With the recent changes in the time limit to make amendments and claim ITC in GST returns in respect of preceding financial year up to 30 November 2022, the businesses are hustling to complete their reconciliation of both revenue and ITC. This extension has given the much-needed window to make corrections in the GST returns itself before they start filing the GSTR-9 and GSTR-9C for FY 2021-22.
Notification No 29 /2021-Central Tax dated 30 July 2021 has stricken off Section 35(5) of Central Goods and Services Tax Act, 2017 (‘CGST Act’) thus eliminating the mandatory requirement of audit under GST by a CA or CMA.
It may be noted that taxpayers having aggregate turnover upto INR 2 crores have been exempted from filing GSTR-9 and taxpayers with aggregate turnover upto INR 5 crores have been exempted from filing of reconciliation statement in GSTR-9C.
The major amendments and table wise details are as follows:
GSTR-9 – Annual return
1. Outward supply details
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Table No of Form GSTR-9 |
Table details | Optional or mandatory | Additional remarks, if any |
| 4. Details of advances, inward and outward supplies made during the year on which tax is payable | |||
| 4A to 4G | B2C (4A) and B2B (4B) supplies, Export (4C) and SEZ (4D) supplies on payment of tax, deemed exports (4E), advances on which tax paid but invoice not issued (4F), inward supplies on which tax is paid on RCM basis (4G) | Mandatory, if applicable to the Company | – |
| 4I | Credit Notes issued in respect of transactions specified in Table 4B to 4E. | Mandatory | The credit notes have to be reported separately. |
| 4J | Debit Notes issued in respect of transactions specified in Table 4B to 4E. | Mandatory | The debit notes have to be reported separately. |
| 4K and 4L | Supplies / tax declared through Amendments & Supplies / tax reduced through Amendments | Mandatory | The amendments have to be reported separately. |
| 5. Details of Outward supplies made during the financial year on which tax is not payable | |||
| 5A, 5B and 5C | Export (5A) and SEZ (5B) supplies without payment of tax, supplies on which tax is to be paid by recipient on reverse charge basis (5C). | Mandatory | – |
| 5D and 5E | Exempted and Nil Rated | Mandatory | The details of such supplies can be provided in “Exempt” field in Table 5D on consolidated basis, if bifurcation of such supplies in not available. |
| 5F | Non-GST supply | Mandatory | |
| 5H | Credit Notes issued in respect of transactions specified in Table 5A to 5F. | Optional | The credit notes can be consolidated in detail reported in Table 5A to 5F instead of reporting here separately. |
| 5I | Debit Notes issued in respect of transactions specified in Table 5A to 5F. | Optional | The debit notes can be consolidated in detail reported in Table 5A to 5F instead of reporting here separately. |
| 5J and 5K | Supplies declared through Amendments & Supplies reduced through Amendments | Optional | The amendments can be adjusted against details reported in Table 5A to 5F instead of reporting here separately. |
2. ITC details
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6. Details of ITC availed during the financial year |
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| 6B | Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) | Partly optional | The details of capital goods need to be reported separately. However, details of inputs and input services can be reported on a consolidated basis under the head ‘Inputs’. |
| 6C | Inward supplies received from unregistered persons liable to reverse charge (other than 6B above) on which tax is paid & ITC availed | Partly optional | The details of capital goods need to be reported separately. However, details of inputs and input services can be reported on a consolidated basis under the head ‘Inputs’. |
| 6D | Inward supplies received from registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed. | Partly optional | The details of capital goods need to be reported separately. However, details of inputs and input services can be reported on a consolidated basis under the head ‘Inputs’. |
| 6E | Import of goods (including supplies from SEZ) | Mandatory | The details of capital goods need to be reported separately. However, details of inputs and input services can be reported on a consolidated basis under the head ‘Inputs’. |
| 6F | Import of services (including inward supplies from SEZ) | Mandatory | – |
| 6G | ITC received from ISD | Mandatory | – |
| 6H | Amount of ITC reclaimed (Other than Table 6B) | Mandatory | – |
| 7. Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year | |||
| 7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H | As per Rule 37, Rule 39, Rule 42, Rule 43, Section 17(5), Reversal of TRAN-I credit, Reversal of TRAN-II credit, Other reversals | Partly Optional | Accumulated amount of reversal from 7A to 7E can be filled in 7H i.e., in ‘Other reversal’, but reversal of transitional credit fields (7F and 7G) is required to be reported separately. |
