Blog

Particulars

Deliverables

Remarks

Reconciliation of Input Tax Credit

Final year-end reconciliation between ITC availed during the year and credit reversed in ‘Table 4(B)(2) i.e. Others’ of GSTR-3B and credit reflecting in GSTR-2B (net of credit notes)

Consolidate unreconciled ITC for necessary action

Communication with Vendors

Coordinate with vendors regarding supplies not reflecting in the GSTR-2B

Seeking confirmation from Vendors on timely basis

Reversal of ITC for Exempt Income

Re-calculate and adjust ITC reversals for exempt incomes, as per Rule 42 & 43 of CGST Rules. Consequently, report the same in GSTR-3B return.

Account the short/excess ITC reversal, if any     

Verification of Creditors Aging Report

Review creditors aging report to identify invoices with overdue payments exceeding 180 days.  

Reverse ITC for such supplies from such vendors in Table 4B and reclaim in the subsequent returns.

Reverse now & reclaim in subsequent year

Identification and Treatment of Ineligible ITC

Identify ineligible ITC recorded in books and determine whether to expense off or capitalize it.  

If any ineligible credit is being availed/utilized, reverse ITC with interest of @24%. Further, ensure accurate declaration of ineligible ITC in Table 4B (1) of GSTR 3B.

The said ineligible ITC to be reversed along with interest

Verification of RCM transactions

Verify transactions on which GST is paid under reverse charge and corresponding credit has been availed.

Validate whether time of supply provisions have been duly followed before claiming ITC.

Verify whether self-invoices have been issued.

Validate whether ITC pertaining to RCM transaction have been correctly depicted in GSTR-3B

Reverse Charge Mechanism Supplies

Verify all expenses subject to Reverse Charge Mechanism (RCM), such as director sitting fees and legal expenses, and reconcile them with the RCM liability discharged in GSTR-3B. Any variance should be paid along with applicable interest as per time of supply provisions. 

Expenditures in foreign currency as per financial records, import details and amount reported in GST returns shall be reconciled     

Validate transactions on which GST is liable to paid under RCM

Validation of ITC balance

Reconciliation of ITC balances as per electronic credit ledger and balances appearing in books of accounts

Particulars

Deliverables

Remarks

Reconciliation w.r.t outward supplies

Reconciliation of Turnover, Tax amount, Credit Notes and Debit Notes reported in GSTR1/GSTR-3B with books of Accounts

In case of any discrepancy the same needs to identified

Review of HSN summary

Validate the HSN summary pertaining to outward supplies depicted in GSTR-1

Ensure the following:          (1)

Credit/Notes, Amendments pertaining to the outward supplies made during FY 2023-24 and reported in Apri’24 to Oct’24 are captured appropriately in GSTR-9 & GSTR-9C of FY 2023-24

Must be done till 30th November, 2024.  

(2)

In case of exempt supplies, whether bill of supply has been issued and reported in the GST Returns.

In case of export of goods, reconcile the shipping bill details with GSTR-1

Reconciliation of shipping bill details is critical for claiming the refund of unutilized ITC / GST paid on export

E-invoicing

In case of compulsory generation of e-invoices, check & reconcile whether all the tax invoices for B2B supplies have been duly reported on the dedicated e-invoice portal and IRN generated with QR code. If not, then kindly report the same on the e-invoice portal and take the necessary action in the subsequent month’s GSTR 1 provided the period of 30 days from date of invoice has not lapsed  

Reporting of E-way Bills

Reconciliation of E-way bills generated during the FY 2023-24 with tax invoices reported in GSTR 1.

Intimate the department in case of any discrepancy

Requirements

Tools/Resources

Due Date

Reset Invoice Series Number 

Start new Series 

– 

File LUT for zero-rated supplies 

Application in Form GST RFD-11 

31/03/2024 

Opt-in for GST Composition Scheme, if you wish to, subject to fulfillment of criteria & conditions 

File CMP-02 

31/03/2024 

Opt-in or out of Quarterly Report Monthly Payment (QRMP)  Scheme,     

In this scheme, registered persons having aggregate turnover up to Rs 5 Cr. are allowed to furnish their GST returns on a quarterly basis along with monthly payment of tax under QRMP Scheme

last date to opt-in or opt-out is 30/04/2024 

For Transition to Composition Scheme (from a regular taxpayer to a composition taxpayer) 

File ITC-03 

on or before 30/05/2024