Before you file the GSTR-3B for the month of March-2020.
The due date of filing the GSTR -3B as well as GSTR-1 for the month of March -2020 has been extended to 5TH May 2020 for the dealer whose turnover is not exceeding Rs. 5 Cr. It means that the GST payment can be done by 5th May without any interest liability. Thanks to Notification no-31/2020 dt-03/04/2020 which has relaxed various dates of tax compliances. Similarly, the due date for filing GSTR-1 for period march 2020 is extended up to June 2020,
However, one must note that this GSTR-3B and GSTR-12 will be the last returns for the FY 2019-20. So, some special precautions need to be taken for these last returns. Rather, when the business is almost put to rest, the compliances part can be done in a better way.
This is the time which can be best utilized in the compliances activities by the businessmen. By doing compliance work, the businessmen will be able to concentrate on the business after the lock down is over.
Let us have a look at some of the special efforts that should be taken in the last returns:
- One of the area which is often get neglected in the regular course of business is with regard to Reverse Charge Mechanism (RCM) compliances. As a result, at subsequent dates, the liability emerges and the taxpayer is required to make the payment. Since the 31stMarch return is yet to be filed, the taxpayers and their accountants and tax consultants must review the financial statements and may check if any tax is payable under RCM. If payable, the same can be paid and then ITC can be claimed in this financial year itself. It will reduce the subsequent burden and cost of the taxpayers.
- The most chronicle part in the GST is ITC claim vis a vis availability of ITC in the GSTR-2. This is the free time of the taxpayers, consultants and their accountants. It must be used in a better way. All must reconcile the GSTR-2A with the books of accounts and all the ITC claim which is still not getting reflected in GSTR-2A must be noted and strong follow up may be taken with the concerned supplier for their GSTR-1 filing. It may be noted that the due date for filing GSTR-1 for month of March 2020 has been is extended to June 2020 which means that March 2020 GSTR-2A reconciliation won’t be possible before June 2020. However, for earlier months the taxpayers must carry out the reconciliation.
- There are various businessmen who have GST registration in various other states where they have a presence by way of a branch or office. In all such cases, not only state-wise account is required to be prepared but also its consolidation and reconciliation will be required. This can be best done at this moment.
- One should carefully reconcile the turnover of the FY 2019-20 with the books of accounts regularly maintained for all the months from April 2019 to March 2020vis a vis GST Returns i.e., GSTR-1 and GSTR-3B filed by the assessee. All the difference and deviation may be affected in the last GSTR-3B returns. As a result of this, the differences and its reconciliation at the time of annual returns would stand resolved. The present reconciliation will ensure smoother business obligation at a subsequent dates.
- There are various transactions where the ITC is blocked but the taxpayer have wrongly claimed it in their GSTR-3B for the reason that the bills is showing GST separately. All this blocked credit need to be reversed so that the high interest burden can be saved for subsequent months.
- Though the GSTR filing dates has been extended the condition of making payment within 6 months of bills has not been extended yet. It means the buyer has to make the payment to their supplier within 6 months of supply. If not done, all the GST ITC will be required to be reversed. Before filing the GSTR-3B for March, taxpayer should not forget to check it.
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