2 months ago mycaguruKeymaster
Goods & Services Tax Year End Checklist
Goods & Services Tax Year End Checklist : Here is a point wise list of some of the important aspects to be taken care from GST point of view before year end closing.
1 . Reversal of Input tax credit
- As per the rule 37 of CGST rules 2017 , after issuance of tax invoice if receiver does not made the full payment of consideration within 180 days then the credit taken on that invoice has to be reversed along with payment of Interest.
- In this case the input tax credit can then be taken after making payment of the invoice.
- Therefore the aging analysis of the debtors and creditors should be done. All old invoices issued before 1st October, 2017, should be paid before 31st March 2018.
2. E way bill
- As per 26th GST council meeting it is compulsory to issue E way bill from 1st April, 2018 for interstate transport where value of goods is more than Rs. 50,000.
- Therefore, it is necessary to take the registration under E way bill system before 31st March. [You May Also
- All the taxpayers should reconcile the cash ledger & credit ledger in GST portal with their books of accounts. All the entries should be done before the year end. Also debit note, credit note, rate difference, discount, etc. should be reconciled with GST returns.
4. HSN Code in the Invoice
Before preparing first invoice in the new financial year, taxpayers should check the turnover for the year 2017-18.
- Those with a turnover of less than INR 1.5 Crores need not follow HSN
- Those with a turnover exceeding INR 1.5 Crores but less than INR 5 Crores shall be using the 2 digit HSN codes
- Those with a turnover exceeding INR 5 Crores shall be using the 4 digit HSN codes
5. Composition scheme
- If any taxpayer wants to register under composition scheme then he can apply in Form GST CMP – 02 before 31st March.
- Similarly, those who wants to cancel the registration under composition scheme, they have to apply in Form GST CMP – 04 before 7th April.
6. Due dates of the returns
- 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 upto 18th April
- GSTR 6 for the month of April has to be file upto 13th April 2018.
- 31st March is the due date to file GSTR 6 from July 2017 to February 2018.
7. Opting for Monthly or Quarterly GST returns
Taxpayers should check the turnover for the year 2017-18.
- If the aggregate turnover is above Rs. 1.5 Crore then the taxpayers have to file monthly return.
- If the aggregate turnover is below Rs. 1.5 Crore then the taxpayers have an option to file the quarterly GST returns.
8. Form GST TRAN 2
The taxpayers who have filed the TRAN 1 and have taken the credit of Excise duty paid, without any documents, they have to file the details of outward supplies for six months in TRAN 2 before 31st March 2018 for availing 40%/ 60% credit.
9. GSTR 2
Details of purchases are reflecting on the portal in the form GSTR 2A. All the taxpayers should check the details of purchases before 31st March.
10. Valuation of the closing stock
Valuation of closing stock as on 31st March, should be done after taking the input tax credit of raw material, consumables, semi-finished goods etc.
11. Depreciation on the capital asset
At the time of calculating depreciation on the capital goods (other than building), if ITC has been claimed, then the tax amount needs to be ignored at the time of calculating depreciation.
Anti-profit provisions were made by government so as to ensure that any benefit of tax rate reduction or benefit of input tax credit is being passed on to the consumers.
An analysis of the gross profit earned for March 2018 should be done.
If the gross profit ratio has unreasonable hike then taxpayer should check if the Anti-profiteering provisions are being violated.