Key Statutory Takeaways
- Multi-location entities must prepare GSTIN-wise trial balances reconciling inter-branch cross-charges and consolidated audited revenue.
- Input Tax Credit (ITC) availed in GSTR-3B must be reconciled with Table 8A (GSTR-2B auto-population), isolating spill-over credits claimed up to 30th November.
- Reverse Charge Mechanism (RCM) liabilities on freight, legal services, security, and foreign import of services require comprehensive expense-ledger scrutiny.
Annual GST compliance through Form GSTR-9 and the self-certified Reconciliation Statement in Form GSTR-9C serves as the definitive bridge between an entity's statutory financial statements and its monthly/quarterly GST returns. Proactive reconciliation minimizes exposure to automated scrutiny notices in Form GST ASMT-10.
1. Outward Supply & Revenue Alignment
Start with gross revenue as per Audited Financial Statements and adjust for non-GST income (interest, dividend, Schedule III activities), unbilled revenue, advances, fixed-asset disposals, and credit notes issued post-March but before the statutory cut-off.
2. Input Tax Credit & Rule 37 / Section 17(5) Verification
- Reconcile GSTR-3B Table 4 ITC claims against GSTR-2B statements across the financial year.
- Verify that vendor invoices remained unpaid for no longer than 180 days from invoice date under Rule 37.
- Confirm exclusion of blocked credits under Section 17(5) (motor vehicles, personal consumption, works contract for immovable property).
3. Expense Head Review for Unreported RCM
Scrutinize trial balance heads including legal fees, GTA inward freight, director sitting fees, sponsorship, and foreign software/consultancy subscriptions (import of services) to verify complete RCM discharge prior to filing GSTR-9.
Prepared by the Research Desk — Tipu & Company, Chartered Accountants
Disclaimer: This briefing is intended solely for general informational guidance and should not be construed as a formal tax or legal opinion on specific facts.
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