Article explains How to Handle Critical Issues in GSTR-9, Applicability of GSTR-9, GSTR 9A, GSTR 9B, GSTR 9C: Reconciliation Statement, Revision of Annual return in Form GSTR-9, Pre-Requisite of GST Annual Return, When “NIL” GSTR-9 RETURN can be filed, References available to prepare GSTR-9, Source of Information, Caution, Information not furnished in GSTR-1 and GSTR-3B required to be furnished in GSTR-9, Information required in GSTR-1 and GSTR-3B but not required in GSTR-9, Some Information in GSTR-9 is required to be directly carried to GSTR 9C like,  Additional Tax liability not discharged through GSTR 3B can be paid through DRC-03 and Steps to prepare GSTR-9 return online.

How to Handle Critical Issues in GSTR-9

Additional Sale

 

 

 

 

 

Not reflected in GSTR-1 and GSTR 3B for 2017-18 but reflected in Table 4/5/7 of GSTR-1 from April to March 2018 and not in GSTR 3B of 2018-19 To be reflected in Table 4 and tax payable in Table 9 to be increased. (Because Table 4 after amendment by Notification 74/2018 requires to disclose Supplies “made” during financial year instead of supplies “declared in returns ” during financial year).

Additional tax liability may be discharged through DRC-03

Not reflected in GSTR-1 and GSTR 3B for 2017-18 but reflected in Table 4/5/7 of GSTR-1 of 2018-19 and also in GSTR 3B of 2018-19 (from April to September 2018) Two alternatives can be used:

I.

a. Reflect the additional invoice in Table 4 of GSTR-9

b. Reflect tax payable in Table 9 of GSTR 9

c. Reflect tax paid in Table 9 of GSTR 9 as NIL

d. Reflect the tax payable in Table 14 of GSTR-9 as NIL

e. Reflect the tax paid in Table 14 of GSTR 9

f. There shall be no reconciliation difference in 9C

II.

a. Do not reflect invoice in GSTR-9 but reflect in un reconciled turnover in Table 6/8 of GSTR 9C and also un reconciled payment of tax in Table 9R of GSTR 9C along with reason for un reconciled payment of amount in Table 10. But it shall not form part of Table 11 and Table 16 of GSTR 9C

Reflected in GSTR-1 for 2017-18 but reflected in GSTR 3B from April 18 to Sep 18 1. To be reflected in Table 4 of GSTR 9 and

2. Tax payable to be reflected in Table 9 of GSTR 9

3. Reflect tax paid in Table 9 of GSTR 9 as NIL

4. Reflect the tax payable in Table 14 of GSTR-9 as NIL

5. Reflect the tax paid in Table 14 of GSTR 9

Reflected in GSTR 3B of 2017-18 but GSTR-1 of 2018-19 1. To be reflected in Table 4 of GSTR 9 and

2. Tax payable to be reflected in Table 9 of GSTR 9

3. Reflect tax paid in Table 9 of GSTR 9.

Not Disclosed in GSTR-1 and GSTR 3B of 2017-18 but disclosed in GSTR-1 and GSTR 3B from October to March 2019 Two alternatives

I. May be reflected in Table 10 and Table 14 of GSTR9 (although it requires disclosure of items from April to March 2019 and has not been brought in consonance with removal of difficulty order no.2)

II. Do not reflect invoice in GSTR-9 but reflect in un reconciled turnover in Table 6/8 of GSTR 9C and also un reconciled payment of tax in Table 9R of GSTR 9C along with reason for un reconciled payment of amount in Table 10. But it shall not form part of Table 11 and Table 16 of GSTR 9C

Neither disclosed in GSTR -1 and GSTR 3B of 2017-18 nor in 2018-19 Not to be disclosed in GSTR-9 at all and to be disclosed as reconciliation item in GSTR 9C along with additional tax liability in Table 11 and Table 16 of GSTR 9C and additional tax to be discharged through DRC-03
Additional ITC

 

 

Not reflected in GSTR 3B for 2017-18 but reflected in GSTR 3B for April to September 2018 a. Reflect in Table 8C of GSTR 9

b. Reflect in Table 13 of GSTR 9

b. Reflect in Table 12C of GSTR 9C

c. Reflect in Un reconciled ITC in 14T and provide reasons in Table 15 of GSTR 9C

