Important Announcement

Dear Student in the month of March 2020 we started a Youtube Channel “CICASA Jodhpur” for CA students. It will help to sharing knowledge amongst student.

We received good response, in a few days we received 4 videos from students on a different different topics.

1. Hardik Prajapat (Rate Cut by RBI and it’s Impact)

2. Yash Soni (Press release by Honb. Finance Minister on Direct Tax)

3. Shobhit Karwa (Board Meeting)

4. Honey Kothari (Core Banking System)

Invitation for Contribution of Articles/ quiz for Newsletter JODHPUR Branch of CICASA appreciate all the Student authors who contributed their articles for the newsletter. We request all the students to further contribute their articles for the newsletter and a quiz (10 questions), which are of Academic/Practical interest and will be useful for the students from exam point of view as well. The article should not be copied from elsewhere and it should be original work of the author.

Please send your Articles at:

cicasajodhpurbranch@gmail.com

If anyone interested in making videos with us for You Tube Channel, please contact us on cicasajodhpurbranch@gmail.com or call on 9828597133

YouTube Channel Link

Jodhpur Branch of CICASA of CIRC of ICAI appeal to Students & others to

donate generously in ICAI COVID-19 Relief Fund.

Come forward for this noble cause.

Donation Link: https://www.icai.org/covid19/

Stay Home Stay Safe

My Dear Students,

Hearty Greetings!

“Push Yourself, Because no one else is going to it do for you”

It's the first month of a brand New Financial

Year 2020-21 a year full of hope, promises

and new beginnings for each of us. I would

like to congrulate team CICASA of

Jodhpur Branch of CIRC of ICAI under the

able leadership of CA. Dhaval Kothari

chairman CICASA Jodhpur for launching

Student’s Newsletter first time in history of

Jodhpur Branch of CIRC of ICAI. I hope

new team will take CICASA Jodhpur

branch to new heights.

I recollect my student days and I can very

well imagine the stress mounted months

before and after the examinations. In our

student days, we were not having coaching

classes or the availability of Institute Publications as and when we need. But at

present students are fortunate to have all the facilities to learn especially, because

of the advancement in Information Technology. I sincerely advise the students to

make use of the facilities given by ICAI and the Branch and get benefited. On

behalf of Jodhpur Branch, I wish you all the very best for the forthcoming

examinations. “Keep your head and heart in the right direction and you will

never have to worry about your goals”.

As circulation of a newsletter is a good medium for sharing knowledge among

each one of us.

I wish CICASA Jodhpur branch a wonderful year ahead.

CA. Dinesh Kumar Jain

Secretary – CIRC of ICAI

Jaindkca@gmail.com

My Dear Readers and Students,

Very Warm Wishes!

Wishing you all happy new financial year 2020-21.

This new financial year brings with it new growth, opportunities, new challenges and a lot many things. So let’s welcome this new financial year with great enthusiasm and joy so as to embrace all that comes our way and reach heights with flying colors.

The “Sambhav” is our little effort to share some knowledge content with you through articles written by students on various topics; to inform you about the past events and upcoming events. Also, it gives space to the budding writers, who wish to express themselves through their write ups. !

"Opportunities don't happen. You create them." - Chris Grosser

It gives me immense pleasure that CICASA Jodhpur has started their Youtube Channel for sharing knowledge.

Before I Conclude I would request all our students to participate actively in all the programs organized by CICASA Jodhpur.

Hope you enjoying reading.

CA. Dhaval Kothari

Chairman- Jodhpur Branch of CICASA

idhawal@gmail.com

In - News

Interview of All India Rank (49th) CA. Ragini Shrimal By Priyal Bhansali Did you expect that you will be in All

India Rank? --- Priyal Bhansali

No I didn't expect that I would secure an All India Rank, since I didn't secured any rank in CPT or IPCC. Even while preparing for exams my target was only to clear the exams. Rank though gives you a distinct platform but it is the knowledge that matters the most in the practical world and not the grades. Many of my friends though more intelligent than me didn't secure a rank but are still doing well. I guess setting rank as a target just pressurizes one's mind and makes the process of learning biased. One should prepare for exams with a tension free approach. Though I didn't expect that I would secure a rank but I was prepared what would I do if I fail in exams. Expectations are the only reason for disappointments. --- CA. Ragini Shrimal

What was your first reaction after knowing that you became CA with AIR? --- Priyal Bhansali

It was out of the world. One of the greatest feelings is accomplishing something that you once thought was impossible. The pain of process is only temporary, but the feeling of achievement lasts forever.--- CA. Ragini Shrimal

How did you prepare for your Exam? --- Priyal Bhansali

Studying for exams is one thing and writing them is another, many people though study alot but are not able to write exams well. Two main reasons for doing so are; lack of expression of their thoughts and ill time management.

