1. By CA VIVEK JAIN, FCA 9435019908 || vivek.j.ca@gmail.com
GS(Tea) Pe Charcha…
Reconciliation and Finalisation of Accounts under GST By
CA VIVEK JAIN, FCA ||
GST(EA) PE CHARCHA....

2. Books and records to be maintained by an asseesee
(a) production or manufacture of goods
(b) inward and outward supply of goods or services or both
(c) stock of goods :opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the balance of stock including raw materials, finished goods, scrap and wastage thereof
(d) input tax credit availed
(e) output tax payable and paid
(F) COPIES OF ALL INVOICES, CHALLANS, DEBIT NOTES ETC ISSUED
GST(EA) PE CHARCHA....

3. Books and records to be maintained by an asseesee
(G) names and complete addresses of suppliers from whom he has received the goods or services chargeable to tax under the Act;
(H) names and complete addresses of the persons to whom he has supplied goods or services, where required under the provisions of this Chapter;
(I) the complete address of the premises where goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.
GST(EA) PE CHARCHA....

4. Books and records to be maintained by an asseesee
BOOKS MAY BE KEPT IN ELECTRONIC FORM
Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within a reasonable period of time
GST(EA) PE CHARCHA....

5. Books and records to be maintained by an asseesee
RECTIFICATION OF ERRORS IN RECORDING TRANSACTIONS
Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries, otherwise than those of clerical nature, shall be scored out under attestation and thereafter,the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained
GST(EA) PE CHARCHA....

6. Books and records to be maintained by an asseesee
Each volume of books of account maintained manually by the registered person shall be serially numbered.
Manufacturers shall maintain monthly production accounts showing quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof.
IN CASE OF WORKS CONTRACT SEPARATE ACCOUNTS FOR EACH WORKS CONTRACT TO BE KEPT.
GST(EA) PE CHARCHA....

7. Books and records to be maintained by an asseesee
PERIOD FOR WHICH BOOKS ARE REQUIRED TO BE KEPT
retain them until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records:
e.g for FY the due date for annual return is 31st Dec So the books are required to be kept till yrs i.e. till 31st Dec 2024.
GST(EA) PE CHARCHA....

8. Reporting requirement in ITR form no 6 of a Company
Schedule GST,- In case of an assessee who is not liable to get accounts audited u/s 44AB, the details of expenditure with entities registered or not registered under GST, incurred on or after , should be filled up in this Schedule.
Schedule GST
Break-up of total expenditure with entities registered or not registered under the GST (Details in respect of expenditure on or after 01st July, 2017 to be filled up by the assessee who is not liable to get accounts audited u/s 44AB)
DETAILS OF GST
SL No.
Total amount of Expenditure during the year
Expenditure in respect of entities registered under GST
Expenditure relating to entities not registered under GST
(aggregate of expenditure reported at items 6, 8 to 35, 37 & 38 of Part-A-P&L / P&L – Ind AS)
Relating to goods or services exempt from GST
Relating to entities falling under composition scheme
Relating to other registered entities
Total payment to registered entities
(1)
(2)
(3)
(4)
(5)
(6)
(7)
NOTE ->
Please refer to instructions for filling out this schedule.
GST(EA) PE CHARCHA....

9. Reporting requirement in ITR form no 6 of a Company
Schedule GST,- In case of an assessee who is not liable to get accounts audited u/s 44AB, the details of expenditure with entities registered or not registered under GST, incurred on or after , should be filled up in this Schedule.
WHETHER COMPANIES WHICH ARE NOT REGISTERED IN GST ARE ALSO LIABLE TO PROVIDE DATA IN THIS SCHEDULE?
GST(EA) PE CHARCHA....

10. Reporting requirement in form 3CD
GST NUMBER IN PARA 4
Break-up of total expenditure of entities registered or not registered under the GST(Applicable from AY 19-20) IN Para 44
GST(EA) PE CHARCHA....

11. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: SUPPLY
PRE-GST SUPPLY ( TO )
TAXABLE SUPPLY
EXEMPT/NIL RATED SUPPLY
NON-TAXABLE OR NON-GST SUPPLY
TRANSACTIONS BETWEEN ‘DISTINCT PERSONS’
INTER-STATE STOCK TRANSFER
RECOVERY OF EXPENSES FROM EMPLOYEES
SALE OF CAPITAL GOODS
MISCELLANEOUS INCOME
Composite supply
Mixed supply
GST(EA) PE CHARCHA....

12. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: TIME OF SUPPLY
Advance receipts for Goods
Upto Taxable for all
From to : Taxable only for those whose aggregate turnover in the preceding FY was greater than 1.5 crore or is likely to be greater than 1.5 cr in current FY
From : Non taxable for all categories of person.
Advance receipts for services
Taxable for all . (Please note that works contract is a service)
GST(EA) PE CHARCHA....

13. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: TIME OF SUPPLY
Charge of interest, Late fee or penalty
The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
GST(EA) PE CHARCHA....

14. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: TIME OF SUPPLY
Change in rate of Tax
in case the goods or services or both have been supplied before the change in rate of tax,––
(i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or
(ii) where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or
(iii) where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment;
GST(EA) PE CHARCHA....

15. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: TIME OF SUPPLY
Change in rate of Tax
in case the goods or services or both have been supplied after the change in rate of tax,––
(i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or
(ii) where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or
(iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice:
GST(EA) PE CHARCHA....

16. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: VALUE OF SUPPLY
Transaction value and shall also include
any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than GST
any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both
GST(EA) PE CHARCHA....

17. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: VALUE OF SUPPLY
Transaction value and shall also include
incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
interest or late fee or penalty for delayed payment of any consideration for any supply; and
subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.
GST(EA) PE CHARCHA....

18. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
TURNOVER: VALUE OF SUPPLY
TREATMENT OF DISCOUNTS
The value of the supply shall not include any discount which is given––
(a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and
(b) after the supply has been effected, if—
(i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and
(ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.
GST(EA) PE CHARCHA....

19. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
REVERSE CHARGE LIABILITY
Reverse Charge on specificied goods and services
Reverse Charge on purchase from unregistered persons in excess of Rs 5000/- upto
Such supply may be purchase, direct expense, indirect expense or purchase of capital goods.
Verify RCM liability from GSTR-2A
Self invoicing required for claiming ITC
No ITC on RCM paid on block credit transactions
GST(EA) PE CHARCHA....

20. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..5
Reconciliation of Gross Turnover A
Turnover (including exports) as per audited financial statements for the State / UT (For multi-GSTIN units under same PAN the turnover shall be derived from the audited Annual Financial Statement) B
Unbilled revenue at the beginning of Financial Year
(+) C
Unadjusted advances at the end of the Financial Year D
Deemed Supply under Schedule I E
Credit Notes issued after the end of the financial year but reflected in the annual return F
Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST
TURNOVER: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

21. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..G
Turnover from April 2017 to June 2017
(-) H
Unbilled revenue at the end of Financial Year I
Unadjusted Advances at the beginning of the Financial Year J
Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST K
Turnover for the period under composition scheme L
Adjustments in turnover under section 15 and rules thereunder
(+/- ) M
Adjustments in turnover due to foreign exchange fluctuations N
Adjustments in turnover due to reasons not listed above
TURNOVER: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

22. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..P
Annual turnover after adjustments as above
<Auto> Q
Turnover as declared in Annual Return (GSTR9) R
Un-Reconciled turnover (Q - P)
AT1 6
Reasons for Un - Reconciled difference in Annual Gross Turnover A
Reason 1
<<Text>> B
Reason 2 C
Reason 3 7
Reconciliation of Taxable Turnover
Annual turnover after adjustments (from 5P above)
<Auto >
Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover
Zero rated supplies without payment of tax D
Supplies on which tax is to be paid by the recipient on reverse charge basis E
Taxable turnover as per adjustments above (A-B-C-D) F
Taxable turnover as per liability declared in Annual Return (GSTR9) G
Unreconciled taxable turnover (F-E)
AT 2 8
Reasons for Un - Reconciled difference in taxable turnover
TURNOVER: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

23. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
CHECKLIST FOR CLAIMING ITC
He is in possession of a tax invoice or debit note issued by a supplier or such other tax paying documents as may be prescribed;
He has received the goods or services or both. (Take care of prepaid expense).
The tax charged in respect of such supply has been actually paid to the Government
He has furnished the return under section 39
GST(EA) PE CHARCHA....

24. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
CHECKLIST FOR CLAIMING ITC
Payment to supplier must be made within 180 days from the date of invoice. If not done, the amount of ITC claimed shall be added to the output tax liability along with interest on the expiry of 180 days. ( Bill wise creditors aging analysis will have to be checked)
No ITC can be claimed for FY after or submission or submission of return(3B) for the month of Sept -18 whichever is earlier . (This date may change…notification no 43/2018 dt )
No depreciation can be claimed in ITC part for capital goods
GST(EA) PE CHARCHA....

25. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
BLOCK CREDITS
Used for business purpose
If used partly for taxable and partly for exempted purpose, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.
No ITC on in respect of the following:
Motor vehicles and other conveyance except when they are used––
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(D)for transportation of goods
GST(EA) PE CHARCHA....

26. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
BLOCK CREDITS
food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
membership of a club, health and fitness centre;
rent-a-cab, life insurance and health insurance (few exceptions)
travel benefits extended to employees on vacation such as leave or home travel concession
GST(EA) PE CHARCHA....

27. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
BLOCK CREDITS
works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;
goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
GST(EA) PE CHARCHA....

28. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
Reversal of ITC in case of Supply of capital goods
Although ITC on capital goods can be claimed immediately at the time of purchase, however if the same is sold within 5 years of purchase i.e 20 quarters , 5% per unexpired quarter or actual output tax on supply of capital goods whichever is higher has to be paid.
GST(EA) PE CHARCHA....

29. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
TRANSITIONAL INPUT TAX CREDITS
ITC claimed as per Excise or VAT returns to be verified with respective returns.
Reconciliation of closing stock as shown in Tran-1 with VAT audit report as on
Claim of ITC through Tran-2 : whether proper records for the same have been maintained.
Whether ITC benefit has been passed on to the customers.
ITC on transitional credit should be deducted from purchase/opening stock in trading account.
GST(EA) PE CHARCHA....

30. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
INPUT TAX CREDIT
RECONCILIATION OF ITC WITH 2A
Reason for differences
Return not filed by supplier
Invoice not uploaded by supplier
Error in uploading data by supplier
Error in entry in books
ITC not claimed in books
Enrty not done
GST(EA) PE CHARCHA....

31. INPUT TAX CREDIT: FINAL RECONCILIATION
Pt.
Reconciliation of Input Tax Credit (ITC) IV 12
Reconciliation of Net Input Tax Credit (ITC) A
ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts) B
ITC booked in earlier Financial Years claimed in current Financial Year
(+) C
ITC booked in current Financial Year to be claimed in subsequent Financial Years
(-) D
ITC availed as per audited financial statements or books of account
<Auto> E
ITC claimed in Annual Return (GSTR9) F
Un-reconciled ITC
ITC 1 13
Reasons for un-reconciled difference in ITC
Reason 1
<<Text>>
Reason 2
Reason 3
INPUT TAX CREDIT: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

32. INPUT TAX CREDIT: FINAL RECONCILIATION14
Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of account
Description
Value
Amount of Total ITC
Amount of eligible ITC availed 1 2 3 4 A
Purchases B
Freight / Carriage C
Power and Fuel D
Imported goods (Including received from SEZs) E
Rent and Insurance F
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples G
Royalties H
Employees' Cost (Salaries, wages, Bonus etc.) I
Conveyance charges J
Bank Charges K
Entertainment charges
INPUT TAX CREDIT: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

33. INPUT TAX CREDIT: FINAL RECONCILIATION
Stationery Expenses (including postage etc.) M
Repair and Maintenance N
Other Miscellaneous expenses O
Capital goods P
Any other expense 1 Q
Any other expense 2 R
Total amount of eligible ITC availed
<<Auto>> S
ITC claimed in Annual Return (GSTR9) T
Un-reconciled ITC
ITC 2 15
Reasons for un - reconciled difference in ITC A
Reason 1
<<Text>> B
Reason 2 C
Reason 3
INPUT TAX CREDIT: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

34. INPUT TAX CREDIT: FINAL RECONCILIATION16
Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above)
Description
Amount Payable
Central Tax
State/UT Tax
Integrated Tax
Cess
Interest
Penalty
INPUT TAX CREDIT: FINAL RECONCILIATION
GST(EA) PE CHARCHA....

35. RECONCILIATION OF RATE WISE LIABILITY
Pt. III
Reconciliation of tax paid 9
Reconciliation of rate wise liability and amount payable thereon
Tax payable
Description
Taxable Value
Central tax
State tax / UT tax
Integrated Tax
Cess, if applicabl e 1 2 3 4 5 6 A 5% B
5% (RC) C
12% D
12% (RC) E
18% F
18% (RC) G
28% H
28% (RC) I 3% J
0.25% K
0.10% L
Interest M
Late Fee N
Penalty O
Others P
Total amount to be paid as per tables above
<Auto> Q
Total amount paid as declared in Annual Return (GSTR 9) R
Un-reconciled payment of amount
PT 1 10
Reasons for un-reconciled payment of amount
Reason 1
<<Text>>
Reason 2
Reason 3
RECONCILIATION OF RATE WISE LIABILITY
GST(EA) PE CHARCHA....

36. RECONCILIATION OF RECORDS AND FINALISATION OF BOOKS..
ONLINE LEDGER ACCOUNTS/RETURNS
Electronic Cash Ledger
Electronic Credit Ledger
Electronic Liability Ledger
Monthly 3B returns
Monthly/quarterly GSTR-1/4
GST(EA) PE CHARCHA....

37. GS(Tea) pe charcha to be continued…….
THANK YOU
CA VIVEK JAIN VIVEK SHANTILAL JAIN &COMPANY
GST(EA) PE CHARCHA....