"The due date for linking of PAN with Aadhaar as specified under sub-section 2 of section 139AA of the Income-tax Act, 1961 has been extended from December 31, 2019 to March 31, 2020," the
The deadline to link PAN with Aadhaar
is just a few days away, i.e., December 31. According to income tax
laws, if PAN is not linked with Aadhaar by this date, then your PAN will
become inoperative.
The government is yet to specify the meaning of the word 'inoperative'
even though the rule regarding this was amended in the July 2019 Budget.
The amendment had come into effect from September 1,
The income-tax department has
sought detailed information from its counterparts in seven countries in
connection with an on-going investigation against members of the Mukesh
Ambani family under provisions of the Black Money Act, 2015, for what
it alleges undisclosed foreign income and assets. The seven countries
are the US, the UK, Switzerland, St.
Lucia, Mauritius, Luxembourg
and Belgium. The queries, sent last month, were mainly about Capital
PAN, Aadhaar linkage is mandatory; here is how you can do it
The Supreme Court (SC) has allowed linking of PAN with Aadhaar
while reading out its verdict on the constitutional validity of
Aadhaar. The apex court also said that Aadhaar is a must to file income tax return (ITR) and also to apply for a new PAN.
As per the Central Board of Direct Taxes (CBDT) notification dated
September 28, 2019, the
We are pleased to inform that the Draft Bank Branch Auditors’ Panel of
Chartered Accountants/firms for the year 2019-20 has been hosted at www.meficai.org for indicating the category of the applicants of Multipurpose Empanelment Form for the year 2019-20.
MEF
Portal fetches the data from the common pool of ICAI database. ICAI has
upgraded its
Are you better off than you were three years ago? Tax cut calculator
ForbesTaxpayers
will be pondering the tax cut in April, and again in November. I
decided to do a little experimenting with the tax code, using a
spreadsheet that I invite you to download.
The 2017 tax cut that
its main promoter described as huge is a mixed blessing. It dished out
some big
Legal Caution : While writing a date in upcoming year 2020 , we should write that in its full format, e.g. 31/01/2020 and not as 31/01/20.,bcoz anyone can change it to 31/01/2000 or 2011 or 31/01/2099
Non-filing of GST returns may result in attachment of bank accounts: ReportThe Central Board of Indirect Taxes and Customs (CBIC) has formed an SOP for dealing with defaults on GST payments.
The Central Board of Indirect Taxes and Customs ( CBIC ) has further extended the enabling new changes in Annual Return (GSTR-9) and the Reconciliation Statement ( GSTR-9C ) to December 21st, 2019.
Recently, the Central Government has made some changes in the forms
of Annual Return (GSTR-9) and the Reconciliation Statement (GSTR-9C)
vide Notification No. 56/2019 dated 14.11.2019. Accordingly, the changes
in the application software and the offline tools are likely to be made
Beginning January 1, a game changing invoicing system will be introduced in the Goods and Services Tax (GST) system. A standardised protocol, powered by the Institute of Chartered Accountants of India (ICAI) and information technology,
Taking a copy of the bill from the seller may turn rewarding, with the government planning a lottery scheme for customers to improve compliance. The measure is being explored by the revenue augmentation officers committee to boost collections and it may be put before the Goods and Services Tax (GST) Council during its meeting on December 18.
The Consumer Welfare Fund, where anti-profiteering proceeds are deposited, will be used to reward the lucky winners on monthly and annual bases. The prize money, yet to be fixed, may run into several lakhs of rupees for the annual draw, and about Rs 50,000 for monthly draws.
“The idea is to encourage consumers to ask for a bill, which will push sellers to become GST compliant and pay tax. A lot of beauty parlours and small hotels, for
The Institute of Chartered Accountants of India (ICAI) today clarified that, Chartered Accountants joining Unrecognized ‘Networks’ for Professional Work amounts may result in Disciplinary Proceedings.