Not reflected in GSTR 3B for 2017-18 but reflected in GSTR 3B for October to March 2018 on the basis of invoices up loaded by the supplier a. Reflect in Table 8C of GSTR 9 (Though 8C pertains to April to Sep 2018 only but if ITC is not reflected in 8C, it shall get lapsed)

b. Reflect in Table 12C of GSTR 9C

b. Reflect in Un reconciled ITC in 12F and 14T and provide reasons in Table 15 of GSTR 9C

c. Reflect ITC in GSTR 9 for 2018-19

Not reflected in GSTR 3B for 2017-18 but reflected in GSTR 3B for October to March 2018 without invoices up loaded by the supplier a. To be placed in 8E of GSTR 9 (ITC available but not availed)

b. To be placed in 8K of GSTR 9 (ITC to be lapsed)

c. Not to be placed in ITC reversal under Table 7 or Table 12 of GSTR 9

d. Reflect in Un reconciled ITC in 12F and 14T and provide reasons in Table 15 of GSTR 9C

e. Additional Tax liability may be disclosed in Table 16 and Auditor’s recommendations in GSTR 9C and may be discharged through DRC 03

Not reflected in GSTR 3B for 2017-18 and 2018-19 a. To be placed in 8E of GSTR 9 (ITC available but not availed)

b. To be placed in 8K of GSTR 9 (ITC to be lapsed)

ITC reversal

 

 

 

 

Relating to 2017-18. Not reversed in books and neither reflected in GSTR 3B for 2017-18 nor reflected in GSTR 3B 2018-19 No reflection in GSTR 9

Additional Tax liability to be discharged through DRC-03

Relating to 2017-18. Reversed in books for 2018-19 and neither reflected in GSTR 3B for 2017-18 nor reflected in GSTR 3B 2018-19 No reflection in GSTR 9

Additional Tax liability to be discharged through DRC-03

Relating to 2017-18. Reversed in books for 2018-19 and also reversed in GSTR 3B for 2018-19 (April to September 2018) Not to be reflected in Table 7 of GSTR 9

To be reflected in Table 12 of GSTR 9

No effect o be taken in Table 14

Relating to 2017-18.

Reversed in books for 2018-19 and also reversed in GSTR 3B for 2018-19 (October to September 2018)

Not to be reflected in Table 12 of GSTR 9

No effect to be taken in Table 14

Relating to 2017-18. Reversed in books relating to 2017-18, but not reversed in GSTR 3B 1. Not to be reflected in GSTR 9

2. Shall appear as un reconciled ITC in 12F and 14T of GSTR 9C

3. Tax Payable for un reconciled ITC to be reflected in Table 16 and auditor’s recommendations

Applicability of GSTR-9, GSTR 9A, GSTR 9B, GSTR 9C: Reconciliation Statement

GSTR-9 Every registered Person except

a) Input service distributor

b) TDS Deductor

c) Tax collector u/s 52

d) Casual Taxable person

e) Non resident Taxable person

f) Composition Taxable Person

GSTR 9A Composition Dealer
GSTR 9B Tax Collector u/s 52 (Not applicable for 2017-18 since S.52 came into force on 01-10-2018)
GSTR 9C: Reconciliation Statement Registered Person whose Turnover during financial year exceeds 2 crores

 

(Turnover to be calculated PAN India basis. 2 crores limit to be checked for 1st April to 31st March and not 1st July to 31st March)

GSTR 9 +9A Where registered person switched from/switched to composition scheme during financial year
Multiple GSTIN GSTR 9/9A/9B/9C to be filed for every GSTIN

Note:

1. GSTR 9/9A/9C is not applicable to taxable person who though required to be registered is not actually registered.

2. GSTR 9/9A/9C is applicable to registered person even if entire turnover is exempt like educational institutions and hospitals

3. GSTR 9/9A/9C is applicable to registered person even though required to pay tax only on reverse charge basis.

4. GSTR 9/9A/9C is applicable to registered person even though no tax is payable by it being supplies covered by reverse charge

5. In case of E Commerce operators covered by section 9(5) i.e. aggregators, GSTR 9 shall be applicable because they stand in shoes of supplies as per section 9(5)

Revision of Annual return in Form GSTR-9

Annual return in Form GSTR-9 once filed cannot be revised.

Pre-Requisite of GST Annual Return

It is mandatory to file all your FORM GSTR-1 and FORM GSTR-3B for the FY 2017-18 before filing this return.

When “NIL” GSTR-9 RETURN can be filed-

if you have

a. Not made any outward supply (commonly known as sale); AND

b. Not received any inward supplies (commonly known as purchase) of goods/services; AND

c. No liability of any kind; AND

d. Not claimed any Credit during the Financial Year; AND

e. Not received any order creating demand; AND

f. Not claimed any refund. during the Financial Year

References available to prepare GSTR-9

a. System computed GSTR-9 as PDF is available for reference.

b. Consolidated Summaries of GSTR-1 and GSTR 3B shall are also available

c. GSTR -9 field shall be auto populated to the extent possible based on GSTR 3B and GSTR-1 except Table 6A, 8A, and payment entries in Table 9.

