DECODING GST ANNUAL RETURN -GSTR-9
By: – Chitresh Gupta
Goods and Services Tax – GST
Dated:- 22-11-2018<\/p>\n
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.
\nGST 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<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n year. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s earlier = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on which tax is to be paid on reverse charge basis = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n which tax is not liable to be paid in Table 5. These include; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n m registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n equires the details of ITC which is declared as Ineligible or reversed on account of Rule 37, 39, 42 & 43 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 2018-19 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ; – = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n – = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ar = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eturns for the months of April 2018 to September 2018 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ation of ITC with GSTR-2A specifically in cases where ITC claimed in returns is higher than ITC as reflected in GSTR-2A. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ght on how to treat it in annual return: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of credit notes of company(supplier) not coming through GSTR1 return and only adjusted in 3B. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" DECODING GST ANNUAL RETURN -GSTR-9By: – Chitresh GuptaGoods and Services Tax – GSTDated:- 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 … Continue reading “DECODING GST ANNUAL RETURN -GSTR-9”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15105","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15105"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15105\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nType of Return
\nAssessee liable to file Annual Return
\nGSTR 9
\nFiled by the regular taxpayers filing GSTR 1, GSTR 2, GSTR 3.
\nGSTR 9A
\nFiled by the persons registered under composition scheme under GST.
\nGSTR-9B
\nFiled by the e-commerce operators who have filed GSTR 8
\nGSTR-9C
\nReconciliation 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.
\nImplication for Delayed\/ Non Filing of Annual Return
\nAs 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<\/p>\n
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\nVI
\nOther Information
\nPART I: BASIC DETAILS
\nPart I seeks to capture the basic details of the Registered Person. The details to be provided are as under;
\n1
\nFinancial Year
\n2
\nGSTIN
\n3A
\nLegal Name
\n3B
\nTrade Name (if any)
\nThe 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.
\nIt 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.
\nPART II: DETAILS OF OUTWARD AND INWARD SUPPLIES DECLARED DURING THE FINANCIAL YEAR
\nThis part specifically provides the consolidated view of Outward Supplies made by Re<\/p>\n
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\nH
\nSub-total (A to G above)
\nI
\nCredit Notes issued in respect of transactions specified in (B) to (E) above (-)
\nJ
\nDebit Notes issued in respect of transactions specified in (B) to (E) above (+)
\nK
\nSupplies \/ tax declared through Amendments (+)
\nL
\nSupplies \/ tax reduced through Amendments (-)
\nM
\nSub-total (I to L above)
\nN
\nSupplies and advances on which tax is to be paid (H + M) above
\nAn 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.
\nAnother 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:
\n1. Restricted to details reported in the GSTR 1 for the period July 2017 to March 201<\/p>\n
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\nA
\nZero rated supply (Export) without payment of tax
\nB
\nSupply to SEZs without payment of tax
\nC
\nSupplies on which tax is to be paid by the recipient on reverse charge basis
\nD
\nExempted
\nE
\nNil Rated
\nF
\nNon-GST supply
\nG
\nSub-total (A to F above)
\nH
\nCredit Notes issued in respect of transactions specified in A to F above (-)
\nI
\nDebit Notes issued in respect of transactions specified in A to F above (+)
\nJ
\nSupplies declared through Amendments (+)
\nK
\nSupplies reduced through Amendments (-)
\nL
\nSub-Total (H to K above)
\nM
\nTurnover on which tax is not to be paid (G + L above)
\nN
\nTotal Turnover (including advances) (4N + 5M – 4G above)
\nIt 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<\/p>\n
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\nInputs
\nCapital Goods
\nInput Services
\nE
\nImport of goods (including supplies from SEZs)
\nInputs
\nCapital Goods
\nF
\nImport of services (excluding inward supplies from SEZs)
\nG
\nInput Tax credit received from ISD
\nH
\nAmount of ITC reclaimed (other than B above) under the provisions of the Act
\nI
\nSub-total (B to H above)
\nJ
\nDifference (I – A above)
\nK
\nTransition Credit through TRAN-I (including revisions if any)
\nL
\nTransition Credit through TRAN-II
\nM
\nAny other ITC availed but not specified above
\nN
\nSub-total (K to M above)
\nO
\nTotal ITC availed (I + N above)
\nThe 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.
