GST – Key Highlights of 42nd Council Meeting

W.e.f 1st Jan’ 2021, the following shall apply:

  • GSTR-1 Due date for quarterly taxpayers – 13th of next month of the quarterIn case of GSTR-3B
  • Tax liability shall be auto-populated from GSTR-1 and ITC from GSTR-2A/GSTR-2B
  • Form GSTR-1 must be filed before GSTR-3B
  • Quarterly return filing with monthly payment option for individuals whose TO in PFY is less than 5 Crores.
gstr 3b

2. W.e.f -1 April 2021, the following shall apply:

  • 6 Digit HSN/SAC is mandatory if TO is more than 5 Crores
  • 4 Digit HSN/SAC is compulsory for all B2B supplies if TO is less than 5 Crores
  • 8 digit HSN is mandatory for notified persons

3. Existing GSTR-1 and GSTR-3B mechanism is extended till 31.03.2021

4. Refund to be disbursed in a validated bank account linked with PAN & Aadhar of the registrant.

Recent Post:-

GST Reconciliation

GST reconciliation involves data matching as filed by the suppliers & purchase receipts as recorded and filed by the receiver of the supplies or services.

GSTR–2A is populated based on information on purchases as recorded by the buyer of products or services from the supplier.

Suppliers also file their returns and basic GSTR 2A is generated based on suppliers’ data therein. So GSTR 2A is generated from the GSTR1 of the seller.

GSTR 2A is auto-generated for the following components:-

  • Supplier filing GSTR 1 & 5 and enters B2B transaction details
  • ITC distributed by ISD while filing GSTR 6
  • TDS and TCS details based on GSTR 7 & 8 filed by dealers who deducted TDS/ TCS.

Some of the reasons to reconcile Form GSTR-3B and Form GSTR-2A may include:-

  • GST Dept has been sending notices for mismatches of return filed for Purchases under GSTR3B last and the supplier generated GSTR 2A. It is imperative to respond to these notices as stringent actions are planned against the non- compliance.
  • Fake transactions are recorded in a bid to record the wrongful input credit claims

–       Any invoice missed inadvertently or a genuine error/ emissions are also giving rise to the option to course correct in respect of correct input credit claims

2A reconciliation often arise on the back some tech glitches-

  • The credit of IGST claimed on the import of goods and services
  •  GST paid on reverse charge mechanism
  • Transitional credit claimed in TRAN-I and TRAN-II.
  • ITC for goods and services received in FY 2017-18 but availed in FY 2018-19.

Validations:-

  • GSTR-2A is a read-only document and not everyone have access to the same.
  • The corrections should be made in GSTR-2 only.
  • Any late-filed 3B Returns will also have corresponding Late GST 2A and thus may need detailed reconciliation. For e.g., your seller delays in filing his GSTR-1 return of November and files it after the due date on 17th Nov. Meanwhile,  we may file your November GSTR-2 return and submit within 15th December. The information from his GSTR-1 will appear in your GSTR-2A of December.

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