DISCUSSION ON GST ANNUAL RETURN CLAUSE WISE ANALYSIS OF FORM GSTR-9 - - PowerPoint PPT Presentation

DISCUSSION ON GST ANNUAL RETURN CLAUSE WISE ANALYSIS OF FORM GSTR-9

HOSTED BY: JAIPUR BRANCH OF CIRC OF ICAI DATE: 13TH JUNE 2019 CA CHIRAG JAIN

Flow of the session

▪ Brief Background ▪ Clarifications issued by the government for GSTR-9 ▪ Clause wise Analysis of GSTR-9 ▪ Case Studies ▪ Queries

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#GSTR-9 - RECENT APPEARANCES IN MEDIA !

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POINTERS

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▪ Initial Understanding of the form ▪ GSTR-1 v/s GSTR-3B ▪ No. of mistakes & Variety of Mistakes in GSTR-1 & GSTR-3B. ▪ New Forms introduced on 31st December 2018. ▪ Complexities in the form ▪ Source: GSTR-1 or GSTR-3B or Books ▪ Government’s Expectation from GSTR-9

Section 44: Annual Return

Section 44

❑Every registered person, ❑other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, ❑shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed ❑on or before the thirty-first day of December following the end of such financial year.

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Rule 80: Annual Return

GSTR-9

• Normal Tax Payer

GSTR-9A

• Composition Tax Payer

GSTR-9B

• E-commerce operator u/s 52

GSTR-9C Audited Annual accounts and Reconciliation Statement where aggregate turnover > 2 crores

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RECENT CLARIFICATIONS ON ANNUAL RETURN – PRESS RELEASE DATED 3RD JUNE 2019

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Recent Clarifications on GSTR-9

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▪ Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A

• f FORM GSTR-9.

▪ Input tax credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9. ▪ Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March 2019 shall be declared in Pt. V of FORM GSTR-9. Such particulars may contain details of amendments furnished in Table 10 and Table 11 of FORM GSTR-1. ▪ It may be noted that irrespective of when the supply was declared in FORM GSTR-1, the principle of declaring a supply in Pt. II or Pt. V is essentially driven by when was tax paid through FORM GSTR-3B in respect of such supplies. If the tax on such supply was paid through FORM GSTR-3B between July 2017 to March 2018 then such supply shall be declared in Pt. II and if the tax was paid through FORM GSTR-3B between April 2018 to March 2019 then such supply shall be declared in Pt. V of FORM GSTR-9.

Recent Clarifications on GSTR-9

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▪ Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORM GSTR-3B shall be declared in Pt. II of the FORM GSTR-9. Such additional liability shall be computed in Pt. IV and the gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid through FORM DRC-03. ▪ Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books of accounts or returns. One common challenge reported by taxpayer is in Table 4 of FORM GSTR-9 where details may have been missed in FORM GSTR-1 but tax was already paid in FORM GSTR-3B and therefore taxpayers see a mismatch between auto-populated data and data in FORM GSTR-3B. It may be noted that auto-population is a functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per their books of account or returns filed during the financial year. ▪ Many taxpayers have represented that Table 8 has no row to fill in credit of IGST paid at the time of import of goods but availed in the return of April 2018 to March 2019. Due to this, there are apprehensions that credit which was availed between April 2018 to March 2019 but not reported in the annual return may lapse. For this particular entry, taxpayers are advised to fill in their entire credit availed on import of goods from July 2017 to March 2019 in Table 6(E) of FORM GSTR-9 itself. ▪ Payments made through FORM DRC-03 for any supplies relating to period between July 2017 to March 2018 will not be accounted for in FORM GSTR-9 but shall be reported during reconciliation in FORM GSTR-9C.

