Challenges faced by the Taxpayers & Tax Consultants on certain issues in filing of Annual Return i.e. Form GSTR-9 with their practical solutions.
1. Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in “Column A” of Table 8 of FORM GSTR-9.
2. ITC available & claimed in FY 2017-18, which are to be reversed under any of the Rule 37, Rule 39, Rule 42 , Rule 43 & belongs to Sec 17(5) blocked credits but ITC has been availed. If any part of reversal is to be made from total ITC claimed in FY 2017-18 and such reversal is made in FY 2017-18 itself then it should be disclosed in Table No 7 of Form GSTR-9. But if any reversal is made in FY 2018-19 then for this Disclosures is to be made in Part V in Table No.12 of Form GSTR-9.
For Example-1 – A builder availed input of Rs 10 lacks in FY 2017-18 and made a supply taxable supply Of Rs 50lacks i.e. received advance Before Issuance of Completion Certificate (BCC) & also made Exempted supply of Rs 150 lacks from the sale of flats after BCC.
Then in such case as per Rule 42, we have to find the eligible ITC for FY17-18 .Eligible ITC should be in the ratio of Taxable & Exempted Supply. As per Rule 42, we are eligible to claim credit of Rs 2.5 lacks & Rest 7.5 lacks of ITC to be reversed. If such reversal is made up to March’18 then it will disclosed in Table No 7 of Form GSTR-9. But if such reversal is made in FY 2018-19 then for this disclosures is to be made in Part V in Table No.12 of Form GSTR-9.
3. Input tax credit (ITC) on inward supplies of FY 2017-18 but claimed in April 2018 to March 2019 shall be disclosed in “Column C” of Table 8 of FORM GSTR-9. And must also be disclosed in Part V i.e. Table No 13 of Form GSTR-9. (Kindly refer the Screen shots for better understanding)
4. Further in case any ITC has been left unclaimed in FY 2017-18 & also not claimed in FY 18-19 but it is Populating in Form GSTR-2A and is not Blocked credit u/s 17(5) then my advice is to claim such ITC in GSTR-3B up to September’2019 even though last date of claiming the Credit of FY 2017-18 was 31st March’2019. But this must qualify some conditions below :-
For Example- 2– ITC of Rs 50k was not claimed in FY 2017-18 & also in FY 2018-19 but reflecting in GSTR-2A of FY 2017-18 and are eligible ITC. Then 50k can be claimed now also even after last date was 31st March’2019. Because as we are not providing any details in GSTR-3B we can show out of the total ITC claimed in April’18 to March’19 50k was actually of FY 2017-18 which is allowed till the due date of filing GSTR-3B of March’2019 i.e. 20th April’2019 .
Further the ITC of 50k which was transferred to FY 2017-18, can be claimed in any GSTR-3B from June’19 but only up to Sep’19 (FY 2019-20) treating it as a ITC of FY 2018-19 as law also allow,
ITC can be claimed in the 6 Month from the End of FY I.e. Sep’19 Or annual return Whichever Is earlier.
So we can claim ITC of FY 2018-19 which were utilise for FY 2017-18 will be claimed in GSTR-3B of 19-20 now but before Sep ’19. We only have to add 50k in actual ITC of the Month and report in GSTR-3B .But for this following condition must be satisfied they are:-
5. If in case ITC has already claimed in FY 2017-18 itself, it is already included in Table 6 (A) where Total ITC claimed through GSTR-3B in 17-18 is auto populating. We only have to bifurcate the ITC claimed No additional disclosure are required anywhere.
6. Particulars of the transactions for FY 2017-18 amended in GSTR-1 returns between April’18 to March’19 shall be declared in Part V i.e. Table No. 10 & 11 of FORM GSTR-9.
7. It may be noted that irrespective of when the supply was declared in FORM GSTR-1, the principle of declaring a supply in Part II or Part V is essentially driven by when tax was 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 Part II and if the tax was paid through FORM GSTR- 3B between April 2018 to March 2019 then such supply shall be declared in Part V of FORM GSTR-9.
For Example-3- Client has made an output supply of Rs 24 lacks in FY 2017-18 and shown full output supply in GSTR-1. But has made the payment of Rs 22 lacks through GSTR-3B in FY 2017-18 & Rest liability on Rs 2 lacks was paid with the GSTR-3B of June’2018.
Then we have to consider the GSTR-3B as base with the reason whether tax has been paid in respective FY or Not. Irrespective of whether such invoice has been shown in GSTR-1 of respective FY or not.
Now we have to disclose Rs 22 lacks only in part II i.e. Table 4 of Form GSTR- 9 on which tax has been paid in FY 2017-18 itself in Form GSTR- 9 & Rest 2 lacks will shown in Part V i.e. Table 10 of Form GSTR- 9 with the declaration in Table 14 whether tax Payable has been paid in FY 2018-19 which has been declared in Table 10.
8. Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORM GSTR-3B shall be declared in Part II of the FORM GSTR-9. Such additional liability shall be computed in Part IV and the gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid through FORM DRC-03.
For Example-4– Client has made an output supply of Rs 10 lacks in FY 2017-18. Outward supply was neither shown in GSTR-1 of FY 2017-18 & nor the tax liability has been paid on outward supply through GSTR-3B in FY 2017-18.
Then such supply should have to be disclosed in part II Table No. 4 of Form GSTR-9 & their 2nd effects should be disclosed in Table 14 by editing the Tax payable with actual liability after considering the effects shown in part II Table No. 4. Tax paid option is not editable so the gap between Tax payable (actual) & Tax paid should be paid through Form DRC-03.
