Goods and Services Tax – GST – By: – CA.Chitresh Gupta – Dated:- 22-11-2018 Last Replied Date:- 22-12-2018 – The Goods & Services Tax has been implemented from July 1, 2017. It has brought about a paradigm shift in the methodology of levy and collection of taxes. GST is a transaction based Indirect tax where returns are filed periodically. It may be monthly or quarterly depending on the type of assessee or type of Return. The concept of Annual return in transaction-based tax is not new. It was prevalent in Central statutes like Excise Act in the form ER-4, 5 & 7. In Service Tax also ,annual return was proposed vide notification no. 19/2016-ST dated 01.03.2016, however on account of implementation of GST, the format of the annual return was not notified. The annual return was also prevalent in various State based VAT Acts. This required assessee to consolidate the information relating to Sale, Purchase including Input Tax Credit claimed in return and file the same in the form o
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R 1, GSTR 2, GSTR 3. GSTR 9A Filed by the persons registered under composition scheme under GST. GSTR-9B Filed by the e-commerce operators who have filed GSTR 8 GSTR-9C Reconciliation Statement duly certified by CA or ICWA to be filed by the taxpayers, whose annual turnover exceeds Rs 2 crores during the financial year. This needs to be filed along with annual return and audited financial statement. Implication for Delayed/ Non Filing of Annual Return As per proviso to section 47(2), any registered person who fails to furnish the return required under section 44 [annual return] by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory. The late fee will be charged separately under CGST & SGST Acts respectively. Hence, total late fee will be ₹ 200/- per day of default. There is no specific penalty pres
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IN 3A Legal Name 3B Trade Name (if any) The Financial year will be 2017-18. However, since GST has been implemented from July 01,2017, the data in the Annual Return will relate to period of July 2017 to March 2018. The GSTIN, Legal Name and Trade name as appearing in GST REG-06 is to be mentioned. It may be noted that Annual return need to be filed for each GSTIN separately. Thus, if a multi-locational entity has 20 GSTIN, then 20 separate Annual return need to be filed. In case an entity has more than one GSTIN in the same state either due to separate business vertical or SEZ unit etc, separate annual return shall be filed. PART II: DETAILS OF OUTWARD AND INWARD SUPPLIES DECLARED DURING THE FINANCIAL YEAR This part specifically provides the consolidated view of Outward Supplies made by Registered person during the relevant period of FY 2017-18. This part also gives details of Inward supplies received by registered person where the person was liable to pay GST u/s 9(3) [Reverse Charge
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ns specified in (B) to (E) above (+) K Supplies / tax declared through Amendments (+) L Supplies / tax reduced through Amendments (-) M Sub-total (I to L above) N Supplies and advances on which tax is to be paid (H + M) above An important point to note here is that GSTR-9 will contain only the data as declared in already filed returns by registered person. This is in contrast with the Annual return as filed under VAT regimes where the modification if any in the return was carried out in Annual return. The same option is not available in GSTR-9. Another point for discussion is that at the time of preparation of GSTR 9, whether the details required to be reported at Part 4 should be: 1. Restricted to details reported in the GSTR 1 for the period July 2017 to March 2018; or 2. Should include all the details pertaining to the period July 2017 to March 2018 irrespective of the period (Maximum period September 2018) when such details are reported in GSTR 1. Based on the combined reading of T
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ed E Nil Rated F Non-GST supply G Sub-total (A to F above) H Credit Notes issued in respect of transactions specified in A to F above (-) I Debit Notes issued in respect of transactions specified in A to F above (+) J Supplies declared through Amendments (+) K Supplies reduced through Amendments (-) L Sub-Total (H to K above) M Turnover on which tax is not to be paid (G + L above) N Total Turnover (including advances) (4N + 5M – 4G above) It may be noted that Debit notes and credit notes which are in relation to these supplies should be captured only if the suitable effect of GST is provided in them. Any commercial/accounting credit or debit notes which do not contain the charge of GST should not be adjusted for the calculation of taxable value and tax amounts. PART III: DETAILS OF ITC AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR This part requires the registered person to give complete details of ITC availed, Ineligible ITC and reconciliation with GSTR-2A. This section is di
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from ISD H Amount of ITC reclaimed (other than B above) under the provisions of the Act I Sub-total (B to H above) J Difference (I – A above) K Transition Credit through TRAN-I (including revisions if any) L Transition Credit through TRAN-II M Any other ITC availed but not specified above N Sub-total (K to M above) O Total ITC availed (I + N above) The above table specifically provides reconciliation of total credit as availed under GSTR-3B with various sources of ITC like Inward supplies from Registered person, Unregistered person, Imports, ISD etc, We also need to disclose the transition credit as filed under TRAN-I & TRAN-II. The practical issue in compilation of this data is segregation of ITC into Input, Input services and Capital goods. In GST regime, the ITC as availed under all the above categories are claimed and recorded in the similar manner thus it will result in lot of effort to categorize the ITC availed in required categories. Further, while categorizing the ITC avai
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apital Goods on account of Exempt & Non- Taxable supply The details required under Table 7 are as under; A Reversal of ITC as per Rule 37 B Reversal of ITC as per Rule 39 C Reversal of ITC as per Rule 42 D Reversal of ITC as per Rule 43 E Ineligible ITC as per section 17(5) F Reversal of TRAN-I credit G Reversal of TRAN-II credit H Other reversals (pl. specify) I Total ITC Reversed (A to H above) J Net ITC Available for Utilization (6O – 7I) In respect of Rule 37, where ITC is required to be reversed on account of non -payment of consideration within 180 days from the date of invoice, it is important to make clear distinction in the books of accounts within current asset account between credit available and credit deferred. One of the practical issues which will be faced by the Industry is the disclosure of Ineligible credit. In many cases like ITC on food & beverages, works contract, rent-a cab etc was not available by virtue of Sec 17(5), the GST paid was recorded as a part o
