DISCUSSION ON GST ANNUAL RETURN CLAUSE WISE ANALYSIS OF FORM GSTR-9 - PowerPoint PPT Presentation

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

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

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POINTERS ▪ 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 31 st December 2018. ▪ Complexities in the form ▪ Source: GSTR-1 or GSTR-3B or Books ▪ Government’s Expectation from GSTR-9 CHIRAG JAIN

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 as may be prescribed ❑ on or before the t hirty-first day of December following the end of such financial year. CHIRAG JAIN

Rule 80: Annual Return GSTR-9 GSTR-9A GSTR-9B GSTR-9C • Normal Tax Payer • Composition Tax Payer • E-commerce operator u/s 52 Audited Annual accounts and Reconciliation Statement where aggregate turnover > 2 crores CHIRAG JAIN

RECENT CLARIFICATIONS ON ANNUAL RETURN – PRESS RELEASE DATED 3 RD JUNE 2019 CHIRAG JAIN

Recent Clarifications on GSTR-9 ▪ Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9 . ▪ Input tax credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9 . ▪ 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 . ▪ 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 . CHIRAG JAIN

Recent Clarifications on GSTR-9 ▪ 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. ▪ 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. ▪ 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. ▪ 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 . CHIRAG JAIN

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 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 100000+5000 100000+5000 April 2018 – March 2019 Reporting in GSTR-9 Reporting In GSTR-9 Amount Table 4 100000+5000 Table 10 0 Total 100000 + 5000 CHIRAG JAIN

Outward Supplies – Case Study 2 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 100000+5000 75000 April 2018 – March 2019 25000 Reporting in GSTR-9 Reporting in GSTR-9 Amount Table 4 100000+5000 Table 10 0 Total 100000 + 5000 CHIRAG JAIN

Outward Supplies – Case Study 3 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 70000+3500 50000+2500 April 2018 – March 2019 30000+1500 Reporting in GSTR-9 Table Amount Table 4 70000+3500 Table 10 30000+1500 Total 100000 + 5000 Reporting in Table 9 Amount Reporting in Table 14 Amount Tax Payable 3500 Tax Payable 1500 Tax Paid 3500 Tax Paid 1500 CHIRAG JAIN

Outward Supplies – Case Study 4 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 GSTR-9 Table Amount Table 4 (50000+20000)+(2500+1000) Table 10 30000+1500 Total 100000 + 5000 Reporting in Table 9 Amount Reporting in Table 14 Amount Tax Payable 3500 Tax Payable 1500 Tax Paid 2500 Tax Paid 1500 CHIRAG JAIN

Outward Supplies – Case Study 5 Period Books 3B GSTR-1 July 2017 – March 2018 100000 + 5000 120000+6000 75000+3750 April 2018 – March 2019 25000+1250 Reporting in GSTR-9 Reporting in GSTR-9 Amount Table 4 100000+5000 Table 10 0 Total 100000 + 5000 Reporting in Table 9 Amount Reporting in Table 14 Amount Tax Payable 5000 Tax Payable 0 Tax Paid 6000 Tax Paid 0 CHIRAG JAIN

Outward Supplies – Case Study 6 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 Reporting in GSTR-9 (Alternate 1) Amount Table 4 120000+6000 Table 11 -20000-1000 Total 100000 + 5000 Reporting in GSTR-9 (Alternate 2) Amount Table 4 100000+5000 Table 11 0 Total 100000 + 5000 CHIRAG JAIN

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

Manner in which information was sought in GSTR-2A which never came into existence. CHIRAG JAIN

ITC – Case Study 1 Period Books 3B 2A July 2017 – March 2018 100000 80000 100000 April 2018 – March 2018 20000 Reporting in GSTR-9 Reporting in Table 6 / Table 13 Amount Table 6 80000 Table 13 20000 Total 100000 Reporting in Table 8 Amount Table 8B 80000 Table 8C 20000 Total 8B + 8C 100000 CHIRAG JAIN

ITC – Case Study 2 Period Books 3B 2A July 2017 – March 2018 100000 80000 100000 April 2018 – March 2018 Reporting in GSTR-9 Reporting in Table 6 / Table 13 Amount Table 6 80000 Table 13 0 Total 80000 Reporting in Table 8 Amount Table 8B 80000 Table 8C 0 Table 8E 20000 CHIRAG JAIN

PRESS RELEASE DATED 18 TH OCT 2018 Last date to avail input tax credit in respect of invoices or debit notes relating to such invoices pertaining to period from July, 2017 to March, 2018 CHIRAG JAIN