How do you prepare a client’s GST annual return and reconciliation?
What the interviewer wants to hear
- Compiles turnover, tax and ITC from books and monthly returns
- Reconciles books with GSTR-1, GSTR-3B and GSTR-2B
- Identifies and corrects differences through later returns or payment
- Prepares GSTR-9 and, where applicable, the reconciliation statement GSTR-9C
- Documents adjustments and exposures
Model answer
I start by extracting annual figures from the books: turnover by type (taxable, exempt, zero-rated), output tax, input tax credit and reverse charge. Then I compare them with what was reported in the twelve GSTR-1 and GSTR-3B returns, and compare ITC claimed with GSTR-2B. I look for typical differences: invoices missed or reported in the wrong month, credit notes not reported, ITC claimed on ineligible or blocked items, or credit not reflected in 2B. Where the period for corrections is still open, I fix items in the next returns; where tax was underpaid, I advise paying it with interest. Then I prepare GSTR-9, the annual return, and where the client is required to, GSTR-9C, the reconciliation statement between audited financial statements and returns. I document every adjustment in a working file so that any later audit or notice can be answered quickly.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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