At present, the most talked about topic after Indian general elections and avengers-end game, is GST annual return and GST audit, i.e. Form GSTR-9 and Form GSTR 9C and Mr. Jain has approached Mr. GST to get the overview of the same. Following are the excerpts of their conversation:

1. What is GST annual return?
Under GST law, section 44 requires every registered person to file a return on annual basis for a FY in Form GSTR 9, containing the details of outward and inward supplies on annual basis.
2. But why? When a registered person is already filing GSTR 1, GSTR 3B for a tax period, then why annual reporting is required?
GSTR 9 is nothing, but the consolidation of the details already punched in GSTR 1, GSTR 3B and GSTR 2A, in a more comprehensive manner with some additional information requirements.
3. But is that all! I mean there must be something more attached to it you know, as the government is not asking us to just compile the already filled details?
Oh yes! Absolutely, the format of GSTR 9, as notified is based on the premise that the details of outward supply appearing in the GSTR 1 and GSTR 3B are in agreement with each other, further, the details of ITC as appearing in GSTR 2A and GSTR 3B are in concurrence with each other and how ideally it should be.

Having said that, I know being the first year of implementation some mistakes are bound to happen and if there is any mismatch between the details reported in GSTR 1 &3B or GSTR 2A &3B, as the case may be, then my friend it is your last chance to rectify the same i.e. GSTR 9 can be used as a tool to report the undisclosed supplies or supplies omitted to be disclosed in the monthly filled returns.

4. But I have heard that GSTR-9 cannot be used for rectification of mistake. Is it not true.
Partially true. Initial format of GSTR-9 was based on the details furnished in periodical returns (GSTR-1/GSTR-3B). However, later on, Government modified the format with specific instructions that additional liabilities can be reported in the Return. This itself indicates the intention of Government that the business should disclose correct turnover and tax payable thereon in GSTR-9. Unfortunately, the form has not been adequately modified to fulfil this intention of Government.

Having said so, even if still there could be argument of experts that no additional turnover or liability may be disclosed in the GSTR-9, but I feel that if correct turnover/liability is declared and paid, no one could question your bonafide in future.

5. Okay, so from where the GSTR 9 should be prepared, I mean from GSTR 1 or GSTR3B?
The details of outward supplies should flow from GSTR 1 and the details of inward supplies including RCM should flow from GSTR 3B.

However, if there is any mismatch between the details of outward supply in GSTR 1 and GSTR 3B, then:

CASE I- The outward supplies reported in GSTR 3B exceeds the details of outward supplies reported in GSTR1.

 

Since, the payment of tax is made through GSTR 3B and the details appearing in GSTR 3B should be reported in GSTR 9.
CASE II- The outward supplies reported in GSTR 1 exceeds the details appearing in GSTR 3B.

 

1. The difference between the two is reported in the returns for the FY 2018-19———-The details originally reported in the GSTR 1 for the FY 2017-18 should be reported in Part II (Table 4) of GSTR 9* and the difference rectified in 2018-19 should be reported in Part V of the GSTR 9*.

2. Not yet rectified—-The figures punched in GSTR 3B should be reported here, and the difference between the tax payable and already paid should be paid through FORM DRC-03*.

* these table will be discussed later in the clause by clause analysis of the form GSTR 9.

6. Huh, what rubbish, I’m not going to file these forms, what harm will it make?
Bro listen,

– Department can send you notice under section 46- prem patra k liye tayar rehna;

– Late fees upto INR 200/ day (CGST +SGST) or 0.25% of the turnover in state, whichever is lower;

– Penalty under section 125 upto INR 50,000 (CGST +SGST).

7. I’m a composition dealer should I also file GSTR 9?
No GSTR ‘9A is required to be filled by the composition dealers.
8. Am I required to file annual return even if :
A. I have obtained registration only for making payment of taxes on reverse charge basis.
Yes
B. No outward supply whatsoever only inward supply
Yes
C. No activity whatsoever i.e. no inward supply no outward supply
Yes
D. I have cancelled my registration in 17-18 still am I required to file GSTR-9
Yes
E. “BHAI KOI CHODA HAI APNE JISKO NAHI BHARNA ANNUAL RETURN??
Off course

