FAQ’s on GST Annual Return and GST Audit
Q1. Which persons are required to file GSTR-9? And which persons or taxpayers are not required to file GSTR-9?
As per the legal provisions of Section 44(1) of CGST Act, every person registered under GST Act shall be required to file GSTR-9, except following persons :-
- An Input service distributor
- a causal taxable person
- a non-resident taxable person
- a person paying tax under section 51 (TDS) or section 52 (TCS)
Q2. Is there any threshold limit of turnover from exemption to file GSTR-9?
No there is no turnover limit from exemption to file GSTR-9. Every registered person under GST except those mentioned above are required to file GSTR-9. However, every registered person having turnover above Rs. 2 Crore shall get his accounts audited by a Chartered Accountant or a Cost Accountant along with Annual return (GSTR-9) shall submit the reconciliation statement (GSTR-9C) and audited annual accounts.
Q3. Which forms are to be filed by various persons registered under GST?
|Annual return for every registered GST tax payers other than persons registered as composition taxpayers|
|GSTR-9A||Annual return for Composition Taxpayers|
|Annual return for E-commerce operator paying tax under section 52 of CGST Act. Since provisions of section 52 were made applicable from 01st October 2018 only, Annual return for 2017-18 is not required to be filed.|
|GSTR-9C||Reconciliation statement applicable to persons having turnover exceeding Rs.2 Cr|
Q4.What is the due date for filing GSTR-9, 9A and 9C?
Every registered person required to file Annual return for every financial year shall furnish the same through the common portal on or before the 31st day of December following the end if such financial year. However CBIC has extended the due date of filing annual return for FY 2017-18 till 30.06.2019.
Q5.Whether Taxpayer shall be required to file GSTR-9 even though turnover during the year 2017-18 was nil?
Yes, every registered person is required to file GSTR-9 irrespective of Turnover. However, facility to file GSTR-9 on single click is provided on portal.
Q6. Whether Taxpayer shall be required to file GSTR-9 even though his GST registration stands cancelled before 31st march 2018?
As per Legal provision of CGST Act, every registered person shall be required to file GSTR-9. Hence, even if the status of taxpayer is cancelled as on 31st March 2018 but he was registered between July-17 to March-18, he shall be required to file GSTR-9 providing details for the period during which he was registered.
Q7. Whether above answer stands if his application for cancellation was pending as on 31st March 2018?
Yes, he is required to file GSTR-9.
Q8. Which Annual return is to be filed by taxpayer if he was earlier registered as composition taxpayer but later he switched over to regular scheme and his status as on 31st March 2018 is a regular taxpayer?
He shall be required to file both GSTR-9 and 9A for the period he was registered as regular tax payer and as composition tax payer respectively.
Q9. Whether transactions for the period April-17 to June-17 are also to be included in GSTR-9 for FY 2017-18?
No, as per the instructions forming part of GSTR-9 which clearly mentions that only details for the period July 2017 to March 2018 are to be provided in GSTR-9.
Q10. How to file GSTR-9 in case person his having multiple registrations on single PAN within state or outside state?
As per the provisions of GST Act, every registered person shall be required to file GSTR-9. Hence if taxpayer has obtained multiple registration whether in same state or different states, such registrations shall be treated as ‘distinct person’ in respect of each such registration as per CGST Act. Hence GSTR-9 is to be filed at GSTIN wise and not at entity level wise.
Q11. What are the pre-conditions required for filing Form GSTR-9?
Tax payer must have an active GST registration for respective Financial Year even for a single day.
Taxpayer has filed all applicable returns i.e. Form GSTR-1 and GSTR-3B or GSTR-4A (In case of composition taxpayer) for respective Financial Year.
Q12. From where can I file GSTR-9? Is there any offline tool available for GSTR-9?
Go to Services > Returns > Annual Return to file Form GSTR-9. CBIC has recently released offline tool for GSTR-9, 9A and 9C.