Source of Information

a) Information regarding outward supplies has been sourced from GSTR-1 and information regarding ITC has been sourced from GSTR 3B.

b) Annual Return is not based on annual accounts.

c) Computation of ITC based on GSTR-2A was auto-populated by the System based on GSTR-1 filed by your corresponding suppliers upto 28/02/2019. Next update of ITC based on GSTR-2A will happen soon. If you have some missing credits in GSTR-2A, you may like to wait till next update.

Caution

The fields, where the system computed values would be modified by more/less than 20%, shall be highlighted in ‘Red’ for reference and attention.

Information not furnished in GSTR-1 and GSTR-3B required to be furnished in GSTR-9

a. Bifurcation of ITC on Inward Supplies from registered persons, Inward supplies subject to RCM, imports into Inputs, Input services and capital goods

b. ITC pushed by TRAN-1 and TRAN-II

c. ITC pushed by ITC-01 and ITC-02 (Whether it is routed through 3B or directly goes to credit ledger)

d. Bifurcation of ITC reversals (Table 7)

e. Particulars of Demands and refunds (Table 15)

f. Deemed supply u/s 143 (Table 16B) (Job Work)

g. Goods sent on approval (Table 16C)

h. HSN wise summary of inward supplies. 

Information required in GSTR-1 and GSTR-3B but not required in GSTR-9 :

GSTR 3B

a. Supplies made to Composition tax payers as 3.2(b) of GSTR-3B have been clubbed in 4B of GSTR-9 and not separately disclosed.

b. Supplies made to UIN holders as per 3.2(c) of GSTR-3B have been clubbed in 4B of GSTR-9 and not required to be separately disclosed.

c. Receipt of Exempted, NIL rated and Non GST supplies required to be reflected in Table 5 of GSTR 3B is not required to be reflected in GSTR-9.

d. Information regarding taxes paid through TDS and TCS are required to be reflected in Para 6.2 of GSTR-3B, which is not there in GSTR-9 because the provisions have come into effect only from 01-10-2018.

GSTR-1

Information regarding documents issued during the tax period required to be reflected in Table 13 of GSTR-9 is not required to be reflected in GSTR-9

Some Information in GSTR-9 is required to be directly carried to GSTR 9C like:

a. 4N of GSTR-9 = 7E of GSTR 9C

b. 5N+10+11 of GSTR 9=9 5Q of GSTR 9C

c. 7J of GSTR 9 = 12A of GSTR 9C= 14S of GSTR 9C

 Additional Tax liability not discharged through GSTR 3B can be paid through DRC-03.

a) Taxpayers shall select “Annual return” in Drop down for DRC-03.

b) Payment to be made only through electronic cash ledger. [Instruction No.9]

Taxpayers cannot claim input tax credit unclaimed during FY 2017-18 through this return. [Instruction No.3]
Penalty for non filing of GSTR-9 is Rs. 100/- + 100/- per day. Maximum penalty is 0.25% of turnover in state. It is not 0.25% + 0.25% of turnover.
GSTR-9 requires to provide information of supplies made “during” the financial year. In case of belated filing of return or return for March filed during 2018-19, the words should be read as “made for the financial year”.[Page 88 of Technical guide] 
Online Corrections in GSTR-9 can be made except in Table 17 and 18 where number of entries exceed 500.
Some Information in GSTR-9 is required to be directly carried to GSTR 9C like:

1. 5N+10+11 of GSTR 9=9 5Q of GSTR 9C

2. (4N -4G) + (10-11)of GSTR-9 = 7F of GSTR 9C

3. Tax Payable in 9+14 of GSTR 9= Tax Payable as per 9Q of GSTR 9C

4. ITC available for utilization as per 7J of GSTR 9 = 12E of GSTR 9C= 14S of GSTR 9C

Steps to prepare GSTR-9 return online

1. Download the draft system computed GSTR-9, summary of Form GSTR-1 and GSTR-3B for the financial year by clicking on relevant buttons. This is only for reference for filling the return, and will facilitate in providing details in actual tables.

2. Click on tables (Box) selected and fill in the required details;

3. Summary of added details would be available on the relevant box;

4. Click on ‘Preview’ button to view summary in PDF or Excel format; and

5. After adding and confirming the details, follow filing process:

a. Click on ‘Compute Liabilities’; for computation of Late fee, if any;

b. ‘Proceed to File’ button would be enabled once late fee is calculated by system;

c. Click on “Proceed to File” to pay liabilities and file the return ;

d. Additional details can be added even after clicking on ‘Compute Liabilities’ or ‘Proceed to file’ button. However, in that case, you would be required to follow steps 1 to 3 again to file the return ;

e. Click on ‘Download Filed GSTR-9 (pdf)’ button to view summary of filed details in PDF format; and

f. You can also download all filed details as an excel file by clicking on ‘Download GSTR-9 details (Excel)’.

