GST Work required to be done in your books before 30th Sep 2021

We all are thoroughly conscious of the significance of September monthly GST returns for any Financial Year. This is the last month to make corrections in GST returns regarding income or purchases. As we’re stepping into September certain work should be done in your books related to GST returns for the FY 2020-21. Below are the summarized points:

Amending/Adding Outward Supply.

• If you have made any errors in declaring outward supplies for FY 2020-21, please update sales invoices in Return of Sep 2021.
• Similarly, if you have missed declaring outward supplies for FY 2020-21, please declare the same in the Return for the month of Sep 2021.
• Please note that interest @18% is applicable in case you have delayed in declaring Tax Liability.

Please note that once this period lapses, you can Declare the excess Tax Liability by filing DRC-03.

Claiming ITC of invoices of FY 2020-21

• If you did not disclose eligible purchases in GSTR-3B for FY 2020-21, now is the right and last time to claim ITC on same.
• If ineligible ITC has been claimed, please make ITC reversals.
• If payment to the vendor has not been made within 180 days, please make ITC reversals.
• Please note that interest @18% is applicable in case of reversal of ITC

Please note that once this period lapses, you can reverse the ineligible ITC by filing DRC-03. Please also note that unclaimed eligible ITC cannot be claimed, once this period lapses.

Reconciliation B/W Books and GST Returns

Books and GST returns must be reconciled. It’s crucial to do a reconciliation to find any problems or omissions in the GST returns you’ve filed.

• Reconcile Books vs. GSTR 3B vs. GSTR-1 for supplies.
• Reconcile Books vs. GSTR 3B vs. GSTR-2A for inward supply.
• Please encourage vendors to declare pending invoices in their GSTR-1 as soon as possible. Otherwise, ITC will be lost.