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Note : Changes may be expected in Tax Audit format of form 3CD whereby a reconciliation o
details of GST as mentioned in Annexure 4.
Dhandhania & Associates
GST checklist
Date last modified : 28
Particulars
udit
es where aggregate turnover exceeds 2 crore in any financial year, GST audit is compulsary. Such Gst Audit can be done only by a Chartered Accountant or Cost Accountant under provision of s
ead with rule 80(3) of CGST Act, 2017.
Form GST 9C and GST 9D)
nary checks
Client's Primary Business Activity & check whether GST applicable or not. If applicable, rate of GST applicable is to be checked
proper HSN/SAC code has been applied or not from GST portal to ascertain correct rate of GST.

f, as stated in Section 35, the following records are maintined by the company at the "Principal Place of GST" as defined under Section 2(77) of the GST Act:

duction or manufacture of goods;


ard and outward supply of goods or services or both;
k of goods;
ut tax credit availed;
put tax payable and paid; and
er particulars as may be prescribed.

d that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of busines.

al place of business", as defined in Section 2(77) of the Act, states the following:
al place of business means the place of business specified as the principal place of business in the certificate of registration."

rd Supplies
ales ledger and check that GST has been charged on all sales at applicable rate or not.
her income schedule and check if GST was to be charged on any supply. (Ex- Sale or Scrap)
GST paid on stock transfer or not.
GST in case of export/SEZ. Whether LUT/Bond has been signed or otherwise IGST will have to be paid and if paid, refund applied & obtained or not.
refund formats" sent on mail)
Supplies
he expenses to check if any GST credit has been missed on any bills.
ection 17(5) of CGST Act, 2017 to check if Client has not taken any blocked credit.
he Supplier's GSTIN on GST Site to ensure that he is not in Composite Scheme (Composite dealer cannot charge GST)
GST credit taken with provisional credit shown in GSTR-2A on site.
whether credit reversed on free/exempted supply which was earlier provided with taxable supply.
n case of Capital Goods whether GST amount has been capitalised and is depreciation being charged on such capitalised amount? If yes then input credit paid on purchase of such capital
be availed.
nput credit should have been taken on all capital goods purchase after 1st July, 2017, subject to the provisons of Sec. 17(5) of the CGST Act.
Point-1 of Annex.-3)
e Expense Schedule & check if any supplies specified under Section 9(3) of CGST Act,2017 has been booked.
ed, RCM has been paid or not and Corresponding credit of the same has been taken in the following Month.

n RCM should have been paid for all Job-works or purchases of Goods/ Services from unregistered dealers subject to the maximum non-taxable limit of Rs. 5,000/- per day on intra state supplie
18). However, With effect from 13.10.17, no GST is required to be paid on goods purchased or services availed from unregistered dealers.
notification 'Central Tax-8/2017' of 28.06.17 " https://taxguru.in/goods-and-service-tax/seeks-notify-turnover-limit-composition-levy-cgst.html ")

ay wise purchase's details & randomly check details on sample basis.


nting
stomer/ Vendor master should have PAN No./ GSTIN in all the cases. Such suppliers whose GST is not being paid in time or returns are not filed on time should be blacklisted by the company.
heck whether all purchase bills and expense bills have GSTIN of the Assessee in order to avoid loss of input credit.
mat of company's invoice should provide all the details as required by the GST Act.
sent for job works should be returned on time and the return should be kept in check so that the goods not returned for 180 days or more shall be treated as sale.
er GST refundable properly reflected in books, if not, reasons thereof and reconciliation for the same.
er total supplies reflected in GSTR 1 match with turnover reflected in Income Tax Return for the year.
A reconciliation statement should be prepared for the same in case of any differences
d goods should have been returned within 6 months. System of company to control/ follow this.
es : GST should have been paid on all the advances made and should be set-off late when invoicing is done.Advances paid and GST paid on it should be reconciled on monthly basis.
s
monthly Working from the Clients.
Working with GSTR-3B
GSTR-1 & GSTR-2 with books of accounts.
whether returns and payments are made on or before due date.
Annex.-1)
whether interest has been paid on late payment or not,If any
Annex.-2)
GST liability/(Credit) as per books on 31.03.2018 with balances as per electronic cash ledger & electronic credit ledgers after filling of GSTR-3B for the month of March’18.
Monthly Reconciliation of Books and Returns
Registration No. & Certificate. Check the No. of registrations, additional place of business and job work locations, check if registered in composite scheme or regular. (check in SEZ unit)
whether Trans-1 & Trans-2 has been filed in 2017-18 for old Credits.
f any credit taken that is ineligible under section 17(5) of the CGST Act,2017.If taken on ineligible items, then the same shall be reversed under subsequent month's GSTR 3B.
Annex.-3)
f any Unclaimed GST Input is reflecting in Books of Accounts and obtain reasons thereof. Unclaimed Gst Input, If any, whether subsequently claimed or not .
credit reflected in ST-3 or VAT or ER-1 returns for all the purchases made upto June'17?
maining input credit of 50% on the purchase of capital goods done before June'17, has been taken from Output GST?
records should have been maintained for all the monthly credits taken on the all the eligible inputs. If any difference is found, action should have been taken within 2 months to rectify the same.
d be noted that credit of RCM is taken in the next month's GSTR 3B.
l Points to be Considered:
t day of filing the form Tran-1 was extended to 1st April'2018. After that, no provision has been made yet so that the businesses who missed to file the same within the due date could get the ITC o
ding in their books. But it is advisable to keep them in books for 2018-19 as there may be some provision made for for claiming the ITC of same in the aforementioned F.Y. (as discussed with th
ies, CBEC Department).