As we know, format of annual return is not providing any column where we can show Tax paid through DRC-03. So for this, remedy has been provided by the GSTN by passing the Press Release for clarifying such issues on 04.06.2019 on CBIC portal with the press release S.No-100. That such supply should have to be disclosed in part II Table No. 4 of Form GSTR-9.
This is in contradiction with Point No- 6 above where treatment was only that amount will go to part II in table 4 whose liability has been paid in FY 2017-18 . But in this Point the amount will be shown in part II in table 4 even if the amount has not been paid in respective FY as clarified by the press release we have to do the treatment in both the case as prescribed by the Press release.
9. 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.
For Example-5- Client has made an output supply of Rs 24 lacks in FY 2017-18 and shown full output supply in GSTR-3B & Tax paid accordingly but the invoice of Rs 2 lacks was not shown in GSTR-1 of FY 2017-18. This invoice was shown in GSTR-1 of FY 2018-19.
Then again we have to consider the GSTR-3B as base as the tax has been paid in respective FY. Irrespective of whether such invoice has been shown in GSTR-1 of respective FY or not.
Now we have to disclose full Rs 24 lacks in part II i.e. Table 4 of Form GSTR- 9 on which tax has been paid in FY 2017-18 itself & No disclosures is requires in Part V i.e. Table 10 of Form GSTR- 9 & in Table 14 respectively.
10. 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.
11. 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.
12. Payment through DRC-03 will only be made when liability is neither paid in FY 2017-18 & nor in FY 2018-19.
|TYPE OF TRANSACTIONS||TREATMENT IN GSTR-9||REFER|
|Liability paid in 17-18 itself||Part II Table No 4||Point 9 with Ex No 5|
|Liability paid in 17-18 & partially in 18-19||Liability paid in 17-18 in Part II Table No 4 & any partial liability paid 18-19 in Part V Table No 10 with declaration in Table No 14||Point 7 with Ex No 3|
|Liability not yet paid||Part II Table No 4 with the payment through DRC-03||Point 8 with Ex No 4|
|ITC claimed in 17-18||Already included in Table 6 (A) Total ITC claimed through GSTR-3B in 17-18||Point No -5 of Inputs|
|ITC claimed in 18-19||Table 8(c) & Table 13||Point No -3 of Inputs|
|ITC not yet claimed but reflecting in GSTR-2A||Can be claimed by Adjustments||Point 4 with Ex No 2|
|ITC not yet claimed & not reflecting in GSTR-2A||This ITC will lapse as last date was due date of March’2019 GSTR-3b i.e. 20.04.2019||—–|
1. Some taxpayers have reported that figures of Input Tax Credit (ITC), as pre-populated in table 8A of Form GSTR-9, do not match with the figures as appearing in their Form GSTR-2A.Please note that this may happen due to the following reasons:
a. Figures in GSTR-2A are auto-populated based on filed/saved/submitted Form GSTR-1 of the supplier taxpayer. But figures in table 8A of Form GSTR-9 are auto-populated only on the basis of filed Form GSTR-1 by the supplier taxpayer. In case, Form GSTR -1 is not filed by your supplier, then credit related to those invoices will not appear in table 8A of your Form GSTR-9.
b. Figures in table 8A of Form GSTR 9 are auto-populated only for that Form GSTR-1, which are filed by the supplier taxpayer by the due date of its filing i.e. 30th April, 2019. Thus,ITC on supplies of the financial year 2017-18, if reported beyond 30th April, 2019, will not get auto-populated in table 8A of Form GSTR-9.
c. In table 8A of Form GSTR-9, only latest values have been auto-populated based on filed Form GSTR-1, taking into account all the amendments made, if any.
Suppose an invoice with taxable value of Rs 100/- with tax of Rs. 18/- was filed in Form GSTR-1 in the month of January, 2018 and same was amended to Rs 90 as taxable value in the month of March, 2018, then
i. The Form GSTR-2A of January, 2018 will show ITC of Rs. 18
ii. The Form GSTR-2A of March, 2018 will show ITC of Rs 16.20 &
iii. The table 8A of Form GSTR-9 will contain ITC of Rs 16.20.
d. In table 8A of Form GSTR-9, ITC related to all such invoices have been excluded in which place of supply lies in supplier’s taxpayers State, instead of State of the receiver taxpayer. These figures will be shown in Form GSTR-2A of the recipient.
For example-6- if a taxpayer of State A visits State B and stays in a hotel in State B, the tax paid by him to the hotel in State B will appear in his Form GSTR-2A, but the same will not be reflected in table 8A of Form GSTR-9. Such input tax credit is not allowed as Taxable person Cannot take ITC of CGST & SGST of another State in the state where taxable person is registered. Such credit is only allowed if IGST has been charged by the service provider but this won’t be possible in this case of Hotel Industry because of place of supply & place of supplier concept.
e. The Figures in table 8A of Form GSTR-9 do not contain ITC for the period during which the recipient taxpayer was under composition scheme.
2. While filing Form GSTR 9 ‘Proceed to File’ button will be enabled only if ‘Compute Liability’ is clicked. This button is meant for computation of late fees only.Please note Form GSTR 9 once filed cannot be revised.
3. All the taxpayers are requested to file their Annual Return (FORM GSTR-9) at the earliest to avoid last minute rush.
Note: – The above article is based on my best judgement & should not be considered as professional consultancy.