The ICAI has said that, It has come to the knowledge of the Institute that many members in practice are joining/associating themselves with “Networks” which are other than the Networks registered with the Institute, with the mutual referral
The Registrar of Companies (RoC) has disqualified 5,023 directors, including honchos of Akshaya Gold Farms and Villas India Limited, of Andhra Pradeshfor violating the provisions of the Companies Act. The director identification number(DIN) of these individuals has also been deactivated. They have been barred from being a director for non-filing of annual returns and balance sheets. According to the Union ministry of corporate affairs
Union Minister Piyush Goyal, Ministry of Finance and FM Nirmala Sitharaman. (Photo Credit: File Image)
New Delhi, December 10: With
the country reeling under the pressure of slow economic growth and
opposition taking jibes at the ruling dispensation, speculation is rife
on social media that present
Announcement
on Applicability of “Implementation Guide on Resignation/ Withdrawal
from an Engagement to Perform Audit of Financial Statements” to
Statutory Auditors of Listed Entities and their Material Subsidiaries
1 The Auditing and Assurance Standards Board of
ICAI issued “Implementation Guide on Resignation/ Withdrawal from an
Engagement to Perform Audit of Financial Statements” on 30th November
2018. Paragraph 25 of the aforesaid Implementation Guide which
prescribes applicability
Business expenditure --Setting up and commencement of business--Expenditure incurred
relating to setting up of inland clearance depot, container freight station and
warehousing
The winner of Monthly Top commentator Award for the month of November is Nirav with 110 comments on various post. Congratulations! Nirav you are eligible for winning Rs.1000/- from
A third auditor was arrested by the Economic Offences Wing (EOW) of the Mumbai Police in the Rs 4,355-crore Punjab and Maharashtra Co-operative (PMC) Bank fraud case on Tuesday. This is the eighth arrest in the case. Investigators suspect that the auditors have received Rs 40-60 lakh from the
The Goods and Services Tax (GST) panel is mulling various methods to boost revenue collections, among which one suggestion is to raise the 5 percent tax slab to 6 percent, as per a Business Standard report.
The slab-restructuring is expected to bring in additional
Chartered Accountancy(CA) is one of the most sought-after professions. Though it is considered India's highest accounting degree, it is not recognized in all countries.
The Certified Public Accountant (CPA) course, which is the highes
Deloitte Touche Tohmatsu Limited charging the Government Re 1 as disinvestment advisory for Bharat Petroleum Corporation Ltd (BPCL) has not gone down well with the investment banking community.
"Deloitte charging Re 1 is not a healthy competition. Regulator should not allow such low bids," said an investment banker on condition of anonymity. Investment bankers said that the regulator must put a minimum cap on the advisory fee.
Deloitte is helping the government sell its stake in BPCL. According to media reports, SBI Caps was the second-lowest bidder, quoting Rs 15-17 crore.
Deloitte declined to comment on the story.
This is not the first time such aggressive bidding has been done by an investment bank. Deloitte had quoted a similar price for its services in the divestment process of Container Corporation of India (CONCOR).
JM Financial had charged Re 1 for ONGC's purchase of the government's 51.11 percent stake Hindustan Petroleum Corporation (HPCL).
The trend of financial advisers quoting low prices began with the listing of Coal India on the stock exchanges roughly a decade ago. The advisers were paid only Rs 1,500.
Why Re 1 fee?
Bankers told Moneycontrol that the Re 1 pricing has nothing to do with any tangible measure, but has been determined by 'other factors.'
"Such low bids of Re 1 is largely done for goodwill and since it was a government deal it adds value to company's profile," another investment banker said.
Generally, consultation fees varies from sector to sector and company to company.
However, investment bankers said the only tangible measure for fixing fees for large deals isdecided based on the expected time spent on the deal, calculated on hourly basis.