Regarding improving writing skills I would suggest one should read more and more suggested answers and align their way of writing with what is standard. For example in questions involving workings one should not only concentrate on getting the answer correct but also giving a detailed working by which that answer came. In marking scheme, workings bag more weightage than the correct answer. In questions related to Law one should bifurcate the answer in 3 paras, in first para you should brief up about the situation, in second para write about the relevant law and in 3rd para conclude. To make answers more catchy I used to use flowcharts to describe situations.

Regarding time management, I would suggest what I used to do. We have 15 minutes of reading time in about 5 minutes I used to decide which 5 questions I would answer among the 6 questions. In the remaining 10 minutes I would plan how would I solve the 1st compulsory question. In the rest of 3 hours, I would allot half an hour for each question so that in 2.5 hours I would complete my paper. The logic was no matter if I completed the answer in half an hour or not but as soon as 30 minutes would lapse I would jump to next answer. I would revert back to incomplete answers in the last half an hour, so no matter what there would be no unattempted questions.

Regarding optional paper I would suggest rather than finding answers to all questions and then writing, write as you find the answers this would save a lot of time. --- CA. Ragini Shrimal

How did you manage Study with articleship? --- Priyal Bhansali

I had started studying for the exams from my first year of article ship itself so that pressure doesn't builds up in last year of article ship. Even I completed my trainings 2nd year of article ship. I preferred studying in morning so I took those tuitions which were in morning before office.--- CA. Ragini Shrimal

What was the role of Mock Test organized by ICAI in your success?--- Priyal Bhansali

Institute organizes two rounds of mock test for each attempt. I had attended both the rounds of mock test. Even though I was not very well prepared I appeared for each paper in 1st round it helped me in knowing in which direction should I go and which all subjects require more attention. Moreover these mock tests give us an environment in which we have to prepare for the subject in a single day. This environment can't be experienced at home so in a way I would say these mock tests played a major role in my success.--- CA. Ragini Shrimal

To whom you give credit for this achievement of yours? ---Priyal Bhansali

My Guru, my parents and my brother, my office and last but not the least my friends. My parents never pressurized me for passing the exams.For them only my effort was important. My brother who is a CA himself guided me through each and every situation, his experience helped me a lot.--- CA. Ragini Shrimal

At last what are your study mantras which you want to share with other students?---Priyal Bhansali

I would summarize them in few points: 1) Take proper sleep and diet. 2) Never ever underestimate yourself, confidence and having faith is the first step for doing anything. 3) Be prepared for everything even failure. 4) Have a plan and work it. 5) Morning sessions are better than evening. 6) Use You tube as a study resource, when I used to get stuck anywhere I used to just find a video for it on YouTube, as far as I know we have a video for almost all topics. 7) Plan at least 3 revisions. 8) Have a study group which motivates you and where you discuss your problems. 9) Take a day off from studying once in a while and spend time with family and friends. 10) Whenever feeling low (very frequent in my case) talk to your friends. 11) Replace your worries with your work and see miracles happen. --- CA. Ragini Shrimal

Success is not a one day task, it requires continues effort. I Priyal Bhansali, tried to get information

from CA. Ragini Shrimal who secured 49th All India Rank in CA Final May 2019 that how she did and

how we can do. I am thankful to CA. Dhaval Kothari sir (CICASA Chairman) for giving me such a

wonderful task.

HOW TO SELECT CASES IN SCRUTINY AND NEED FOR THE SAME

Why there is a need for scrutiny selection by the Income Tax Department ?

There was a great need and importance of scrutiny selection by department, as all the assesses who file their return do not disclose their true income and mostly understates the income by showing bogus expenses, fictious entries, undervaluation of closing stock, eliminating cash sales, over booking of expenses etc. Department should select the cases, where there is a major variation in various ratios like N.P., G.P., Stock T.O. ratios. Deviation in prevailing ratios adopted by the industries. The main motive and objective of Income tax department is to maximize revenue of the government and to cover more and more persons under the purview of Income Tax Act.