REPORTING OF OUTWARD SUPPLIES IN GSTR-9

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Reporting of Outward Supplies in GSTR-9

▪ Broadly concerned with Table 4, 5, 10, 11 and 9, 14. ▪ Source of Information – GSTR-1 or GSTR-3B or Books of Accounts? ▪ Important to understand that the reporting disclosures in Part II and Part V is driven from tax payments in 3B. ▪ Clause wise Analysis of above tables. ▪ Register – Outward Supplies ▪ Suggestive Approach for reporting of outward supplies in GSTR-9

▪ Determine the total value of supplies made in 2017-18. ▪ Supplies for which payment has been made in GSTR-3B of April – March 2019 – Report in Part V. ▪ All other supplies – Whether payment made through GSTR-3B or not – Report in Part II. ▪ Tax Payable in Table 9 – Based on tax liability in Part II. ▪ Additional Tax Liability – Pay Tax in cash via DRC-03. ▪ Classification into B2B, B2C, etc to be done only when GSTR-1 is in sync with GSTR-3B, else not necessary.

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CASE STUDIES RELATED TO OUTWARD SUPPLIES

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Outward Supplies – Case Study 1

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Reporting In GSTR-9 Amount Table 4 100000+5000 Table 10 Total 100000 + 5000 Reporting in GSTR-9 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 100000+5000 100000+5000 April 2018 – March 2019

Outward Supplies – Case Study 2

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Reporting in GSTR-9 Amount Table 4 100000+5000 Table 10 Total 100000 + 5000 Reporting in GSTR-9 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 100000+5000 75000 April 2018 – March 2019 25000

Outward Supplies – Case Study 3

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Table Amount Table 4 70000+3500 Table 10 30000+1500 Total 100000 + 5000 Reporting in GSTR-9 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 70000+3500 50000+2500 April 2018 – March 2019 30000+1500 Reporting in Table 9 Amount Tax Payable 3500 Tax Paid 3500 Reporting in Table 14 Amount Tax Payable 1500 Tax Paid 1500

Outward Supplies – Case Study 4

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Table Amount Table 4 (50000+20000)+(2500+1000) Table 10 30000+1500 Total 100000 + 5000 Reporting in GSTR-9 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 50000+2500 50000+2500 April 2018 – March 2019 30000+1500 50000+2500 Reporting in Table 9 Amount Tax Payable 3500 Tax Paid 2500 Reporting in Table 14 Amount Tax Payable 1500 Tax Paid 1500

Outward Supplies – Case Study 5

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Reporting in GSTR-9 Amount Table 4 100000+5000 Table 10 Total 100000 + 5000 Reporting in GSTR-9 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 120000+6000 75000+3750 April 2018 – March 2019 25000+1250 Reporting in Table 9 Amount Tax Payable 5000 Tax Paid 6000 Reporting in Table 14 Amount Tax Payable Tax Paid

Outward Supplies – Case Study 6

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Reporting in GSTR-9 (Alternate 1) Amount Table 4 120000+6000 Table 11

• 20000-1000

Total 100000 + 5000 Reporting in GSTR-9 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 120000+6000 75000+3750 April 2018 – March 2019

• 20000-1000

25000+1250 Reporting in GSTR-9 (Alternate 2) Amount Table 4 100000+5000 Table 11 Total 100000 + 5000

INPUT TAX CREDIT

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Reporting of ITC in GSTR-9

▪ Broadly concerned with Table 6, 7, 8, 12 and 13. ▪ Source of Information –GSTR-3B or Books of Accounts? ▪ Bifurcation into I/IS/CG. ▪ Clause wise Analysis. ▪ Register – Inward Supplies ▪ Recent clarifications related to ITC – Unsettling the law ▪ Food for thought - ITC claimed in October 2018 – March 2019 – Legally permissible?

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Manner in which information was sought in GSTR-2A which never came into existence.

