DISCUSSION ON GST ANNUAL RETURN CLAUSE WISE ANALYSIS...
51
DISCUSSION ON GST ANNUAL RETURN CLAUSE WISE ANALYSIS OF FORM GSTR-9 HOSTED BY: JAIPUR BRANCH OF CIRC OF ICAI DATE: 13 TH JUNE 2019 CA CHIRAG JAIN
Transcript of DISCUSSION ON GST ANNUAL RETURN CLAUSE WISE ANALYSIS...
DISCUSSION ON GST ANNUAL RETURNCLAUSE WISE ANALYSIS OF FORM GSTR-9
HOSTED BY:JAIPUR BRANCH OF CIRC OF ICAI
DATE: 13TH JUNE 2019
CA CHIRAG JAIN
Flow of the session
▪ Brief Background
▪ Clarifications issued by the government for GSTR-9
▪ Clause wise Analysis of GSTR-9
▪ Case Studies
▪ Queries
CHIRAG JAIN
#GSTR-9 - RECENT APPEARANCES IN MEDIA !
CHIRAG JAIN
CHIRAG JAIN
CHIRAG JAIN
CHIRAG JAIN
CHIRAG JAIN
POINTERS
CHIRAG JAIN
▪ Initial Understanding of the form
▪ GSTR-1 v/s GSTR-3B
▪ No. of mistakes & Variety of Mistakes in GSTR-1 & GSTR-3B.
▪ New Forms introduced on 31st December 2018.
▪ Complexities in the form
▪ Source: GSTR-1 or GSTR-3B or Books
▪ Government’s Expectation from GSTR-9
Section 44: Annual Return
Section 44
❑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,
❑shall furnish an annual return for every financial year electronically in such form and manner asmay be prescribed
❑on or before the thirty-first day of December following the end of such financial year.
CHIRAG JAIN
Rule 80: Annual Return
GSTR-9
•Normal Tax Payer
GSTR-9A
•Composition Tax Payer
GSTR-9B
•E-commerce operator u/s 52
GSTR-9C
Audited Annual accounts and Reconciliation
Statement where aggregate turnover > 2
crores
CHIRAG JAIN
RECENT CLARIFICATIONS ON ANNUAL RETURN –PRESS RELEASE DATED 3RD JUNE 2019
CHIRAG JAIN
Recent Clarifications on GSTR-9
CHIRAG JAIN
▪ Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8Aof FORM GSTR-9.
▪ Input tax credit on inward supplies shall be declared from April 2018 to March 2019 in Table8C of FORM GSTR-9.
▪ Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March2019 shall be declared in Pt. V of FORM GSTR-9. Such particulars may contain details ofamendments furnished in Table 10 and Table 11 of FORM GSTR-1.
▪ It may be noted that irrespective of when the supply was declared in FORM GSTR-1, theprinciple of declaring a supply in Pt. II or Pt. V is essentially driven by when was tax paidthrough FORM GSTR-3B in respect of such supplies. If the tax on such supply was paid throughFORM GSTR-3B between July 2017 to March 2018 then such supply shall be declared in Pt. IIand if the tax was paid through FORM GSTR-3B between April 2018 to March 2019 then suchsupply shall be declared in Pt. V of FORM GSTR-9.
Recent Clarifications on GSTR-9
CHIRAG JAIN
▪ Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORMGSTR-3B shall be declared in Pt. II of the FORM GSTR-9. Such additional liability shall be computed in Pt. IV andthe gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid throughFORM DRC-03.
▪ Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books ofaccounts or returns. One common challenge reported by taxpayer is in Table 4 of FORM GSTR-9 where detailsmay have been missed in FORM GSTR-1 but tax was already paid in FORM GSTR-3B and therefore taxpayers seea mismatch between auto-populated data and data in FORM GSTR-3B. It may be noted that auto-population isa functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per theirbooks of account or returns filed during the financial year.
▪ Many taxpayers have represented that Table 8 has no row to fill in credit of IGST paid at the time of import ofgoods but availed in the return of April 2018 to March 2019. Due to this, there are apprehensions that creditwhich was availed between April 2018 to March 2019 but not reported in the annual return may lapse. For thisparticular entry, taxpayers are advised to fill in their entire credit availed on import of goods from July 2017 toMarch 2019 in Table 6(E) of FORM GSTR-9 itself.
