The coming 20 days will be so heated for the finance and the tax professionals in distinct companies since many GST-related compliance are required to get finished on September 30 or prior to that. Some of these consist of creating the new e-invoices process, total usage of ITC of the former financial, and fixing invoices.
The experts ask for the most extreme care in creating the records to prevent any sort of related action via the tax department. Tax experts mentioned that September is a busy month for finance and tax professionals since the last date for various important compliance such as claiming GST credit for the former fiscal year, providing credit notes, the rectification of invoices, reversal of GST credit on the basis of non-payment to suppliers and others come during this month.
“Implementation of e-invoicing from 1 October 2022, for dealers with sales exceeding ₹10 crores could also impact input GST credit and compliance for multinationals who deal with small vendors,” the tax expert articulated.
Tax experts mentioned that the preparations such as GST return filing within time with all the information uploaded in GSTR-1, maintaining the precise documentation, and obtaining the account by a CA or CMA is an effective choice
“This could mean purchase and sale registers, fixed asset registers, payment challans, e-way bills, etc. In the event of a notice of scrutiny, or even at the time of closure of books of accounts, the reconciliation process will be much smoother if proper documentation is maintained. Additionally, reconciling your returns with your book of accounts is also important. Understanding the provisions of the Reverse-Charge Mechanism and informing the GST authorities regarding the changes in business are also some basic steps that one should keep in mind,”
Through assistance from tax experts, there is a list of critical guidelines required to get finished on or by September.
New Phase of GST E-invoicing
It is essential for the assessee to have e-invoicing who secures a turnover of more than Rs 10 cr effective from 1st October. Hence the qualified assessee would be needed to calculate their businesses, perform revisions in the IT systems, and get prepared to generate the invoices as mentioned.
The firm would indeed acknowledge determining and monitoring its vendors on whom GST e-invoicing the provisions might be subjected to be applied to ensure that the firm obtains GST following invoices to claim an Input tax credit.
Time Blocking of GST ITC
Section 16 of Central Goods & Services Tax Act 2017, the ITC for the invoices relating to Financial Year (FY) 2021-22 could be claimed till September 2022.
The taxpayer is obligated to perform/ update the reconciliation of ITC available in GSTR-2A/2B (till date) with ITC claimed in GSTR-3B and take action for mismatch of ITC for preventing any loss of ITC for invoices pertaining to FY 2021-22.
Revisions in GSTR-8 Filed by the E-commerce Operator
Every e-commerce operator (excluding the supplier of services reported under Section 9(5) of CGST Act, 2017) would be obligated to collect the tax on the net value of the supplies incurred via it from distinct suppliers, deposit via filing the return under Form GSTR-8 in 10 days of the finish of the month.
As per that, an omission in GSTR-8 filed for the FY 2021-22 could be amended till the last date of filing the GSTR-8 of September 2022.
Credit Notes
As per section 34 of CGST Act 2017, the related credit notes of any supply of FY 2021-22 could be notified till the last date of GSTR-3B for September 2022. Hence the credit notes would be concerned with the mentioned duration and must be given on 30th September 2022 or before.
Hence the credit notes concerning the specified duration must be provided on the date 30th September 2022 or prior to that notified in the GSTR-1 form for claiming the requisite GST adjustment.
Indeed when there would be any credit notes that would be given with respect to the output GST e-invoices but not shown in the GST returns, that is required to be notified in GSTR-1 for the duration, not after September 2022.
GST Invoices Rectification
Any revision in the invoices issued for the outward supplies related to FY 2021-22 could be incurred till the last date of filing the return for September 2022.
Additionally, the invoices uploaded in the GST returns for the FY 2021-22 could be revised till the furnishing of the GSTR-1 form in September 2022, the company must execute the reconciliation of the details shown in GST returns and recorded in the books of accounts. Once reconciled the difference must be amended in GSTR-1 for the month, not after September 2022.
