Some Important facts on GST and Indian festivals

The festive season has come once again! The Auspicious Festival of Raksha Bandhan had arrived. Like every year, this time too, the retail outlets across India will be flocked with the extensive range of gift hampers comprising of attractive gift items. The taxpayers having GST registration have to consider one more significant aspect during this festive season.

  1. What is the important task to consider for the registered taxpayers?

The important task to consider for the taxpayers having GST registration is the recognition and rectification of errors in ITC of the suppliers as well as the recipients happening while GST returns filing.

  1. For what reason is the rectification of errors of ITC significant?

In Goods & Service Tax, the coordination of purchase and sale invoices must be done to ensure the promise of asserting ITC between suppliers and recipients. This will protect them from the danger of obstacle of ITC blocking while GST returns filing procedure.

  1. How to identify the errors in ITC?

The errors in ITC can be easily identified by coordination of the details of FORM GSTR-2A return with the purchases as entered into the Books of Accounts.

  1. Which details are to be verified from GSTR-2A?

The taxpayers need to synchronize the details of their purchase with information about the sale of their vendor.

During this course of action, the taxpayer will coordinate ITC already received by him through ITC as appearing in the GSTR-2A return. In case of any confusion, the taxpayer will guarantee such unused ITC there and then.

  1. what to do if the suppliers have not uploaded the GST billing?

There are frequent cases where the supplier has not provided the GST billing or has entered erroneous information in Form GSTR-1. Accordingly, the confusion of ITC comes out in GSTR-2A of the receiver.

  • In such a case, the supplier must report such jumble its required rectification in his GSTR-1 return of next month/quarter.
  • As per the CGST Act 2017, taxpayers having GST registration can’t benefit ITC with respect to any invoices, in case a confusion arises. Hence, it is essential to detect a report such mismatches well in advance.
  • Moreover, it is very pivotal to outfit the correct GST invoices so as to keep away from any such problem, because

 “Prevention is better than cure.”

  1. Whether E-Way Bill Is allowed without GST Return Filing?

No. As per the new rule 138E in CGST rules 2017, the Govt vide its notification no 74/2018 dated 13.12.2018, has clearly said that Way Bill shall not be allowed without GST Return Filing. Here are some most important facts in this regard:-

  • The taxpayer having GST registration won’t be able to create an E-Way Bill without following the GST return filing process in case:-
  • If the GST returns in the previous 2 months have not been filed by the registered dealer or
  • If the GST returns in the previous 2 quarters have not been filed by the GST composition scheme registered dealer.

In the entire above scenario, only it is the GST Commissioner who would be able to permit such creation of E-Way Bill in selective cases, and that too vide an order.

Hence, it is very important to duly file all GST Returns.

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