Cases where A.O. must manually pick the case for scrutiny and called for the required documents and details to correctly ascertain the income;

1). High volume of TDS and refund ratio.

2). Huge cash transactions.

3). Huge credit entries in bank statements.

4). Huge amount of unsecured loan as shown in liability side and interest rate

at which such loan is taken.

5). Huge Capital addition in the books of account.

6). Non-Business or personal nature expenses debited in the profit and loss

account.

7). Deviation in Tax audit report and ITR filed by the assesse regarding

disallowance of various expenses.

8). TDS liability not discharged properly.

The above list is an illustrative list.

Pushp kumar sahu

Cases are picked into scrutiny by two methods;

1). Manually by A.O.

2). CASS i.e. Computer aided scrutiny selection.

The first one is already discussed above, under the second method i.e. CASS this a automated software system of department which automatically takes the case under scrutiny by matching the ITR filed by the assesse with the database available with the system like mismatch in Form 26AS and ITR filed.

While selecting the return under scrutiny or reopening of case, A.O. must ensure the relevant provisions of the Act like provisions of section 143(1), 143(2), 142(1) , 147, 148 , 144 and specially provisions of section 143(2) and 149 i.e. time limit for issuing notice.

With the target of increasing tax collection, A.O. after selecting the case under scrutiny must take the following steps to properly assess the income;

1). Check all the Cash transactions and various provisions of section 269ST,269SS,269T,40(A)(3), Fixed assets worth more than Rs. 10,000/- purchased in cash.

2). Vouchers and Invoice of expenses debited in profit and loss account.

3). Applicability of TDS provision on payments made.

4). Reconciling the T.O. as declared in ITR with GST returns and Bank Accounts.

5). Capital introduction in the business by assesse, if any.

6). Change in method of accounting, method of valuation of closing stock as it directly effects calculation of profit.

7). Penalty and other expenses which are required to be disallowed.

8). Provisions of section 28 to 44.

9). Personal nature expenses, if any.

10). Detailed checking of Cash Book, Expense ledgers.

11). High variation in ratios if any, than A.O. must seek reply and reasons for such deviation.

12). Eligibility and validity of deductions and exemption claimed in return.

13). Loans and advances given must be checked.

14). Long outstanding creditors and debtors in the books of accounts.

Pushp kumar sahu

15). Unsecured loans and interest on the same must be checked, if there is no change in the balance of outstanding amount than there should be complete checking of that particular account.

16). Validity and proper valuation of investments reflecting in the books of accounts.

17). Compliance of section 145(2) i.e. Income computation and disclosure standards, profit and loss must be computed in accordance to these standards.

Pushp kumar sahu (CRO0553317)

Pushp kumar sahu

IRAC

(INCOME RECOGNITION AND ASSET CLASSIFICATION)

✓ Basic crux to begin with-

IRAC means Income Recognition and Asset Classification.

It means that the banks should recognise each borrowal account subject to its income generation and accordingly classify the accounts.

---Public Sector Banks (PSBs) in India have performed rather poorly over the past FEW years. For the most part this has been on account of Non Performing Asset (NPA) related worries which have so far been brushed under the carpet.—

❖ What is IRAC in banking?

a) IRAC are rules that prescribe when a loan should be declared as a non-performing asset (NPA).

Hardik Prajapat

b) Once a loan is an NPA, the RBI requires that any recovery should not be classified as income.

c) Banks are also required to share information regarding large borrowers with the RBI for its Central Repository of Information on Large Credits (CRILC).

❖ BACKGROUND

In line with the international practices and as per the recommendations made by the Narasimham Committee on the Financial System, the Reserve Bank of India has introduced,

• prudential norms for income recognition,

• asset classification and ;

• provisioning for the advances portfolio of the banks

to move towards greater consistency and transparency in the published accounts.

1. Income Recognition:

Hardik Prajapat

Banks all over the world do not recognize the income from non-performing assets on accrual basis. Income is booked only when it is actually received. In India also banks do not charge and show interest income from NPA accounts. However interest on advances against term deposits, NSCs, IVPs, KVPs and Life policies are recognized as income when adequate margin is available in the accounts.

Reversal of income credited for the past period:

Once, any advance, including bills purchased and discounted, becomes NPA, the entire interest accrued and credited to income account in the past periods, should be reversed if the same is not realized . This will apply to Government guaranteed accounts also. The fees, commission and similar income that have accrued should cease to accrue in the current period and should be reversed with respect to past periods, if uncollected.