"Fee quotations/pricing for contracts of such large nature by
The government has introduced an important change around the e-way bill generation with an aim to crack down on GST non-filers and evaders. With effect from December 2, 2019, the blocking and unblocking of the e-way bill generation facility has been implemented on the e-way bill portal. E-way bill generation has been barred for taxpayers who haven’t filed their returns for the previous two consecutive months.
What is the intention of blocking e-way bill generation for taxpayers? As per GSTN data, around 20.75 lakh GSTINs have not filed their GSTR-3B for September and October months. Also, out of these 20.75 lakh GSTINs, around 3.47 lakh GSTINs (16.7%) had transactions for September and October 2019 in the e-way bill system. Considering the rise in the number of tax defaulters, their ability to generate e-way bill had to be blocked. The tax department is of the view that non-filing of returns has been the primary reason for the decline in the GST revenue collection.
How will blocking of e-way bill generation work? Every taxpayer who is registered under GST must file GSTR-3B, on a monthly basis. GSTR-3B has details of sales and purchases made by a business and the final tax payable after claiming input credit.
As per the new rule, when a taxpayer fails to file his or her GST returns (GSTR-3B) for two continuous months, he or she will get blocked from generating an e-way bill. A GSTIN which is blocked cannot be used for generating an e-way bill either as a consignor or consignee.
For example, if a taxpayer has not filed his GSTR-3B return for September and
Non-filing of Know Your Client (KYC) mainly led to deactivation of DINs
The Ministry of Corporate Affairs (MCA) deactivated 19,40,313 Director Identification Numbers (DINs) in the MCA21 Database due to non-filing of Know Your Client (KYC), as on 28 November 2019. This was stated by Anurag Singh
Punjab National Bank (PNB) 'fraudulently issued' Letters of Undertaking (LoUs) worth Rs 25,000 crore to the Nirav Modi group, The Indian Express reports.
Belgian auditor BDO found that PNB issued 1,561 LoUs, valued at Rs 28,000 crore, to the Nirav Modi group. Of this,
The Ministry of Corporate Affairs (MCA), with the objective of strengthening the institution of Independent Directors under the Companies Act, launched today the Independent Director’s Databank in accordance with the provisions of the
Taxation Laws (Amendment) Bill, 2019, will amend the Income Tax Act 1961 and the Finance (No 2) Act 2019. It replace the Ordinance which was Promulgated by the President in September.
In the biggest reduction in 28 years, the government
NEW DELHI: Reliance Jio will raise tariffs by up to 40% from December 6 through its all in one (AIO) plans where the Mukesh Ambani owned company said that it will give 300% more benefits. The carrier added that it will take all necessary
Vodafone Idea Announces New Prepaid Plans, To Be Available From December 3
Vodafone Idea on Sunday announced new prepaid tariffs for its prepaid products and services.
Vodafone Idea had stated that it would increase its tariff from December 1. The announcement has come on the backdrop of its highest quarterly loss of Rs 50,922 crore amid an adverse Supreme Court ruling on adjusted gross reve nue
From April 1 next year, electronic invoicing (e-invoicing) will be mandatory for businesses with a turnover of Rs 100 crore, the government said on Thursday.
It has been decided to extend the last date for payment of Membership /COP fee for the year 2019-20 up to 31st December 2019. It has been further decided to waive off condonation fee on delay of filing of application forms related to Members, Firms and Students, if respective transaction date in application forms falls between 1st April 2019 to 31st December 2019.
Good and Services Tax (GST), indirect tax in India for the entire nation came into force on 1st July 2017. GST refund is a settlement of any amount that is due to the taxpayers from the administration on export of goods or services, excess reimbursement of taxes or other applicable cases. Complete guide to filing
Sources said the action was in line with Prime Minister Narendra Modi's address to the nation from the ramparts of the Red Fort when he had said some black sheep in the tax administration may have misused their powers and harassed taxpayers, either by targeting honest assessees or taking excessive action for minor or procedural violations.
