What are the various reasons where the GST Liability as per financial statements and GST Returns could be different?
There could a difference due to the following reasons commonly
a) Revenue Recognition
b) Stock Transfer outside the states
c) Advance Receipt from customers
d) GST on paid on job work if not returned in stipulated time
e) Reverse charge on certain goods on outward supplies
f) Reverse charge on inward supplies paid
In case of movement of goods on sale or approval basis, the supply is known only at the time of acceptance by the customer, after customers acceptance only tax invoice can be issued. Until such point of time, the goods are to be removed or moved only on delivery challan and e-waybill if applicable.
As per the CGST Act, a receipt voucher can be issued for recording the receipt of advance from the customer under GST, as taxes are applicable on receipt of money under GST for the supply of goods and services.
As per the time of supply under GST, receipt voucher / tax invoice has to be issued at the time of receipt of advance from the customer (for supply of goods or services) and it has to be uploaded on the GST Portal which will issue a unique reference number for each of the documents and the same has to be reported in table of GSTR – 1.