The last date to file the first ever GST Annual return is fast approaching and there are certain things that every taxpayer needs to keep in mind.
According to Saloni Roy, Senior Director, Deloitte India, the key is to ensure that the filings are correct and the data that you have relied upon has adequate backups and supported because it will be required for your GST Audit. “These documents will be the basis for the GST Audit to be filed. Documents are most crucial and ensuring that the data contained in your annual return is complete is very important,” says Roy.
The due date to file returns has been shifted twice, initially from December, 2018 to March, 2019 and then again to June 30, 2019. Roy says it is important to keep this additional timeline in mind since it is the first time everyone is filing returns and prepare accordingly so that we have everything in place.
“This annual return also allows you to make certain edits. In case your previous return did not have the complete data, you can now make certain edits. However, no additional input tax credit can be claimed and whatever has been filed till GSTR3B will stay,” says Roy.
Lastly, there may be some additional work regarding your input tax credit, which would pertain to categorizing your credits according to different buckets – inputs, input services and capital goods. The key, however, is to keep adequate time in preparing this.
GST Audit needs to be submitted simultaneously along with the Return. “Return, in this case is the primary document, and the audit follows through from the return. The audit is essentially a reconciliation of the returns with a taxpayer’s financial detail. Like the return, the audit needs to be done for each GST registration. The return is a precursor to the audit, but sufficient time needs to be allotted since date of filing for both documents is the same,” says Roy.
Any taxpayer with a turnover of Rs 2 crore in a financial year needs to file an Audit report. “Technically the turnover should have been from April 1, 2017 to March 31, 2018, but there is some confusion since GST kicked in during the month of July 2017, which means the period is question is nine months. There is some ambiguity around it, but the law states Rs 2 crore in a financial year,” says Roy.