The end of a financial year entails additional multiple action points for the accounts team in every organization, few of which relating to GST are being summarized below for easy reference:
1. Draft & send an email to all your customers to check that all the sales bills issued to them during the year are correctly reflecting in their GSTR-2A on the GST portal. In case of any discrepancy/omission , they are required to inform the same at the earliest failing which no corrections can be undertaken in the GST returns post filing the return for the m/o September 2021.
2. Check requirement for any ITC reversal or ITC to be reclaimed:
o Rule 37 – Any ITC reversal required on account of non-payment within 180 days or reclaim of any ITC in respect of supplies for which payment has been made.
o Rule 42 or 43 – Impact of annualized ITC reversal in case of exempted as well as taxable supplies to be considered.
o Check if any reversal required against purchased goods rejected and returned. (ensure the impact of the same has been considered in GST returns)
3. Renew LUT in case of export of goods/services without payment of tax for FY 2021-22
4. Reconciliations to be undertaken:
o Outward supplies as per books and GST returns (Books vs GSTR-1 vs GSTR-3B)
o ITC claimed in GSTR-3B vs ITC appearing in GSTR-2A
o Reconciliation of balance of credit and cash as per GST portal with balance appearing in books.
5. Re-check all expense heads liable to reverse charge to ensure that all reverse charge liability has been correctly paid during the year.
6. Ensure tax liability against receipt of advances and adjustment thereof to arrive at unadjusted advances at year end.
7. Reconciliation of E-way Bill issued during the year viz a viz tax invoices/delivery challans generated.
8. Track status of goods sent on job work or goods sent on approval whether all the goods have been received back within the due time period.