Basic FAQs on GSTR 9

Que: Who is required to file GST Annual Return?

Ans: Every registered person, (other than an ISD, person liable to pay tax u/s 51 and 52, a  casual taxable person and a non-resident taxable person). No turnover threshold limit for the annual turnover.

Que: Which form has to be filed by whom as GST Annual Return?

Ans: People registered in composition scheme have to file GSTR 9 A and people registered in regular scheme have to file GSTR 9.

Que: If an assessee has been registered in both scheme i.e. regular as well as composition scheme in a financial year, whether he have to file GSTR 9 or GSTR 9A?

Ans: If an assessee has been registered in both scheme i.e. regular as well as composition scheme for even a single day in whole year, he has to file both forms i.e GSTR 9 and GSTR 9A.

Que: Who have to file GSTR 9C i.e GST Audit?

Ans: Every registered person having turnover more than two crore in a year have to file GSTR 9 have to file GSTR 9C, i.e GST audit done by Chartered Accountant.

Que: For the Financial Year 2017-18, whether turnover will be taken from April 2018 to March 2018 or July 2018 to March 18 for computing two crore limit?

Ans: As per recent press release issued by ministry of finance dated 03.07.2019 turnover shall be taken from July 2017 to March 2018 for computation of two crore limit.

Que: Whether GSTR 9 has to be filed on the basis of information submitted in GSTR 1 or GSTR 3B or as per books of accounts?

Ans: As per recent press release issued by ministry of finance dated 03.07.2019, GSTR 9 is the last resort to correct all discrepancies filed in GSTR 1 or GSTR 3B. It should be filed according to the information taken from books of accounts. Further, relevant information may be taken from GSTR 1 and GSTR 3B also. The best correct information available has to be taken in GSTR 9.

Que: What are the prerequisites to file GSTR 9?

Ans: The basic prerequisite to file GSTR 9 is reconciliation of all the outward liabilities reported in GSTR 1 and GSTR 3B with books of accounts. Further, all ITC taken in books of accounts should be reconciled with ITC taken in GSTR 3B and ITC reflected in GSTR 2A before filing of GSTR 9.

Que: What will be the treatment for excess or short payment of tax found while filing of GSTR 9?

Ans: As per press release issued by the ministry of finance dated 03.07.2019 short taxes shall be paid through DRC -03 whereas excess taxes paid will be claimed as refund, if eligible.

Que: Few of the fields are auto-populated in GSTR 9, whether it can be changed or not?

Ans: There are two types of auto-populated fields in GSTR 9, editable and non-editable. As per clarification issued by the ministry of finance, auto-populated editable fields are just for the convenience of the assessee and it can be changed according to the best correct information available to the assessee.

Que: What details have to be filed in column 1 to 3B in GSTR 9?

Ans: The basic details have to be filed in point no 1 to 3b of GSTR 9 like:

1. Financial Year: 2017-18
2. GSTIN: 09AAAAAAAAAA
3. Legal Name: XYZ Ltd
4. Trade Name: XYZ Ltd

Note: These details are auto-populated and need not to be filed at GSTR portal.

Que: What details have to be filed in point 4 in GSTR 9?

Ans: The outward supplies on which tax has to be paid by assessee will be reported in point no 4 of GSTR 9. Further, inward supplies on which tax is payable by assessee in reverse charge mechanism shall also be reported in column 4G of GSTR 9.

Que: Whether supplies reported as B2B and B2C supplies has to report net of debit notes and credit notes?

Ans: Supplies reported as B2C supplies shall be reported as net of debit and credit notes whereas supplies reported as B2B shall be shown as gross figure and debit and credit notes details has to be  shown separately in column 4 itself.

Que: Whether exports and supplies made to SEZs with payment of tax will also be reported in point 4 of GSTR 9?

Ans: Yes, exports and supplies made to SEZs has to be reported in point 4 of GSTR 9.

Que: Whether debit notes and credit notes issued in respect of taxable outward supplies has to be reported in point 4 of GSTR 9?

Ans: Yes, debit notes and credit notes issued in respect of taxable outward supplies has to be reported in point 4 of GSTR 9

Que: Which type of amendments will be reported in GSTR 9?

Ans: Only those amendments which have any impact on taxable value or taxes will be shown in GSTR 9.

Que: What are the supplies to be reported in column 5 of GSTR 9?

