Checklist for taxpayers to consider before filing their GST Returns in November

Ensuring compliance with GST regulations is vital for businesses, especially during the tax-filing period. This comprehensive checklist will guide you in claiming all eligible Input Tax Credit (ITC) and filing GST returns accurately. Below is a step-by-step breakdown of key items to consider before filing your GST returns in November 2024.

Review GST on Reverse Charge Mechanism (RCM) Transactions: It is important to verify if GST under RCM has been properly accounted for and if ITC for RCM payments has been claimed. This applies to transactions for the financial year 2023-24 as well.
A new statement to track the liability paid and ITC claimed in the case of RCM. Every taxpayer has to provide opening balance before 31st Oct 2024. The opening balance entered can be amended till 30th Nov 2024.
Avail Pending ITC: For the financial year 2023-24, November is the final opportunity to claim any pending ITC before submitting GSTR-3B. Complete the reconciliation of invoices between GSTR-2A and your purchase register to avoid losing out on potential tax savings.
ITC Claim on Earlier Reversal: If ITC was reversed due to non-payment to suppliers within 180 days, it can be reclaimed once the payment is made. Review your books to identify any reversed ITC that can now be claimed, which can boost your tax savings.
Rule 37A: As per Rule 37A the buyer needs to check if vendor has filed his GSTR3B by 30th Sept. Ensure all your vendors file their GSTR2B before 30th Sept. If no, then Buyer will have to reverse the ITC that he has claimed. The date to reverse the ITC is November 30.
Issuing Credit Notes for Cancelled Sales or Returned Goods: Issuing credit notes for cancelled sales or returned goods will help avoid paying GST on transactions that did not occur. This reduces your tax liability and ensures accurate reporting.
Cross-Check Purchase Bills with GSTR-2A and GSTR-2B: Ensure reconciliation of purchase invoices with GSTR-2A and GSTR-2B data to identify missed or lost invoices. This is vital for audit readiness and to avoid discrepancies in tax filings.
Collect ITC on Bank Charges: Don’t overlook ITC on bank charges like processing fees for loan renewals or unit inspection charges. Since these charges are typically debited directly from accounts, it’s crucial to check bank statements for potential ITC claims.
ITC on Job Work Charges: If your business has outsourced job work and received GST invoices, ensure you claim the related ITC. These entries are often missed but can add significant value to your overall ITC claim.
Claim ITC on Small Expenses (Internet, Telephone Bills, etc.) Often disregarded, small business expenses such as internet or telephone bills may be eligible for ITC if invoices bear the business name and address. Cross-check these against GSTR-2A for the entire year to maximize your claim.
ITC on Courier/Postage Charges: Like small expenses, ITC on courier, postage, and similar small transactions is often missed. Thoroughly review GSTR-2A and conduct a proper reconciliation to claim ITC on these overlooked charges.
ITC on Miscellaneous Business Expenses:
Some overlooked expenses, though minor, can still be claimed under ITC. Here’s a list of such potential claims:
- ITC on insurance for company vehicles
- Purchase of office furniture or electronics like air conditioners and televisions
- Water provided for employees, as per the CGST Amendment Act 2018, which allows ITC for statutory obligations
- Office rent payments (ensure you have a valid GST invoice)
- Business travel expenses for employees (with proper GST invoices)
- Bills for electricity and water supplied by government agencies
These small claims, when aggregated, can lead to significant savings, so ensure you’ve reviewed all related expenses before filing your returns.
Track ITC on Capital Goods Purchases
If you’ve purchased capital goods (like machinery) and claimed ITC over multiple years, ensure proper tracking of these credits. Inaccurate accounting of such entries can lead to errors in your returns.
Verify ITC for Advances Received
Ensure you’ve correctly accounted for GST on any advances received for goods or services, as failure to account for this can lead to discrepancies during reconciliation.
Reconcile TDS and TCS
If TDS under GST has been deducted, ensure it is reflected correctly in your returns. Matching TDS entries can help you avoid penalties and ensure proper credit.

