MARCH 2023 ENDING - GST ASPECTS

 March 2023 ending - GST Aspects

 

The following are the things to keep in mind from GST aspects:-

Billing Series: New billing series for FY 23-24 w.e.f. 1st April 2023 should be started.

 

E-Invoicing: Businesses with an annual aggregate turnover of more than Rs.10 crore, as calculated in any preceding financial year from 2017-18 up to 2022-23, must begin generating e-invoices from 1st April 2023. 

Letter of Undertaking (LUT): All the exporters who supply goods or services to SEZ without payment of GST should apply for LUT in form GST RFD 11 for FY 2023-24.

 

Composition Scheme: Small taxpayers having a turnover less than 1.5 crores should calculate tax liability under the composition scheme and normal option, and accordingly may opt for the option which is beneficial to them considering all the conditions.

 

Quarterly Return Monthly Payment (QRMP) Scheme: Taxpayers having Turnover below Rs 5 Crores shall have the option to select the frequency of GST return i.e., QRMP Scheme filing for FY 2023-24 till 30th April 2023.

 

Reconciliation of turnover between GSTR1 and GSTR 3B and books: Prepare and reconcile the turnover as reported in GSTR 1/GSTR 3B with books of accounts for FY 2022-23.

 

Reconciliation of Outward liability between GSTR 1 and GSTR 3B and books: Compile and reconcile the amount of taxes paid in GSTR 1 and GSTR 3B filed during the FY 2022-23 with books of accounts and pay the tax if there is any shortfall vide filing DRC 03 to avoid the litigation and penalty.

 

Reconciliation of ITC between books and GSTR 3B and GSTR 2B: Prepare the yearly reconciliation of ITC accounted in books and ITC availed in GSTR 3B during the FY 2022-23 and reconcile the same with GSTR 2B. If transactions are not populated in GSTR 2B, the taxpayer should follow up with suppliers to furnish/report transactions in their GSTR 1 with payment of taxes in GSTR 3B. Further, if ITC has been availed and the transactions are not reflected in GSTR 2B then ITC should be reversed.

 

Reversal of ineligible ITC: Identify the ineligible ITC u/r 42,43, etc. (Blocked credit/ ITC on exempt supplies) already availed in GSTR 3B of the FY 2022-23 and reverse/pay the same along with interest thereon to avoid the litigation and demand of interest & penalty in future. Further, note that no interest is leviable on the reversal of wrongly availed credit but not utilized.

 

Reversal of ITC if Payment is not done to suppliers within 180  days: Prepare and Review that any payment to suppliers is not pending beyond 180 days from the date of issuance of the supplier’s invoice to avoid reversal of ITC u/s 16(2).

 

Payment of RCM: Taxpayer should check and rework RCM liability as per books of accounts with RCM paid in GSTR 3B. Further, RCM as per GSTR 2B should be checked.