Hardik Prajapat

2. ASSET CLASSIFICATION

Assets are classified as Standard if they are Performing and not impaired. If they turn as non performing (NPA) they are classified as Sub standard, Doubtful or Loss.

❖ NON-PERFORMING ASSET

• As an asset including a leased asset becomes non-performing when it ceases to generate income for the Bank.

• A non-performing asset is a loan/or an advance.

Definition: A non-performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

Non-Performing Asset (NPA) – in brief

NPAs refer to loans which are in risk of default. Reserve Bank of India (RBI) defines NPAs as below:

Hardik Prajapat

“An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.”

Basis of Classification of Non Performing Asset (NPA)

Banks are required to classify NPAs into the following 3 categories based on how long do they remain non-performing.

The three categories are – Substandard Assets, Doubtful Assets and Loss Assets.

1. Substandard Assets – If an account remains as NPA for a period less than or equal to 12 months

2. Doubtful Assets – An asset would be classified as doubtful if it has remained in the substandard category for 12 months.

3. Loss Asset – A loss Asset is one where loss has been identified by the bank’s internal or external auditors or upon an RBI inspection .They typically has an extended period of non-payment, and it can be reasonably assumed that it will not be repaid.

As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”

Hardik Prajapat

Example- Axis Bank Classification of NPAs

Hardik Prajapat

3. Provisioning

Banks/FIs are required to set aside a portion of their income as provision for the loan assets so as to be prepared for any contingent losses that may arise in the event of non-recovery of loans. The amount of provision to be kept by the bank/FI , will depend on the probability of loan recovery. This probability of loan recovery is identified based on the asset classification of the loan asset. The minimum provision that a bank has to create for various types of assets is as follows:

GENERAL INFORMATION

Implication of High NPAs for Banks

Banks with high level of NPAs effectively have lesser funds to advance i.e. lesser funds on which they can potentially earn interest income. Other negative impact of high NPAs –

• High level of provisioning [See Footnote] (banks are required to keep aside a portion of their operating profit as provisions, higher NPAs will increase the amount of provision thereby impacting the profitability);

• Burden on maintaining capital adequacy ratio;

• Increased pressure on Net Interest Margin (NIM);

• Reduce competitive position

Key Ratios for Asset Quality

Hardik Prajapat

Gross Non-Performing Assets (GNPAs): Gross NPA is the sum of all loan assets that are classified as NPA as per RBI guidelines. Gross NPA Ratio is the ratio of gross NPA to gross advances (loans) of the bank.

Non-Performing Assets (NPA) ratio: Net NPAs are calculated by deducting provisions from gross NPAs. The net NPA to advances (loans) ratio is used as a measure of the overall quality of the bank’s loan book.

Net non-performing assets = Gross NPAs – Provisions

NPA ratio = Net non-performing assets / Advance

Types of Non-Performing Assets (NPA)

Although the most common nonperforming assets are term loans, there are other forms of nonperforming assets as well.

• Overdraft and cash credit (OD/CC) accounts left out-of-order for more than 90 days

• Agricultural advances whose interest or principal installment payments remain overdue for two crop/harvest seasons for short duration crops or overdue one crop season for long duration crops

• Expected payment on any other type of account is overdue for more than 90 days

CENTRAL REPOSITORY OF INFORMATION ON LARGE CREDITS (CRILC)

• The RBI has set up a CRILC to collect, store, and disseminate credit data to lenders.

Hardik Prajapat

• CRILC is a borrower-level supervisory dataset that keeps the record of loans of Rs 5 crore and above.

• In India, there are four privately owned credit information companies (CICs).

• They are CIBIL, Equifax, Experian, and High Mark Credit Information Services.

• The RBI has also mandated all its regulated entities to submit credit information individually to all four CICs.

i-IRAC (NPA Management Solution)

i-IRAC is a web based solution for NPA management, based on rules and conditions, designed as per the regulatory norms of Income Recognition, Asset Classification and provisioning requirements.

The solution helps to ascertain the status of the Loans and Advances accounts at any given point of time and not necessarily only at the quarter ends. It also provides for the asset classification and provisioning at the Head Office level without involving the branches.