Ans: All outward supplies on which tax has not to be paid by assessee will be shown in column 5 of GSTR 9, including supplies on which tax has to be paid by recipients of the supply i.e customer of assessee and supplies made to SEZs or exports made without payment of tax.

As per recent changes in GSTR 9, even Non-GST supplies and No GST supplies has to be reported in column 5 of GSTR 9.

Que: What is the information to be reported in column 6 of the GSTR 9?

Ans: Column 6A is auto populated from ITC claimed in GSTR 3B and non-editable.

Further, ITC claimed on inward supplies including purchases and expenses will be trifurcated in three following categories:

1. ITC claimed on Inputs
2. ITC claimed on Input Services
3. ITC claimed on capital goods

Que: Whether these trifurcation has to be reported on inward supplies on which tax on reverse charge has been paid?

Ans: Yes, the above trifurcation has to be reported for reverse charge on which tax on RCM has been paid in column 6B and 6C.

Que: Whether ITC on inward supplies from import and SEZ has to be reported in column 6?

Ans: Yes, ITC on inward supplies from import and SEZ has to be reported in column 6.

Que: Whether ITC claimed through TRAN 1 and TRAN 2 has to be reported in column 6?

Ans: Yes, ITC claimed through TRAN 1 and TRAN 2 has to be reported in column 6.

Que: What are the information which will be reported in column 7 of GSTR 9?

Ans: Details of ITC reversed during the financial year has to be reported in this column. It includes reversal of ITC of Rule 37 and 39 and 42/43 of CGST Rules 2017. Reversal of TRAN 1 and TRAN 2 credit will also be reported in this column.

Que: What are the information to be reported in column 8 of GSTR 9?

Ans: Column 8A is auto populated from GSTR 2A and non-editable and 8B is sum of 6B and 6H reported above. Column 8 is reconciliation of ITC claimed in 3B with GSTR 2A. The ITC which pertains to FY 2017-18 claimed in FY 2018-19 will be reported in column 8C of GSTR 9.

Que: Whether excess/short ITC in this column will be shown as lapsed?

Ans: As per recent clarification issued by ministry of finance, the ITC not claimed should not be reported in lapsed as it was never claimed.

Que: What are the information to be reported in column 9 of GSTR 9?

Ans: Column 9 of GSTR 9 is auto populated from set off portion of GSTR 3B. The payment portion is non-editable, but payable portion can be edited if liability has been increased in GSTR 9 and excess payment has been made with DRC 03.

Que: What are the information to be given in column 10 to 13 of GSTR 9?

Ans: Basically column 10 to 13 related to information of FY 2017-18 which has been reported in FY 2018-19.

If any amendments have been made in FY 2018-19 which pertain to FY 2017-18 resulting in increase of output liability or taxable value will be shown in column 10 and if reducing, will be shown in column 11 of the GSTR 9.

Further any reversal of ITC made in FY 2018-19 which pertain to FY 2017-18 will be shown in column 12, and any ITC of FY 2017-18 claimed in FY 2018-19 will be shown in column 13 of GSTR 9.

Que: What are the information to be reported in column 14.

Ans: Any taxes payable and paid, ITC reversed, interest paid on account of information submitted in column 10 to 13 will be reported here.

Que: What are the information to be submitted in column 15?

Ans: Details of demands and refunds has to be reported here.

Que: What are the information to be submitted in column 16.

Ans: Details of goods received from composition dealers and goods sent on approval but returned and deemed supply will be reported here.

Note: As per recent clarification, these are just for information purpose and need not to be exact figures.

Que: What are the information to be reported in column 17,18 and 19?

Ans: HSN wise details of inward and outward supplies have to be submitted in this column. As per press release dated 03.07.2019 this is for information purpose and need not to be exact figures.

In column 19 late fees payable and paid has to be filled.

Press Release {dated 03.07.2019}

Clarification regarding Annual Returns and Reconciliation Statement

The Government has been receiving a number of representations regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C). In this regard the following clarifications are issued for information of all stakeholders: -

1. Payment of any unpaid tax: Section 73 of the CGST Act provides a unique opportunity of self – correction to all taxpayers i.e. if a taxpayer has not paid, short paid or has erroneously obtained/been granted refund or has wrongly availed or utilized input tax credit then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty shall be leviable on such tax payer. Therefore, in cases where some information has not been furnished in the statement of outward supplies in FORM GSTR-1 or in the regular returns in FORM GSTR-3B, such taxpayers may pay the tax with interest through FORM GST DRC-03 at any time. In fact, the annual return provides an additional opportunity for such taxpayers to declare the summary of supply against which payment of tax is made.

