Important Points to Remember Under GST for the FY 2023-24


   VIEWS      By SCMCube   March 28, 2022

Since we are already in the last month of the Accounting year (i.e. March 2023), which mandates few important points to be taken care in current month in order to have an easier operation in the subsesquent year without much reference of previous year. Below mentioned are the points that need to be considered while acknowledging the identical thing.

  • Check if any GST debit note/credit note needs to be issued for any short or excess value charged or for any sales returns by the customer.
  • The time limit for credit notes is October 31st. Verify the agreement clauses on discounts and the requirement to issue credit notes.
  • Review the debtor’s ageing report to assess the tax implication on customers, i.e. their input tax credit (ITC) may not be eligible until payment, and check for MSME non-compliance.
  • Review and make amendments to GSTR-1 if necessary, such as changing the outward supplies from B2C to B2B or the type of tax.
  • Consider that input tax credit (ITC) with respect to any credit notes issued would be considered reversed.
  • Ensure tax liability against receipt of advances for services and adjust to derive unadjusted advances.
  • Verify that CGST/SGST is paid instead of IGST, and vice versa.
  • Check whether any income from other sources is liable or not liable under GST. Ensure that the tax position is clear.
  • Check if ITC reversal is required under Rule 37 for non-payment within 180 days or reclaim of any ITC for supplies for which payment has been made.
  • (Books, GSTR-1, and GSTR-3B) can help identify if any changes need to be made to the GST returns.
  • Comparing the balance of credit and cash in the GST portal with the books reveals omission and commission of errors causing missed out or excess claimed input tax credit (ITC).
  • Verify the accounting treatment of transactions covered under reverse charge, and check for any system limitations in recording these transactions as direct expenses (e.g. freight subject to RCM).
  • Payments for freight and transportation (recently FCM @ 5% allowed)
  • Import of services (with or without consideration) (useful sources include Form 27Q and Form 15CA/CB), and sponsorship/advertisement/marketing fees and licences to various governments.

Note: Corrections, deletions, or modifications to GST returns for a given financial year can be made up until the latest deadline of 30th November 2023, which is the deadline for the October 2023 GST returns.

SCM-Footer-Wave SCM-Footer-Wave-Dark