Review of Statement of Profit and Loss in perspective of GST – Part 0.0 By Inderjeet Saini


Review of Statement of Profit and Loss in perspective of GST – Part 0.0

Revenue

Verification of credit items in the statement of profit and loss it should be necessarily map the revenue as per books with the GST Return. Turnover or outward supply report in profit and loss account should be tally with the turnover report in GST-3B and GSTR-1. However, invariably there will be difference as per GST return with books of accounts. Auditor should be reconciliation the difference and there will be no material or unexplained difference.

The part of reconciliation between the books and GST returns are:

  • Turnover of each registration in case of multiple registrations
  • Supply between GSTIN under same PAN i.e., stock transfer.
  • Activities treated as supply even if made without consideration i.e., deemed supplies.
  • Classification of supply under various chapter (HSN classification)
  • Impact on Discount on GST
  • Impact on GST on advance received.
  • Exchange rate impact on turnover.
  • Non-GST supplies like high sea sale refer Schedule -III
  • Sale promotion Scheme: FOC sale or buy one get offer
  • Recovery/Reimbursement of Expense incurred
  • Adjustment required under Accounting Standards or Indian Accounting Standards

Turnover of each registration in case of multiple registrations

Financial statement of an entity is prepared on the basis of consolidated as whole. For the GST perspective , an entity can have multiple GSTIN  on account of following  reasons:

  • Operations in multiple States
  • Multiple registration with in the same states
  • Registration mandated within the same state i.e., SEZ/DTA etc

Action to be taken

  1. Review the GSTIN -wise return filed with GST authorities in FORM GSTR-1
  2. Ensure that the data represent are appropriate
  3. Understand the method, processes and control around the preparation of data obtained for different registrations.

Review of Statement of Profit and Loss in perspective of GST – Part 0.0

Revenue

Verification of credit items in the statement of profit and loss it should be necessarily map the revenue as per books with the GST Return. Turnover or outward supply report in profit and loss account should be tally with the turnover report in GST-3B and GSTR-1. However, invariably there will be difference as per GST return with books of accounts. Auditor should be reconciliation the difference and there will be no material or unexplained difference.

The part of reconciliation between the books and GST returns are:

  • Turnover of each registration in case of multiple registrations
  • Supply between GSTIN under same PAN i.e., stock transfer.
  • Activities treated as supply even if made without consideration i.e., deemed supplies.
  • Classification of supply under various chapter (HSN classification)
  • Impact on Discount on GST
  • Impact on GST on advance received.
  • Exchange rate impact on turnover.
  • Non-GST supplies like high sea sale refer Schedule -III
  • Sale promotion Scheme: FOC sale or buy one get offer
  • Recovery/Reimbursement of Expense incurred
  • Adjustment required under Accounting Standards or Indian Accounting Standards

Turnover of each registration in case of multiple registrations

Financial statement of an entity is prepared on the basis of consolidated as whole. For the GST perspective , an entity can have multiple GSTIN  on account of following  reasons:

  • Operations in multiple States
  • Multiple registration with in the same states
  • Registration mandated within the same state i.e., SEZ/DTA etc

Action to be taken

  1. Review the GSTIN -wise return filed with GST authorities in FORM GSTR-1
  2. Ensure that the data represent are appropriate
  3. Understand the method, processes and control around the preparation of data obtained for different registrations.

Review of Statement of Profit and Loss in perspective of GST – Part 0.0

Revenue

Verification of credit items in the statement of profit and loss it should be necessarily map the revenue as per books with the GST Return. Turnover or outward supply report in profit and loss account should be tally with the turnover report in GST-3B and GSTR-1. However, invariably there will be difference as per GST return with books of accounts. Auditor should be reconciliation the difference and there will be no material or unexplained difference.

The part of reconciliation between the books and GST returns are:

  • Turnover of each registration in case of multiple registrations
  • Supply between GSTIN under same PAN i.e., stock transfer.
  • Activities treated as supply even if made without consideration i.e., deemed supplies.
  • Classification of supply under various chapter (HSN classification)
  • Impact on Discount on GST
  • Impact on GST on advance received.
  • Exchange rate impact on turnover.
  • Non-GST supplies like high sea sale refer Schedule -III
  • Sale promotion Scheme: FOC sale or buy one get offer
  • Recovery/Reimbursement of Expense incurred
  • Adjustment required under Accounting Standards or Indian Accounting Standards

Turnover of each registration in case of multiple registrations

Financial statement of an entity is prepared on the basis of consolidated as whole. For the GST perspective , an entity can have multiple GSTIN  on account of following  reasons:

  • Operations in multiple States
  • Multiple registration with in the same states
  • Registration mandated within the same state i.e., SEZ/DTA etc

Action to be taken

  1. Review the GSTIN -wise return filed with GST authorities in FORM GSTR-1
  2. Ensure that the data represent are appropriate
  3. Understand the method, processes and control around the preparation of data obtained for different registrations.

Review of Statement of Profit and Loss in perspective of GST – Part 0.0

Revenue

Verification of credit items in the statement of profit and loss it should be necessarily map the revenue as per books with the GST Return. Turnover or outward supply report in profit and loss account should be tally with the turnover report in GST-3B and GSTR-1. However, invariably there will be difference as per GST return with books of accounts. Auditor should be reconciliation the difference and there will be no material or unexplained difference.

The part of reconciliation between the books and GST returns are:

  • Turnover of each registration in case of multiple registrations
  • Supply between GSTIN under same PAN i.e., stock transfer.
  • Activities treated as supply even if made without consideration i.e., deemed supplies.
  • Classification of supply under various chapter (HSN classification)
  • Impact on Discount on GST
  • Impact on GST on advance received.
  • Exchange rate impact on turnover.
  • Non-GST supplies like high sea sale refer Schedule -III
  • Sale promotion Scheme: FOC sale or buy one get offer
  • Recovery/Reimbursement of Expense incurred
  • Adjustment required under Accounting Standards or Indian Accounting Standards

Turnover of each registration in case of multiple registrations

Financial statement of an entity is prepared on the basis of consolidated as whole. For the GST perspective , an entity can have multiple GSTIN  on account of following  reasons:

  • Operations in multiple States
  • Multiple registration with in the same states
  • Registration mandated within the same state i.e., SEZ/DTA etc

Action to be taken

  1. Review the GSTIN -wise return filed with GST authorities in FORM GSTR-1
  2. Ensure that the data represent are appropriate
  3. Understand the method, processes and control around the preparation of data obtained for different registrations.

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