Walk through the monthly GST compliance cycle for a regular taxpayer.
What the interviewer wants to hear
- Issues invoices, e-invoices and e-way bills where applicable
- Files GSTR-1 for outward supplies
- Reconciles ITC with GSTR-2B
- Files GSTR-3B and pays net tax
- Reconciles books with returns and keeps records for annual return and audit
Model answer
During the month, sales invoices are raised with the right GSTIN, HSN or SAC codes and place of supply, and e-invoices and e-way bills are generated where required. After the month closes, I reconcile the sales register with e-invoice data and file GSTR-1, which reports outward supplies invoice by invoice for B2B customers. Next I download GSTR-2B, the auto-drafted ITC statement, and reconcile it with the purchase register, separating eligible, blocked and missing credits. Then I prepare GSTR-3B: output tax by type, eligible ITC, reverse charge liability and any reversals, and pay the net tax in cash after using credits in the correct order. Finally, I reconcile the GST ledgers in the books with the returns and the electronic credit and cash ledgers, so that the annual return and any audit are straightforward.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
More medium Accountant questions
- Describe how you run a month-end close. How do you make sure nothing is missed and the deadline is met?
- Compare FIFO and weighted average for inventory. How does the choice affect profit when prices are rising?
- How do you reconcile input tax credit in your books with GSTR-2B before filing GSTR-3B?
- How would you decide between straight-line and written down value depreciation for a new asset? What role does Schedule II play?
- The trial balance does not agree and the difference has been put in a suspense account. How do you find and clear it?
- How do you decide the allowance for doubtful debts or expected credit loss on trade receivables?
- Describe the TDS process in a company, from deduction to issuing certificates.
- How do you maintain a fixed asset register, and how do you reconcile it with the general ledger?
- How do you prepare the books for the statutory audit, and how do you work with the auditors?