GST Annual Return -Forms GSTR 9 and GSTR 9A Active on GST Portal

GST Annual Return

Form GSTR 9 and GSTR 9A active on the GST portal

Here we will answer the following questions;

• What is GST Annual Return and its types?
• Who all are NOT required to file GSTR 9?
• Points to be considered while filing GST Annual Return?
• Whether Revision of GST Annual Return is possible or not?
• Whether Additional Liability (if found) can be paid at the time of filing of Annual Return and If Yes Then how to Pay?
• Whether Additional Input Tax Credit can be claimed (if found)at the time of filing of GST Annual Return?
• Is it Compulsory to file NIL Return and If Yes, What are the conditions to be taken care of before filing NIL Return?
• Due Date for Filing of GST Annual Return?
• Penalty for Non-Filing of GST Annual Return?
• Check List for Preparation of GST Annual Return?

Once you login into the GST Portal, you will find the Annual Return Tab below the Return Dashboard icon. You can also see that by clicking on Services>Returns>annual return. Please see the snapshot as below;

 

GST Annual Return

§ GST Annual Return?

An annual return to be filed once in a year by the registered taxpayers under GST and contains supplies made and received during the year. It consolidates the information furnished in the monthly or quarterly returns filed during the year.

§ Types of GST Annual Return?

GST Forms	Category of Tax Payers
GSTR 9	Regular Tax Payers (Refer Note 1)
GSTR 9A	Persons registered under Composition Scheme
GSTR 9B	E-Commerce operators who have filed  GSTR 8
GSTR 9C	· Taxpayers whose aggregate turnover exceeds Rs.2 crores during the financial year. ·      All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C.

Note 1

Who all are NOT required to file GSTR 9 ?

All taxpayers are required to file GSTR 9 except as stated below;

·         Input service distributors

·         Non-resident taxable persons

·         Casual Taxable Person

·         Persons paying TDS under section 51 of GST Act.

§Points to be considered while filing GST Annual Return ?

  

GSTR-9 can be filed online. It can also be prepared on Offline Tool and then uploaded on the Portal and filed.

Annual return in form GSTR-9 is required to be filed by every taxpayer registered as normal taxpayer during the relevant financial year.

·   GSTR 9 is required to be filed for each GST registration individually.

All applicable statements in Forms GSTR-1 and returns in Form GSTR 3B of the financial year shall have been filed before filing GSTR-9.

Annual return in Form GSTR-9 once filed CANNOT BE REVISED.

Computation of ITC based on GSTR-2A has been auto-populated by the System based on GSTR-1 filed by your corresponding suppliers upto 29/01/2019. If you have some missing credits in GSTR-2A, you may like to wait till next updation.

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 will facilitate in providing details in actual tables.

After adding and confirming the details, Click on Compute Liabilities for computation of Late fee

Proceed to File button would be enabled once late fee is calculated by system;

Click on Proceed to File to pay liabilities and file the return. However, Additional details can be added even after clicking on ‘Compute Liabilities’ or ‘Proceed to file’ button. But in that case, you would be required to click on compute liabilities button again and then proceed to pay them ;

You can Download Filed GST Annual Return in Excel as well PDF format according to the requirement.

§Whether Additional Liability (if found) can be paid at the time of filing of Annual Return and If Yes Then How to pay?

With the change in the Annual Return format i.e. (“Declared in returns” filed during the year to “Made” during the year), the scope of annual return GSTR-9 is broadened to include the additional supplies which were not disclosed in the monthly returns w.r.t FY 2017-18. Any liability arising out of new additions is required to be paid in cash through FORM GST DRC-03.

§Whether Additional Input Tax Credit can be claimed (if  found) at the time of filing of GST Annual Return?

Though annual return allows you to include and pay additional liability, you cannot claim unclaimed input tax credit in GSTR 9. However,  ITC Can be claimed by the recipient, till the due date of filing of GSTR 3B for the month of March 2019 i.e till 20^th April 2019, related to the invoices issued by supplier pertaining to the financial year 2017-18.

§ Is it Compulsory to file NIL Return and If Yes, what are the conditions to be taken care of before filing NIL Return?

NIL GST Annual Return can be filed, if you have

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

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

And No liability of any kind;

And Not claimed any Credit during the Financial Year;

And Not received any order creating demand;

And Not claimed any refund during the Financial Year.

All the conditions as stated above needs to be satisfied before filing of NIL GST Annual Return. Although, after login, GST Portal automatically updates whether person can file NIL return or not.

 §  Due Date for Filing of GST Annual Return?

Section 44 of CGST Act 2017	On or before 31st day of December following the end of such financial year in which such supplies were made i.e. Due date of Annual Return for supplies made in F.Y. 2017-18 will be 31st Dec 2018
Latest update as on 22ND December 2018	Due date for filing of GSTR-9, GSTR-9A and GSTR-9C extended up to 30th June 2019

 §  Penalty for Non-Filing of GST Annual Return?

Late fees for not filing the GSTR 9 within the due date is Rs.100 per day per act (effectively Rs.200 per day) up to a maximum of an amount calculated at a 0.25% of the taxpayer turnover in the state or union territory.

