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Preparation for the GST Audit
Even though Government extended due date for filling GST Annual Return, but still some basic points that needs to be kept in mind. This is the very important time for every person who is required to file GST Annual return in various forms like GSTR-9 for regular & GSTR-9A for Composition Dealer.
1. Issuance of E-Way Bill:
We know that, E-way bill was introduced by Government and such E-Way bill data Needs to be match with Sales invoice, so that you can keep track of the goods Transported and GST paid thereon.
2. Stock Transfer:
In GST, Supply includes Stock transfer also. And thus entity is required to pay GST on it. Therefore one may check stock transfer between the units or branches and claims of ITC and GST paid thereon. In return details of such transaction are required to furnish.
3. Payment within 180 days:
We have to ensure that the invoices on which input tax credit has been claimed should be paid within 180 days to the suppliers. If not, then According to section 16 of the GST, a person has to reverse the ITC and reclaim it after the payment made to the supplier and also will be liable to pay such amount along with the interest and penalty if any.
4.Reconciliation between GSTR-3B & GSTR-1 & between the Books:
- Before going forward with filing the annual returns, the taxpayers should reconcile all the monthly or quarterly GST returns with the books of accounts. The taxable, exempted and non-GST turnover should be carefully matched. Any difference should be immediately corrected.
- Reconciliation of the books of accounts and tax invoices are issued during July 2017 to Mar 2018 is of utmost importance; this should match the turnover declared in the audited financial statements. It is important for the figures in the books of accounts and the invoices to match or else the GST paid will be incorrect. Along with the invoices, debit and credit notes shall also be in agreement with books of accounts.
5. Reverse Charge Payment:
We know that, in the initial stages section of 9(4) is also there and according to which person is liable to pay GST on supplies received from unregistered person. Even though such section is deferred till time but till 12.10.2017, one has to check transaction taken place till date and payment of RCM liability on such transaction.
6. GST on Advances:
We also need to ensure payment of GST on Advances in the following manner:
||Advance received between Date
||Advances received for Goods
||01.07.17 to 12.10.17
||For registered persons having turnover less than 1.50 Crore during last FY,
||Advances received for Goods
||01.07.17 to 14.11.17
||For Persons having turnover more than 1.50 crore during last FY
||Advances received for services
||GST is payable on advance received in case of outward supply of services.
At present, No GST on Advances except received for services, is required to be paid. Till the above mentioned date GST on Advances is required to be paid.