By following this checklist and reviewing all points, including newly added ones, you will reduce the chances of errors and ensure a smooth filing of your GST returns in September 2024. Proper planning and reconciliation of invoices can significantly enhance your ITC claims, saving your business money in the long run.

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Checklist for November 2023

Your time to file GST returns in November is fast approaching, and it is important to be prepared. One of the most important things to keep in mind is to claim all the input tax credit (ITC) that you are eligible for.

Thus, to help our valuable readers, we have jotted down this article that shares everything from recent GST updates to mandatory compliance protocols, to equip taxpayers with the necessary insights to navigate the complexities of the GST regime effectively.

Let us look at the checklist of important things for taxpayers to consider before filing their GST returns in November 2023 to claim ITC and amend sales/CDN timely. Read more about the third amendment under GST.

This checklist will help businesses to ensure that they are claiming all the ITC that they are eligible for and that they are filing their GST returns correctly.

1. Statement of ITC Reversed and reclaimed

This statement will help you in tracking of your ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5) for each return period and will be available from August 2023 onward.

Kindly note that the taxpayers have the opportunity to declare their opening balance for ITC reversal Until 30th November 2023 and maximum of 3 amendments in opening balances allowed till 31st December 2023. Read more here: Electronic Credit Reversal and Reclaimed Statement.

2. Avail pending ITC

It is the last chance for availing the pending ITC for the financial year 2022-23 as the taxpayers file GSTR-3B. The entire reconciliation process for the year 2022-23, matching the invoices between GSTR-2A and your purchase book must be completed in order to save a lot of your hard-earned money.

3. ITC claim on earlier reversal

If GST credit has been reversed during the year on account of payment not made to suppliers within 180 days. Taxpayers can again claim the ITC after payment to the supplier which has been already reversed on non-payment. It is important to check the books of accounts for any such entry on which ITC can be claimed.

4. Issue credit notes for any cancelled sales or returned goods

If you have cancelled a sale or received returned goods, you must issue a credit note to your customer. This credit note will help you to avoid paying GST on sales that did not actually take place.

5. Checking credit for Reverse Charge

It is important to cross-check your books of account to confirm if you have paid GST under RCM for proper transactions at the appropriate rate and claimed the ITC for the same in the Financial Year 2021-22.

6. Cross-checking purchase bills with GSTR-2A and 2B

During the course of the year, there are multiple missed purchases or no invoice purchases, lost invoices etc. It is important to cross-check the purchases with the available GSTR 2A in order to get the audit right. Now since GSTR 2B is also available, taxpayers need to ensure that they take into account 2B as well.

7. Sale reversed after GST Paid

If the goods are rejected after a few days of the sale and the taxpayer has already paid the GST due on the sale, such differences also need to be pointed out. Reconciliation of GSTR-2A with the taxpayer’s books of accounts is necessary to claim ITC on the basis of Debit Note issued by the party.

8. GST reversal on purchases

If a taxpayer has rejected a part of goods purchased from the supplier and has issued a debit note, such entries are also important to take into account while reviewing the yearly books of account. If the supplier has not accepted the debit note, the taxpayer can reverse the entry to claim the GST ITC paid.

9. Collect ITC on Bank charges

Bank charges like processing fees and unit inspection charges also need to be claimed timely. Cash Credit accounts with banks have to pay ‘processing charges’ for renewal of C/C limits and also have to pay unit inspection charges which are directly debited to their C/C accounts by banks. Taxpayers can collect ITC on such transactions.

10. ITC on Job-work charges

If a taxpayer has taken any job work done via out-sourcing it to small vendors and they have provided GST invoices, then the taxpayer must claim the relevant ITC. Such small entries get missed in the due course of the year. Now is the time to check the books of account and get all such entries together for the ITC claim before filing the November 2021 return.

11. Claim ITC on small expenses like internet, telephone bills etc.

If the bills are in the name of your business and have the business address mentioned, then you can claim ITC on the same. People tend to leave such small transactions; however, you can check such entries with GSTR-2A for the complete year and enjoy the benefit by claiming ITC.

