Here is what you can't do after filing September 2018 GST Returns

Due Date for September 2018 GST Returns is here:

What you can’t do after this

Due dates of filing GST returns for month of September 2018 is here and there are few important things you need to keep in your mind. At the very outset lets first understand predominant use of GSTR 1 and GSTR 3B. GSTR 1 reflects your outward supplies which also forms part of GSTR 3B. What is different in GSTR 3B is the claim of Input Tax Credit based upon self-assessment and the tax invoice. So in short the claim of ITC is filed in GSTR 3B and outward liability is filed in GSTR 1 correspondingly in GSTR 3B.

The returns for the month of September 2018 are crucial as these returns will freeze the figures for Financial Year 2017-18. There are few important adjustment which shall not be allowed after the filing of returns for the month of September 2018.

1.     No Input Tax credit in respect of an invoice pertaining to FY 2017-18 can be claimed. This means that the taxpayer needs to reconcile its books of accounts and vouch for all pending invoices and claim ITC before filing GSTR 3B. The taxpayer may contest that the credit claimed in months of April 2018 to September 2018 pertains to FY 2017-18 and for FY 2018-19 credit shall be availed later. But in such case it is important that simultaneous entry has also been recorded in the books of accounts for that particular period. Where the taxpayer has expensed for GST component, the adjustment may not be allowed.

2.      The taxpayer can issue credit notes only up to filing of return for September 2018. Section 34 prescribes the limit for issue of credit note and reflecting the same in the return. But it no where restricts the adjustment of issued credit note in future months. For Instance, a taxpayer issues a credit note for IGST sale worth Rs. 50 lakhs in June 2018 for month of March 2018, but there were no IGST sales till September 2018. In such a case if the taxpayer has reflected the said credit note in his return (GSTR 1) before September 2018, he would be allowed to adjust the same in GSTR 3B for months even after September 2018 as per Circular 26/26/2017. But in case the said credit not has not been filed in GSTR 1, no further adjustments could be made. As far as the debit note is concerned there is no time period for its issue.

3.     In case there are rejections of material for FY 2017-18 and issuing credit note is not allowed as per law, the inward supplier can issue tax invoice and send the goods back to the outward supplier. Where the tax invoice is issued for return of goods, there is time barring and hence it’s a legal remedy in such case. Further as far as the books of accounts are concerned the treatment would not change for accounting purposes.

4.     No amendment to the invoice issued for FY 2017-18 can be made by the outward supplier. This means that the sale invoices as issued by the taxpayer cannot be rectified after GSTR 1 for September 2018 has been filed. In cases where wrong GSTIN has been entered, wrong details entered or value of invoice/tax is wrongly declared, the person shall not be able to rectify the same. In such circumstances, taxpayer can get the same rectified during the assessment proceedings and submit the same with the Proper Officer. This we understand would form part of the rectification of errors apparent on the face of the record as per section 161 of CGST Act 2017.   

Therefore it is pertinent that minutest details be verified before filing the returns for the month of September 2018. But be rest assured where the taxpayer has all the relevant documents as per the law, his position still stands strong for benefit at Tribunal/High Court levels.

Disclaimer: The above document is prepared on basis of our understanding of GST Act. We shall not be responsible for any gains/loss which may arise due to this document. This document is used for professional development purposes only and as per the norms prescribed by law.