2. Primary data source for declaration in annual return: Time and again taxpayers have been requesting as to what should be the primary source of data for filing of the annual return and the reconciliation statement. There has been some confusion over using FORM GSTR-1, FORM GSTR-3B or books of accounts as the primary source of information. It is important to note that both FORM GSTR-1 and FORM GSTR-3B serve different purposes. While, FORM GSTR-1 is an account of details of outward supplies, FORM GSTR-3B is where the summaries of all transactions are declared and payments are made. Ideally, information in FORM GSTR-1, FORM GSTR-3B and books of accounts should be synchronous and the values should match across different forms and the books of accounts. If the same does not match, there can be broadly two scenarios, either tax was not paid to the Government or tax was paid in excess. In the first case, the same shall be declared in the annual return and tax should be paid and in the latter all information may be declared in the annual return and refund (if eligible) may be applied through FORM GST RFD-01A. Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately.

3. Premise of Table 8D of Annual Return: There appears to be some confusion regarding declaration of input tax credit in Table 8 of the annual return. The input tax credit which is declared / computed in Table 8D is basically credit that was available to a taxpayer in his FORM GSTR-2A but was not availed by him between July 2017 to March 2019. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is merely an information that the Government needs for 3rd July 2019 settlement purposes. Figures in Table 8A of FORM GSTR-9 are auto-populated only for those FORM GSTR-1 which were furnished by the corresponding suppliers by the due date. Thus, ITC on supplies made during the financial year 2017-18, if reported beyond the said date by the corresponding supplier, will not get auto-populated in said Table 8A. It may also be noted that FORM GSTR-2A continues to be auto-populated on the basis of the corresponding FORM GSTR-1 furnished by suppliers even after the due date. In such cases there would be a mis-match between the updated FORM GSTR-2A and the auto-populated information in Table 8A. It is important to note that Table 8A of the annual returns is auto-populated from FORM GSTR-2A as on 1st May, 2019.

4. Premise of Table 8J of Annual Return: In the press release on annual return issued earlier on 4th June 2019, it has already been clarified that all credit of IGST paid at the time of imports between July 2017 to March 2019 may be declared in Table 6E. If the same is done properly by a taxpayer, then Table 8I and 8J shall contain information on credit which was available to the taxpayer and the taxpayer chose not to avail the same. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is information that the Government needs for settlement purposes.

5. Difficulty in reporting of information not reported in regular returns: There have been a number of representations regarding non-availability of information in Table16A or 18 of Annual return in FORM GSTR-9. It has been observed that smaller taxpayers are facing a lot of challenge in reporting information that was not being explicitly reported in their regular statement/returns (FORM GSTR-1 and FORM GSTR-3B). Therefore, taxpayers are advised to declare all such data / details (which are not part of their regular statement/returns) to the best of their knowledge and records. This data is only for information purposes and reasonable/explainable variations in the information reported in these tables will not be viewed adversely.

6. Information in Table 5D (Exempted), Table 5E (Nil Rated) and Table 5F (Non-GST Supply): It has been represented by various trade bodies/associations that there appears to be some confusion over what values are to be entered in Table 5D,5E and 5F of FORM GSTR-9. Since, there is some overlap between supplies that are classifiable as exempted and nil rated and since there is no tax payable on such supplies, if there is a reasonable/explainable overlap of information reported across these tables, such overlap will not be viewed adversely. The other concern raised by taxpayers is the inclusion of no supply in the category of Non-GST supplies in Table 5F. For the purposes of reporting, non-GST supplies includes supply of alcoholic liquor for human consumption, motor spirit (commonly known as petrol), high speed diesel, aviation turbine fuel, petroleum crude and natural gas and transactions specified in Schedule III of the CGST Act.

7. Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018-19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will  3rd July 2019 be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C).