e date of filing Tran-2 form is 30th June'2018 (for the persons registered under GST but unregistered under old regime and a dealer or trader who does not have documents of duty paid).

facturer registered under Excise Duty also cannot file Tran-2.

ax/ VAT deposit cannot be claimed as ITC. The same can be applied for refund and can be received either through ECS credit or Cheque. The produre to be followed is given in Annexure 5. N
s made for the same. For details, refer " http://www.derc.gov.in/Public%20Notice/security%20deposit.pdf ". No time limit for claiming the refund has been yet prescribed.

n 17(5)h of the GST Act provides that no input tax credit is available if goods are lost, stolen, destroyed, written off or disposed off by way of gift or free sample. Hence, Input tax credit on in
s used in free sample should be reversed.

2 of the Schedule-I of the CGST Act covers supplies of Goods or Services or both between related persons or between distinct persons as specified in section 25, when made in the cou
ance of business without consideration. Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of go
s or both.

Free Samples to unrelated persons are not covered under definition of supply. Criteria of taxable supply are not fulfilled in case of free samples. If supply has not been done, Taxable event will not
T will be payable if free samples are given to related parties, as interpreted from the above read together.

Annexure 6 for details of related parties under GST Act)


ated Supplies are goods or services which are exported or supplied to SEZ. ITC is available on such supplies. Refund can be claimed for the input tax paid on the goods and services which are
h Zero-rated supplies (including non-taxable and exempt supplies).

are two options available with a dealer to claim refunds:


e dealer can export under Bond or Letter of Undertaking and claim a refund of the accumulated Input credit of tax; or

he dealer can pay IGST while making the supplies and claim refund of the same.

e refund procedure, refer Annexure 7)

s may be expected in Tax Audit format of form 3CD whereby a reconciliation of GST outward supplies and input credit may have to be provided. So, it would be better to take t
as mentioned in Annexure 4.
DETAILS PERTAINING TO GST RETURN FILING COMPLIANCE
A) Monthly Returns (for assessee with annual T.O. exceeding Rs.1.5 crore)
GSTR-1
GSTR-3B [ Details of outward supplies of taxable goods
Month services]
Date of Delay (if
Due Date Date of filing Delay (if any) Late Fees Remarks Due Date
filing any)
April'17 N.A.* - N.A.* -
May'17 N.A.* - N.A.* -
June'17 N.A.* - N.A.* -
July'17 8/25/2017 - 1/10/2018 -
August'17 9/20/2017 - 1/10/2018 -
September'17 10/20/2017 - 1/10/2018 -
October'17 11/20/2017 - 1/10/2018 -
November'17 12/20/2017 - 1/10/2018 -
December'17 1/20/2018 - 2/10/2018 -
January'18 2/20/2018 - 3/10/2018 -
February'18 3/20/2018 - 4/10/2018 -
March'18 4/20/2018 - 5/10/2018 -
B) Quarterly Returns (for assessee with annual T.O. upto Rs.1.5 crore)
GSTR-1 GSTR-2
Period Date of Delay (if
Due Date Date of filing Delay (if any) Late Fees Remarks Due Date
filing any)
April'17- June'17 N.A.*
July'17-Sept'17 1/10/2018
Oct'17- Dec'17 2/15/2018
Jan'18-Mar'18 4/30/2018
* For FY 2017-18 from the month of July' 2017 onwards.
** To be Notified
FILING COMPLIANCE Annex-1

GSTR-1 GSTR-2
supplies of taxable goods and/or [ Details of inward supplies of taxable goods and/or
services] services]
Date of Delay (if
Late Fees Remarks Due Date Late Fees Remarks
filing any)
N.A.*
N.A.*
N.A.*
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GSTR-2
Late Fees Remarks
Annexure-2
Due Dates of Filing Returns
Month GSTR 3B GSTR 1 TRAN 1
Jul 25/08/17 10/01/18 27/12/17
Aug 20/09/17 10/01/18 -
Sep 20/10/17 10/01/18 -
Oct 20/11/17 10/01/18 -
Nov 20/12/17 10/01/18 -
Dec 22/01/18 10/02/18 -
Jan 20/02/18 10/03/18 -
Feb 20/03/18 10/04/18 -
March 20/04/18 10/05/18 -