"We have recently taken the bold step of compulsorily retiring a significant number of tax officials, and
Many GST taxpayers, especially small firms, are a worried lot these days with authorities sending system-generated red flags in their online return forms. A Delhi-based GST practitioner said that taxpayers are given very little time to respond to the red flags,
DINDOSHI POLICE is on the lookout for unknown fraudsters for allegedly duping a 27-year-old chartered accountant (CA) of Rs 2.02 lakh on the pretext of
Speaking to an audience comprising of all the top bankers, he said the new guidelines will be put in public domain and the RBI will be seeking comments before finalising any rules.
Citing the case of under-reporting of NPAs which used to go unrecognised earlier and is made compulsory now, and the benefits it gets, the DG urged banks to
Income Tax Department creates Exchange of Information Portal for dissemination of information to all stakeholders India is committed to exchange financial account information automatically from 2017 under the Common Reporting Standard (CRS) on Automatic
Selling land does not attract the Goods and Services Tax, but if some one develops and sells a parcel, then it comes under the GST ambit, according to the Authority of Advance Ruling (AAR) in Karnataka.
Bengaluru-based Maarq Spaces Private Ltd had entered into a Joint Development Agreement (JDA) with landowners for the development of a parcel of land into a residential layout along with specifications and amenities. The
The Board of Trustees of the Chartered Accountant Students Benevolent Fund (CASBF) has decided to provide financial assistance/scholarship for amount of Rs. 1500/- PM, to students who are registered in CA Intermediate /IPCC course and serving articled training as well as amoun
With the aim to tap the thriving demand for content in India, Sony presently is carrying out due diligence on Network18 before it comes up with any likely offer
Ambani through a network of subsidiaries owns a controlling stake in
Mumbai: The Reserve Bank of India (RBI) on Wednesday superseded the board of Dewan Housing Finance Corp Ltd (DHFL) and appointed an administrator in its place, a step towards referring the company to the National Company Law Tribunal (NCLT).
The Delhi High Court has upheld the Institute of Chartered Accountants of India ( ICAI’s) decision to not to entertain the complaint filed against the Auditor after seven years of signing Audit Report.
The petitioner has filed the present petition impugning an order
dated 1st February, 2019 passed by
Mukesh Ambani led telecom operator Reliance Jio released an official
statement saying: "As per media reports, we understand that TRAI
(Telecom Regulatory Authority of India) is likely to initiate a
consultation process for revision of telecom tariffs. Like other
operators, we will also work with the Government and comply with the
regulatory regime to strengthen the industry to benefit Indian consumers
and take measures including an appropriate increase in tariffs in next
few weeks in a
It will be offered soon after their plus two public examinations: Minister
Minister for School Education, Youth Welfare and Sports Development
K.A. Sengottaiyan has said the government has proposed to unveil an
ambitious scheme to offer Chartered Accountant (CA) coaching for
students soon after their plus two public examinations.
Addressing
after launching a special literacy programme by the Directorate of
Non-Formal and Adult
Expressing its displeasure over the way the special audit of a whistleblower's complaints against YES Bank and its founder Rana Kapoor was conducted by Vadodara-based JLN US & Co, the bank's statutory auditor BSR & Co now wants a fresh audit, according to a report in Mint.
Moneycontrol could not independently verify the report.
