Comprehensive Solutions for GST Audit, Annual Return & Recent Law Changes
This content delves into statutory provisions, preparation, readiness, collection of details and documents, and segregation requirements related to GST audit, annual return filing, and recent changes in GST law. It covers aspects like who needs to file GSTR-9, the importance of GST audit reports, identification of discrepancies, and the collection of various GST-related documents. The content also emphasizes the need for timely corrections and proper segregation of data for a complete and accurate GST compliance process.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
GST Audit/Annual Return & Recent Changes in GST Law By Adv. Deepak Kumar Director IDT Comprehensive Solutions for Complex Matters www.ascgroup.in
Table of Contents 2 STATUTORY PROVISIONS PREPARATION/READINESS ADDITIONAL REPORTING GST AUDIT-NOT MERE ACCOUNTING EXERCISE RECENT CHANGES IN GST GST HEALTH CHECK-UP Comprehensive Solutions for Complex Matters
Statutory Provisions 3 Persons Not Required to File GSTR 9 i.e. Casual Taxable Person, ISD, Non-resident taxable persons, Persons paying TDS section 51 of GST Act Section 44:- GST Annual Return GSTR 9(Normal tax Payer), 9A (Composition dealer ) & 9 B (Electronic Commerce Operator)is to be filed once every year by a registered taxpayer under GST. Due Date: 30.06.2019. Section 35 (5):- GST Audit report GSTR 9 C is to be filed by taxpayers whose annual turnover exceeds Rs. 2 crores during the F.Y . It is to be verified and audited by a chartered accountant or cost accountant. under Comprehensive Solutions for Complex Matters
Preparation/Readiness 4 Identification of Discrepancies & Reconciliation Collection of Details & Documents Making timely Corrections Segregation Comprehensive Solutions for Complex Matters
Collection of Details & Documents 5 Collection of GSTR 3B, GSTR 1, TRAN-I, TRAN-II, ITC-04, GSTR 6 & GSTR 2 A with complete details. Collecting all details of sale, purchases, expenses & Tax payments etc. from books of account including pre-GST period. Collection of all transactions not accounted in books but subject to GST or accounted for but not subject to GST. Comprehensive Solutions for Complex Matters
Collectionof Details & Documents 6 Collecting details of current FY purchases/services for which ITC claimed in subsequent FY. Collecting all tax payment of GST liability link with PMT. Collecting all invoices of outward/inward supplies either in soft or hard copy. Comprehensive Solutions for Complex Matters
Segregation 7 State wise monthly/quarterly segregation of all data collected like sale, purchases, expenses etc. State wise, HSN wise outward/inward supplies. Recent changes in inward supply requirement. Segregation of outward/inward supplies as required in Annual Return. Like B2B, B2C, credit notes, debit Notes, SEZ, Non-GST Supply Export, non-eligible inputs, RCM, ITC reversed, imports goods as well services etc.. Comprehensive Solutions for Complex Matters
Identification of Discrepancies 8 Identify excess or short claimed of ITC Identify duplication of ITC Identify reversal ITC Identify reclaim of ITC Identify the discounts & schemes on which GST is applicable or not. Identify ITC claimed on supplies specifically blocked u/s 17 Identifying ITC claimed against exempted output supplies or not claimed against taxable supplies. Comprehensive Solutions for Complex Matters
Reconciliation 9 Reconciliation between GSTR 1 vs. GSTR 3 B for outward supply. Reconciliation between GSTR 2A vs. GSTR 3 B for inward supply Reconciliation between books of account vs. GSTR 3 B for outward/inward supply. Reconciliation of input from books of account claimed during the FY & subsequent FY with GST Returns. Comprehensive Solutions for Complex Matters
Making Timely Corrections 10 Correction of ITC not reported in GST Returns. Correction of Ineligible ITC reported in GST Returns. Correction of Debit Note/Credit Note reported or not reported in GST Return. Correction of Tax liability payable but not declared in GSTR 3B. Differential tax payment (through GSTR 3 B or DRC-03). Comprehensive Solutions for Complex Matters
Additional Reporting 11 Preparing reports of adjustment made in subsequent FY of outward supply, inward supply & RCM pertaining to current FY. Report on refund- Claimed/ Pending/Sanctioned/Rejected Report on Demand raised, paid, pending Report on composition Inward Supply Report on deemed supply- Job Work, stock transfer etc. & on goods sent on approval basis not returned within prescribed time Report HSN Outward\Inwards Supply & on Late Fee etc. if any Comprehensive Solutions for Complex Matters
GST Audit 9C- Not mere Accounting Exercise 12 Reconciliation Statement Certification Reconciliation of Turnover. The GSTR-9C can be certified by the Chartered Accountant Accountant. Reconciliation of Tax Paid. or Cost Reconciliation of Input Tax Credit (ITC). Auditor s recommendation. Comprehensive Solutions for Complex Matters
Turnover Reconciliation 13 Reconciliation between:- Break up of the turnover at GSTIN level. Turnover declared in the Identify the differences between turnover in financial statement & GSTR 9 like unbilled revenue , unadjusted advances, supply, credit notes, trade discounts, pre-GST Turnover. Turnover in composition scheme, under valuation , Turnover due to foreign exchange fluctuation etc. Audited Annual Financial Statement & Annual Return (GSTR-9) deemed Turnover Reason of reconciliation difference Comprehensive Solutions for Complex Matters
