GST checklist with the onset of FY 2023-24
Very last updated on March 29th, 2023 at 04:31 pmGST checklist with the onset of FY 2023-24
Centered on provisions and rules under the GST regime, there are specified to-dos that want each and every taxpayer’s awareness ahead of the commencing of the new fiscal yr.
Renewal of LUT
Letter of Enterprise is a pre-requisite for exports devoid of the payment of IGST.
The validity time period of a LUT is only for a economical 12 months. That’s why a refreshing application in Type GST RFD-11 needs to be created each and every year. (Browse in depth about LUT)
New Distinctive series for Invoices
Rule 46 and Rule 49 of GST – Taxpayers are essential to start out a new exceptional sequence for generating invoices/expenditures of offer for each and every money year.
Notice: Serial amount of invoices should really be consecutive and it ought to not exceed 16 people. A serial range can consist of alphabets, numerals, special characters, etcetera but it is sensible to continue to keep it one of a kind consecutive, and simple so it is effortless to reconcile from JSON documents as well.
Applicability of e-invoicing
With influence from 1st Oct 2022, provisions of e-invoicing will be relevant to taxpayers whose combination turnover exceeds Rs 10 crores in any preceding financial year right after the rollout of GST.
Taxpayers have to have to validate regardless of whether the provisions of e-invoicing are relevant to them from the e-invoicing portal (validate in this article). If applicable then the registration and onboarding course of action for the technology of e-invoicing demands to be carried out just before the start of the fiscal 12 months. (Read through in detail about E-Invoicing below GST)
Applicability of HSN/SAC
If AATO is up to Rs 5 crores then it will be required to quote 4-digit HSN for B2B invoices (optional for B2C invoices).
If AATO is higher than Rs 5 crores then it will be obligatory to quote 6-digit HSN for B2B as properly as B2C invoices. (Browse in depth about HSN/SAC codes)
Opt-in of the Composition Plan
Validate no matter if you are eligible to opt-in for the composition scheme based on your AATO of the previous yr. Then you can swap from staying a normal taxpayer to a composition taxpayer by filing an application to choose for Composition Levy in Variety GST-CMP-02 at GST Portal
Reconciliation of GST returns with Guides
Reconciliation of turnover/gross sales with GSTR 1 and GSTR 3B and textbooks of accounts and e-waybill details and e-invoice reporting Portal.
Reconciliation of inward materials/purchases with GSTR 2A/GSTR 2B with textbooks of accounts.
Reconciliation of outward liabilities centered on the above reconciliations and GST legal responsibility settled by digital credit score ledger and paid by digital income ledger. In scenario there is any shortfall the very same shall be compensated alongside with interest.
Tax Bill/DN/CN/Self Bill for RCM (if any)
If any invoice/debit notice/credit notice was not recorded the identical must be recorded.
If any invoice/debit notice/credit history observe was incorrectly recorded the identical should be amended. Make amendments if any transaction was incorrectly recorded as B2C materials as an alternative of B2B materials and vice-versa.
Input Tax Credit history
Availment
Validate and avail ITC if an qualified ITC was not recorded due to human/technique mistake.
Verify and avail the ITC on fees levied by the financial institution if not availed in the course of the calendar year.
Verify no matter if ITC relating to all your inward materials and inward products and services demonstrates in GSTR 2A/2B, if not affirm the right filing position with the provider.
Verify whether ITC is availed for all the imports as ITC for imports does not the right way mirror in GSTR 2A/GSTR2B
Reversal
Reverse the ITC if you are not in possession of a legitimate tax bill or debit take note issued by a registered supplier – Sec 16(2)(a)
Reverse the ITC if ITC was availed regardless of non-reflection in Kind GSTR 2B – Sec 16(2)(aa)
Reverse the ITC if products or expert services or the two are not really acquired – Sec 16(2)(b)
Reverse the ITCif ITC was availed inspite of the reflection of limited standing in Sort GSTR 2B – Sec 16(2)(ba)
Reverse the ITC if the tax has not been really paid out to the Govt – Sec 16(2)(c)
Reverse the ITC if GSTR 3B is not submitted by the supplier – Sec 16(2)(d)
Reverse the ITC along with desire if you(recipient) have failed to spend the provider within 180 days from the date of issuing an invoice – Next Proviso to Sec 16(2)(d)
Reverse the ineligible ITC if availed – Rule 42 43
Reverse the blocked ITC if availed – Area 17(5)
Other folks
Confirm whether the affect of GST for inter-business transactions/ inter-group transactions has been correctly provided.
Verify whether or not ITC readily available is the right way distributed by the Enter Assistance Distributor.
Verify no matter if no ITC is availed from the suppliers whose registration has been canceled(write-up the day of cancelation).
Reverse Demand System
Confirm regardless of whether where ever tax is needed to be paid out on a reverse cost basis is compensated or not.
Validate irrespective of whether the ITC claimed for tax paid out on a reverse charge basis relates to the similar financial year as there have been instances exactly where the Governing administration has disallowed before period’s ITC as it was time-barred.
Fascination
Verify irrespective of whether the interest which was not acquiring car-calculated is paid or not. If not it is highly recommended to shell out now and not delay it any additional.
Chartered Accountant in observe, DipIFRS (from ACCA, Uk), Put up Graduate in Commerce, Qualified Impartial Director (from IICA), and holds a certification in Forex trading and Treasury Management study course (by ICAI).She can be contacted at details.financepost@gmail.com Latest posts by CA Ankita Khetan (see all)
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