Hardik Prajapat

Hardik Prajapat (CRO0591549)

NEW RETURN PROCESS UNDER GST

Before coming to the new return under GST, it is very important to understand how we started with 3 returns- GSTR 1 Outward Supplies gets auto populated in GSTR 2A for the recipient, and the recipient can do at modified while filing GSTR 2 and the date 15th of the next month.

Once recipient makes any modification or adjustment, that gets auto populated in GSTR 1A, which need to be either accepted or rejected by the concerned supplier by the 17th of the next month, and then we are supposed to file GSTR 3 by the 20th of the next month.

As on date, we are filing GSTR 1 under section 37, which is outward supplies gets auto populated for recipient in GSTR 2A, however there is no GSTR 2 under section 38 and there is also no GSTR 3 under section 39.

In the place of GSTR 3, we are having GSTR 3B as specified under rule 61, sub-rule 65 of CGST rule 2017.

And GSTR 3B is stated to be a return under section 39 for which we got litigation and the litigation was whether GSTR 3B is return under section 39 with the retrospective amendment in the rules, it is being stated GSTR 3B is return under section 39 in the place of GSTR 3.

So presently, we have only GSTR 1, gets auto populates in GSTR 2A and 3B.

Now, Government has stated new provisions under section 43A and this new section got inserted by CGST Amendment Act, applicable from 1st April, 2020.

There would be GST Annexure-I Outward Supply, supplier of goods or services is going to prepare and upload invoice particulars in GST Annexure 1 (like GSTR 1) and once invoice particulars are being uploaded in GST Annexure 1 i.e. auto populated in another form GST Annexure 2 (similar to GSTR 2), where recipient will either be able to accept, reject or keep the transaction pending in GST Annexure 2 on the basis of invoice particulars uploaded by the supplier in GST Annexure 1.

So, Annexure 1 is the outward supply.

Annexure 2 is the Inward supply.

Now, three returns are being stated- RET 1, applicable for such registered person whose aggregate turnover is upto Rs. 5 Crores in a preceeding financial year, the can file it Quarterly.

If it is exceeding Rs. 5 Crores in a preceeing financial year then this should be monthly return.

Garima Soni

So, if you are opting for Normal Return- you will file GST Annexure 1 (Outward Supply), GST Annexure 2 (Inward Supply) which is auto populated from GST Annexure 1 from Vendor/ supplier and then with Annexure 1 and Annexure 2, you ‘ll be consolidating your Normal Return RET 1 and this maybe- Monthly (if aggregate turnover is more than Rs. 5 Crores), Quarterly (if aggregate turnover is upto Rs. 5 Crores)

Two more returns are being stated- RET 2 (SAHAJ), applicable for such registered person whose aggregate turnover is upto Rs. 5 Crores in a preceding financial year and they have only B2B transaction- registered person with unregistered and with reverse charge liability. They can opt for SAHAJ, which is quarterly return or you can select SUGAM which is RET 3, applicable for such registered person, whose aggregate turnover is upto Rs. 5 Crores in a preceding financial year and they are are having B2B, B2C transaction in reverse charge liability.

Now, What’s the difference?

In all the three returns, one needs to file GST Annexure 1, GST Annexure 2.

GST Annexure 1 is the real preparation.

GST Annexure 2 gets auto populated then, consolidation is to be done, and filing the return accordingly (RET 1, RET 2 and RET 3)

RET 1 RET 2 RET 3

Normal Return SAHAJ SUGAM

Can be filed- Monthly or Quarterly, depending upon turnovers

T/O more than 5 Crores- Monthly

T/O upto 5 Crores- Quarterly

Quarterly

T/O upto 5 Crores- Quarterly

Quarterly

T/O upto 5 Crores- Quarterly

B2B, B2C transactions with reverse charge

Only B2C transactions with reverse charge

B2B, B2C transactions with reverse charge

Registered to Unregistered

Registered to Unregistered

B2B (Registered to registered)

B2C (Registered to Unregistered)

Garima Soni

Credit on missing invoices

Missing Invoices- means invoices not being uploaded by the vendor.

In that case, you can aval provisional credit- with T+2 months criteria.

Credit on missing invoices not allowed, which is available under Normal return RET 1.

Credit on missing invoices not allowed.

Also, this return is not available to suppliers, supplying through ECO- E-commerce operator

This return is also not available to suppliers, supplying through ECO- E-commerce operator

GST Annexure 1 – Outward Supply

Supplier of goods or services needs to prepare and upload.