▪ Payments made through FORM DRC-03 for any supplies relating to period between July 2017 to March 2018will not be accounted for in FORM GSTR-9 but shall be reported during reconciliation in FORM GSTR-9C.
REPORTING OF OUTWARD SUPPLIES IN GSTR-9
CHIRAG JAIN
Reporting of Outward Supplies in GSTR-9
▪ Broadly concerned with Table 4, 5, 10, 11 and 9, 14.
▪ Source of Information – GSTR-1 or GSTR-3B or Books of Accounts?
▪ Important to understand that the reporting disclosures in Part II and Part V is driven from tax payments in 3B.
▪ Clause wise Analysis of above tables.
▪ Register – Outward Supplies
▪ Suggestive Approach for reporting of outward supplies in GSTR-9▪ Determine the total value of supplies made in 2017-18.
▪ Supplies for which payment has been made in GSTR-3B of April – March 2019 – Report in Part V.
▪ All other supplies – Whether payment made through GSTR-3B or not – Report in Part II.
▪ Tax Payable in Table 9 – Based on tax liability in Part II.
▪ Additional Tax Liability – Pay Tax in cash via DRC-03.
▪ Classification into B2B, B2C, etc to be done only when GSTR-1 is in sync with GSTR-3B, else not necessary.
CHIRAG JAIN
CASE STUDIES RELATED TO OUTWARD SUPPLIES
CHIRAG JAIN
Outward Supplies – Case Study 1
CHIRAG JAIN
Reporting In GSTR-9 Amount
Table 4 100000+5000
Table 10 0
Total 100000 + 5000
Reporting in GSTR-9
Period Books 3B GSTR-1
July 2017 – March 2018 100000 + 5000 100000+5000 100000+5000
April 2018 – March 2019
Outward Supplies – Case Study 2
CHIRAG JAIN
Reporting in GSTR-9 Amount
Table 4 100000+5000
Table 10 0
Total 100000 + 5000
Reporting in GSTR-9
Period Books 3B GSTR-1
July 2017 – March 2018 100000 + 5000 100000+5000 75000
April 2018 – March 2019 25000
Outward Supplies – Case Study 3
CHIRAG JAIN
Table Amount
Table 4 70000+3500
Table 10 30000+1500
Total 100000 + 5000
Reporting in GSTR-9
Period Books 3B GSTR-1
July 2017 – March 2018 100000 + 5000 70000+3500 50000+2500
April 2018 – March 2019 30000+1500
Reporting in Table 9 Amount
Tax Payable 3500
Tax Paid 3500
Reporting in Table 14 Amount
Tax Payable 1500
Tax Paid 1500
Outward Supplies – Case Study 4
CHIRAG JAIN
Table Amount
Table 4 (50000+20000)+(2500+1000)
Table 10 30000+1500
Total 100000 + 5000
Reporting in GSTR-9
Period Books 3B GSTR-1
July 2017 – March 2018 100000 + 5000 50000+2500 50000+2500
April 2018 – March 2019 30000+1500 50000+2500
Reporting in Table 9 Amount
Tax Payable 3500
Tax Paid 2500
Reporting in Table 14 Amount
Tax Payable 1500
Tax Paid 1500
Outward Supplies – Case Study 5
CHIRAG JAIN
Reporting in GSTR-9 Amount
Table 4 100000+5000
Table 10 0
Total 100000 + 5000
Reporting in GSTR-9
Period Books 3B GSTR-1
July 2017 – March 2018 100000 + 5000 120000+6000 75000+3750
April 2018 – March 2019 25000+1250
Reporting in Table 9 Amount
Tax Payable 5000
Tax Paid 6000
Reporting in Table 14 Amount
Tax Payable 0
Tax Paid 0
Outward Supplies – Case Study 6
CHIRAG JAIN
Reporting in GSTR-9 (Alternate 1) Amount
Table 4 120000+6000
Table 11 -20000-1000
Total 100000 + 5000
Reporting in GSTR-9
Period Books 3B GSTR-1
July 2017 – March 2018 100000 + 5000 120000+6000 75000+3750
April 2018 – March 2019 -20000-1000 25000+1250
Reporting in GSTR-9 (Alternate 2) Amount
Table 4 100000+5000
Table 11 0
Total 100000 + 5000
INPUT TAX CREDIT
CHIRAG JAIN
Reporting of ITC in GSTR-9
▪ Broadly concerned with Table 6, 7, 8, 12 and 13.
