FEBRUARY 02, 2018

By Shilpa Gupta, CA, CS

A businessman apart from undertaking business is also required to ensure that he complies with all the taxation formalities so as not be qualified as a defaulter under the tax laws. With the continuous due dates for filing of different types of return sand the slow pace of GSTN server, it is advisable that one takes care of following points while preparing the return:

1) Ensure data is properly inserted – an employee – consultant training can be done to educate the employee on GST and points to be kept in mind while preparation of data.

2) Basic detail of customers and vendors should be updated on a continuous basis. For example if a customer was earlier not registered under GST then supplies made to such customer would be reflected as sales to unregistered dealer and customer will not be eligible to claim the benefit of tax paid. However once the customer is registered under GST, all invoices raised after receipt of GST number should be disclosed under sales to registered dealer against his GST number to ensure customer receives the credit of the same.

3) In case where a GSP/ ASP are used for preparation of return, ensure the same is updated from time to time. In case where an offline utility is used, ensure latest version is used for preparing of return.

4) The current e-way bill preparation allows you to capture all necessary details available on the invoice/notes/ bill of supply issued for supply of goods. Data inserted in the online e-way bill portal would automatically be captured in the GSTR 1 of the tax payer on the GSTN server. Avoid inserting those data again in the GST return prepared through ASP/GSP/Offline tool to ensure no duplicate entries are registered on the GSTN server.

5) The online GSTN portal allows you to set-off the tax liability against tax paid or credit available in GSTR 3B post submitting the return online. However it is observed that many a times the return is directly filed after submission without adjustment of tax payable. Such human errors should be avoided as the system will not allow you to file any returns post filing a payable return.

6) Ensure entire data is captured before preparing the return to avoid any mismatch in data submitted by customer and data submitted by vendor.

7) In case of filing of GSTR 3B many a times, credit available on tax paid under reverse charge basis is inadvertently shown under outward supplies liable to tax on reverse charge basis leading to tax liability to be compulsory paid in cash instead of availment of credit. Maker – checker model may be adopted to avoid such mistakes. Further the GSTN portal also displays a table reflecting tax liability and credit thereon, ensure the tax liability in the table displayed reconciles with the GST workings prepared by the tax payer.

8) It is observed that in cases where tax liability is manually calculated (i.e. mode other than ASP and GSP), tax to be paid on reverse charge basis is wrongly adjusted by way of credit available instead by way of cash thereby leading to no tax liability in the workings finalised and cash tax liability on filing the same on portal. Liability arising on reverse charge should be separately computed to have a proper segregation between tax liability on account of outward supplies and tax on account of reverse charge.

9) In case of GSTR 4 return, apart from outward supplies details of purchases liable to tax on reverse charge basis are only required to be inserted. However many a times the tax payer wrongly inserts the data of purchases from registered dealer as well leading to tax payable on submission of return. Currently the system of revising GSTR 4 post submission of not activated accordingly the tax payer would have no option but to pay such tax online while filing the same.

10) It is generally observed that tax payer undertakes different transactions as per the business opportunity available to him; however the same is brought to the notice of consultant only at the time of preparation of returns. It would be advisable to the consultant to instruct the tax payer to undertake all such activities post discussing the GST impact with experts.

11) Where a tax payer opts to undertake an export supply an analysis may be done for selection of option available i.e. exports on payment of tax or exports without payment of tax against LuT. In case where the second alternative is selected ensure LuT is obtained before undertaking the transaction and sales is shown under proper head under GSTR3B and GSTR 1. Entering data under proper headings would allow smooth filing of refund claims.

The above precautions are listed basis the experience of GST filings done. However, still it is possible that errors might be made in case where data is received in the last few days leaving a small time for the consultant/ tax return preparer to review as well as prepare the return. Accordingly the basic requirement for an error free return would be receipt of data well in time so as to allow the consultant/ tax return preparer sufficient time to analyse the data and prepare the same.

(The views expressed are strictly personal.)