ITC – Case Study 1

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Reporting in Table 6 / Table 13 Amount Table 6 80000 Table 13 20000 Total 100000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 80000 Table 8C 20000 Total 8B + 8C 100000 Period Books 3B 2A July 2017 – March 2018 100000 80000 100000 April 2018 – March 2018 20000

ITC – Case Study 2

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Reporting in Table 6 / Table 13 Amount Table 6 80000 Table 13 Total 80000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 80000 Table 8C Table 8E 20000 Period Books 3B 2A July 2017 – March 2018 100000 80000 100000 April 2018 – March 2018

PRESS RELEASE DATED 18TH OCT 2018

Last date to avail input tax credit in respect of invoices or debit notes relating to such invoices pertaining to period from July, 2017 to March, 2018

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Press Release Dated 18th Oct 2018

▪ It is clarified that the furnishing of outward details in FORM GSTR-1 by the corresponding supplier(s) and the facility to view the same in FORM GSTR-2A by the recipient is in the nature

• f taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self-

assessment basis in consonance with the provisions of section 16 of the Act. The apprehension that ITC can be availed only on the basis of reconciliation between FORM GSTR- 2A and FORM GSTR-3B conducted before the due date for filing of return in FORM GSTR-3B for the month of September, 2018 is unfounded as the same exercise can be done thereafter also.

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ORDER NO. 02/2018-CENTRAL TAX - DATED 31ST DECEMBER 2018

Extension of due date of availing the ITC u/s 16(4)

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Order No. 02/2018-Central Tax dated 31st Dec 2018

▪ Proviso introduced to Section 16(4). ▪ Extended the time limit provided u/s 16(4) to the due date of filing of GSTR-3B for the month

• f March 2019 provided that the details of such invoice or debit note relating to such invoice

has been uploaded by the supplier in its GSTR-1 till the due date of filing of Form GSTR-1 for the month of March 2019.

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IMPLICATION OF REMOVAL OF DIFFICULTIES ORDER NO. 2/2018 DATED 31.12.2018 READ WITH PRESS RELEASE DATED 18.10.2018

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Implication of Order No. 02/2018-CT Read with Press Release Dated 18.10.2018

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Period Remark For ITC claimed till September 2018 GSTR-3B (Till 25th Oct 2018) Reflection in GSTR-2A is NOT mandatory Press Release dated 18.10.2018 For ITC claimed in Oct 2018 – March 2019 (Till 22nd April 2019) Reflection in 2A is mandatory Order No. 02/2018-CT

ITC – Case Study 3

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Reporting in Table 6 / Table 13 Amount Table 6 90000 Table 13 10000 Total 100000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 90000 Table 8C 10000 Table 8D

• 10000

Period Books 3B 2A July 2017 – March 2018 100000 90000 90000 April 2018 – Sept 2018 10000

ITC – Case Study 4

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Reporting in Table 6 / Table 13 Amount Table 6 90000 Table 13 Total 90000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 90000 Table 8C Table 8D Period Books 3B 2A July 2017 – March 2018 100000 90000 90000 Oct 2018 – March 2019 10000

ITC – Case Study 5

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Reporting in Table 6 / Table 13 Amount Table 6 90000 Table 13 5000 Total 95000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 90000 Table 8C 5000 Table 8D Period Books 3B 2A July 2017 – March 2018 100000 90000 95000 Oct 2018 – March 2019 10000

ITC – Case Study 6

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Reporting in Table 6 / Table 13 Amount Table 6 90000 Table 13 Total 90000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 90000 Table 8C Table 8D

• 5000

Period Books 3B 2A July 2017 – March 2018 100000 90000 85000 Oct 2018 – March 2019 10000

ITC – Case Study 6

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Reporting in Table 6 / Table 13 Amount Table 6 90000 Table 13 7000 Total 97000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8B 90000 Table 8C 7000 Table 8D

• 12000

Period Books 3B 2A July 2017 – March 2018 100000 90000 85000 April 2018 – Sept 2018 7000 Oct 2018 - March 2019 3000

ITC – Import of Goods - Case Study 7

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Reporting in Table 6 / Table 13 Amount Table 6E 100000 Table 13 Total 100000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8G 100000 Table 8H 100000 Table 8I Period Books 3B 2A July 2017 – March 2018 100000 100000 NA April 2018 – March 2019