| 8A | ITC from GSTR-2A | Auto populated | The total credit available for inwards supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs) pertaining to the FY 2021-22 and reflected in Form GSTR-2A (table 3 & 5 only) shall be auto-populated in this table. |
| 8B | ITC as per Table 6B + 6H | Auto populated | This table is auto-populated basis the details furnished in Table 6B and Table 6H in the annual return. |
| 8C | ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during the financial year but availed in the next FY upto specified period | Mandatory | This table contains the details of ITC in respect of inward supply invoices received during the FY 2021-22 but availed in FY 2022-23 upto the GSTR-3B for the month of October 2022 filed upto 30 November 2022. |
| 8E and 8F | ITC available but not availed (8E) and ITC available but ineligible (8F) | Mandatory | Ideally, if the value of Table 8D is positive, then the sum total of 8E and 8F shall be equal to 8D. |
| 8G | IGST paid on import of goods (including supplies from SEZ) | Mandatory | – |
3. Other detail tables
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9 |
Details of tax paid as declared in returns filed during the financial year. | Mandatory | This table is mandatory. It is required to be filled on the basis of tax payable and paid as declared in GSTR-1 and GSTR-3B. |
| 10 & 11 | Supplies / tax declared through amendments and Supplies / tax reduced through amendments | Optional | Amendment of invoices pertaining to FY 2021-22 made in GSTR 1 filed for the period between April 2022 to October 2022 is to be declared here. |
| 12 | Reversal of ITC availed during previous financial year | Optional | ITC for the FY 2021-22 reversed in GSTR-3B for the period between April 2022 to October 2022 is required to be declared here. |
| 13 | ITC availed for the previous financial year | Optional | ITC for the FY 2021-22 availed in GSTR 3B filed for the period between April 2022 to October 2022 is to be declared here. ITC reversed in 2021-22 as per provisions of Section 16(2) but reclaimed in GSTR 3B for the period between April 2022 to October 2022 will not come in this table as the same will be furnished in annual return to be filed for FY 2022-23. |
| 14 | Differential tax payable on account of declarations made in Table 10 and 11. | Mandatory, if any tax becomes payable. | This table contains the tax payable as a result of declarations made in Table 10 and Table 11. |
| 15A, 15B, 15C and 15D | Details of refund claimed during the year including sanctioned, rejected or pending amount. | Optional | It is not mandatory to provide refund related details. |
| 15E, 15F and 15G | It also covers total demand of taxed made during the year, amount paid and pending amount. | Optional | It is not mandatory to provide demand details in GSTR-9. |
| 16A, 16B and 16C | Supplies received from Composition taxpayers (16A), deemed supply under Section 143 (16B), goods sent on approval basis but not returned (16C). | Optional | It is not mandatory to fill Table 16. |
| 17 | HSN Wise Summary of outward supplies | Mandatory | It is mandatory to fill the HSN summary for outward supplies. |
| 18 | HSN Wise Summary of Inward supplies | Optional | It is not mandatory to fill the HSN summary. |
| 19 | Late fee payable and paid | Mandatory, wherever applicable | If annual return is filed late, this table is required to be filled. |
GSTR-9C – Reconciliation statement
1. Form GSTR-9C has to be self-certified by the taxpayer instead of being certified by CA/ CMA.
2. The relaxations provided in reporting of data for certain tables of Form GSTR-9C in FY 2020-21 will continue for FY 2021-22 as well.
Due date of filing: The due date to file GSTR-9 and GSTR-9C for FY 2021-22 is on or before 31 December 2022.
Late fee for delay in filing: Any registered person failing to furnish the GSTR-9 by the due date, shall be liable to pay a late fee of INR 200 (INR 100 for CGST and SGST each) every day during which such failure continues subject to a maximum of an amount calculated at a half per cent of his turnover in the State or Union territory. Further, while calculating maximum late fee, ‘turnover in State’ or ‘turnover in Union territory’ should be taken into consideration.
Penalty: For non-filing of GSTR-9C before due date, general penalty of INR 50,000 (INR 25,000 CGST and SGST each) will be applicable.
Through the above amendments, the government has tried to reduce the compliance burden on taxpayers but at the same time putting onus on taxpayers to provide, true and correct information in the annual return and reconciliation statement.
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Disclaimer: The above article is based on the information provided in the tax laws, rules, notifications, circulars, various tax platforms and the author’s personal view of the tax law. Please refer to the latest law and consult the author before forming an opinion basis the information provided above as tax laws are subject to frequent changes. The author is not responsible for any issues arising as a result of opinion based on the above article without consultation. The author welcomes the feedback of the readers at [email protected].
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