Upload could be online or through an offline route i.e. one can prepare and upload the invoice particulars in GST Annexure 1. So, GST Annexure 1 is supposed to be filed by the supplier of goods or services.

Particulars to be filed up-

B2B transactions (One registered person to another registered person)

B2C transactions (Registered to Unregistered)

Export of goods or services (either, with or without payment of taxes)

Supplies to SEZ/ developer (either, with or without payment of taxes)

Deemed export (whenever supply is made to EOU or against advanced authorization or EPCG)

Capturing reverse charge.

Now, who shall file GST Annexure 1- Such recipient who are liable to pay GST under Reverse charge for notified goods or services as per the-

NN 4/2017 for Goods

Garima Soni

NN 13/2017 for Services

Reverse charge liability- Import of goods or services needs to be filed-up in GST Annexure 1. Thereafter, one needs to fill-up Import of goods from SEZ unit on filing Bill of entry

So, the next question arises WHEN, one needs to file the invoice particulars for a particular financial year?

Last Date when you have to file Invoice Particulars for a particular financial year is not later than – earliest of the two dates-

Due date of September following end of the financial year

Or

Date of filing Annual Return.

Let’s say, For FY 2020-2021

Earliest of the two dates shall be-

September 2021

Or

December 31, 2021

HSN needs to be captured compulsorily

SAC Code for Services needs to be captured at 6- digit level for large tax payers

(Aggregate turnover in the preceding financial year more than 5 Crores)

However, in case of small taxpayers- aggregate turnover upto 5 Crores, HSN / SAC would be optional.

Now, HSN/HAC would be at Invoice level basis i.e. for each invoice separately.

Even for Import, Export, Supplies to SEZ- HSN/SAC needs to be captured.

Now, taxable value and tax amount can be shown up to two decimal points.

Further, stated under new GST Return System- A Credit Note or Debit Note can be issued for multiple Invoices which is not possible in existing system of GST Return filing.

Garima Soni

And that return would be having enabled field to issue Credit note/ Debit note pertaining to multiple Invoices. In case for this adjustment by way of Credit note/ Debit note if some value gets negative then also this negative value would be accepted in GST annexure-I.

Place of supply needs to be captured for each of the transaction, and stated – if supplier is registered in a particular state and supply within the state, would be Intra-state.

Most importantly, what we need to understand is it is unidirectional flow i.e. only supplier is going to upload the Invoice particulars. Recipient would not be given the opportunity to upload.

Missing Invoice- concept available only for RET 1, T+2 months criteria is being prescribed. Not available for SAHAJA (RET 2) and SUGAM (RET 3).

GST Annexure 2 - Tax Payer Compliance

GST Annexure 2 is going to be auto populated from Annexure-I.

GST Annexure 2 along with GSTR-5, GSTR-6 (ISD Credit).

One can see being recipient of goods services, that credit which is flowing from Vendor / Suppliers, uploading Invoice particulars in GST Annexure-I.

So being recipient one can take either of this actions- 1 accept, 2 reject, 3 keep it pending.

ACCEPT: Finding details are correct to the satisfaction

REJECT: Finding details are not pertaining to self-satisfaction. There is something incorrect pertaining to – taxable Value, Tax Amount, Name of the Company.

KEEP IT PENDING: May be, we have received Invoice, Goods or Services are yet to be received.

What if no action is taken?

Then in that case it will be deemed acceptance of Invoices, otherwise rejected or kept pending.

Garima Soni

Date by which one can avail credit-by the 10th of the next month. Whatever, Data/Invoice Particulars uploaded by supplier in GST Annexure-I. One can avail credit and this credit is available by the 10th of the next month.

Being recipient, one also needs to understand –

In case if non-filing of return (Monthly Filer) consequent two months returns are not filed by the Assessee, then credit entitlement would be denied in GST Annexure 2 and if it is quarterly, one quarterly return is not being filed then credit is not available, entitlement is not given in GST Annexure 2.

Government is also going to give- Standard dates for filing monthly/quarterly return.

However, good news is Annexure 1 and Annexure 2, RET 1, 2, 3 can have facility of amendment as well i.e. can be revised, facility not available currently in GSTR 3-B.

Also, facility of credit is auto populated.

One can check Auto populated credit v/s Provisional credit which provides an opportunity to supplier for uploading missing Invoices on which we are availing provisional credit.

Garima Soni (CRO0350201)

Garima Soni