12. ITC on Payment for Parcel/Postage/ Courier Charges

As mentioned in the above point, small transactions get ignored throughout the course of the year. But all these small transactions when seen together can save you a lot of money so do not miss taking them into account. Small expenses are not calculated accurately and are often ignored. You can check your GSTR 2A and carry out a proper reconciliation process.

Here is a list of ITC Claims a taxpayer may miss out on considering it a small or petty transaction. However, if all these expenses are made for office purposes and registered on the business name, then their ITC claim is possible. It is better to claim and settle these before November GST return.

Check out the list:

ITC claim on Insurance of company vehicles
Purchase of Office Furniture
Purchase of electronic appliances for office such as Air Conditioner, Television etc.
Drinking water made available to employees – water is not a beverage and is eligible for ITC Claim. According to the CGST Amendment Act 2018 section 17(5)(b) an employer is entitled to claim ITC on goods/ services which it is statutorily obligated to provide to its employees.
Printing and Stationery Expenses made
Office Rent Paid – a GST invoice is needed for the same. Only rent agreements and documents may not work in this regard.
Business travel expenses of employees. A proper GST invoice needs to be acquired to claim ITC.
Bills such as electricity and water to the respective boards.
These entries and transactions are crucial to address for an accurate closure of the financial year.

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Checklist for November 2022

As per GST Notification 18/2022, the time limit to claim ITC and amend sales/CDN has been extended (including for FY 21-22) by the CBIC. So, the date has been changed for claiming ITC, issuing CDN, and doing amendments to returns of the previous year till 30th November by notifying clause 100 of the Finance Act 2022 to be effective from 01.10.2022.

Here is an important checklist for all the taxpayers to consider before filing their November GST Returns in order to claim ITC and amend sales/CDN timely:

1. Avail pending ITC

It is the last chance for availing the pending ITC for the financial year 2021-22 as the taxpayers file GSTR-3B. The entire reconciliation process for the year 2021-22, matching the invoices between GSTR-2A and your purchase book must be completed in order to save a lot of your hard-earned money.

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2. ITC claim on earlier reversal

3. Checking credit for Reverse Charge

4. Cross-checking purchase bills with GSTR-2A and 2B

5. Sale reversed after GST Paid

6. GST reversal on purchases

7. Collect ITC on Bank charges

8. ITC on Job-work charges

9. Claim ITC on small expenses like internet, telephone bills etc.

If the bills are in the name of your business and have the business address mentioned then you can claim ITC on the same. People tend to leave such small transactions; however, you can check such entries with GSTR-2A for the complete year and enjoy the benefit by claiming ITC.

10. ITC on Payment for Parcel/Postage/ Courier Charges

Check out the list:

ITC claim on Insurance of company vehicles
Purchase of Office Furniture
Purchase of electronic appliances for office such as Air Conditioner, Television etc.
Drinking water made available to employees – water is not a beverage and is eligible for ITC Claim. According to the CGST Amendment Act 2018 section 17(5)(b) an employer is entitled to claim ITC on goods/ services which it is statutorily obligated to provide to its employees.
Printing and Stationery Expenses made
Office Rent Paid – a GST invoice is needed for the same. Only rent agreements and documents may not work in this regard.
Business travel expenses of employees. A proper GST invoice needs to be acquired to claim ITC.
Bills such as electricity and water to the respective boards.

These entries and transactions are crucial to address for an accurate closure of the financial year.

Checklist for September 2020 Returns

GST Return for September GST Return filing of a year is the last return period during which taxpayers can rectify any missing inputs or errors in the returns already filed during the previous financial year. These corrections are crucial for the correct closure of that particular financial year.

It also forms an important checkpoint during the self-certification process, i.e, during filing the GSTR-9C. Therefore September GST Return filing is significant and crucial.

Here is an important checklist for all the taxpayers to consider before filing their September GST Return filing

Avail pending ITC

It is the last chance for availing the pending ITC for the financial year 2019-20 as the taxpayers file GSTR-3B for the Sep’20 return period in October 2020. The entire reconciliation process for the year 2019-20, matching the invoices between GSTR-2A and your purchase book must be completed in order to save a lot of your hard-earned money.

