GST – Before you close your Books of Accounts:

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Books of Accounts
GST – Before you close your Books of Accounts:
  1. A complete reconciliation to Sale declared under GSTR-1 and GSTR-3B vis-à-vis books of accounts is to be made. If there is any difference between GSTR-1 and GSTR-3B, then the either of the 2 should be rectified in the current period. Differences in relation to previous periods could be adjusted by amending GSTR-1 during filing for current period (month).
  2. Mistakes, if any in GSTR-3B should be adjusted in subsequent periods GSTR-3B. If any sales are reducing/increasing then the same must be adjusted in the current tax periods and tax should also be adjusted accordingly.
  3. All the purchases and corresponding credits are to be checked and verified with GSTR-3B. Balance of books and Online Electronic Credit Ledger should be matched in entirety. Any difference should be adjusted in books or GSTR-3B accordingly.
  4. Reversal of Credits: – If there are any exempted supplies, then the credits are to be reversed as advised under Rule 42 and 43.
  5. Reversal of credits where Higher Duty Draw Back have been claimed:- During the period in which higher duty Draw back were availed (i.e. July – September, 2017), No credit availed in relation to material exported during that period could be taken in the Books of Accounts. Such credits need to be reversed in GSTR-3B and books of accounts as well.
  6. Refund if already taken:- If a refund GST of period July-September, 2017 has already been taken from GST department, then the same should be immediately refunded back to the department so that there is no case of refund of higher duty draw back and ROSL to the customs department.
  7. Reversal of Credit where Payment is not made within 180 Days:- All the payments to vendors are to be made within 180 days of his Invoice. If payment is not made to the vendor within 180 of his Invoice then the credit in relation to that Invoice needs to be reversed along with an interest @ 24% p.a. from the date of taking such credit till the date of final reversal.
  8. RCM Payment is to be made:- Reverse Charge Mechanism was applicable on goods or services taken from transporters, Advocates and all the unregistered persons. W.e.f. 13.10.2017, such Reverse charge in relation to unregistered persons was withdrawn. However reverse charge in relation to specified services still continuing.
  9. Checking Input Tax Credit in relation to denied supplies:- If any of such credits have been taken, then they should be removed from the books of accounts and GSTR-3B.
  10. Checking for any pending ITC:-  Any ITC which was related to the year 2017-18 and which could not be taken due to non-receipt of Invoices or non-receipt of material, then such credit should be taken before the month of September-2018.
  11. Checking for any pending liabilities:- If any liability is pending which could not be declared in the return then the same is also to be deposited in time before finalisation of books of accounts.
  12. Pending Credit/Debit notes:- Any pending debit/credit notes should also be finalised before finalisation of books of accounts and should be declared in the return before the month of September, 2018.

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