Filing of mid-year GST Return, i.e., return for the month of September, is crucial mainly because it marks as the last return for reconciliation/ rectification of any mistakes/ omission of any data relating to the preceding Financial Year.
Simplifying thereof, various mistakes/ errors, if any, done while filing returns for the Financial Year 2020-2021 needs to be reconciled/ rectified on or before the filing of return for the month of September 2021.
The present article covers the gist of such actionable items which one needs to clear/ go through before filing the GST return for September 2021.
Actionable items relating to
Input Tax Credit
Input Tax Credit is very crucial, so is the GST return filing for the month of September. The points to be taken care of before furnishing return for the month of September is highlighted hereunder:
Availment of pending Input Tax Credit for the Financial Year 2020-21
Provisions of section 16(4) of the CGST Act, states as under:
Accordingly, the following is important:
Apportionment of ITC as prescribed under rule 42 and rule 43 of the CGST Rules
The registered person either:
- Engaged in supplying both exempted as well as taxable supply; or
- Using inputs/ input services/ capital goods for both business as well as other purposes.
are required to reverse the ITC in accordance with the provisions of rule 42 and rule 43.
Notably, the reversal is to be done on a periodical basis. However, as per provisions of sub-rule (2) to rule 42 and rule 43-
- The reversal for the respective Financial Year should be computed definitively before furnishing the return for the month of September following the end of the Financial Year.
Accordingly, the registered person to whom the provisions of rule 42 and rule 43 are applicable are required to do a final calculation of the reversal of ITC for the Financial Year 2020-2021 before filing a return for the month of September 2021.
The situation and action to be taken by the registered person, on final calculation are summarized hereunder:
Situation | Action |
|---|---|
Actual ITC reversed = Finally calculated reversal figure | No action to be taken |
Actual ITC reversed < Finally calculated reversal figure |
|
Actual ITC reversed > Finally calculated reversal figure |
|
Reversal of ITC as per rule 37 of the CGST Rules
Rule 37 states that after availing of ITC relating to the inward supply of goods or services if the registered person fails to pay the value of supply (fully/ partly) within 180 days from the date of invoice. Then, full/ proportionate credit is required to be reversed.
Accordingly, while filing the return for the month of September 2021, partial or full reversal of ITC is to be done in case of non-payment of any invoice amount vis-à-vis completion of 180 days.
Know the GST return filing due dates and regarding notification in this video
Actionable items relating to supply
Outward supply reconciliation
Before filing the return for the month of September 2021, the registered person is required to reconcile the outward supply for the Financial Year 2020-2021 as per books of accounts and as reflected in the returns filed for that Financial Year.
Underreported/ misreported outward supplies, if any, for the Financial Year 2020-2021 needs to be correctly disclosed while filing returns in Form GSTR-1 and Form GSTR-3B filed for the month of September 2021 in the following manner
Particulars | Action | |
|---|---|---|
Rectification in domestic taxable outward supply | Tables in which amendment is to be done | |
Form GSTR-1 | 4A, 4B, 4C, 6B, 6C – B2B | |
3.1(a) – Outward Taxable Supplies (other than NIL, Zero Rated and Exempted) | ||
Rectification in outward supply relating to export | Return | Tables in which amendment is to be done |
Form GSTR-1 | 6A – Exports | |
Form GSTR-3B | 3.1(b) – Outward Taxable Supplies (Zero-rated) | |
Rectification in outward supply relating to NIL-rated, exempted and non-GST supply | Return | Tables in which amendment is to be done |
8A, 8B, 8C & 8D – Nil Rated, Exempt & Non-GST Supply | ||
Form GSTR-3B | 3.1(c) and 3.1(e) | |
Issuance of credit notes as per section 34(2) of the CGST Act
According to section 34(2), the issuance of the credit notes is to be reflected in the return filed for the month in which the credit note is issued.
In case of failure, the same is to be reflected while filing a return for the month of September following the end of the Financial Year in which the supply was done.
Referring the same to the Financial Year 2020-2021, any pending reflection of credit note needs to be reflected while filing a return for the month of September 2021.
Summary of important points to be taken care of before filing a return for the month of September 2021-
- Verify and confirm availment of ITC of all the tax invoice/ debit notes received during the Financial Year 2020-2021. Avail ITC of any left-out invoice/ debit note while filing a return for the month of September 2021.
- Compare the outward supply as per books of accounts and as per returns filed for the Financial Year 2020-2021. In case of any rectification, do the same while filing the return for the month of September 2021.
- In case of applicability of provisions of rule 42 and rule 43, do a final calculation of reversal of ITC to be done for the Financial Year 2020-2021. Excess reversal/ claim, if any, needs to be given effect while furnishing September 2021 return.
- Any pending reflection of credit notes, issued during the Financial Year 2020-2021, needs to be taken care of while filing September 2021 return.
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