JLN in its report said it had limited access to documents
Beleaguered wireless operator Vodafone Idea said it will “suitably” increase the prices of its tariffs from December 1 2019, pointing to the financial stress in telecom and stressing that mobile data charges in India are by far the cheapest
Telecom operator Bharti Airtel has withdrawn its bid to purchase assets of Reliance Communications (RCom) after terming the move of committee of creditors to extend the bid submission deadline on the request of Reliance Jio as
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA [Set up by an Act of Parliament]
Important Announcement
November 17th, 2019
Change of Venue in THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA [Set up by an Act of Parliament]
Important Announcement
November 17th, 2019
Change of Venue in Ahmedabad City (Gujarat), in respect of November 2019 Exam
Salaries are not subject to Goods and Services Tax (GST), the Central Board of Indirect Taxes and Customs (CBIC) clarified on Friday, adding that no GST has been demanded on salaries paid to chief executive officers or employees. Reports that tax authorities want to impose GST on salaries paid to employees is factually incorrect and misrepresents tax authorities, it said in a statement. The CBIC said that GST law position clearly states under Section 7(2) read with schedule three of the Central GST Act 2017 that salaried services by an employee to an employer will be treated neither as a supply of goods
Here is the step wise fall in Mumbai real estate prices
First overall development of around 5 to 6 smart cities in UP itself and other native states in another year or two. When we say smart cities all equipped Mumbai Like medical transportation connectivity
Anil Ambani resigns as director of Reliance Communications
Anil Ambani has submitted his resignation as director of Reliance Communications, which remains under Corporate Insolvency Resolution Process (CIRP). Four other directors, including Chhaya Virani, Ryna Karani, Manjari Kacker and
MUMBAI: Aditya Birla Group will not infuse any fresh equity into VodafoneIdea Ltd, its telecom joint venture with Vodafone Group of UK, and let it opt for insolvency if the government does not provide substantial relief, including on the telco's adjusted gross revenue (AGR)-based dues, which could be over 39,000 crore, senior executives aware of the matter said.
Methodology for computation of provisional credit under rule 36 (4)
(Circular no. 123/42/2019-GST dated November 11, 2019)
The Government has recently introduced an amendment in the GST law in relation to availment of provisional Input Tax Credit ("ITC"), notified vide Notification No. 49/2019-CT dated October 9, 2019. The relevant extract of
If you think the economy needs a serious dose of medicine to be up and running, the government just provided one -- a Rs 25,000 crore funding window to help unclog stalled projects in the real estate sector.
GSTR 9C is an annual reconciliation statement to be filed by every registered person whose aggregate turnover for a financial year exceeds Rupees 2 crores (Section 35(5) read with Rule 80).
The due date for GSTR 9C for FY 2017-18 is 30th November, 2019 which has been constantly revised due to the complexities of the form.
In this article, let us understand certain GSTR 9C check points in detail with examples that will assist in simplifying GSTR 9C. However, one must understand that GSTR 9C is only a reconciliation statement of amounts and figures disclosed in the books of accounts.
1. Applicability of GSTR 9C -
As mentioned above, GSTR 9C is applicable to those registered persons whose aggregate annual turnover exceeds INR 2 crores. Aggregate turnover is the aggregate value of all taxable values, exempt supplies, export of goods or services or both, inter-state supplies of the person having the same PAN (on all India basis), but excludes inward supplies liable to reverse charge, central tax, State tax, Union territory tax, integrated tax and cess.
It is critical to determine applicability of GSTR 9C. Any error may result in non-compliance of the same.
Note - For FY17-18, to determine aggregate turnover, period to be considered is July 2017 to March 2018.
Example 1 -
ABC Ltd is having the following mentioned turnover in FY 2017-18.
Unit details
Taxable Turnover
Exempt Turnover
GST Audit Required?
Unit 1 of ABC Ltd - Maharashtra
Rs. 1.5 crores
Rs. 0.75 crores
Yes
Unit 2 of ABC Ltd - Gujarat
Rs. 10 lakhs
Rs. 80 Lakhs
Yes
Unit 3 of ABC Ltd - Karnataka
Rs. 0
Rs. 0
Yes
Example 2 -
XYZ Ltd is having the following turnover for FY 17-18.
Particulars
Taxable Value
GST Audit Required?
