Gst
Gst

Key Measures for GST Compliance and Action Before 31st March 2024

The past six years have witnessed over 1,000 notifications, circulars, and instructions for assesses and adjudicating authorities, leading to a myriad of interpretations of the GST law. This has resulted in an increase in case laws and numerous writ petitions being filed across various High Courts of India against the efforts of the GST authority.

To ensure timely and accurate compliance with the provisions of GST law, there are certain measures that taxpayers should undertake before finalizing the financial statements f

or FY 2023-24 as they transition to FY 2024-25.

Inward Supplies

  • Engage with vendors regarding supplies not reflected in the GSTR-2B of the Company. It is crucial to reconcile the available Input Tax Credit (ITC) with the financials and GSTR-3B and take necessary actions for any variances.
  • Recalculate ITC reversal for exempt income and ensure proper reporting in the GSTR-3B. Any excess ITC reversed can be reclaimed in the subsequent GSTR-3B.
  • Identify and address ineligible ITC recorded in books, ensuring accurate reporting in Table 4B(1) of GSTR-3B.
  • Verify creditors’ aging report to determine outstanding payments and reverse ITC availed for supplies from such vendors if the payment is overdue for more than 180 days.

Outward Supplies

  • Reconcile the revenue and additional income with the GST returns, ensuring accurate reporting of debit and credit notes.
  • Verify compliance with Section 15 – Valuation of CGST Act, 2017 for supplies between related parties.
  • Ensure timely generation of e-invoices within 30 days, reconciling tax invoice data with e-way bill data for goods.
  • Reconcile invoices/credit notes/debit notes with the e-invoice portal to validate the generation of Invoice Reference Numbers (IRN) for all B2B, exports, and SEZ supplies.

Significant GST Registrations And Opt-In/Out For FY 2024-25 And Onwards

GST RCM Supplies

  • Reconcile RCM expenses and liabilities, ensuring accurate reporting in GSTR-3B.
  • Verify that ITC claimed for Reverse Charge Mechanism (RCM) transactions is in accordance with the GST obligation released under RCM.

Extra Points For Inspection

Note: It is suggested that Input Service Distributor registration will become mandatory for assesses with two or more GSTINs on the same PAN, as per the proposed revision in the Finance Act 2024.