The Goods and Services Tax was introduced in July 2017 across nation and since its implementation it has not been less than a roller coaster ride for the assesses, practitioners and consultants. Within a few months of its implementation, there was a flood of amendment notifications from the Government and the people across nation have tried really hard to comply with the various applicable provisions of the law and corresponding rules. It would not be wrong to say that Government at different times have given adequate shocks to the assesses when there was a hurdle and obstacles in the online portal and at the same time sometime given relief also by providing extended timelines regarding compliance of the various provisions.
One of such approaching compliance is GST Audit. All big and small firms have already started gearing up for the GST Audit and filing of GST return by 30th June 2019. Hence the last date to file GST Annual return for July 2017- March 2018 is 30th June 2019.
The Annual Return is an important document as the facts/ figures/ data disclosed in this document carries various implications. Any incorrect information may attract serious amount of litigations and disputes with the concerned tax authorities and accordingly the assesse may face various hardships.
GST Rules – Chapter 8 –Returns Sec 80 Annual Return
As per the requisite provisions of the act, every registered person except a few stated in the law is required to furnish an annual return electronically in FORM GSTR 9 through a common portal either directly or through a facilitation centre. The person paying the tax under Sec 10 i.e. a composition dealer shall file the annual return in Form GSTR 9A and the electronic commerce operators shall furnish the return in Form GSTR 9B.
|GST Return Form||Assessee|
|GSTR 9||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|
|GSTR 9A||Person paying the tax under Sec 10 i.e. a composition dealer|
|GSTR 9B||Electronic commerce operators who have to pay tax at source|
|GSTR 9C||Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement|
GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGST and IGST. It consolidates the information furnished in the monthly or quarterly returns during the year. The last date of filing of GSTR 9 i.e. the Annual Return has been revised and finalized as 30th June 2019 i.e. return for the period July 2017- March 2018 is 30th June 2019. Prior this the return was required to be filed by 31st Dec 2018 which was extended to 30th June 2019 during 31st GST Council Meeting held on 22nd Dec 2018.
GSTR 9C is the reconciliation statement prescribed for registered tax payer to whom the GST Audit is applicable. It is not required to be filed by such registered person whose aggregate turnover during a financial year is less than two crore rupees including all mentioned in the table for GSTR 9. Whether forcibly or voluntarily, businesses across nation now have become familiar with the provisions of the Goods and Services Tax including various amendments done on almost daily basis. Within a few months of the GST implementation there was a flood of amendment notifications and one of them concerns GST Audit and GST Returns. In this article, an attempt has been made to explore the inclusions and parts of this reconciliation statement for the ease of understanding of the readers and assesses.
|GSTR 9||GSTR 9C|
|It is an Annual Return, in other words it is a consolidation of all the GST returns filed in the particular year.||It is a Reconciliation Statement|
|It is to be filed by the GST registered taxpayer||It is to be filed by the GST registered tax payer to whom the GST Audit is applicable|
|Following are the exceptions i.e. the assesees who are not required to file GSTR 9
– Casual Taxable Person
– Input service distributor
– Composition Dealers
– Assesees subject to TCS and TDS provisions
|It is not required to be filed by such registered person whose aggregate turnover during a financial year is less than two crore rupees including all mentioned in the table for GSTR 9|
|Certification by CA/ CMA not required instead attestation by the tax payer using a digital signature||Certification by CA/ CMA is required and also attestation by the tax payer using a digital signature|
There are 6 parts of the Annual Return Form GSTR 9 which have been explained as follows-
|This part of the Return form consists of the basic details of the tax payer and this gets auto populated when the basis information is entered into the system|
|This part of the return covers the outward and inward supply details declared during the financial year. It is important to note that this detail must be taken from the consolidated values of the GST returns filed during the previous year by the assesee.|
|This part of the return consists of the details of the Input Tax Credit declared in the returns filed during the Financial Year. This will also be a consolidated figure from the previous returns filed in the previous years under the GST tenure.|
|This part of the return consists of the details of the tax paid as declared in the returns filed during the Financial Year.|
|This part of the return consists of the particulars for the previous financial year declared in returns of April to September of current financial Year or upto the date of filing of annual returns of previous financial years whichever is earlier. It may consist of the summary of the amendment or omission of the entries belonging to the previous Financial Year but reported in the current FY.|
|This part of the return consists of the other information which comprises of-
– GST demands and refunds
– HSN wise summary information of the quantity of goods supplied and received
– Corresponding tax numbers of the above information
– Late fees payable and paid details
– Segregation of the inward supplies received from the different categories of taxpayers like composition dealers, deemed supply and goods supplied on approval basis.
√ Reconciliation of the books of accounts and tax invoices issued since inception of GST in July 2017 till March 2018
√ The above reconciliation should match with the annual turnover declared by the businessmen in their audited financial statements.
√ Matching of the stock transfers in between the units and branches of the company with the books of accounts
√ E way bill data should be matched with the tax invoices issued since inception of GST i.e. July 2017 till March 2018.
√ Proper and correct availment of Input tax Credit should be ensured.
√ The purchase and service invoices should be accounted for properly
√ The purchase data by the suppliers should have been uploaded by the suppliers properly which will be reflected in GSTR 2A form
√ Quarterly and monthly reconciliation of all the GST Returns with the books of accounts to avoid any disparity.
√ Input Tax Credit should have been paid only on such invoives on which payment to suppliers has been made within 180 days of the invoices
√ Relevant and applicable provisions of Reverse Charge Mechanism should also be taken into account
The form GSTR 9C consists of following 2 parts i.e.
Part A- Reconciliation Statement
Part B- The Certification Part
|a. Basic details
b. Reconciliation of the turnover declared in the Annual Audited Financial Statement with the turnover declared in the Annual Return i.e. GSTR 9
c. Reconciliation of the tax paid
d. Reconciliation of the Input Tax Credit
e. Any recommendation given by the auditor on the non reconciled matters
|– Certification done by the person who has conducted GST Audit of the tax payer
– Certification done by the person who has not conducted GST Audit of the tax payer.
If the GSTR 9 return is not filed on time then a penalty of Rs. 100 per day under CGST Act and Rs. 100 per day under SGST Act shall be levied i.e. a total of Rs. 200 per day. It is pertinent to mention that the maximum amount of penalty will be an amount calculated at a quarter percent of the total taxpayer turnover in the respective state or Union Territory. In addition to the late fees, the law also imposes an interest @18% per annum which will be calculated on the outstanding tax amount.
The form GSTR 9 once filed cannot be revised. Any mistake in the return can only be revised in the next month’s return when the error / omission is identified.
The Government has recently released the offline utility in the excel form for filing GSTR 9 C. The download link for the same is https://tutorial.gst.gov.in/offlineutilities/returns/GSTR_9C_Offline_Utility.zip
After clicking this a zip folder will be downloaded wherein two files will be there i.e.
a. Excel form utility
b. Release Notes