\nThe practical issue in co<\/p>\n
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\nRule
\nDescription
\n37
\nReversal of input tax credit in the case of non-payment of consideration
\n39
\nReversal of Excess Credit by Input Service Distributor
\n42
\nReversal of ITC in respect of inputs or input services on account of Exempt & Non Taxable supply
\n43
\nReversal of ITC in respect of Capital Goods on account of Exempt & Non- Taxable supply
\nThe details required under Table 7 are as under;
\nA
\nReversal of ITC as per Rule 37
\nB
\nReversal of ITC as per Rule 39
\nC
\nReversal of ITC as per Rule 42
\nD
\nReversal of ITC as per Rule 43
\nE
\nIneligible ITC as per section 17(5)
\nF
\nReversal of TRAN-I credit
\nG
\nReversal of TRAN-II credit
\nH
\nOther reversals (pl. specify)
\nI
\nTotal ITC Reversed (A to H above)
\nJ
\nNet ITC Available for Utilization (6O – 7I)
\nIn respect of Rule 37, where ITC is required to be reversed on account of non -payment of consideration within 18<\/p>\n
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\nTable 12
\nITC Reversed by mistake and also re-availed that ITC in 2018-19
\nITC Reversed in Table 12 and re-availed ITC in Table 13
\nTable 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;
\nA
\nITC as per GSTR-2A (Table 3 & 5 thereof)
\nB
\nITC as per sum total of 6(B) and 6(H) above
\nC
\nITC 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
\nD
\nDifference [A-(B+C)]
\nE
\nITC available but not availed (out of D)
\nF
\nITC available but ineligible (out of D)
\nG
\nIGST paid on import of goods (including supplies from SEZ)
\nH
\nIGST credit availed on import of goods (as per 6(E) above)
\nI
\nDifference (G-H)
\nJ
\nITC available but not availed on import of goods (Equal to I)
\nK
\nTotal ITC to <\/p>\n
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\nITC 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.
\nPART IV: DETAILS OF TAX PAID AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR\n<\/p>\n
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\n\t
\nCentral Tax
\n –
\n –
\n –
\n\t
\n –
\n\t
\nState\/UT Tax
\n –
\n &nb<\/p>\n
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\n –
\n\t
\n\t
\n\t
\n\t
\nLate fee
\n –
\n –
\n\t
\n\t
\n\t
\n\t
\nPenalty
\n –
\n –
\n\t
\n\t
\n\t
\n\t
\nOther
\n &n<\/p>\n
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\nInformation 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.
\nAccordingly, 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<\/p>\n
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\n * 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
\n * ITC availed & reversed pertaining to FY 2017-18 but reported in GSTR 3B of April 2018 to September 2018
\nIt 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.
\nPART VI: OTHER INFORMATION
\nPart VI requires following information to be provided by Registered person
\n15
\nParticulars of Demands and Refunds during FY 2017-18
\n16
\nInformation on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis
\n17
\nHSN Wise Summary of outward supplies
\n18
\nHSN Wise Summary of Inward supplies
\n19
\nLate fee payable and paid
\nTable 15 requi<\/p>\n
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\nTable 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.
\nFor 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 <\/p>\n
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\n * Collation of data with respect to HSN wise Inward & Outward Supplies made during the year.
\nIt 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.
\n Reply By ARUN JAIN as =
\nVery helpful and detailed article
\n Dated: 24-11-2018
\n Reply By Jitender Ranka as =
\nNOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B
\nThere 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<\/p>\n
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\n * 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.
\n * 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.
\nNOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B
\nThere are various issues in current GST laws and one issues arises from a deviation from earl<\/p>\n
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\nNow the opinion is sought on how to treat it in annual return:
\n * 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.
\n * 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?
\n Dated: 22-12-2018
Scholarly articles fo<\/p>\n
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