GST September Return Checklist
Hi Readers, in this article we learn about the importance of GST Returns filing for the month of September. At the end of blog, we will also provide your a quick GST September Return Checklist. GST Return for the month of September is also important since after filing of GST return of September month, no one is able to get benefit of various GST provision. Some of Provision which we will discussed here.
Importance of September Return
GST Return for the month of September is last chance to rectify any error in GST Return filed in previous Financial year. September month return is also last chance to add / correct / delete / modify any details of earlier inward or outward supplies. Error or omission in Earlier return to be rectified up to September return after September return you are not able to rectify the same. In this article we focused on various error in the returns and way to correct them.
Input Tax Credit – Section 16(4): –According to provision of Section 16(4) of CGST act, there is time limit for claiming the input tax Credit. Section 16(4) state that a registered person can claim Input Tax Credit in respect of any Invoice or debit note upto the due date of filing September month GST return under section 39 or filing of the annual return whichever earlier. If registered person forgot to claim GST input tax credit of last year then he can claim the same in September month GST return. After the September month return the eligible Input tax Credit (ITC) of last financial year to be expired.
Any mistake in input tax credit if rectify before September GST Return that it will attract interest at rate of 18% and you can also claim Input tax credit. Any rectification of mistake in GST assessment will attract interest at the rate of 24%. No Input tax credit will be available.
Also See, “GST Input Tax Credit – Eligibility, Conditions, Apportionment and Non-Availability”
Due Date for rectification: –
Detail of Inward supplies can be modified on or before the due date for filing GSTR 3B of September month and detail of outward supplies can be modified before the due date for filing GSTR 1 of September month.
GST September Return Checklist : –
a. Checked whether all the invoices are received from the supplier of Goods or Services has been incorporated in book of account
b. Checked whether all the eligible ITC (Input tax credit) mention in invoices has been claimed or not.
c. Checked that all the goods or services or both have been received before claiming input tax credit according to clause (b) of sub section 2 of section 16 of the CGST Act.
d. Checked whether all the invoices pertaining to previous FY has been shown in GSTR 1. If any invoice is missed then the invoice may be added in GSTR 1 along with invoices for the month of September in table 4 with original date.
e. In case goods are being received in lots then before claiming the input tax credit checked that the final lot is received as per sub Section 2 of Section 16 of the CGST Act.
f. Reconcile the ledger account from supplier of goods or services or both. During the process of reconciliation, a registered person may identify the invoices / Debit notes / Credit notes which has been missed by them or supplier in their book of account.
g. Checked that all credit note issued by the supplier of goods or services or both are entered in book of account. The invoices / Credit note may be added in GSTR 1 along with invoices / Credit note for September return with original date.
h. Verify and ensure that GST has been paid on advance received from the customer.
i. Review the creditor aging statement from the date of invoice. In case payment to creditors is not made partially or fully within 180 days from the date of invoice then amount of input tax credit availed has to be reversed along with interest. The rate of interest is 18%.
j. Checked whether the proportionate Input Tax credit has been reversed in respect of exempted supplies.
k. Review the nature of expenses incurred to ascertain the GST impact and to avail GST Credit.
l. Reconcile Input Tax Credit ledger, Cash ledger and Liability ledger as per GSTIN portal from books of account maintained.
m. Checked goods or services on which input tax credit has been claimed are intended to be used in course or in the furtherance of business. In case the same is not used for business purpose then input tax credit need to be reversed.
n. Checked that input tax credit has been reversed in respect of goods lost, Stolen, destroyed, written off or distributed as gift or free sample.
o. If GSTIN no of customer has been wrongly mentioned in GSTR -1 then correct it on or before September return.
p. In case B2B invoices has been entered as B2C then one can rectify the same be adding the invoice details in GSTR 1 of September month using Table 10 of GSTR 1.
q. Check the Stock transfer entries. Reconcile the stock sent from one GSTN and received at other GSTN, if there is any difference rectify the same before filing GSTR 3B.
r. Reconcile all GSTR 1 with GSTR 3B, if there is difference rectify the same in September month return.
s. During the reconciliation of GSTR 2A, a registered person may find Input Tax Credit which is claim by them but not appear in Form GSTR 2A. In this case one has to follow-up with supplier for rectification of their return. In case credit not available then registered person have to pay the input tax credit along with interest.
t. During the reconciliation with GSTR 2A, check whether all eligible ITC appear in Form 2A has been claim in GST return. If registered person finds excess credit in Form 2A then check the availability of same and claim ITC.
u. In case any transition credit is availed by you, please ensure that you have all the supporting documents for the same. In case if there are any missing documents or excess credit claimed then reverse the same before filing GSTR 3B for the month of September.
v. Check that all the information related to tax invoice or debit note is there on the documents issued by the supplier for example – GSTIN Numbers, date of invoice, Invoice Number, Place of Supply, HSN Code, Tax Rate and Tax Amounts etc.
w. Review the expenses liable for GST under RCM since most of RCM payment eligible for input credits. If you paid RCM before September return then you are eligible for input tax credit and on the other hand if RCM paid after September return then input tax credit will not be available on discharging the RCM Liability.
x. Review the Foreign currency payment to ascertain the RCM liability and avail of ITC.
y. Reversal of input tax credit which are taken mistakenly.
Reconciliation : – Before filing GST Return for the month of September, following reconciliation to done to avoid any mismatch.
- Reconciliation of Input Tax Credit (ITC) claimed in GSTR 3B vs Input Tax Credit in book of accounts.
- Reconciliation of GSTR 2A / GSTR 2B with book of accounts.
- GSTR 1 vs GSTR 3B Reconciliation.
- Reconciliation of GSTR 1 Invoice wise (B2B, B2C, Export Invoice, Credit Note, Debit Note etc) vs Book of account.
The above mention important points to be considered before filing of September month GSTR 3B and GSTR 1. If any mistake are found after filing GSTR 3B and GSTR 1 then one is not been able to avail or reverse the input tax credit. All the adjustment or GST September return checklist to be completed before filling of September month GST Return.
Also See, “TDS on purchase of Goods under section 194Q”
Also See, “Assessment under GST”
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