– casual taxable person

-non-resident taxable person

-input service distributor

-tax deductor under section 51

-tax collector under section 52

9. Koi CA certificate chahiye GSTR-9 ke liye???
Nopes
10. I have not filed some/all of return for the FY 17-18 ?
You have to file all the returns first so as to enable yourself tom file GSTR 9.
11. I have filed all my returns late for FY 17-18 in 18-19 what should I do?
GSTR-9 can be filled even if returns are filed belatedly.
12. whether GSTR-9 is required to be filed for all GSTIN or on PAN based?
It is to be filed for all GSTIN registered on the same PAN separately.
13. What is the last date to file GSTR-9 for FY-17-18?
For FY 17-18 GSTR-9 can be filed upto June 30, 2019
14. I was registered as a composition dealer for some part of the FY and then switched to regular registration???
Both GSTR-9 & GSTR-9A are required to be filed for respective period.
15. Is there any offline tool to file the same?
Yes, offline utility can be downloaded from GST portal
16. As the due date for filing GSTR-9 is approaching near, will it be feasible to punch data on random basis and revise the same later on?
Off course not, as GSTR-9 once filed can’t be revised. One must exercise due care and diligence while filing GSTR-9.
17. Can additional liability be paid while filing GSTR-9??
Yes same can be paid through FORM DRC-03 in cash.
18. Whether ITC missed till 31/3/19 pertaining to FY 17-18 can be availed through GSTR-9?
NO ITC not availed in GSTR-3B can’t be availed through GSTR-9.
19. You were also saying something about GST audit , what is it & how it is related to GSTR-9?
GSTR-9 and GSTR-9C (audit) are related concepts. GSTR-9 is required to be filed by every registered person irrespective of turnover, however GSTR-9C is required to be filed by only those persons whose turnover exceeds 2 crore and is required to be certified by CA or CMA in practice.

This is the first part of the series of article on GSTR-9, “unravelling GSTR 9- A clause by clause analysis”, there is much more to explore in these annual return and GST audits. It will be followed by the analysis of the table 4 and table 5 of the GSTR 9 in the second article.

The members who have already started assisting in filing of the Form-9 or conducting the GST audits and even those who are planning to start these activities could refer to this write-up and give us their comments on any practical issues arising therefrom.

Special thanks to CA Ashish Chaudhary sir for vetting this article.

The author is a qualified chartered accountant and can be reached at: Email : vishal@hiregange.com

Disclaimer: The information cited in this Guide has been drawn primarily from the www.cbec.gov.in and other sources. Readers are requested to note Sl. Nos / Table no’s etc., wherever mentioned refer to the appropriate part / table of the relevant Forms. While every effort has been made in this write-up to avoid any kind of errors or omissions. It is likely that errors may have crept in. Any mistake, error or discrepancy noted by the reader should be brought to the notice of the author so that suitable edits / corrections shall be effected in the next edition. It is notified that the author will not be responsible for any damage or loss to anyone of any kind or in any manner whatsoever by the use of this write-up.

Author Bio

Qualification: CA in Practice
Company: Hiregange & Associates, Chartered Accountants
Location: Delhi, New Delhi, IN
Member Since: 19 May 2019 | Total Posts: 5

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9 Comments

  1. RAVIPRAKASH says:

    Point no. 5 2. Not yet rectified—-The figures punched in GSTR 3B should be reported here, and the difference between the tax payable and already paid should be paid through FORM DRC-03*.

    Actually amendment made during 18-19 in respect of the turnover shown in the return for the year 17-18 to be declared here. In case turnover is not declare in return of 17-18 missed turnover to be declared in col. 4 only and difference tax to be paid through DRC 3. If missed TO are declare in col 10 then it may have impact on the GSTR 9 to be filed for the year 2018-19.

  2. vswami says:

    OFFhand:
    GST Audit nd Report in Form GSTR 9 and 9C < do not these have an inbuilt-safeguard (in the usual format as for any other similar ones) for audting and reporting CAs to seek shelter under, in the event of being faulted for any defaults / shortcomings, etc.
    courtesy

  3. S. THIAGARAJAN says:

    What is the fate of the excessively paid CGST & SGST by mistake over and above the GST liability ? Kindly guide us, whether there is any provision in the GST act to claim the refund of the excess paid tax or it is enough if the excess paid tax is credited in the Cash Ledger

    1. thevishjain says:

      Dear Sir, need some clarity on your query. Have you paid the excess GST and is still lying in E-cash ledger or something else?

  4. shruti agrawal says:

    For the first time it is that I have received the exact clarity about what to do in conditions where there are differences in Returns and Data. Thank You sir. Such a good compilation.

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