As the deadline for GSTR 9 is approaching, there is a consternation on how various railways can solve the data conundrum related with GSTR 9 in order to complete it in a time-bound fashion.This article is an attempt to share the methodologies which South Central Railway has been using in order to analyse various types of data sets available to it and find the accurate output tax liability which the railway is responsible for .
Disclaimer:This is a result of our playing with data .It is not a recommendation to any railway so kindly don’t treat it as one.We are sharing it because we feel it might help others.
The following data set is available with our railways as of now:
Data Set 1 : CRIS data summary available on manual offline utility.It displays all the invoices pertaining to 2017-18 which were either submitted in 2017-18 to NSDL or were submitted in subsequent years to NSDL.
Data Set 2 : GSTR 1 details which was generated by NSDL and given to railways on the monthly basis.
Data Set 3: GSTR 3B details which include output tax liability which a railway is suppose to pay.
LOGIC :We have used the below two equations to come to accurate output tax liability
∑ CRIS data(2017-18 only) +Advances (received through ARV’s) –GSTR3B(Output Tax Libility only)>0
then remaining tax has to be paid to the GST department
∑ CRIS data(2017-18 only) +Advances (received through ARV’s) –GSTR3B(Output Tax Libility only)<0
then remaining tax has to be recovered from GST department
What is nearly matching?
Our close analysis for two states of Andhra Pradesh and Telengana reveals that there is something we should be happy about.
The total amount advise By Nsdl for output tax liability in GSTR 3B(i.e. Data Set 3) is closely matching (with some minor differences)with CRIS ADVISE given recently.This shows NSDL was quick to realize that whatever CRIS was submitting, entire amount had to be paid and therefore, it more or less advised that amount to respective railways.
By CRIS ADVISE we mean ∑CRIS data for 2017-18 (only including the receipts of 2017-18 and not of subsequent years) plus the advances received from various parties like NTPC. Every railway needs to calculate this figure from CRIS advice and advance which they have received
For example the state of telangana, total invoices generated in 2017-18 but submitted in 2017-18 year and subsequent years total upto 174 crores.But out of this 148 crores belong to only 2017-18 and thus,
∑CRIS data for 2017-18 (only including the receipts of 2017-18 and not of subsequent years) for state of telangana is 148 cr and the advance received from NTPC is around 23 cr.
the total becomes 171 crore which had to be paid by us and incidentally, GSTR -3B is also showing nearly the same liability with some minor difference which may have to be settled either by payment or recovery.
What may not match?
GSTR1 and GSTR 3B should match ideally but may not match practically.The reason is GSTR 1 is based on the invoices uploaded in the GST portal and sometimes those invoices may not get uploaded because of wrong GSTIN numbers and other reasons.But do we need to really worry about that.Yes, we need to worry but it is not the right time.We first need to see whether our liability is discharged fully or not and that depends on GSTR 3B(output tax liability calculated by NSDL) and CRIS summary advise giving the calculation generated by it applications.
So, what we should worry about?
We should use the above two equations to find the differences and try to see how much is the difference and take the proper action to discharge our liabilities.We have almost everything in place now and we should try to find out the difference if any.
Why we should not include receipts uploaded in 2018-19 but pertaining to 2017-18?
Most of the receipts generated offline on railways in 2017-18 were uploaded in the subsequent years in the offline utility.But once they were uploaded in the subsequent year , the tax belonging to that invoice was also paid in that year.So , we don’t have any tax liability towards this invoices.We only need to focus on data generated in 2017-2018 and submitted 2017-18 which includes the advances received in that year.
Once we are done with this calculation we will be fully prepared to file our GSTR 9 accurately and in time.So, let us keep playing with the data and keep progressing towards timely completion of GSTR 9.