Compliance Support Services

MONTHLY COMPLIANCE SUPPORT SERVICES

Review of GSTR-1 and the workings which includes :

  1. Review the base outward data provided with its corresponding invoices on sample basis (if required) in order to ensure that the rate of tax, type of tax and place of supply of such transactions have been accurately captured in the system;
  2. Review the nature of outward supplies, including checking if the transaction is B2B, B2C, exports with or without payment of tax, etc.;
  3. Co-ordinate and consult with the identified Company personnel to ascertain and review that all the transactions have been reported for the month;
  4. Identify the discrepancies, if any, in the above-mentioned activities and reporting the same to the concerned team for corrective action, wherever required; and
  5. Validate corrective actions carried-out by the Company to the extent necessary for appropriate reporting in the returns for the month.

Review of GSTR-3B and the workings which includes:

  1. Review the base inward data with corresponding invoices on sample basis (if required) in order to validate whether Input Tax Credit has been availed on all legitimate procurements under GST;
  2. Review the expenses for which the credit has not been availed and validating the reason for the same;
  3. Review the eligibility of the credit availed by the Company on goods and services based on the description/nature of expense incurred;
  4. Identify discrepancies, if any, in the above-mentioned activities and reporting the same to the concerned teams; and
  5. Review of ITC workings with GSTR2A and GSTR2B to determine credit that can be availed during the month as long as data is given with adequate time to undertake this exercise The same has been discussed in detail in Point 4 more elaborately

Reverse Charge :

  1. Review base data provided by the Company, with its corresponding invoices on sample basis (if required) in order to ascertain that the rate of tax, type of tax and place of supply of such transactions have been accurately captured in the system;
  2. Review the nature of supplies which are subject to reverse charge;
  3. Review the self invoices raised in case of RCM Invoices;
  4. Check the Time of Supply in case of RCM;
  5. Co-ordinate and consult with the identified Company personnel to ascertain and review that all the transactions have been reported for the month;
  6. Identify discrepancies, if any, in the above-mentioned activities and report the same to the concerned team for corrective action, wherever required;

Other Support : 

  1. Preparation and review of reconciliations between books of accounts and GST returns and workings on a periodic basis;
  2. Review of Sales Registers from a GST liability perspective with reference to B2B, B2C, Export Sales together with emphasis on valuation rules, classification and application of rate schedule on a sample basis periodically;
  3. Review of Purchase Register including imports covering aspects of eligibility of Input Tax Credits under the relevant rules on a sample basis periodically.

Note: Monthly compliance support does not cover support in relation to Annual returns under GST.

 
GSTR 9 – SELF CERTIFIED ANNUAL RETURN

1. Collation of data required for the review of annual return;

2. Assistance in preparation of annual GST return(s) under the Integrated/Central GST or respective State/Union Territory GST laws; and

3. Assistance in filing of annual GST return

4. Review of outward supplies including review of the positions adopted by the Company for the following: 

Review of key representative sample contracts entered with the customers;

  1. Place of supply for different transactions;
  2. Rate of GST – output goods and services;
  3. Treatment of advances, discounts, incentive schemes or other post sale pricing adjustments, if any;
  4. Valuation in case of inter-Company transactions and related party supplies;
  5. Review of exempt supplies undertaken by the Company and its adherence to corresponding impact on Input tax credit;
  6. Deemed supplies, Free of cost supplies including samples, gifts;
  7. Disposal of capital goods and scrap, if any, etc.

5. Review of inward supply transactions including review of following: 

  1. Process of procurement of goods and services from registered vendors;
  2. Review of key representative sample contracts entered with the vendor;
  3. Review of Import of goods transactions;
  4. Review of Import of services (royalty, technical fee, etc. paid to foreign vendors);
  5. Treatment of reverse charge transactions disclosed in the GST returns (e.g., transactions with government, legal consultancy services and other notified services etc.);
  6. Evaluate various business scenarios where the Company is liable to pay GST as a recipient of goods/services; and
  7. Review of credit not availed by the Company which may be eligible in terms of GST laws.
  8. Reviewing the eligibility of ITC on the basis of GST Laws.

6. Review of compliances, Under this section, we would undertake a review of GST returns filed by the Company:

  1. Review of returns prepared by the Company to ascertain conformity with the GST laws;
  2. Review of GST returns filed with the authorities, backup workings and challan copies;
  3. Review of various exempted supplies disclosed in the returns;
  4. Review of the adjustments/amendments and input tax credit availed during April to September GST returns, in relation to the transactions relating to April to March of the period in review;
  5. Review of compliance with ISD provisions of GST laws; if any
  6. Validation of correctness of tax liability/refund based on the monthly GST returns vis-à-vis the audited books of accounts;
  7. Review of the working for reversal of input credit (if applicable) as prescribed under GST law; and
  8. Review of HSN wise summary of outward and inward supplies;

7. Validation of Documentation

  1. Review of the documentation (on sample basis) for the outward and inward supplies such as tax invoice, debit note, credit note, receipt voucher, delivery challan, self invoices etc.;
  2. Review of input tax credit register in order to classify them under the respective heads in the annual return format

8. Review of Status of demands received from GST Authorities/refund claimed by the Company

  1. Review of the GSTIN wise details of refund claimed, sanctioned, rejected and pending along with the returns filed and the status report maintained by the Company; and
  2. Review of the GSTIN wise details of demand raised, taxes paid out of the demand, pending demands based on the orders of the authorities and the status report maintained by the Company;

  3. Review of Status of demands received from GST Authorities/refund claimed by the Company.

9. Review of Reconciliation

  1. Review of reconciliation statement between data as per books of account and GSTR 3B as filed on GSTN portal and support thereof;
  2. Review of reconciliation statement between GSTR 3B and GSTR 1 as filed on GSTN portal and support thereof;
  3. Review of reconciliation statement between GSTR 3B and GSTR 2A as reflected on GSTN portal and support thereof

10. Computation of additional liability, if any along with interest

  1. Reviewing the refund claims received by the Firm (on sample basis) and comment on whether any erroneous refund received by the Firm which is not eligible;
  2. GST liability arising on any ineligible credit availed by the Firm or inaccurate reversal of input tax credit, if any, and
  3. GST liability arising on any outward supply not paid by the Firm or short paid etc.

11. Management Report 

  1. Review of the reconciliation statements outlining deviations/ difference between the total turnover and ITC claimed amounts for the identified period and identifying differences in values disclosed in annual returns vis-à-vis audited financial statements (bifurcated state wise) of the Firm;
  2. Commenting on the un-reconciled items and providing our recommendation on the appropriate steps / way forward; and
  3. Highlighting issues observed during the process in an “exception” based report and discuss the same with Firm. In addition, we would take the necessary confirmation and/or clarification from the Management (if need be).
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