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TC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018 D Difference [A-(B+C)] E ITC available but not availed (out of D) F ITC available but ineligible (out of D) G IGST paid on import of goods (including supplies from SEZ) H IGST credit availed on import of goods (as per 6(E) above) I Difference (G-H) J ITC available but not availed on import of goods (Equal to I) K Total ITC to be lapsed in current financial year (E + F + J) The table compares ITC as appearing in GSTR-2A with the total ITC as claimed in GSTR-3B of FY 2017-18 and credit of FY 2017-18 claimed in GSTR-3B of FY 2018-19 other than ITC claimed on RCM, Imports. Suffice to say that if differential value in the clause 8D is positive, then the value in this clause is normal. However, if the differential value in this clause is Zero or negative, it points to normal values. If differential
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availed coming from 8E, 8F and 8J has been directed to be lapsed. ITC on reverse charge including ITC on import of service is not being reported in Table 8 and hence not being lapsed under Table 8. Merely because the said credits are not being subject to reporting purposes in Table 8 does not mean that the said credit would not lapse, if the said credit is not availed within the timelines set out in section 16(4) of CGST Act,2017. PART IV: DETAILS OF TAX PAID AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up the details in Table 9 as mentioned below; Description Tax Payable Paid through cash Paid through ITC Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 7 Integrated Tax Central Tax – State/UT Tax – Cess Interest Late fee Penalty Other The purpose of said point number 9 in Part IV is to get consolidated value of tax liability s
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able turnover in Sl.No.4, particular 4M of GSTR 9. And if tax payable were to be reproduced from GSTR 3B, then there would mere repetition of information without any occasion to rectify later in GSTR 9C. Accordingly, where taxable turnover reported in GSTR 1 and GSTR 3B are in agreement with each other, there would be no new tax liability being identified for the first time in GSTR 9. However, where they are not in agreement, which is often the case, taxable turnover reported in GSTR 1 and that on which tax is actually discharged through GSTR 3B may not be in agreement. It is for this reason that Sl.No.9 captures tax payable based on GSTR 1 (4M) but tax paid based on GSTR 3B (6.1). PART V: PARTICULARS OF THE TRANSACTIONS FOR THE PREVIOUS FY DECLARED IN RETURNS OF APRIL TO SEPTEMBER OF CURRENT FY OR UPTO DATE OF FILING OF ANNUAL RETURN OF PREVIOUS FY WHICHEVER IS EARLIER Part V specifically requires following to be reported; 10 Supplies / tax declared through Amendments (+) (net of debi
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9 of FY 2017-18 because the circumstances necessitating credit note and debit note would have arisen only in 2018-19. PART VI: OTHER INFORMATION Part VI requires following information to be provided by Registered person 15 Particulars of Demands and Refunds during FY 2017-18 16 Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis 17 HSN Wise Summary of outward supplies 18 HSN Wise Summary of Inward supplies 19 Late fee payable and paid Table 15 requires the registered person to provide the details of Refunds claimed, sanctioned, rejected or pending. Non-GST refund claims (i.e. refund claimed under erstwhile law) should not be reported here. The provisional refund received may be disclosed in refunds sanctioned. Further, cases where only deficiency memo has been issued and order of rejection is not passed, the same may be reported as Refunds pending and not in Refunds Rejected. In case of export of goods with paym
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tion of the CGST Act,2017 and supplies received on approval basis from principal and returned to supplier within 180 days of supply. For the financial year 2017-18, a summary of inward and outward supplies effected / made against a particular HSN code is to be reported in this Table17 & Table 18 respectively. It is optional to mention HSN code for taxpayers having annual turnover up to ₹ 1.50 crores. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above ₹ 1.50 crores but up to ₹ 5.00 crores and at four digits level for taxpayers having annual turnover above ₹ 5.00 crores. It will an onerous task for the assesee to fill Table 17 & Table 18 as HSN codes in case of inward supplies is not captured by majority of corporates. Table 19 will contain details, in case of late filing of Annual return. Conclusion Reference all the aspects and issues discussed above, filing of GSTR 9 will be cumbe
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that everybody may get sufficient time to complete the same and take care of various intricacies involved in filing the same. – Reply By ARUN JAIN – The Reply = Very helpful and detailed article – Reply By Jitender Ranka – The Reply = NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B There are various issues in current GST laws and one issues arises from a deviation from earlier GST provision in treating general discounts in trade (which are related to many invoices) as sales promotion instead of reversal of purchase for buyer and sales for seller. Here are facts of case: This is related to distributor and FMCG company. They usually ask distributor to pass on discounts in market and make claim (based on supporting) periodically monthly/quarterly or so. As per earlier practice of VAT there was no VAT involved and there was no reversal of input VAT by distributor and output VAT by FMCG company(supplier). But with GST being in force. Companies have been giving GST 18% i
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iled computation by showing the input GST on purchases and input GST reversed on account of credit notes of company and giving all details of credit notes for period from 1st July 17 to 31st March 18. Can this become basis for FMCG company to claim out put reversal which they can show in their audit report as well. NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B There are various issues in current GST laws and one issues arises from a deviation from earlier GST provision in treating general discounts in trade (which are related to many invoices) as sales promotion instead of reversal of purchase for buyer and sales for seller. Here are facts of case: This is related to distributor and FMCG company. They usually ask distributor to pass on discounts in market and make claim (based on supporting) periodically monthly/quarterly or so. As per earlier practice of VAT there was no VAT involved and there was no reversal of input VAT by distributor and output VAT by FMCG com
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