Tax Paid Reconciliation 14 Reconciliation between:- Break up of the tax paid at GSTIN level rate wise. Tax paid in Identify rate wise differences of tax paid. Audited Statement Annual Financial Reason of differences. & Annual Return (GSTR-9) Comprehensive Solutions for Complex Matters
ITC Reconciliation 15 Reconciliation between:- Segregation of ITC claimed at GSTIN level & co- relate with financial statement purchase/expense wise and also determine pre/post GST period ITC & Identify the RCM ITC separately. ITC claimed in Audited Statement Annual Financial Identify the differences between ITC claimed in financial statement & GSTR 9 like eligible/ ineligible credit , short/excess credits, etc. & Annual Return (GSTR-9) Reason of differences. Comprehensive Solutions for Complex Matters
GST Health Check-up Validation of the procedure, compliance & calculation as per GST Law. Prevention is always better than cure Checking and rectifying GST compliances as soon as possible. Comprehensive Solutions for Complex Matters www.ascgroup.in
How ASC Supports Identification TOS and POS for charging correct Tax. Detection unclaimed ITC Checking & Rectifying credit & debit note Claiming TDS deducted Comprehensive Solutions for Complex Matters www.ascgroup.in
How ASC Supports Identify shortcomings or leakages in GST Compliance. Checking Proper maintenance of GST Records Checking payment made within 6 months to the vendor on which ITC claimed Validating payment of RCM Comprehensive Solutions for Complex Matters www.ascgroup.in
How ASC Supports Matching the Electronic cash & credit Ledgers with the Books of account. Checking GST Rates on output & Input Validating & Claiming of correct refunds from the department. Examine & suggest reversal of wrongly claimed ITC. (Blocked Credits) Comprehensive Solutions for Complex Matters www.ascgroup.in
20 RECENT UPDATES IN GST Comprehensive Solutions for Complex Matters
Recent Updates 21 Consolidated credit note and Debit Note in a financial year. The suppliers are now not required to link Credit and Debit notes with individual invoices. The supplier may now issue a consolidated credit and Debit note in Notification No. 02/2019 Central Tax dated 29th January 2019 for amendment in CGST Act 2017 respect of multiple invoices issued in the financial year. Restrictive applicability of Section 9 (4) It has been proposed that the government will notify certain class of registered person who shall be liable to pay tax on reverse charge Notification No. 01/2019 Central Tax (Rate) dated 29th January 2019 read with CGST Amendment Act basis in case of receipt of goods from an unregistered person. Only a notified class of registered taxpayers are purported to be covered by this substituted section now. Comprehensive Solutions for Complex Matters
RecentUpdates 22 Amendment of section 10 (Composition) The limit has been raised from Rs 1 Crore to Rs 1.5 Crore so as to facilitate trade practices. N.No. 02/2019 Central Tax dt. 29thJanuary 2019 for amendment in CGST Act 2017 A new provision has been inserted which allows registered person engaged in supply of services (other than restaurant services) to opt for composition scheme subject to a threshold limit. 10% of the Turnover of previous FY or 5 lakh whichever is higher. Expansion of Scope of ITC has been enabled on food and beverages, outdoor catering, beauty ITC for Section 17(5) treatment, Health services etc. if required to be provided by the employer clause(b) [Section 17(5) through any obligation Imposed under any law. clause (b)] Renting or hiring of motor vehicles, vessels and aircraft are blocked only if the purchase of such motor vehicles, vehicles and aircrafts are blocked as per clause (a) of (aa). Comprehensive Solutions for Complex Matters
RecentUpdates 23 Multiple registrations for The law now allows a separate registration for each place of business in each place of business and respect of persons having multiple places of business in a state. separate registration for It has now been expressly provided in the Act that a person in a SEZ or being SEZ a SEZ developer have to apply for separate registration as compared to his N.No. 03/2019 Central Tax dt. registration in respect of the place of business located outside the SEZ in the 29th January 2019 for same state or territory. amendment in CGST Act 2017 Changes in Reverse Charge Mechanism Security services (supply of security personnel) provided to a registered person, except Government Departments which have taken registration for TDS and entities registered under composition scheme, shall fall under RCM. Exception: Service Provider is a body corporate. N No. 29/2018- CTR dt. 31st December 2018 Services provided by unregistered Business Facilitator (BF) to a bank and agent of Business correspondent (BC) to a BC shall also fall under RCM. Comprehensive Solutions for Complex Matters
RecentUpdates 24 Utilization of IGST The new process of utilization requires the utilization of IGST first against N.No. 02/2019 Central payment of any output tax liability in the form of CGST/SGST/UTGST/IGST Tax dt. 29thJanuary 2019 The balance of CGST/SGST/UTGST can be used only when the balance of for amendment in CGST IGST is exhausted Act 2017 This has been amended to restrict the utilisation of SGST/UTGST credit available against payment of IGST only when the balance in CGST credit is not available for payment of IGST. Comprehensive Solutions for Complex Matters
Thank You Comprehensive Solutions for Complex Matters www.ascgroup.in
