FAQ on recent Clarifications on GSTR 9 & GSTR 9C

GST annual return filing is mandatory for all entities having GST registration, irrespective of turnover during the financial year. Hence, even businesses that have obtained GST registration and having even NIL turnover must file annual return. GST registration holder who has obtained the registration anytime before 1st April 2018 are required to file GST annual return for the financial year 2017-18 on or before 30th June 2019 in form GSTR 9. Thus all the registered entities has to file the same in the next Few Days only, after Due Date being extended for a very long span of Time.

Government in its Initial statement defined GST as Good & Simple Tax. But the same seems to be a very much complicated. Government has recently given clarification on some issues, but a lot of clarifications are still awaited.  Few of clarifications have been given in News & Updates Tab on www.gst.gov.in and others through Press Release on www.cbic.gov.in

1. What is Turnover Criteria for filing Form GSTR- 9C?

Clarification: Form GSTR-9C is to be filed by all those taxpayers whose aggregate turnover has exceeded Rs 2 crore in a financial year. Turnover of complete year i.e. from 1st April, 2017 to 31st March, 2018 has to be taken into account for calculating the turnover. For example, if a taxpayer has a turnover of Rs. 2.1 Cr for the period 1st April, 2017 to 31st March, 2018 and a turnover of Rs. 1.9 Cr for the period 1st July, 2017 to 31st March, 2018, then the taxpayer is required to file form GSTR- 9C.

Crux: Consider Full Year Turnover for GSTR 9C eligibility purpose

2. Why auto-populated data in Table 8A of GSTR-9 don’t Match with Actual GSTR 2A downloaded?

Clarification: 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 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 those Form GSTR-1, which are filed by the supplier taxpayer by 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 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.

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.

Crux: Most of the Ineligible ITC Credits have already been reduced while auto-fetching data from GSTR 2A to Table 8A of GSTR 9

3. When is ‘Proceed to File’ Button enabled in GSTR 9 and what is Purpose of ‘Compute Liability’ Button?

Clarification: 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.

Crux: ‘Proceed to File’ button gets enabled after ‘Compute Liability’ Button is clicked for computing Late Fees of GSTR 9.

4. GSTR 2A as on which date gets auto-populated in Table 8A of GSTR 9?

Clarification: Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9

Crux : GSTR 2A as on 01.05.2019 auto populates in Table 8A of GSTR  9

5. ITC not reported in GSTR 3B in FY 2017-18, but reported in GSTR 3B of FY 2018-19. How to show the same in GSTR 9?

Clarification: Input tax credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9.

Crux : Use Table 8C for ITC Reported in FY 2018-19

Note : Also show in Table 13

6. For the Purpose of reporting in either Pt. II or Pt. V of GSTR 9, what data will prevail as reported in GSTR 3B or as reported in GSTR 1?

Clarification:  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 GSTR3B between April 2018 to March 2019 then such supply shall be declared in Pt. V of FORM GSTR-9.

Crux : GSTR 3B will prevail over GSTR 1.

7. Sales Reported/amended in FY 2018-19 in GSTR 1 to be shown in Pt. V or Pt. II of GSTR 9 (if the same was not reported in GSTR 3B till date) ?

Clarification: 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.

Crux : Use Table V of GSTR 9 for Sales Reported/amended in FY 2018-19 in GSTR 1 (if the same was not reported in GSTR 3B till date)

Note : Also Pay tax through DRC 03

8. How Reporting to be done if the sales was neither shown in GSTR 3B nor in GSTR 1 upto 31.03.2019?

Clarification: 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.

Crux : Show in Pt. II & Pt. IV and pay tax through DRC 03 through Cash Ledger

9. Auto populated data in Table 4 can be changed if different from Books of Accounts & Returns filed?

Clarification:  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.

Crux : Books of accounts & returns filed will prevail over auto-populated data in Table 4.

10. IGST on imports availed in GSTR 3B for FY 2018-19 to be shown in which Table?

Clarification: 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.

Crux : To be shown in Table 6(E)

11. Payments to be made through DRC 03 should be shown as paid or payable while filing GSTR 9?

Clarification:  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.

Crux : DRC 03 payment effect will be considered as paid in GSTR 9C & not in GSTR 9.

12. Why getting error message while using Excel version in GSTR 9C?

Clarification: You are also advised to use Microsoft excel version higher than 2007 while preparing Form GSTR 9C.

Crux: Use MS Excel version higher than 2007 for GSTR 9C Purpose

13. Membership Number by Auditor to be mentioned with or without prefixing Zero?

Clarification: While filing Part B of Form GSTR-9C, Auditors are advised to give their membership number without prefixing ‘0’ in their membership number. If membership number is ‘016’, then auditor should enter ‘16’ on the aforesaid part in the membership number field & not ‘016’.

Crux: Don’t Prefix ‘Zero’ in Membership Number

14. What is the due date for GSTR 9 & GSTR 9C for FY 2017-18?

Clarification: All the taxpayers are requested to file their Annual Return (FORM GSTR-9) at the earliest to avoid last minute rush.

Crux : 30.06.2019

15. Whether due date for Annual Return will be extended?

Clarification: All the taxpayers are requested to file their Annual Return (FORM GSTR-9) at the earliest to avoid last minute rush.

Crux : No such notification/announcement yet

References :-

CBIC Clarifications on filing of Annual Return (FORM GSTR-9) dated 4th June 2019

GSTN Clarification on Issues reported in filing Form GSTR 9C by the taxpayers : Steps to be taken

Please refer all the relevant section, rules, notifications, press release and amendments as applicable. The Author is not responsible for any losses incurred. Content is merely for sharing knowledge & Educational Purpose only. Author can be reached at casagargambhir@gmail.com for any queries, issues & recommendations.