Important changes that have been incorporated in GSTR-9 vide Notification 74/2019 dated 31-12-2018 viz old notification 39/2018 dated 4-9-18

a. References to supplies “declared” /” on which tax is payable/not payable as declared in returns filed ” during the financial year has been substituted with supplies “made” during the financial year in

a. Title of Part II

b. Title of Table 4 of Part II

c. Title of Table 5 of Part II

Hence missing invoices for 2017-18 reported in Table 4 of GSTR-1 till 31st March 2019 can be reported in GSTR-9.

Here it may be pertinent to take note of Removal of Difficulty Order No.2 dated 31-12-2018 which amends section 37(3) as under

“Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsection (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019.”.

It would be interesting to note that Part V in Form GSTR 9 for the financial year 2017-18 continues to refer to ‘April 2018 to September 2018’.

b. “No supplies ” have been clubbed with NON GST supplies in Table 5F.
c. Reference to “ITC as declared/availed in returns filed ” during the financial year has been replaced with “ITC availed” during the financial year in

a. Title of Part III

b. Title of Table 6 of Part III

c. Title of Table 7 of Part III

Here it may be pertinent to take note of Removal of Difficulty Order No.2 dated 31-12-2018 which amends section 16(4) as under

“Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.”.
GSTR 3B filed during April to Sep 2018 Irrespective of ITC reflected in GSTR 2A or not ITC to be reflected in Table 13 of GSTR 9 of 2017-18
GSTR 3B filed during Oct 18 to March 18 Where invoices uploaded by supplier in GSTR 2A ITC to be reflected in GSTR 9 of 2018-19

It would be interesting to note that Part V in Form GSTR 9 for the financial year 2017-18 continues to refer to ‘April 2018 to September 2018’.

c. Table 8D of GSTR 9 calculates difference between ITC as per 2A and ITC availed in 3B. Then before amended 8E and 8F required to provide ITC un availed + ITC ineligible out of this difference only.

There may be the case that Supplier has not filled GSTR-1, therefore credit appearing in 2A is less than what have been availed and may include ineligible credit.

Eg. Rs. 1000 appearing in 2A which includes Rs. 200 ineligible credit and Rs. 50 not availed and taxpayer has claimed Rs. 1200 as credit in 8B, resulting 8D is negative. Rs.200 and Rs. 50 cannot be written in 8 E and 8 F which is negative Rs.200.

Hence reference to 8D has been omitted in 8E and 8F being independent figures.

d. Instructions inserted for 8D

Aggregate value of the input tax credit which was available in FORM GSTR-2A (table 3 & 5 only) but not availed in FORM GSTR-3B returns shall be computed based on values of 8A, 8B and 8C.

However, there may be circumstances where the credit availed in FORM GSTR-3B was greater than the credit available in FORM GSTR-2A. In such cases, the value in row 8D shall be negative.

e. Instruction No. 2 states that It is mandatory to file all your FORM GSTR-1 and FORM GSTR-3B for the FY 2017-18 before filing this return
Instruction No.3: It may be noted that additional liability for the FY 2017-18 not declared in FORM GSTR-1 and FORM GSTR-3B may be declared in this return. However, taxpayers cannot claim input tax credit unclaimed during FY 2017-18 through this return.
f. Insruction No. 4 on Part II: It may be noted that all the supplies for which payment has been made through FORM GSTR-3B between July 2017 to March 2018 shall be declared in this part.
g. Instruction No.7 regarding Table 13: Any ITC which was reversed in the FY 2017-18 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2018-19, the details of such ITC reclaimed shall be furnished in the annual return for FY 2018-19.
h. Instruction No. 8 regarding Table 17 & 18 for providing HSN wise rate wise quantitative details :

It may be noted that this summary details are required to be declared only for those inward supplies which in value independently account for 10 % or more of the total value of inward supplies.

i. Instruction No.9: Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select ―Annual Return‖ in the drop down provided in FORM DRC-03. It may be noted that such liability can be paid through electronic cash ledger only.

As per note issued by IDTC on Form 9 and 9C :it appears that one would not be permitted to report any additional liablity in Form GSTR 9 without reporting any corresponding Form GSTR 1.

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3 Comments

  1. vswami says:

    @ hemant-

    THis appears to be just one of the genuine but grave doubts , raised or not, faced with by any co-members. Will the learned writer mind to reply /clarify , for enlightenment of one and all who are bound to be sailing in the same boat , with leaks aplenty!

  2. hemant says:

    Sir is there any solution if itc as per 3B is more than 2A, difference will come in negative in GSTR 9, so what to do shall file return with negative itc, sir please reply

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