8. Role of chartered accountant or a cost accountant in certifying reconciliation statement: There are apprehensions that the chartered accountant or cost accountant may go beyond the books of account in their recommendations under FORM GSTR-9C. The GST Act is clear in this regard. With respect to the reconciliation statement, their role is limited to reconciling the values declared in annual return (FORM GSTR-9) with the audited annual accounts of the taxpayer.

9. Turnover for eligibility of filing of reconciliation statement: It may be noted that the aggregate turnover i.e. the turnover of all the registrations having the same Permanent Account Number is to be used for determining the requirement of filing of reconciliation statement. Therefore, if there are two registrations in two different States on the same PAN, say State A (with turnover of Rs. 1.2 Crore) and State B (with turnover of Rs. 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than Rs. 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018.

10. Treatment of Credit Notes / Debit Notes issued during FY 2018-19 for FY 2017-18: It may be noted that no credit note which has a tax implication can be issued after the month of September 2018 for any supply pertaining to FY 2017-18; a financial/commercial credit note can, however, be issued. If the credit or debit note for any supply was issued and declared in returns of FY 2018-19 and the provision for the same has been made in the books of accounts for FY 2017-18, the same shall be declared in Pt. V of the annual return. Many taxpayers have also represented that there is no provision in Pt. II of the reconciliation statement for adjustment in turnover in lieu of debit notes issued during FY 2018-19 although provision for the same was made in the books of accounts for FY 2017-18. In such cases, they may adjust the same in Table 5O of the reconciliation statement in FORM GSTR-9C.

11. Duplication of information in Table 6B and 6H: Many taxpayers have represented about duplication of information in Table 6B and 6H of the annual return. It may be noted that the label in Table 6H clearly states that information declared in Table 6H is exclusive of Table 6B. Therefore, information of such input tax credit is to be declared in one of the rows only.

12. Reconciliation of input tax credit availed on expenses: Table 14 of the reconciliation statement calls for reconciliation of input tax credit availed on expenses with input tax credit declared in the annual return. It may be noted that only those expenses are to be reconciled where input tax credit has been availed. Further, the list of expenses given in Table 14 is a representative list of heads under which input tax credit may have been availed. The taxpayer has the option to add any head of expenses.

Press Release {dated 04.06.2019}

Clarifications on filing of Annual Return (FORM GSTR-9)

The last date for filing of Annual return in FORM GSTR-9 is 30th June 2019. The trade and industry have raised certain queries with respect to filing of this Annual return which are being clarified as follows:

a) Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9.

b) Input tax credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9.

c) Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March 2019 shall be declared in Pt. V of FORM GSTR-9. Such particulars may contain details of amendments furnished in Table 10 and Table 11 of FORM GSTR-1.

d) It may be noted that irrespective of when the supply was declared in FORM GSTR-1, the principle of declaring a supply in Pt. II or Pt. V is essentially driven by when was tax paid through FORM GSTR-3B in respect of such supplies. If the tax on such supply was paid through FORM GSTR-3B between July 2017 to March 2018 then such supply shall be declared in Pt. II and if the tax was paid through FORM GSTR-3B between April 2018 to March 2019 then such supply shall be declared in Pt. V of FORM GSTR-9.

e) Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORM GSTR-3B shall be declared in Pt.II of the FORM GSTR-9. Such additional liability shall be computed in Pt.IV and the gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid through FORM DRC-03.

f) Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books of accounts or returns. One common challenge reported by taxpayer is in Table 4 of FORM GSTR-9 where details may have been missed in FORM GSTR-1 but tax was already paid in FORM GSTR-3B and therefore taxpayers see a mismatch between auto-populated data and data in FORM GSTR-3B. It may be noted that auto-population is a functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per their books of account or returns filed during the financial year.

g) Many taxpayers have represented that Table 8 has no row to fill in credit of IGST paid at the time of import of goods but availed in the return of April 2018 to March 2019. Due to this, there are apprehensions that credit which was availed between April 2018 to March 2019 but not reported in the annual return may lapse. For this particular entry, taxpayers are advised to fill in their entire credit availed on import of goods from July 2017 to March 2019 in Table 6(E) of FORM GSTR-9 itself.

h) Payments made through FORM DRC-03 for any supplies relating to period between July 2017 to March 2018 will not be accounted for in FORM GSTR-9 but shall be reported during reconciliation in FORM GSTR-9C.

All the taxpayers are requested to file their Annual Return (FORM GSTR-9) at the earliest to avoid last minute rush.