Year-end March is about to end for FY 2017-18. March is the day after which you won’t be able to take any action on many finance-related things. So, It is crucial to know the importance of march for all the taxpayers to take certain actions on time.
Here we are going to discuss few things that you should be taken care of before the march end.
Reversal of Input tax credit* – As per the rules of Input tax credit, after issuance of tax invoice if the receiver does not make the full payment of the amount within 180 days then the credit taken on that invoice is to be reversed. And whenever the payment is made, the receiver can take the credit for the amount. So all old invoices issued before 1st October 2017, should be paid before 31st March 2018.
E way bill – It is compulsory to issue E waybill from 1st April 2018 for interstate transport. It is compulsory to take registration before 31st March 2018, if your goods are in transit as on 1st April 2018.
Reconciliation – All the taxpayers should reconcile the cash ledger, credit ledger and liability ledger with their books of accounts. All the entries should be done before the year-end. Also debit note, credit note, rate difference, discount, etc also to be reconciled.
HSN Code in the Invoice – Before preparing the first invoice in the new financial year, taxpayers should check the turnover for the year 2017-18. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use the 2-digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4-digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices.
New series of tax invoice – If anyone wants to change the series for billing in the new year, then he can do that from 1st April. New numbering should be started from 1st April.
Composition Scheme – If any taxpayer wants to opt for composition scheme than he can apply in Form GST CMP – 02 before 31st March.
Monthly/ Quarterly Returns – Taxpayers should check the turnover for the year 2017-18. If the aggregate turnover is above Rs. 1.5 Crore then the taxpayers have to file monthly return. If the aggregate turnover is below Rs. 1.5 Crore then the taxpayers have an option to file the quarterly GST returns. The taxpayer can choose any of the options.
Form GST TRAN 2 – The taxpayers who have filed the TRAN 1 and have taken the credit of Excise duty paid, without any documents, they have to file the details of outward supplies for six months in TRAN 2 before 31st March 2018 for availing 40%/ 60% credit.
GSTR 6– Input service distributor has to file GST return in form GSTR 6. So 31st March is the due date to file GSTR 6 from July 2017 to February 2018.
GSTR 2 – Details of purchases are reflecting on the portal in the form GSTR 2A. All the taxpayers should check the details of purchases before 31st March.
Anti profiteering– Do the comparative check of the gross profit earned for March 2018 with the gross profit of the financial year 2016-2017 or gross profit for April 2017 to June 2018. If the gross profit ratio for the March 2018 is higher, then the taxpayer should check whether he is trapped in the Anti profiteering or not?
Hope this article helps you in ascertaining the various provisions of GST on which action has to be taken immediately i.e before 31st March.
Disclaimer – the above summary is based on the personal interpretation of the revised regulations, which may differ person to person. Hence, the readers are expected to take expert opinion before placing reliance on this article.