Connect with us

Hi, what are you looking for?

Finance News

Things Businesses Need to do Before the Financial Year End 2021-22

As the Financial Year 2021-22 is about to end in a couple of weeks, businesses need to make sure certain things related to GST are taken care of well in advance. In our last post, we have listed the due dates for GST and IT returns, and this article is to remind you of all the tasks you need to do in the financial year to avoid unnecessary issues.  

For Exporters and SEZ suppliers

Need to apply for the Letter of Undertaking (LUT) for the financial year 2022-23 in form GST RFD 11 under rule 96A. Through the LUT, the exporter declares that all the requirements prescribed under GST are fulfilled while exporting without making IGST payment. 

For business below INR 5 Crore Turnover

Need to select return filing frequency. If businesses wish to opt-out from the QRMP Scheme for the 1st quarter ending June 2022, the last date is 30 April 2022.

For GST registered buyers

To avail of missing ITC for the financial year 2021-22, GST registered buyers need to file the returns before the due date. 

For sellers

Need to issue credit notes related to the previous financial year, 2020-21, before the due date, which is 30 November 2022. 

Input Tax Credit (ITC) Related Activities for 2021-22

  • Avail unclaimed ITC in GSTR3B and reconcile ITC according to the account books. 
  • Check for any missing ITCs that are to be claimed and are populated in GSTR 2A or 2B
  • Ask the suppliers to include transactions in GSTR 1 for them to get populated in your GSTR 2A/2B
  • Make sure all the ITCs availed are eligible for the claim. Any ITC availed on a blocked input tax credit or ITC on exempt supplies need to be reversed along with interest. 
  • Make sure all the pending payments to the suppliers beyond 180 days from the date of supply are cleared. If any ITC is availed without payment in the stipulated time, then such ITCs need to be reversed along with 18% interest. 
  • If any supplier is registered under the Composition scheme and collected GST. You need to reverse ITCs availed on such suppliers along with interest. 
  • Send notifications to all suppliers whose registration is cancelled for non-filing of returns or non-payment of taxes. 

Outward Supplies Related Activities for FY 2021-22

  • Reconcile taxable, exempt and non-GST supply turnover with accounting books and make sure GSTR 1 and GSTR 3B are filed. 
  • Check for any missed invoices and e-way bills. 
  • For all the B2B, export invoices and debit, credit notes requiring e-invoice provision, check if IRN is generated.
  •  Find out any credit and debit notes and report them.
  • Make tax payment, if any missed or short paid, and pay it along with interest. 
  • Make adjustments to GST paid in advance and report the same in GSTR 1 and GSTR 3B.
  • Make sure to pay GST on all other income and sale of vehicles, property, etc.
  • Prepare self invoice for the payment made for RCM D.
  • Double-check if the business location is correctly reported in the GST registration certificate. 
  • Ensure the disclosures on various invoice documents, including sales invoice, delivery challan, self-invoice, and others, comply with GST laws. 
  • Also, check if the account books are maintained as per GST norms. 

Make sure everything related to your business is taken care of to be in compliance with the GST norms. Doing it would allow you to have a smooth closure of the financial year. 

Read more articles
Types Of Industries
UPI Transaction limit Per Day
GST Amnesty Scheme
Sundry Creditors
Comparative Balance Sheet
Top 7 Small Business Ideas In Tamil Nadu
Stand Up India Scheme
Income Tax
Value Added Tax
Corporate Tax in India
New Income Tax Rules Effective from 1st April 2022
Last Dates/ Due Dates For GST and Income Tax Returns – March 2022
e-Invoicing Mandatory for Businesses with Turnover Above INR 20 Crore