ITC claim on earlier reversal

If GST credit has been reversed during the year on account of payment not made to suppliers within 180 days. The taxpayer can again claim the ITC after payment to the supplier which has been already reversed on non-payment. It is important to check the books of accounts for any such entry on which ITC can be claimed.

Checking credit for Reverse Charge

It is important to cross-check your books of account to confirm if you have paid GST under RCM for proper transactions at the appropriate rate and claimed the ITC for the same in the Financial Year 2019-20.

Cross-checking purchase bills with GSTR-2A

Sale reversed after GST Paid

Collect ITC on Bank charges

ITC on Job-work charges

Claim ITC on small expenses like internet, telephone bills etc.

If the bills are on the name of your business and have the business address mentioned then you can claim ITC on the same. People tend to leave such small transactions; however, you can check such entries with GSTR-2A for the complete year and enjoy the benefit by claiming ITC after rightly filing the September 2020 GST Returns.

ITC on Payment for Parcel/Postage/ Courier Charges

Here is a list of ITC Claims a taxpayer may miss out on considering it a small or petty transaction. However, all these expenses if made for office purposes and are registered on the business name then their ITC claim is possible. Check out the list:

ITC claim on Insurance of company vehicles
Purchase of Office Furniture
Purchase of electronic appliances for office such as Air Conditioner, Television etc.
Drinking water made available to employees – water is not a beverage and is eligible for ITC Claim. According to the CGST Amendment Act 2018 section 17(5)(b) an employer is entitled to claim ITC on goods/ services which it is statutorily obligated to provide to its employees.
Printing and Stationery Expenses made
Office Rent Paid – a GST invoice is needed for the same. Only rent agreement and documents may not work in this regard.
Business travel expenses of employees. A proper GST invoice needs to be acquired to claim ITC.
Bills such as electricity and water to the respective boards.

These entries and transactions are crucial to address for an accurate closure of the financial year.

CGST Rule 36(4)

For FY 2019-20, taxpayers have some more complexities to face. For ITC reconciliation, they have to take care of the inclusion of CGST Rule 36(4). This rule has added a few restrictions and changes in how ITC was being claimed.

Between 1st April 2019 to 8th October 2019, taxpayers could claim ITC in their GSTR-3B on a provisional basis without restricting the upper limit.
From 9th October 2019 to 31st December 2019 – a 20% restriction was levied on provisional credits every month based on eligible ITC in GSTR-2A.
It was reduced to 10% from 1st January 2020 onwards.
Due to the pandemic, the restriction was deferred for the period of February 2020 to August 2020. However, taxpayers must claim ITC as per GSTR-2A from February to August from September 2020 onwards.

Also, the taxpayers must check up on all the changes introduced in the new GST Return – GSTR 2B also. Thus there are a lot of things to take care of before the September GST Return filing

GSTR-1 filing of September also plays a very important role. This is because of the following:

Uploading missing invoices: As per validations 18 months older invoice can be uploaded in GSTR-1. But if the invoice belonging to current financial year is not uploaded till September filing of subsequent financial year then the buyer may not be able to take ITC. So while filing GSTR-1 of September it is important to check if there is any invoice of previous financial year which is not yet uploaded.
Issuance of Credit/Debit note: There are some cases where the supplier may have to issue a credit/debit note for an invoice issued in the current year. In such case if the supplier wants that the date of credit/debit note should belong to the current year then he need to issue such credit/debit note before he files the GSTR-1 of September of subsequent financial year. If the supplier fails to do so then the buyer will lose the additional ITC which he might have claimed due to issuance of debit note.
Amendment of invoices: If the supplier want to amend any invoice belonging to current year then this need to be done before he file the GSTR-1 of September of subsequent financial year. If this amendment results in increase of tax amount and the supplier do not amend the invoice in or before GSTR-1 of September then the buyer may lose such additional ITC.

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