This would keep a check on tax evasion on small business in B2C business. But, already all these transactions were getting reported through GST returns. All business were already heckled with GSTR-2A Reconciliation. Now, what is the purpose of this provisions ???
Business Life after Lock down is not going to be easy ride for anyone, except for few sectors such as Pharma, Software. The working capital management is going to be a big concern for every company , irrespective of scale of the company. Don't look as we lost two months in our business cycle; Instead, Do approach that you only have 10 months in this financial year - Change your approach. Following would be key points that need to be addressed for 1. SURVIVAL IS KEY Be any crisis, the Survival should be the objective of every business. As a Entrepreneur, Do chalk out a Business Continuity Plan to survive the crisis. Don't worry too much about the downfall in the growth & pressure clouds on cash flow. Even Majors are going to undergo this. Be Open & Do all the possibilities to survive. 2. CUSTOMER ENGAGEMENT - 80:20 ANALYSIS Do apply 80:20 analysis to last three year sales data and gather the customers through whom we received 80% of business in the last thre
In Summary following are the relief given for GST Compliances For Detailed Information, Please read the circular through below link http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_136_6_2020.pdf GSTR-1 RETURN (Sales Return) - March, April & May 2020 The Due dates for the month of March, April & May 2020 would remain unchanged. But the late fees payable will be Nil, if the returns are filed on or before 30th June 2020. If filed later, then the respective late fee would be payable. This extension is irrespective of the turnover of the company GSTR-3B RETURN (Summary & Payment Return) A. Feb, March and April 2020 If Turnover is less than 1.50 Crore The Due dates for Feb, March and April 2020 would remain unchanged. But, the Interest & Late Fee will be Nil, if the returns are filed within following Due Dates. If filed later than that, the respective interest, late fee and penalty would be applicable right from the actua