▪ Source of Information –GSTR-3B or Books of Accounts?
▪ Bifurcation into I/IS/CG.
▪ Clause wise Analysis.
▪ Register – Inward Supplies
▪ Recent clarifications related to ITC – Unsettling the law
▪ Food for thought - ITC claimed in October 2018 – March 2019 – Legally permissible?
CHIRAG JAIN
CHIRAG JAIN
Manner in which
information was
sought in GSTR-2A
which never came
into existence.
ITC – Case Study 1
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 80000
Table 13 20000
Total 100000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 80000
Table 8C 20000
Total 8B + 8C 100000
Period Books 3B 2A
July 2017 – March 2018 100000 80000 100000
April 2018 – March 2018 20000
ITC – Case Study 2
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 80000
Table 13 0
Total 80000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 80000
Table 8C 0
Table 8E 20000
Period Books 3B 2A
July 2017 – March 2018 100000 80000 100000
April 2018 – March 2018
PRESS RELEASE DATED 18TH OCT 2018
Last date to avail input tax credit in respect of invoices or debit notes relating to such invoices pertaining to period fromJuly, 2017 to March, 2018
CHIRAG JAIN
Press Release Dated 18th Oct 2018
▪ It is clarified that the furnishing of outward details in FORM GSTR-1 by the correspondingsupplier(s) and the facility to view the same in FORM GSTR-2A by the recipient is in the natureof taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self-assessment basis in consonance with the provisions of section 16 of the Act. Theapprehension that ITC can be availed only on the basis of reconciliation between FORM GSTR-2A and FORM GSTR-3B conducted before the due date for filing of return in FORM GSTR-3B forthe month of September, 2018 is unfounded as the same exercise can be done thereafter also.
CHIRAG JAIN
ORDER NO. 02/2018-CENTRAL TAX -DATED 31ST DECEMBER 2018Extension of due date of availing the ITC u/s 16(4)
CHIRAG JAIN
Order No. 02/2018-Central Tax dated 31st Dec 2018
▪ Proviso introduced to Section 16(4).
▪ Extended the time limit provided u/s 16(4) to the due date of filing of GSTR-3B for the monthof March 2019 provided that the details of such invoice or debit note relating to such invoicehas been uploaded by the supplier in its GSTR-1 till the due date of filing of Form GSTR-1 forthe month of March 2019.
CHIRAG JAIN
IMPLICATION OF REMOVAL OF DIFFICULTIESORDER NO. 2/2018 DATED 31.12.2018 READWITH PRESS RELEASE DATED 18.10.2018
CHIRAG JAIN
Implication of Order No. 02/2018-CT Read with Press Release Dated 18.10.2018
CHIRAG JAIN
Period Remark
For ITC claimed till September 2018 GSTR-3B (Till 25th Oct 2018)
Reflection in GSTR-2A is NOT mandatory
Press Release dated 18.10.2018
For ITC claimed in Oct 2018 –March 2019 (Till 22nd April 2019)
Reflection in 2A is mandatory Order No. 02/2018-CT
ITC – Case Study 3
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 90000
Table 13 10000
Total 100000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 90000
Table 8C 10000
Table 8D -10000
Period Books 3B 2A
July 2017 – March 2018 100000 90000 90000
April 2018 – Sept 2018 10000
ITC – Case Study 4
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 90000
Table 13 0
Total 90000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 90000
Table 8C 0
Table 8D 0
Period Books 3B 2A
July 2017 – March 2018 100000 90000 90000
Oct 2018 – March 2019 10000
ITC – Case Study 5
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 90000
Table 13 5000
Total 95000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 90000
Table 8C 5000
Table 8D 0
Period Books 3B 2A
July 2017 – March 2018 100000 90000 95000
Oct 2018 – March 2019 10000
ITC – Case Study 6
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 90000
Table 13 0
Total 90000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 90000
Table 8C 0
Table 8D -5000
Period Books 3B 2A
