It's that time of the year again when we need to finalise our financial statements for FY 22-23. We are in the 6th year of GST since its implementation in July 2017. Compliances under the GST law require a high level of attention.
While the process of filing GST returns may seem tedious and overwhelming, it is a crucial step in managing our finances and ensuring compliance with the law. However, we understand that the process can be confusing and stressful, especially for those filing for the first time.
That's why we are excited to bring you this comprehensive checklist to make the process of Compliance with GST law in India hassle-free and easy. Whether you are a seasoned taxpayer or filing for the first time, our GST checklist covers everything you need to know to before finalising financial statements for FY 22-23.
So, sit back and relax as we guide you through the various steps involved in GST Compliances before closing of FY 22-23. This will also help during preparation of Annual return GSTR 9 & 9C. Following activities to be undertaken by taxpayers to ensure GST Compliance and avoid scrutiny and litigation
In relation to Outward Supplies
Reconcile the revenue from operations and other income as per books of accounts with GSTR-1 and GSTR-3B. In case of any differences, do required changes in the books of accounts or in the GST returns, as the case may be.
Reconcile the debit notes and credit notes as per books with GSTR-1 and GSTR-3B and differences, if any, shall be accounted for accordingly.
Ensure tax liability against receipt of advances towards the supply of services and adjustment thereof to derive at unadjusted advances.
The last date to pay or adjust the taxes in relation to the supplies made and invoices issued in FY 2022-23 would be 30.11.2023 or the date of filing of GSTR-9 of FY 22-23, whichever is earlier.
The due date to declare or amend the invoices issued in FY 2022-23 for the supplies made in FY 2022-23 or credit notes pertaining to FY 2022-23 issued till 30.11.2023 in relation to the above invoices is 30.11.2023.
In relation to Inward Supplies
Reconcile ITC available at the GST Portal as per GSTR-2B v/s ITC availed as per financials v/s ITC claimed as per GSTR-3B. If there are any differences, appropriate action (avail or reversal) shall be carried out in books of accounts or GST returns, as the case may be.
Communicate with the suppliers for supplies not reflected in GSTR-2B generated from the GST Portal as ITC in case of invoices not reflected in GSTR-2B cannot be claimed.
If case of exempt income, ITC reversal shall be calculated and considered in accordance with Rules 42 and 43 of CGST Rules at the end of the year. Any additional reversal required shall be reported in GSTR-3B of March 2023 month. Alternatively, if excess ITC has been reversed by the Company during the year, such excess ITC can be reclaimed in March 2023 GSTR-3B.
Verify creditors aging report to identify invoices wherein payment is due for more than 180 days and ITC claimed in respect of supplies from such suppliers shall be reversed. The ITC reversed by the Company can be re-claimed upon making payment to the supplier.
Identify the ineligible ITC (Block ITC) recorded in books and ensure the same is expensed off or capitalized (as the case may be). If such ineligible ITC has been availed and utilized, same shall be reversed along with interest @ 18% p.a.
In case any ITC credit has been missed out for FY 22-23, ITC on such inward supply can be taken on or before 30.11.2023 to avoid any losses
Reverse charge Mechanism
Verify whether all expenses which are liable under RCM have been reported and paid in GSTR 3B of FY 22-23, if not then pay such dues on or before 30.11.2023.
Identify cases of import of services liable under RCM which are not yet been accounted for and paid. If yes, make payment under RCM and claim ITC in the subsequent month’s return. (Check forms 15CA and 15CB filed with the Income Tax department for remittance outside India).
Check if the tax paid under RCM matches with ITC under RCM, other than ineligible ITC.
Compliance check for F.Y 22-23
Any person who has opted for the composition scheme for FY 2022-23, should file form GSTR 4 on or before 30th April 2023.
The last date to opt-in or opt out of the QRMP scheme for FY 2023-24 is 30th April 2023.
Reconcile the balance of ECRL and ECL as per GST portal and with balance appearing in the books of accounts.
To check whether all Tax Invoices have HSN/SAC codes to avoid any litigation in future as HSN code is mandatory w.e.f 1.4.2021.
Every person would be required to e-invoice w.e.f. 01-04-2023 where aggregate turnover has exceeded 10 Crores in any of the F.Y. beginning from FY 2017–18 onwards.
Whether LUT has been furnished every year by 31 March on GST portal before effecting export of goods/services without payment of tax. So for FY 23-24, LUT would be executed on or before 31 March 2023 and will be valid for 1 year.
Bottom Line
We hope that this information will help you in finalising your financial statements for FY 22-23 accurately and on time.
At JJ Tax, we understand that being Tax compliant can be confusing and time-consuming process. That's why our team of experts is here to help you navigate the process and ensure that you comply with law without any errors. Whether you need help with filling the GST returns, ensuring monthly compliances on time or finalising the books of accounts, our team is here to assist you.
Happy Filing!