CA Ramandeep Singh Bhatia
♣ Annual return GSTR-9 is much awaited amongst all the suppliers in GST regime due to the belief that all the errors or omission committed during the financial year can be rectified in the annual return i.e. GSTR-9. The GST department has recently released on 4th September 2018 vide Notification no. 39/2018 the format and instructions of GSTR-9 which have been analyzed and discussed in this article.
♣ The GSTR-9 has to be filed by regular suppliers irrespective of the turnover. It has 6 parts and 19 table where each parts and table deals with important reconciliation and details of one of the crucial aspect.
|Part||Aspect Covered||Table Numbers||Remarks|
|I.||Basic Info||1 -3||Contains basic information of suppliers like trade name , GSTIN etc.|
|II.||Liability||4-5||Contains all the detailed information, adjustments etc in taxable Turnover for calculating GST Liability.|
|III.||Input Tax Credit||6-8||Contains all the detailed information, adjustments etc in input tax credit availed and its reversal for calculating GST Input Credit.|
|IV.||Tax paid details||9||After the calculation of Liability and ITC, in this part it is ascertained tax liable to be paid after the ITC available.|
|V.||Circular 26 Adjustments||10 -13||Errors / omission of Liabilities & Input tax credit of earlier financial year (2017-18) which has been rectified in the return of GSTR-3B & 1 during the period April to September 2018.|
|VI.||Other info||15-19||This part contains factual data like HSN Summary of inward / outward supplies , details of demand , refund etc.|
♣ There are 6 page instructions released along with the GSTR-9 which contains detailed instruction and guidance for each point of table for respective part. For every data of receptive table in GSTR-9, clear instruction from which table or part, the data needs to be picked either from GSTR-1 or GSTR-3B is given.
♣ With the detailed instructions and table reference in place in GSTR-9, the important question arise that whether any correction or information which are not carried in GSTR-1 or GSTR-3B can be included in the GSTR-9 or it will contain just the summary of what is there in GSTR-1 and 3B.
♣ Based on the careful reading of the instructions related to the entries:
a) Invoices related to 2017-18 reported in any month in the GSTR 1 during 2017-18 along with Amendments relating to 2017-18 made by reporting such amendment in any subsequent month but within 2017-18 itself will be reported at Part 4 of GSTR 9; and
b) Amendments to invoices related in any month in the GSTR 1 during 2017-18 made by reporting such amendment in the GSTR 1 during the months period April 2018 to September 2018 will only be reported in Part 6 Sl.No. 10 of GSTR 9.
♣ The insight derived from the instructions provided in the Government notification of GSTR 9, wherein references are made to specific Tables of GSTR 1 from where details are to be extracted (for each month) and reported in GSTR 9 (for 9 months of 2017-18).
♣ The expression appearing as part of the heading to Part II, Sl No 4 “returns filed during the financial year” (will have to be read as “returns filed for the financial year” else the returns for the month of March 2018 which are due and will be filed only in the month of April 2018 itself will not form part of the details to be filed in GSTR 9) and Similar instructions are also appearing in part V gives again the indication that only details which are given in GSTR-1 / GSTR-3B need to be reported in GSTR-9. This even reminds the principal In Computer Science of ‘garbage in – garbage out’. Likewise, data reported ‘for’ 2017- 18 whether within due dates prescribed or belatedly filed but for the months of 2017-18, data from GSTR 1 alone flows into Sl.No.4. It is not evident in the notification that GSTR 9 requires to carry ‘curated data for 2017-18’.
♣ All corrections /amendments not made in GSTR-1/3B is left to GSTR 9C in the hands of the Auditor. It therefore flows that GSTR 9 will not carry ‘new’ data but only summation of ‘old’ data in whatever manner ‘for’ 2017-18 filed on-time or belatedly.
♣ Suppliers whose turnover crossed specific limit and are liable to GST Audit under section 35(5), and auditor needs to submit the report and reconciliation in the format GSTR-9C. The format of GSTR-9C suggest that auditor can add fresh liability, suggest reversal of credit and suggest some corrections /amendments. However it is still not clear for the suppliers not required to have GST audit done ,how will the correction ,changes and amendment lefts in GSTR-1/3B (allowable periods) for FY 2017-18 will flow in the portal & system.
♣ GSTR-9 is in very young age to arrive at any conclusion, but the suggested format and instructions reflects that no new data, not reported in GSTR-1/3B can be reported in GSTR-9. It is expected that things will get clearer with online release of the format in GST portal and with the department coming with clear instruction and circular for the same.
Disclaimer: The view express by the authors are based on the interpretation drawn from the format and instruction released in GSTR-9 & GSTR-9C, which may vary.
(Author is also a Faculty of NACIN , ICAI for GST and may be contacted at email@example.com or on +91 9827152729)