DECODING GST ANNUAL RETURN -GSTR-9
By: – Chitresh Gupta
Goods and Services Tax – GST
Dated:- 22-11-2018
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
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year.
Type of Return
Assessee liable to file Annual Return
GSTR 9
Filed by the regular taxpayers filing GSTR 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 la
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s earlier
VI
Other Information
PART I: BASIC DETAILS
Part I seeks to capture the basic details of the Registered Person. The details to be provided are as under;
1
Financial Year
2
GSTIN
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 Re
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on which tax is to be paid on reverse charge basis
H
Sub-total (A to G above)
I
Credit Notes issued in respect of transactions specified in (B) to (E) above (-)
J
Debit Notes issued in respect of transactions 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 201
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n which tax is not liable to be paid in Table 5. These include;
A
Zero rated supply (Export) without payment of tax
B
Supply to SEZs without payment of tax
C
Supplies on which tax is to be paid by the recipient on reverse charge basis
D
Exempted
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 adjuste
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m registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed
Inputs
Capital Goods
Input Services
E
Import of goods (including supplies from SEZs)
Inputs
Capital Goods
F
Import of services (excluding inward supplies from SEZs)
G
Input Tax credit received 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 co
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equires the details of ITC which is declared as Ineligible or reversed on account of Rule 37, 39, 42 & 43
Rule
Description
37
Reversal of input tax credit in the case of non-payment of consideration
39
Reversal of Excess Credit by Input Service Distributor
42
Reversal of ITC in respect of inputs or input services on account of Exempt & Non Taxable supply
43
Reversal of ITC in respect of Capital 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 18
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2018-19
Table 12
ITC Reversed by mistake and also re-availed that ITC in 2018-19
ITC Reversed in Table 12 and re-availed ITC in Table 13
Table 8 gives a bird eye view presentation of GSTR-2A reconciliation with ITC availed. It also computes the total ITC which will be lapsed in the current financial year. Following details are required in Table 8;
A
ITC as per GSTR-2A (Table 3 & 5 thereof)
B
ITC as per sum total of 6(B) and 6(H) above
C
ITC 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
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g credit. Hence, it is stressed that working sheets must be prepared on the basis of ledger accounts/ invoice to determine and find out the exact cause of difference for initiation of remedial action either on the part of registered person or on part of suppliers of registered person.
ITC which is unavailed in GSTR-3B either on account it is ineligible or even though it was available but due to mistake, it was not claimed, it will get lapsed. Only the ITC available and not 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
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; –
Central Tax
–
–
–
–
State/UT Tax
–
&nb
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–
–
Late fee
–
–
Penalty
–
–
Other
&n
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ar
Information required in this clause is of 'tax payable' and 'tax paid' (by cash or credit). Reference is given to Table 6.1 of GSTR 3B to collect information and include it here. Table 6.1 of GSTR 3B also contains 'tax payable' and 'tax paid'. It is opined that 'actual tax paid' alone must be obtained from that Table and reported in this clause. As regards 'tax payable', the same must be in alignment with taxable 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
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eturns for the months of April 2018 to September 2018
* Amendments to invoices related to 2017-18 and reported (with errors) in the GSTR 1 for 2017-18 but now reported (duly rectified) in the returns for the months of April 2018 to September 2018
* ITC availed & reversed pertaining to FY 2017-18 but reported in GSTR 3B of April 2018 to September 2018
It may be noted that Debit notes / Credit notes dated after April 1,2018 will not be reported in GSTR 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 requi
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ssed in GST RFD-07 by way of adjustment of the amount of refund against the outstanding demand under the GST, then, the demand of tax before adjustment against refund of tax will form part of reporting under under the table 15E, demand of taxes.
Table 16 of GSTR 9 requires details of supplies received from composition tax payers supplies (inputs and capital goods) received from principal by the recipient (job-worker) and not returned within the time specified under section 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 Rs. 1.50 crores. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year
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ation of ITC with GSTR-2A specifically in cases where ITC claimed in returns is higher than ITC as reflected in GSTR-2A.
* Collation of data with respect to HSN wise Inward & Outward Supplies made during the year.
It is recommended that the government may appreciate that above issues and relook the format of Annual Return to be make it more compliance friendly. It is also recommended that all the registered person and also the professionals may start the work on Annual Return so 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 as =
Very helpful and detailed article
Dated: 24-11-2018
Reply By Jitender Ranka as =
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 i
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ght on how to treat it in annual return:
* 1. Can the distributor show the input GST without adjusting GST in credit notes? If done so it results in sizeable refund. 2. Will GST authorities refund big amount immediately? If agreed to do so company is going to debit distributor immediately.
* Can distributor show the annual return as it is that is input GST after adjusting GST in credit notes(which he has been doing in 3B) so there would not be any refund. Then can Auditor under GST audit show the Input GST detailed 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 earl
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of credit notes of company(supplier) not coming through GSTR1 return and only adjusted in 3B.
Now the opinion is sought on how to treat it in annual return:
* 1. Can the distributor show the input GST without adjusting GST in credit notes? If done so it results in sizeable refund. 2. Will GST authorities refund big amount immediately? If agreed to do so company is going to debit distributor immediately.
* Can distributor show the annual return as it is that is input GST after adjusting GST in credit notes(which he has been doing in 3B) so there would not be any refund. Then can Auditor under GST audit show the Input GST detailed 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?
Dated: 22-12-2018
Scholarly articles fo
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