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
Time period for the recipient to communicate his acceptance or rejection of the consignment would be the validity period of the concerned e-way bill or 72 hours, whichever is earlier. In case of movement of goods on account of job-work, the registered job worker can also generate e-way bill .
As per Rule 138 of the CGST Rules, the taxpayer who is sending the goods for job work, to a job worker outside the state, has to issue an E-waybill even if the goods being sent is of value less than Rs 50,000.
As per Notification No 63/2017 – Central Tax, the last date for filing of Form GST ITC – 04, the taxable person who has dispatched or received goods for job work have to file the return by 31st Dec 2017 for the period July 2017 to Sep 2017, replacing the earlier date of 30th Nov 2017 as notified through Notification No – 53/2017 – Central Tax.
As per Sub-section 68 of Section 2 of CGST Act 2017, ” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly” meaning that it would amount to supply if the job worker adds any materials during the process or treatment. This is a major change in the job work process compared to erstwhile Central Excise Act.
As per section 119 of the CGST Rules 2017, if the taxpayer has any materials sent on job work or for repairs or on sale or approval basis have to file GST TRAN – 1 within 90 days from the appointed date.
As per Notification No. 11/2017-Central Tax (Rate) services falling under HSN/SAC 9988 are related to job work in specific cases and they are Manufacturing services on physical inputs (goods) owned by others. It clearly means that the job worker is not supposed to add any material on his side if he adds then it will be a supply. These services attract central tax rate of 2.5% and other services at 9%. Details are given in https://indiagstdotin.wordpress.com/2017/07/27/services-by-way-of-job-work-falling-under-hsn-sac-9988/