Q13. What is the information which is sought in GSTR-9?
|I||1 to 3||Basic information of tax payer|
|II||4 to 5||Details on which tax is to be paid|
|III||6 to 8||Details of Input tax credit|
|IV||9||Details of tax paid and payable|
|V||10 to 14||Details of transactions of 2017-18 reported during April-18 to Sep-18 (extended till 31st March 2019).|
|VI||15 to 19||Other information|
Q14. What is the source of information which is sought in GSTR-9?
GSTR-9 is merely a compilation of data filed in GSTR-3B and GSTR-1. As per the instructions of the form GSTR-9, it is stated that information of outward supplies ‘may’ be derived from Form GSTR 1. Hence, so far as Outward supplies and tax payable in the annual return is concerned, the same are to be extracted from Form GSTR 1 only.
ITC and net tax paid information are to be gathered from Form GSTR 3B.
But before filing GSTR-9, Value as per GSTR-3B and GSTR-1 must align. If there are any differences, then the same must be adjusted to subsequent returns filed up to September-18 (extended till 31st March 2019).
In case the values as per Form GSTR 3B and GSTR 1 are not matching with each other, one may get difference in taxable value and tax paid. A clarification may be expected from the Government for the same. If one faces such a situation, then the additional tax liability may be paid through Form GSTR 3B of the subsequent month/Form DRC-03.
Q15. Where to report Debit Note /Credit Note issued to unregistered person?
Unlike B2B supplies, Debit Note /Credit Note issued to unregistered person is to be adjusted against outward supply and net supply and is to be furnished in Table 4A. Even credit note raised against transaction reported as B2C in GSTR-1 is also to be adjusted in Table-4A.
Q16. Whether supply made to registered person (B2B) as required in Table-4B also includes outward supply on which tax is payable by recipient on reverse charge basis?
No, only outward supply made to registered person on which tax is payable on forward charge basis by supplier will be reported in Table 4B. Outward supplies under reverse charge shall be reported in Table-5C. e.g. in case of GTA operator filing his GSTR-9, he is required to report outward supply in Table-5C.
Q17. Where to report stock transfer made to another branch situated in another state if both are registered?
Since both branches are registered persons for a particular state, these transactions are to be reported in supplies made to registered person (B2B) Table 4B.
Q18. Tax payer has made two type of exports, one with payment of tax and the other without payment of tax. Where to report both these transactions?
Export with payment of tax is to be reported in Table-4C. This table warrants details of transactions where tax is payable. Exports without payment of tax are to be reported in Table-5A. Same principle will hold good for supply to SEZ also.
Q19. Whether all advances on which tax is paid but subsequently got adjusted against invoices shall also to be reported in Table-4F?
No, only outstanding advances as on 31st March 2018 on which tax was paid but invoice not issued against the same are to be reported in Table-4F.
Q20. Which information shall be to be provided in Table 4G for Inward supply on which tax is to be paid on reverse charge basis?
Tax paid on reverse charge basis under these sections is to be reported in Table 4G. Normally two types of reverse charge transactions are to be reported here, one is reverse charge on specific services as per section 9(3), and another is general reverse charge mechanism (which was effective till 12th Oct 2017) applicable on procurement of inward supply from unregistered person.
Q21. Whether credit note / debit note issued during 18-19 in respect of transactions of July-17 to March-18 is to be reported in Table 4I and 4J?
No, only credit note / debit note issued and disclosed in the GST returns between July-17 to March-18 is to be reported in 4I and 4J. If the issue date of credit note/debit note is ranging between July 2017 to March 2018 and if the same has been reported in the GST returns during the period April – September 2018, then it will form part of Part V of the Annual return.
Q22. Which information is to be provided in Table-5?
Details of outward supplies on which no tax is payable like Export or SEZ supply with LUT or Bond is to be reported in Table-5. Even outward supply on which recipient is liable to pay tax on RCM basis is to be reported here only.
Q23. Which information is to be reported in Table-6?
In Table-6, Input tax credit availed in GSTR-3B filed for the period July-17 to March-18 will be auto populated in Table-6A. Break up of such ITC will be reported in Table-6B to 6H. Further, Transitional credit which was not reported in GSTR-3B is to be reported in Table 6K and 6L.
