Check List for closing the books of accounts 31st March 2019

May 16, 2019 Alankit

1.  Verify all the tax invoices / debit notes are issued as per the provisions of Section 12, 13, 14, 31 & 34 by the supplier of goods or services or both are received and accounted.  
2.  Verify and ensure that tax invoice is received for the goods or services or both for which input tax credit is being claimed – clause “a” of sub-section 2 of section 16 of the CGST Act 2017
3.  Verify and ensure that all the goods or services or both have been received before claiming the credit – clause b of sub-section 2 of section 16 of the CGST Act 2017. 
4.  Verify and ensure that in case if goods are being received in lots, the final lot is received, - the first proviso of sub-section 2 of section 16 of the CGST Act 2017.
5.  Verify and ensure that all the information related to tax invoice or debit note is there on the documents issued by the supplier of the goods as per provisions of Rule 46 of the CGST Rules 2017 like GSTIN Numbers, date of invoice, Invoice Number, Place of Supply, HSN Code, Tax Rate and Tax Amounts are there on the tax invoice.
6.  Verify the time of supply for the reverse charge transactions correctly – the time of supply for reverse charge transactions is based on the conditions given in section 12 and 13 of the CGST Act. If any unaccounted are found for the said transactions, pass necessary accounting entries for reverse charge including interest and pay the same.
7.  Verify and ensure that tax invoices / payment vouchers are to be issued for the reverse charge transactions.
8.  Verify and ensure that for all the advances paid to unregistered taxpayers, payment vouchers issued as per provisions of clause g of sub-section 3 of section 31 of the CGST Act 2017.  
9.  Wherever customer advances are returned verify if refund voucher is issued for the same or not, if not issue a refund voucher.
10.  Verify the Creditors aging statement or supplier invoices for where payment is not made partially or fully within 180 days from the Supplier’s invoice date. As per the second proviso of Section 16 of CGST Act 2017 and Rule 37 of the CGST Rules, the amount of input tax credit availed has to be reversed along with interest as per provisions of Section 50 of the CGST Act. The rate of interest is notified wide Notification No. 13/2017 – Central Tax dated 28th June 2017, the rate is 18% p.a.
11.  Verify the date on which returns have been filed and the actual due date for filing of the returns. If the returns are filed after the due date, ensure that interest is paid for the delayed days as per the provisions of Section 50 of the CGST Act 2017, in case if the same is found out during the audit or scrutiny then penalty is also applicable along with interest.
12.  Verify If all the accounting entries related to liability payment, input tax credit utilization are passed and the balances of the taxes liability, input tax credit and cash tally with the accounting ledgers and ledgers maintained at GSTIN. If there are any differences, pass necessary accounting entries for the same.
13.  Verify the stock as per the book balance and physical stock, if there is any difference, the input tax credit claimed has to be reversed on the shortages / differences.
14.  Verify and ensure that in case of capital goods, the date on which the input tax credit availed and the date of capitalization of the assets are same, if not pass necessary adjustments for reversal of ITC along with payment of interest and also the necessary accounting entries. This is required due to the definition of the capital goods given in sub-section 19 of section 2 of the CGST Act 2017.
15.  Ensure that the provisions on the blocked credit are followed else penal provisions as per section 74 will be levied if found during the audit or scrutiny or as part of any other investigation carried out by the departments
16.  Verify and ensure that the valuation for the tax invoices is done in accordance with provisions of Section 15 of the CGST Act and from Rule 27 to Rule 36 of CGST Rules 2017 are followed properly.
17.  In case if you are having more than one registration number ensure that the financial data matches with the sum of all the states returns for outward supplies, ITC etc.
18.  In case if you feel any of the registration numbers are not used and if required you can surrender the same so that your compliance cost comes down.
19.  In case of stock transfers, reconcile the stock sent from one GSTIN and received at the other GSTIN, if there any differences rectify the same before filing GSTR – 3B
20.  Ensure that all the inward / outward / tax payable / ITC / Production / Stock registers are maintained for the financial year and in case of contracts they are maintained project wise.
21.  ITC on the transactions related to FY 2017-18  can be claimed till due date of return for the month of March’19 provided the details have been uploaded by the supplier in GSTR 1.(Order No. 02/2018-Central tax, dt 31.12.2018)
22.  If inputs are sent by principal to job worker, ensure that they are received back within one year from its movement, otherwise tax invoice is required to be issued by the principal to job worker.
However, this period of one year can be extended by additional one year with the permission of Commissioner.
23.  Fresh LUT is to be filed for F.Y. 2019-2020. If LUT has already been filed, it will be valid till 31.03.2019 only.
24.  If supply is made to a person registered as a TDS Deductor under GST, ensure timely filing of returns by the Recipient  (TDS Deductor) to ensure the amount of TDS deducted gets reflected in Electronic Cash Ledger
25.  If supply is made through e-commerce operator who is required to collect TCS, ensure timely filing of returns to ensure the amount of TCS gets reflected in Electronic Cash Ledger.
26.  Ensure that input tax credit is being utilized as per the new provisions given in Sec. 49A for the month of Feb & March 2019.
27.  Ensure that accounting ledgers are maintained for Input Tax Credit is being done on the basis of inputs/input services and capital goods.
28.  Ensure compliance of Rule 46(n), i.e. mentioning place of supply along with name of the state while issuing invoice in case of interstate supply, otherwise, penal action u/s 122 or 125 may be imposed.
29.  Ensure compliance of Ind As 2/110/113.
30.  Ensure that revenue recognition as per the Ind AS -115 is adopted to minimize the impact of GST Audit for the FY 2018-19.  
31.  ITC of motor vehicles for transportation of persons having seating capacity of more than thirteen will only be available under new provisions w.e.f 01.02.2019 other than specified purpose.
32.  ITC on services of general insurance, servicing, repair & maintenance is available only if ITC on purchase of motor vehicle is available.
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