Important Checklist To Consider Before Filing September GST Returns

When filing tax returns for a given year, the GST return for September is the last chance for taxpayers to add any missing information or correct any mistakes made on returns submitted for the prior fiscal year. These adjustments are critical for a proper end of the financial year.

Additionally, it serves as a crucial benchmark during the self-certification procedure, specifically during the submission of the GSTR-9C. Thus, it is essential and critical to file your GST returns in the month of September. 

The September GST returns have great significance. The following reasons contribute to this:

1. Adding in overdue invoices: If you are an investor, then you can post invoices that are up to 18 months old GSTR-1, provided those invoices pass the necessary validations. You may miss out on Input Tax Credit (ITC) if the invoice from the current fiscal year isn’t uploaded until the following fiscal year’s September filing. If you have any invoices from the prior fiscal year that have not been submitted, you should do so before submitting your GSTR-1 in September.
2. Notice of credit or debit issue: A credit or debit note may be sent by a supplier to the buyer. If the supplier wants the credit or debit note’s date to fall inside the current fiscal year, they must issue the note before submitting their GSTR-1 in September of the next fiscal year. If the supplier doesn’t issue a debit note, the customer forfeits any additional ITC they may have received as a result.
3. Changes to Invoices: If a supplier has to make a change to an invoice from the current fiscal year, they must do so before submitting their GSTR-1 in September of the next fiscal year. If the buyer’s invoice needs to be updated to reflect the new tax liability and the supplier fails to do so by GSTR-1 in September, the buyer risks having their invoices rejected.

Checklist To Consider Before Filing September GST Returns

To claim ITC and adjust sales/CDN in a timely manner, all taxpayers should review the following checklist before submitting their September GST returns:

1. Use pending ITC

As taxpayers submit GSTR-3B, they will miss their final opportunity to claim ITC for a fiscal year. To get the most out of your hard-earned cash, you should finish the GSTR-2A-purchase book reconciliation process for the entire fiscal year.

2. ITC claim on prior revision

If the Goods and Services Tax (GST) credit was reversed during the year because suppliers were not paid within 180 days. However, an ITC that was previously reversed due to non-payment might be claimed again if payment has been made to the provider. If the suppliers think that there could be an entry in the books on which they can claim ITC, they should look for it.

3. Validating the reverse charge credit

For the 2021-22 fiscal year, it’s vital to double-check your accounting records to see if you have properly paid GST under RCM on the relevant transactions at the correct rate.

4. Inspecting GSTR-2A and 2B against original purchase invoices

There are numerous missed transactions (no invoice purchases, missing invoices, etc.) throughout the year. To ensure an accurate audit, it is vital to compare the purchases to the GSTR 2A that is at hand. Since GSTR 2B is now also available, it is incumbent upon taxpayers to ensure that it is taken into account.

5. Transaction cancelled after GST was paid

You must also highlight if the items are rejected after a few days of the sale but the taxpayer has already paid the GST owing on the sale. In order to claim ITC on the basis of a party’s debit note, the taxpayer must first reconcile the party’s books of account with the taxpayer’s GSTR-2A.

6. Tax credit for money spent at the bank

Timely reimbursement of bank fees, such as processing and unit inspection costs, is also required. Cash Credit account holders at participating financial institutions are subject to “processing charges” for the renewal of C/C limits as well as unit inspection charges, which are automatically deducted from their C/C balances upon payment. ITC can be claimed by taxpayers for these kinds of deals.

7. Credit for expenses related to gainful employment

A taxpayer is eligible for the applicable ITC if they have outsourced any work and the vendors have filed GST invoices for the services they delivered. The passage of time and the complexities of the calendar make it easy to overlook such minor details. The time to review the books of account and compile such entries for the ITC claim is now, well in advance of the September GST returns due date.

8. Consider filing for ITC on minor outlays like cable, phone, and internet services

The bills must be in the name of your company and have the business address listed in to qualify for ITC. People often forget to report these minor transactions, but if you use GSTR-2A to look back over the entire year, you can verify all of these transactions and collect your ITC after correctly filing your GST returns in September 2020.

9. Tax deduction for payment of shipping costs

As was stated previously, minor financial dealings are often overlooked during the year. The sum of these seemingly insignificant purchases can, however, add up to significant savings over time. Costs of a minor nature are frequently overlooked and under-accounted for. You can reconcile your GSTR 2A by checking it and doing it the right way.

Bottom Line

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Read More:

Reasons Why Your GSTIN Can Get Cancelled

The Impact Of GST On Business Loans?

Jurisdiction of GST State Code

GST Return Filing

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