1. Self-declaration of outward supply which has not been reported in GSTR-1, and GSTR-3B will not be attract any Penalty if reported in GSTR-9 and Tax with Interest paid on it.
Section 73 of the CGST Act allow the tax payer to pay tax which has not been paid, short paid or erroneously refunded or wrongly availed or utilized ITC. But the same shall be required to be paid before issue a service notice by the proper officer.
The same has been clarified by the MOF that No penalty will attract with respect to tax which has not been paid (i.e. Not Reported in 3B), or wrongly availed ITC provided the same has been declared in Annual Return and Tax has been Paid through DRC-03 with Interest.
2. Primary data source for declaration in annual return
It has been clarified that the Form GSTR-1 and 3B serve different purpose. 1st one for furnishing the details of outward supply and later is for the purpose of payment (if any) after utilizing the ITC against the tax on outward supply.
Ideally all the forms and reporting are sync with actual i.e. books of accounts. There are only 2 possibilities either tax are short paid or paid in excess. If tax are short paid then use DRC-03 or in the later case claim Refund.
Further clarified that “NO INPUT TAX CREDIT CAN BE REVERSED THROUGH ANNUAL RETURN”. It has to be comply by Using DRC-03.
3. Clarification on Laps of ITC-
as the deadline has already been passed for availing of ITC and therefore no question of lapsing of ITC. (Refer C and D of Clarification)
4. Relaxation on reporting of “Supplies received from Composition taxpayers” and “HSN”
It has been clarified that the taxpayer required to report the above to the best of their knowledge and record. Any reasonable/explainable variation will not be viewed adversely.
5. The same relaxation has been provided of overlapping disclosure of Exempted or Nil rated.
6. ITC of tax paid under reverse charge- if paid in FY 18-19 will become part of GSTR-9 of the 2018-19.
7. Role of CA and CWA- has a limited role for reconciling the value reported in 9 and Audited annual accounts.
8. Turnover for GSTR-9 C
Aggregate Turn over will be considered for GSTR-9C.
“It may be noted that the aggregate turnover i.e. the turnover of all the registrations having the same Permanent Account Number is to be used for determining the requirement of filing of reconciliation statement. Therefore, if there are two registrations in two different States on the same PAN, say State A (with turnover of Rs. 1.2 Crore) and State B (with turnover of Rs. 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than Rs. 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018.”
9. Reconciliation of ITC on Expenses
Expenses on which ITC has been availed are required to be reconciled.
Source-GST Annual Returns and Reconciliation Statement-12 Issues clarified
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