Sale of Alcoholic Liquor for Human Consumption
Rs 1.90 crore
Yes
Rent from Commercial Property
Rs. 25 Lakhs
2. Classification of turnover in Table 5 -
Table 5 requires reconciliation of turnover as per audited financial statements with that declared as per GSTR 9. There are certain incomes that form part of financial statements but are not reported in GST. One must be careful while classifying and reconciling income under various heads as required under GSTR 9C.
Example 3 -
Mr. A is providing Custom House Agent Services. Let us see how his services will appear in GSTR 9C -
(in Rs)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Sales as per Audited Financial Statement
1.25 crores
9 lakhs
9 lakhs
2
Amount Recovered as Pure Agent
20 lakhs
-
-
3
Amount Recovered as Pure Agent, (but it doesn’t qualify criteria of Pure Agent Related Provisions)
5 lakhs
-
-
4
Turnover as declared in GSTR 9
1 crore
9 lakhs
9 lakhs
Sr. No 1 - Sales may be declared in Table 5A Sr. No 2 - Amount recovered as pure agent may be declared in Table 5M Sr. No 3 - This will not be reflected under Table 5 but will be shown under Table 6 as reconciled item.
Example 4 -
A Ltd is a SEZ registered unit. Disclosure of turnover will be shown as follows -
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Export of Goods to USA under LUT
1 crores
-
-
2
Goods Supplied domestically, where DTA unit filed BOE
20 lakhs
-
-
Sr. No 1 - It will be part of Table 5A. Also it will be disclosed in Table 7C Sr. No 2 - It will be part of Table 5A. Also It will be disclosed in Table 5K
Example 5 -
X Ltd has made the following transactions during the year -
(in Rs.)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Profit on Sale of Fixed Asset
1 lakh
-
-
2
Sale value of Fixed Asset
10 lakhs
0.9 lakhs
0.9 lakhs
Sr. No 1& 2 - It will be disclosed as adjustment in Table 5O
Example 6 -
Mr. A imports goods. In case of imports, he makes the following transactions -
(in Rs.)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Goods Supplied on High Seas Sales Basis
20 lakhs
-
-
2
Sale of imported Goods
1 crore
9 lakhs
9 lakhs
3
Total Sale as per Audited Financial Statement
1.2 crore
9 lakhs
9 lakhs
Sr. No 1 - Goods supplied on HSS, will be disclosed in Table 5A and also in Table 7B Sr. No 2 - It will be form part of Table 5A. No separate disclosure required Sr. No 3 - It may be declared in Table 5A
3. Advances received against Supply of Goods or Services -
GST was payable on advance received against supply of goods or services. However, in the case of goods two exemption notifications were issued - Notification No 40/2017 dated 13th October, 2017 (for registered taxpayers having turnover below Rs. 1.5 crores) and Notification No 66/2017 dated 11th November, 2017 (for all registered taxpayers) wherein no GST is required to be paid on advance received against supply of goods.
No exemption is available if advance is received against supply of services.
