Important points before closing books of accounts under
GST:
- First bill in new year:
Precaution needs to taken while issuing 1st bill in coming year. Following are slabs on the basis of which taxpayers requires to mention HSN
– if turnover is > Rs. 5 crores shall use 4-digit code
– if turnover is < Rs. 5 crores but >1.5 crores shall use 2- digit code
– if turnover is < Rs. 1.5 crores are not required to mention HSN Code in their invoices.
- Returns frequency:
On the basis of turnover for the year 2017-18, returns frequency in the next year will be decided.
- if turnover is < Rs. 1.5 crores – Quarterly returns
- if turnover is > Rs. 1.5 crores- Monthly returns
- Deprecation on Fixed Assets:
If the taxpayer has availed the ITC on fixed asset (other than Building), tax portion needs to ignore at the time of calculating deprecation.
- Compliances in the form of Returns:
On the basis of final accounts of the March month, following returns will be filled:
– GSTR 3B for March is to be filed up to 20th April.
– GSTR 1 is to be filed up 10th April.
– GSTR 4 is to be up to 18th April.
– GSTR 6 is to be filed up to 13th April.
- Switch over from the Existing Scheme:
- If the taxpayer wants to switch over from regular to composition scheme then he can apply in Form GST CMP – 02 before 31st scheme then he can apply in Form.
– Similarly those who want to cancel the registration under composition scheme, they have to apply in Form GST CMP – 04 before 7th April. Also they have to calculate the effects of ITC on closing stock.
- Closing stock valuation:
While valuating closing stock the input tax credit taken on raw material, consumables, semi-finished goods is to be calculated.
- Reconciliation of the Book balances:
- Check whether on expenses, ITC is taken in GST returns.
- It is necessary for the taxpayers to reconcile the balances of Cash, Credit & Liability ledger with the books of accounts.
- All the entries should be passed before the year.
- Also match the Credit & Debit Notes with the Purchase & Sales.
