25/09/2020
It has often been seen that GST reconciliation often poses a challenge to Companies at year-end. Many a times improper accounting of GST entries leads to the following 4 situations
1. Excess Credit being claimed
2. Lower Liability disclosed
3. Excess Liability disclosed
4. Lower Credit Claim
While 1 and 2 will lead to interest and penalty, later on, 3 and 4 although do not entail any statutory punishment, lead to a loss for the company. In order to ensure that these situations can be effectively handled or avoided, we have tried to enlist the various GST entries which shall be made to ensure that difference if any is quickly pointed out and remedial action if any can thus be taken immediately.
Link to the article
https://www.raviladia.in/month-end-gst-entries/
During the audits, most of the times it happens to be seen that the GST ledgers (Cash/Credit) as per books and portal does not tally with the books of accounts. It is because of maintaining multiple ledgers and due to which the scope for clerical errors increases while posting the month-end entries....