§ Check List for Preparation of GST Annual Return?

For Output Supplies or Sales made

ü Reconciliation of Turnover as per books and as per GST returns filed during the year;

ü Reconciliation of Turnover and Tax Paid as per GSTR 3B and GSTR 1 filed during the year (this statement can be downloaded from GST Portal refer snapshot below w.r.t tax paid by clicking on computation of liability declared and ITC claimed)

ü Details of amendments OR omissions pertaining to previous FY 2017-18 but reported in current FY 2018-19

ü Transactions on which payment is required to made by recipient under RCM

ü Check whether all RCM liabilities has been paid

ü Check whether advances has been duly recorded and liability paid off

ü Details of Credit notes and Debit notes issued during FY 2017-18

ü HSN wise summary of sales

 For Inward Supplies or Purchases made

ü Reconcile whether all credit pertaining to FY 2017-18 has been claimed up to filing of GST Annual Return

ü Reconciliation Statement between GSTR 2A and GSTR 3B (this statement can be downloaded from GST Portal refer snapshot below by clicking on computation of liability declared and ITC claimed)

ü Reconciliation Statement between GSTR 2A and Books

ü If any invoice is missing, contact supplier immediately to update the same before 31st March 2019 being the last date for amendment for supplies made in FY 2017-18

ü Bifurcation of ITC w.r.t Input, Capital Goods and Input Services

ü Check whether all credit w.r.t RCM liability has been claimed

ü Reversal of Input Tax credit as per section 17(5) being blocked inputs

ü HSN wise summary of Input which accounts for atleast 10% of the total inward supplies.

 

GST Annual Return

Thank you and Have a nice day !

In case of any further assistance, feel free to contact

GST Update | GST Input Tax Credit (ITC) Set Off New Rules | Section 49A and 49B

GST Update | GST Input Tax Credit (ITC) Set Off New Rules | Section 49A and 49B 

The government has amended CGST Act 2017 with various changes

w.e.f. 1^st Feb 2019 and one of the important change was made in Section 49 of CGST Act by introducing new section 49A & 49B after the section 49, which is as under:

“49A. Notwithstanding anything contained in section 49, the input tax credit on account of  central tax, State tax or Union territory tax shall be utilized towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment.

49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.”.

For detailed reading of section 49, please visit below link http://www.cbic.gov.in/htdocs-cbec/gst/index

However, few points of Section 49 are as below;

       
(5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of–

(e) the central tax shall not be utilized towards payment of State tax or Union territory tax; and

(f) the State tax or Union territory tax shall not be utilized towards payment of central tax.

In other words, CGST and SGST can’t be cross utilized i.e. no input tax credit on account of CGST shall be utilized towards payment of SGST and vice versa.

GST ITC Set Off

Let us understand the above change in Tabular form along with an example and How exactly does this impact your Business;

Old Rule for GST ITC Set off is as under;

GST Components	First Set Off from	Then set off from
IGST	IGST	CGST & SGST/UTGST
CGST	CGST	IGST
SGST/UTGST	SGST/UTGST	IGST

New Rule for GST ITC Set off effective 1st February 2019 is as under (i.e. Applicable for GSTR3B for the month of February which is going to be filed in the month of March 2019 and onwards)

GST Components	First Set Off from	Then set off from
IGST	IGST	CGST & SGST/UTGST
CGST	IGST	CGST
SGST/UTGST	IGST	SGST/UTGST

So to conclude, the order of GST ITC set off will now start from IGST and then CGST and SGST/UTGST.

In other words, CGST and SGST/UTGST credit will be utilized only when we are not left with any credit in IGST bucket.

 Illustration

GST Components	IGST	CGST	SGST
Output Liability	1000	2000	2000
Input Credit	2000	2000	1000

Now we will apply both Old Rule and New Rule for computation of GST ITC set off and payment liability and will analyze how does it impact our working capital ?

First Applying Old Rule:

Particulars	Output Liability	ITC Available			Net Payable	ITC Carry Forward
		IGST	CGST	SGST
IGST	1000	1000	-	-	0	-
CGST	2000	-	2000	-	0	-
SGST	2000	1000	-	1000	0	-

We can see, as per Old Rule, First we have to pay IGST liability using IGST credit and then CGST/SGST. 

Further, CGST and SGST liability will be first set off from CGST and SGST respectively and then, if any  balance left, will be paid from IGST input.

Now Applying New Rule:

Particulars	Output Liability	ITC Available			Net Payable	ITC Carry Forward
		IGST	CGST	SGST
IGST	1000	1000	-	-	0	-
CGST	2000	1000	1000	-	0	1000
SGST	2000	-	-	1000	1000	-

We can see, as per New Rules, First we have to pay IGST liability using IGST input and then CGST/SGST. 

Further, CGST and SGST liability will be first set off from IGST input and then, if any  balance left, will be paid from CGST and SGST respectively.

From above it is clear that due to the applicability of New Rule of GST ITC set off, taxpayer is required to pay Rs.1000 from his pocket even though having sufficient balance in CGST. Hence, this will be going to impact the Working capital of your Business.

Thank you very much!

In case of any further assistance, feel free to contact !
Click here for Download in Word File