Example 7 -
GST on Advance received against supply of Goods (Case where Notification No 40/2017 CT dated 13th Oct 2017, is applicable)
(in Rs.)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Advance received on 1st Aug 2017
20 lakhs
1.8 Lakhs
1.8 Lakhs
2
Advance received on 25th Aug 2017
10 Lakhs
0.9 Lakhs
0.9 Lakhs
3
Advance received on 1st Oct 2017
10 Lakhs
-
-
4
Advance received on 25th Jan 2018
30 Lakhs
-
-
5
Invoice raised on 1st Mar 2018, with respect to 1st Advance
30 Lakhs
Balance Amount
Balance Amount
6
Invoice raised on 1st May 2018, with respect to 2nd , 3rd and 4th Advance
60 Lakhs
Balance Amount
Balance Amount
Sr. No 1 - No separate reporting, as invoice is raised during the same year. Sr. No 2 - It will be disclosed in Table 5C Sr. No 3 - For non payment of GST, auditor should recommend interest liability at Part V Sr. No 4 - No reporting required as it is exempted
Example 8 -
GST on Advance received against supply of Goods (Case where Notification No 66/2017 CT dated 11th Nov 2017, is applicable
(in Rs.)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Advance received on 1st Aug 2017
20 lakhs
1.8 Lakhs
1.8 Lakhs
2
Advance received on 25th Aug 2017
10 Lakhs
0.9 Lakhs
0.9 Lakhs
3
Advance received on 1st Oct 2017
10 Lakhs
-
-
4
Advance received on 14th Oct 2017
30 Lakhs
-
-
5
Invoice raised on 1st Mar 2018, with respect to 1st Advance
30 Lakhs
Balance Amount
Balance Amount
6
Invoice raised on 1st May 2018, with respect to 2nd , 3rd and 4th Advance
60 Lakhs
Balance Amount
Balance Amount
Sr. No 1 - No separate reporting, as invoice is raised during the same year. Sr. No 2 - It will be disclosed in Table 5C Sr. No 3 and 4 - For non payment of GST, auditor should recommend interest liability at Part V
Example 9 -
GST on advance received against supply of services
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Advance received on 1st Aug 2017
20 lakhs
1.8 Lakhs
1.8 Lakhs
2
Advance received on 25th Aug 2017
10 Lakhs
0.9 Lakhs
0.9 Lakhs
3
Advance received on 1st Oct 2017
10 Lakhs
-
-
4
Advance received on 12th March 2018
30 Lakhs
-
-
5
Invoice raised on 1st Mar 2018, with respect to 1st Advance
30 Lakhs
Balance Amount
Balance Amount
6
Invoice raised on 1st May 2018, with respect to 2nd , 3rd and 4th Advance
60 Lakhs
Balance Amount
Balance Amount
Sr. No 1 - No separate reporting, as invoice is raised during the same year. Sr. No 2 - It will be disclosed in Table 5C Sr. No 3 and 4 - For non payment of GST, auditor should recommend interest liability at Part V
4. Unbilled Revenue -
There are certain incomes which have been recognised as income in the books of accounts on accrual basis but not reflected in GST. Such income is known as unbilled revenue.
For FY 2017-18, one has to be careful while reporting under this section as total unbilled revenue as on 01st April 2017 is not to be considered as an adjustment is required for invoices booked during the period April 2017 to June 2017. Thus, unbilled revenue as at 30th June 2017 is to be considered.
Example 10 -
A Ltd has reported unbilled revenue as at 01st April 2017 - Rs 10 Lakhs
During April 2017 to Jun 2017 invoice issued against such unbilled revenue- Rs 3 Lakhs
Unbilled revenue at the beginning of the year to be reported in Table 5B - Rs 7 Lakhs (10 minus 3)
5. Deemed Supply under Schedule I -
Under Schedule I certain supply have been treated as deemed supply even if no consideration has been on such supplies. Supplies covered under Schedule I are as follows -
a. Supplies made to related parties b. Supply of goods via Agent c. Permanent transfer or disposal of asset where no consideration has been received but input tax credit was availed’
Such supplies are to be reported in Table 5D and may not be added in Table 5A.
Example 11 -
A Ltd has made the following transactions -
(in Rs.)
Sr. No
Particulars
Value
GSTR 9C Reporting
1
Sales of goods
10 Lakhs
Table 5A
2.
Asset disposed
5 Lakhs
Table 5D
3.
Branch Transfer
2 Lakhs
Table 5D
6. Other Income and Recovery -
Let us understand how various incomes other than sales and recoveries made be treated under GSTR 9C.