Q24. GSTR-3B doesn’t require ITC to be bifurcated into Input, Input service and capital goods whereas Input tax credit details as per Table-6 requires such break up. How to report the same?
Basically GSTR-9 is prepared based on earlier process of filling GSTR-1, GSTR-2 and GSTR-3. In GSTR-2, there was a requirement to bifurcate ITC into Input, Input service and capital goods. However, as GSTR-2 was not required to be filed till now, one will have to carry out additional exercise to identify category of ITC into Input, Input service and capital goods from books of account.
Q25. Whether any ITC pertains to FY 2017-18 but claimed subsequently in GSTR-3B of April-18 to September-18 will be reported in Table-6?
Only ITC claimed upto March 2018 in GSTR-3B will be reported in Table-6.
Q26. Whether ineligible ITC as reported in Table-4D of GSTR-3B is to be reported in Table-7E of GSTR-9?
No, Net ITC as per GSTR-3B does not take into consideration ineligible ITC as reported in Table-4D of GSTR-3B. So auto populated figure of Net ITC in Table-6A of GSTR-9 does not contain ineligible ITC.
Q27. What is the purpose of Table-8?
Basically Table-8 calculates total ITC that is deemed to be lapsed during the financial year 2017-18 which is sum total of the below two items :-
Difference of ITC as per GSTR-2A and ITC actually availed
Difference of IGST paid on import and IGST credit availed
Q28. Whether total ITC lapsed as per Table-8K will reduce ITC from Electronic credit ledger?
No, total ITC lapsed is only informative and it will not have any impact on Electronic credit ledger.
Q29. What is the role of Part-V Table-10 to 13?
Table 10 to 13 plays a very important role in GSTR-9. Any changes in supply of July-17 to March-18, made through amendments, credit note or debit notes which was reported in GSTR-1 of April-18 to September-18 is to be reported in Table-10 if the same is resulting into increase in value of supply. However, if it is resulting in to reduction in value of supply then the same is to be reported in Table -11.
Invoices which were issued during the period of 2017-18 but reported in Form GSTR 1 of 2018-19, they will fall within the scope of Part V Table 10 to 13.
Similarly, if any input tax credit belongs to the period July-17 to March-18 but which has been claimed in GSTR-3B of April-18 to September-18 is to be reported in Table-12 and 13. If the same is resulting into reversal of Input tax credit, then it will form part of Table 12 and it will be reported in Table-13 if the same is resulting into addition of input tax credit.
Important point to note here is that only additional or reduction in ITC belongs to July-17 to March-18 is to be reported in Table-12 and 13 as the case may be.
Q30. GST Refund is claimed before March-18 but sanctioned in April-18. How to report such kind of situation in Part VI Table-15?
GST Refund claimed during July-17 to March-18 is to be reported in Table-15A. If refund is sanctioned after March-18 then that is not to be reported in Table-15B.
Q31. Whether we can revise GSTR-9?
No such option has been provided in the law till now.
Q32. How much late fee is payable for late filing of GSTR-9?
As per section 47(2) of CGST Act, Late fee for belated filing of GSTR-9 is Rs.100 per day subject to maximum of 0.25% of turnover in a state/UT. Similar provision is there in SGST Act also. Hence, in total there will be late fee of Rs.200 per day subject to 0.50% of turnover in a state on late filing of GSTR-9.
Q33. What are the consequences of the failure to file GSTR-9?
If one fails to file GSTR-9 then first late fees will be payable as discussed above. A notice may be issued u/s 46 requiring him to furnish such return within stipulated time.
Q34. Can I change the details after clicking on ‘Proceed to File” button?
You can change/edit the details before filing of Form GSTR-9 return.
Q35. What happens after clicking the COMPUTE LIABILITIES button?
After clicking the COMPUTE LIABILITIES button, details provided in various tables are processed on the GST Portal at the back end and Late fee liabilities, if any, are computed. Late fee is calculated, if there is delay in filing of annual return beyond due date.
Q36. Can I claim or report any unclaimed ITC through Annual Return?
You cannot claim ITC through Form GSTR-9.
The writer of the above article is CA Meet Shah.
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