GST wrong returns

GST wrong returns

I'm a GST consultant and got a new client having following issue.

He is contractor who carry out work such as road , bridges, for local govt also having a stone crusher plant. GST registration is taken only for stone crusher plant by the old GST consultant. He had purchase about Rs. 56 lakhs materials in 2017-18 such as cement , iron rods, sands for his contract work (this I got from his GSTR2A file uploaded by his suppliers) and all these materials used for construction of roads and bridges. His previous GST consultant filed GSTR1 nil return for july 2017 to march 2018 and filed GSTR3B for jully to feb 18 but not included all purchases in GSTR3B return. He carried out various work contract in 2017-18 of about Rs. 1.5 crores and the payments were released full by engineers of concerned dept of Kerala Govt. While making payments, TDS @1% deducted from all such payments and in certain cases VAT@4% were also deducted and in certain cases only TDS @1% deducted and no VAT . This VAT deduction happened during the period july to march 2018

Following are my queries
 (1) Is VAT @4 deduction invalid since work contractor comes under GST and liable to pay GST@12%
 (2) Should the VAT deducted after 01.07.17 be refunded to the contractor . 
 (3) Is he eligible to get refund for ITC for his purchase of materials such as cement etc.( his total ITC on purchase is Rs. 7.3 lakhs) since all his GSTR1 return is filed as nil
 (4) How to file GST return for his contract work.

Asked 6 years ago in GST

1) As contractor comes under the GST. I think this VAT may be state WCT. Please recheck with other consultants.

2) Yes you can claim refund even if it is WCT.

3) He should file his turnover details with tax liability and claim offset with ITC. Last date for F.Y. 2017-18 returns is 20.10.2018.

4) File normal GSTR 3B and GSTR1. Purchases details you will get from 2A and ask contractor to provide details of monthly purchases of cement iron etc. Ask builder to give details of all contracts made by him and payment received by him. He needs to raise tax invoice for all realisations. You can cross check the details with Form 26AS on quarterly basis.

Thanks

Vivek Kumar Arora

CA, Delhi

4840 Answers

1037 Consultations

5.0 on 5.0

Talk to Vivek Kumar Arora

Pls clarify reply to my 4th query.
But the previous GST consultant filed GSTR1 nil return for all months from july to march and GSTR3B return filed for july to feb showing some of his purchase.

Asked 6 years ago

No issues we can rectify it in now.

Vivek Kumar Arora

CA, Delhi

4840 Answers

1037 Consultations

5.0 on 5.0

Talk to Vivek Kumar Arora

Hello,

You do not have an option of revising the returns for now but yes, you can include all these figures at the time of filing of Annual returns of GST.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma

CA, Mumbai

2104 Answers

95 Consultations

5.0 on 5.0

Talk to Rohit R Sharma

Hi,

You cannot revise the old returns but you can make amends at the time of filing of Annual returns of GST.

Regards,

Nikhil.

Nikhil Khanna

CA, Mumbai

1429 Answers

19 Consultations

4.8 on 5.0

Talk to Nikhil Khanna

1. The services of your client were covered under GST, VAT could not have been charged. Please re-confirm with the client.

2. If deducted, it shall have to be refunded.

3. Yes, ITC can be claimed.

4. Revision is not possible in GSTR. Were any sales invoice shown? Amendment also seems not possible.Only possible way is to show the incomes and ITC in the next return and pay interest on the taxes applicable.