July 2017 – March 2018 100000 90000 85000
Oct 2018 – March 2019 10000
ITC – Case Study 6
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6 90000
Table 13 7000
Total 97000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8B 90000
Table 8C 7000
Table 8D -12000
Period Books 3B 2A
July 2017 – March 2018 100000 90000 85000
April 2018 – Sept 2018 7000
Oct 2018 - March 2019 3000
ITC – Import of Goods - Case Study 7
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6E 100000
Table 13 0
Total 100000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8G 100000
Table 8H 100000
Table 8I 0
Period Books 3B 2A
July 2017 – March 2018 100000 100000 NA
April 2018 – March 2019
ITC – Import of Goods - Case Study 8
CHIRAG JAIN
Reporting in Table 6 / Table 13 Amount
Table 6E 100000
Table 13 0
Total 100000
Reporting in GSTR-9
Reporting in Table 8 Amount
Table 8G 100000
Table 8H 100000
Table 8I 0
Period Books 3B 2A
July 2017 – March 2018 100000 90000 NA
April 2018 – March 2019 10000
ITC – Reversal - Case Study 9
CHIRAG JAIN
Table Amount
Table 6 100000
Table 7 0
Table 12 0
Reporting in GSTR-9
Period Books 3B 2A
July 2017 – March 2018 100000 120000-20000 (Adjusted in Table 4A of 3B)
NA
April 2018 – March 2019
ITC – Reversal - Case Study 10
CHIRAG JAIN
Table Amount
Table 6 120000
Table 7 20000
Table 12 0
Reporting in GSTR-9
Period Books 3B 2A
July 2017 – March 2018 100000 120000-20000 (Reversed in Table 4B of 3B)
NA
April 2018 – March 2019
ITC – Reversal - Case Study 11
CHIRAG JAIN
Table Amount
Table 6 120000
Table 7 0
Table 12 20000
Reporting in GSTR-9
Period Books 3B 2A
July 2017 – March 2018 100000 120000 NA
April 2018 – March 2019 -20000 (Reversed in Table 4B of 3B)
ITC – Reversal - Case Study 12
CHIRAG JAIN
Table Amount
Table 6 100000
Table 7 20000
Table 12 0
Reporting in GSTR-9
Period Books 3B 2A
July 2017 – March 2018 80000 100000 NA
April 2018 – March 2019
Alternate 1 Alternate 2
Table Amount
Table 6 100000
Table 7 0
Table 12 0
REPORTING OF TRANSACTIONS RELATING TO RCM
CHIRAG JAIN
RCM – Case Study 1
CHIRAG JAIN
Reporting for RCM Output Liability Amount
Table 4 100000*+ 3500
Table 10 0 + 1500
Total 100000 + 5000
Reporting in GSTR-9
Reporting for RCM ITC Amount
Table 6 3500
Table 13 1500
Total 5000
Period Books 3B Output (Table 3) 3B Input (Table 4)
July 2017 – March 2018 100000 + 5000 70000 + 3500 70000 + 3500
April 2018 – March 2018 30000 + 1500 30000 + 1500
RCM – Case Study 2
CHIRAG JAIN
Reporting for RCM Output Liability Amount
Table 4 100000*+ (3500 + 500)
Table 10 0 + 1000
Total 100000 + 5000
Reporting in GSTR-9
Reporting for RCM ITC Amount
Table 6 3500
Table 13 1000
Total 4500
Period Books 3B Output (Table 3) 3B Input (Table 4)
July 2017 – March 2018 100000 + 5000 70000 + 3500 70000 + 3500
April 2018 – March 2018 20000 + 1000 20000 + 1000
Not Reported 10000 + 500 10000 + 500
REPORTING OF OTHER INFORMATION IN PART VI
CHIRAG JAIN
Part VI: Other Information
06-10-2018 ADV. RAHUL LAKHWANI & CA CHIRAG JAIN 49
15. Details of Demands and
Refunds
• Refund claimed
• Refund sanctioned
• Refund rejected
• Refund Pending
• Demand of taxes
• Taxes paid out of above
• Demands pending
Table 16
• Supplies received fromComposition tax payer.
• Deemed supply u/s 143
• Goods sent on approval butnot returned.
17, 18 & 19 - HSN wise summary &
Late Fees
• Outward supplies
• Inward supplies
• Details of Late fees payable and paid.
Conclusion
▪ Last opportunity to rectify the errors and mistakes.
▪ Cannot be revised.
▪ Late Fees – Rs.200 per day or 0.5% of the turnover whichever is less.
▪ Better to file late rather than filing incorrect or inaccurate particulars.
▪ Demand limited to 3 years - Extended period cannot be invoked.
▪ No need to create chaos in reporting the transactions.
▪ Keeping in mind the government’s expectation, do the best possible disclosures of taxespayable and paid.
CHIRAG JAIN