Example 12 -
(in Rs.)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
Sales
1 Crore
9 Lakhs
9 Lakhs
2
Interest Income on FD
1 Lakh
-
-
3
Dividend Received
2 Lakhs
-
-
4
Canteen Recovery from Employee - deducted from Canteen Expenses
0.5 Lakhs
-
-
5
Interest received from Customer for late payment
0.25 Lakhs
-
-
6
Penalty Amount received from Supplier, as per contract terms, for Non-performance of partivity
1 Lakh
-
-
Sr. No 1 - It will be reported in Table 5A Sr. No 2 & 3 - It may be disclosed at Table 5O, if said amount is already included in Sr. No 5A. If it is not disclosed in Table 5A, the same may not be reported in Table 5O Sr. No 4,5 and 6 - It may be disclosed at Table 5O by adding the values, then it will reconciliation item on which there will be additional liability at Table 6.
Else auditor can disclose additional liability on the same in Part V
7. Input tax credit -
It is important to verify tax availed as per books of accounts, GSTR 2A and GSTR 3B is in line with each other. Auditor may come across such instances where excess credit has been in GSTR 3B but the same has not been booked in books of accounts, ineligible credit has been availed or reversals required have not been made as per Rules. In such cases, the auditor may show this amount as additional liability payable.
However, any input tax credit not availed till the specified time limit shall lapse i.e. for FY17-18, input tax credit could have been claimed upto filing of March 2019 return.
Example13 -
Input tax credit - Wrongly availed.
(in Rs)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
ITC availed in F.Y. 17-18.
Later, taxpayer has identified some wrong ITC of 17-18 and reversal done in May 18 Return
0.5 Lakhs
0.5 Lakhs
2
ITC availed in F.Y. 17-18. During GST Audit, auditor observed wrong ITC is claimed in Nov 18.
Disclosure is not made for the same, in any return upto Nov 18
1 Lakh
1 Lakh
Sr. No 1 - No separate reporting is required as the taxpayer has already made the reversal. However auditor should recommend Interest liability at Part V Sr. No 2 - Auditor should disclose additional liability of wrong ITC in Part V
Example 14 -
Input tax credit - Payment to creditor within 180 days
(in Rs)
Sr No
Particulars
Value
CGST Paid
SGST Paid
1
ITC availed in July 2017
10 lakhs
0.5 Lakhs
0.5 Lakhs
2
Out of the above payment made to supplier upto Mar 18
8 lakhs
3
Balance amount paid in Nov 18
2 Lakhs
Sr. No 3 - Auditor should disclose additional liability / Interest in Part V
Example 15 -
ITC - Auditor observed below Credit availed by taxpayer in Books as well as GSTR Return upto Mar 18. What to do
Sr. No
Particulars
CGST
SGST
1
Food
5,000
5,000
2
Works Contract
25,000
25,000
3
Purchase of Car
90,000
90,000
4
Factory Insurance
30,000
30,000
5
Employee Insurance (not specified by law)
225,000
225,000
Sr. No 1, 2, 3 and 5 - It is blocked credit as per Sec 17(5). It is to be reported as additional liability by Auditor in Part V of GSTR 9C
Conclusion -
These are certain points one should take care while reconciling values under GSTR 9C. Situations under GSTR 9C are such that may vary business to business - what may be applicable to one business, may be ineligible to other. Thus, careful interpretation of terms according to business should be done.
There are multiple software available in the market which provides multiple tools to ease GSTR 9C preparation and filing. GST Hero is one such software, it is a government of India appointed GST Suvidha Provider and is also a cloud-based multi-user software with a smoother GST Filingmechanism. GSTHero provides a Free Tally TCP Tool that enables easy preparation of GSTR 9C. Get this connector to make your GSTR 9C Filing Simpler and easier with GSTHero.
End Note -
GSTHero is a government of India appointed GST Suvidha Provider and is also a cloud-based multi-user software with a smooth mechanism to work together with an advanced ITC reconciliation feature that will provide you and your clients an automated tool to handle ITC reconciliation and also open up a list of new service avenues for your tax practice.
Hazardous is 301 to 500. The entire population is more likely to experience serious health effects and should avoid all 