Annexure-2
Particulars Late Fees (Rs.) Remarks
Normal Return 50 per day Subject to Maximum
Nil Return 20 per day limit of Rs 5,000
Tax paid after due date 18% p.a. -
Excess ITC Claimed or
excess reduction of 24% p.a. -
output tax
Annex - 3 List of Items on Which Itc Not Available

Sl. No. Particular's


Purchase of motor vehicles and other conveyance. (ITC will be available to dealers in
1 vehicles, transport operators providing taxable services and driving schools.) Refer
section 17(5) for further clarifications.
2 Food and beverages, outdoor catering;
3 Beauty treatment;
4 Health services;
Cosmetic and plastic surgery. (Please note, ITC in respect of the inward supply of
5 services listed against ii to v above can be claimed if these are used for provision of
further taxable supplies)
6 Membership of a club, health and fitness centre.

Rent-a-cab, life insurance and health insurance. (Please note, ITC inrespect of this head
7 will be available if: a. The provision of such facility to employees is statutorily prescribed;
or b. Such services are used for providing further taxable services.)

8 Travel benefits extended to employees on vacation.

9 Works contract services when supplied for construction of an immovable property other
than plant and machinery. (Please note, ITC will be available if such works contract
service is received for further supply of works contract service.)
10 Goods or services received by the receiver for construction on his own purpose any
immovable property, other than plant or machinery.
11 Goods or services used for personal consumption.
12
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
* Ensure that ITC credits have not been claimed in respect of the above mentioned supplies
Company Name

GST Reco
FY, AY

Total Input GST on Purchases/


Month Total Output GST GST Payable at the month end
Others
(2017-18)
CGST SGST IGST CGST SGST IGST CGST SGST
July
August
September
October
November
December
January
February
March
Total
April'18

GST paid on Reverse Charge Mechanism


Month Nature of Amount
(2017-18) Payment (Rs.)
July
August
September
October
November
December
January
February
March
Total
April'18
Company Name

GST Reco
FY, AY

able at the month end Delay in


GST paid Due Date of Actual Date Delay in Due Date of Actual Return
Return
Subsequently Payment of Payment Deposit Filing Return Filed On
Filing
IGST
Penalty
charged
Annex-5

At the time of registering the request, the consumer is informed of


submitting a written request for refund of the security deposit along with
the following documents :

Application Form for request for refund, duly signed by the


1
registered consumer.
In case of company, Resolution by the Board of Directors for
2
surrender of the connection and refund of security deposit

3 In case of partnership firm, an authorization from the firm.

Details of Bank account of the consumer as per the Application


4
Form.
In case of demise of the registered consumer, the application for
5
refund to be submitted by the legal heirs.
Annex-6
Related Parties under GST:

1 Such persons are officers or directors of one another’s businesses;

2 Such persons are legally recognised partners in business;

3 Such persons are employer and employee;

Any person directly or indirectly owns, controls or holds twenty-five per cent. or
4
more of the outstanding voting stock or shares of both of them;

5 One of them directly or indirectly controls the other;

6 Both of them are directly or indirectly controlled by a third person;

7 Together they directly or indirectly control a third person; or

8 They are members of the same family;

Under GST, the term “related parties” also includes legal persons and persons who
are associated in the business of one another in that one is the sole agent or sole
distributor or sole concessionaire, of the other. Further, related parties is also
referred to as related persons or distinct persons under GST.
Annex-7
For Zero-Rated Supplies, there is no need to file refund application ( GST RFD-01 ) separately.
The shipping bill filed by the exporter is a refund claim in itself. The law specifies that shipping
bill is to be considered as a refund claim on satisfying following two conditions:
1 A person carrying the export goods should file an export manifest; and
2 Applicant should have filed the returns GSTR-3 or GSTR-3B appropriately.
Once the above two documents are filed appropriately, the refund is processed by the department.
The option to pay IGST and claim a refund is always available. In this case, the refund claim
has to be filed in Form GST RFD-01. For exporters of services, the following are also required
to be filed along with the refund claim:
1 A Statement containing Number and Date of Invoices; and
2 Bank Realisation Certificates / Foreign Inward Remittance Certificates
The supplier of goods or services to an SEZ are required to file the following along with the
refund claim:
1 A Statement containing Number and Date of Invoices; and
2 Proof of Receipt of goods or services which is authorised by the specified officer of SEZ
3 Details of payment made
The declaration that the SEZ or developer of SEZ has not claimed the input tax credit of the taxes paid
4
by the supplier

The exporters and suppliers of SEZ are entitled to a 90% refund on a provisional basis.
Provisional refund is granted within seven (7) days of the refund claim. The amount of
provisional refund is credited directly to the claimant’s bank account.

There is a condition attached to provisional refunds. The provisional refund is not granted if the
applicant has been prosecuted for any offense under the GST law or earlier law within past five
(5) years. The amount of tax evaded in such prosecution shall be more than Rupees Two
Hundred and Fifty Lakhs (Rs. 2.5 Crores).

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