ITC – Import of Goods - Case Study 8

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Reporting in Table 6 / Table 13 Amount Table 6E 100000 Table 13 Total 100000 Reporting in GSTR-9 Reporting in Table 8 Amount Table 8G 100000 Table 8H 100000 Table 8I Period Books 3B 2A July 2017 – March 2018 100000 90000 NA April 2018 – March 2019 10000

ITC – Reversal - Case Study 9

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Table Amount Table 6 100000 Table 7 Table 12 Reporting in GSTR-9 Period Books 3B 2A July 2017 – March 2018 100000 120000

• 20000 (Adjusted in Table 4A of 3B)

NA April 2018 – March 2019

ITC – Reversal - Case Study 10

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Table Amount Table 6 120000 Table 7 20000 Table 12 Reporting in GSTR-9 Period Books 3B 2A July 2017 – March 2018 100000 120000

• 20000 (Reversed in Table 4B of 3B)

NA April 2018 – March 2019

ITC – Reversal - Case Study 11

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Table Amount Table 6 120000 Table 7 Table 12 20000 Reporting in GSTR-9 Period Books 3B 2A July 2017 – March 2018 100000 120000 NA April 2018 – March 2019

• 20000 (Reversed in Table 4B of 3B)

ITC – Reversal - Case Study 12

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Table Amount Table 6 100000 Table 7 20000 Table 12 Reporting in GSTR-9 Period Books 3B 2A July 2017 – March 2018 80000 100000 NA April 2018 – March 2019 Alternate 1 Alternate 2 Table Amount Table 6 100000 Table 7 Table 12

REPORTING OF TRANSACTIONS RELATING TO RCM

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RCM – Case Study 1

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Reporting for RCM Output Liability Amount Table 4 100000*+ 3500 Table 10 0 + 1500 Total 100000 + 5000 Reporting in GSTR-9 Reporting for RCM ITC Amount Table 6 3500 Table 13 1500 Total 5000 Period Books 3B Output (Table 3) 3B Input (Table 4) July 2017 – March 2018 100000 + 5000 70000 + 3500 70000 + 3500 April 2018 – March 2018 30000 + 1500 30000 + 1500

RCM – Case Study 2

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Reporting for RCM Output Liability Amount Table 4 100000*+ (3500 + 500) Table 10 0 + 1000 Total 100000 + 5000 Reporting in GSTR-9 Reporting for RCM ITC Amount Table 6 3500 Table 13 1000 Total 4500 Period Books 3B Output (Table 3) 3B Input (Table 4) July 2017 – March 2018 100000 + 5000 70000 + 3500 70000 + 3500 April 2018 – March 2018 20000 + 1000 20000 + 1000 Not Reported 10000 + 500 10000 + 500

REPORTING OF OTHER INFORMATION IN PART VI

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Part VI: Other Information

06-10-2018

• ADV. RAHUL LAKHWANI & CA CHIRAG JAIN

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• 15. Details of

Demands and Refunds

• Refund claimed
• Refund sanctioned
• Refund rejected
• Refund Pending
• Demand of taxes
• Taxes paid out of above
• Demands pending

Table 16

• Supplies

received from Composition tax payer.

• Deemed supply u/s 143
• Goods sent on approval but

not returned.

17, 18 & 19 - HSN wise summary & Late Fees

• Outward supplies
• Inward supplies
• Details of Late fees payable

and paid.

Conclusion

▪ Last opportunity to rectify the errors and mistakes. ▪ Cannot be revised. ▪ Late Fees – Rs.200 per day or 0.5% of the turnover whichever is less. ▪ Better to file late rather than filing incorrect or inaccurate particulars. ▪ Demand limited to 3 years - Extended period cannot be invoked. ▪ No need to create chaos in reporting the transactions. ▪ Keeping in mind the government’s expectation, do the best possible disclosures of taxes payable and paid.

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