gst annual return - indian railways...•zonal railways- itc is allowed only for services....

GST Annual Return

12th March 2019

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AGENDA

• Annual Return under GST

❖Requirement under GST laws

❖Capturing of new fields data

❖Understanding Form GSTR-9

Copyright (c) 2019. Lakshmikumaran & Sridharan/Confidential.

Annual Return under GST

• The GST regime has already completed its first anniversary and thefirst financial year post implementation of GST i.e. FY 2017-18 hasended on 31st March 2018.

• We have been filing monthly GST returns in Form GSTR-1 & FormGSTR-3B and paying GST on outward supplies and availing ITC oninward supplies.

• Now it is time to get ready for undertaking the exercise of filing thefirst ever GST Annual Return for FY 2017-18 in Form GSTR – 9.


Annual Return under GST (Cont.)

Every registered person is required to furnish an annual return for everyfinancial year electronically on or before the 31st December following theend of such financial year.

CBIC, vide the Central Goods and Services Tax (Third Removal ofDifficulties) Order, 2018 dated 31/12/2018, the due date for filing ofForm GSTR - 9 for FY 2017-18 has been extended to 30th June, 2019.

Late fee: Rs. 100 for every day during which such failure continues subject to a maximumof an amount calculated at a quarter per cent of his turnover in the State or Unionterritory.

Min : {Rs. 100 (CGST) + Rs. 100 (SGST) ] per day of defaultMax : {0.25% (CGST) + 0.25% (SGST)} of turnover in a state


• All returns in Form GSTR-1 & FORM GSTR-3B for the FY 2017- 18have to be filed before filing of Form GSTR-9.

• Any additional liability for the FY 2017-18, not declared in FORMGSTR-1 and FORM GSTR-3B, may be declared in this return. Theadditional payments, if any, can be made through FORM GST DRC-03only in cash.

• However, any ITC not claimed during FY 2017-18 can not be claimedthrough this return.

Annual Return under GST (Cont.)


Parts of Form GSTR-9

Form GSTR-9 is divided into 6 parts comprising of 19 tables wherein the data withrespect to outward supplies, inward supplies, taxes paid, HSN wise summary, etc. are tobe furnished.

Parts

Part I

Basic Info

Part II

Liability

Outward (Taxable +

Exempted + Non Taxable)

Inward RCM

Part III

Input Tax Credit

Availed ReversedReconciliation with GSTR 2A

Part IV

Tax Paid Details

Part V

Amendments

Part VI

Others


• Details to be filled in Form GSTR-9 would be in respect of supplies‘made during the year’ and not ‘as declared in returns filed during theyear’.

• Data for most of the fields in the Form GSTR - 9 can be captured fromthe base data used for filing of monthly returns in the Form GSTR 3B &Form GSTR 1.

• However, there are also some extra/new fields in Form GSTR- 9beyond what is covered in base data.

Capturing of Data for Form GSTR 9


New Fields in GSTR-9

The following details, which were not a part of the monthly or quarterly returns, needto be captured for the purpose of filing of Form GSTR – 9:

• Trifurcation of Input Tax Credit between Inputs, Capital Goods and Input Services.

• Details of supplies received from composition taxpayer.

• HSN/SAC summary of Inward Supplies.

• Separate details of gross value and credit/debits notes - Exempted, Nil Rated & NonGST supplies.

• Details of TRAN – I & TRAN – II credits.

• Bifurcation of unavailed GSTR 2A ITC between “ITC available but not availed” and“Ineligible ITC”


Trifurcation of ITC between Inputs, Capital Goods and Input Services

• Table 6B of GSTR-9 requires total ITC availed to be classified into ITC on inputs,capital goods and input services.

• In order to complete this exercise, CRIS will provide to recipient railways thecomplete data of ITC availed.

• Zonal Railways- ITC is allowed only for services. Therefore, flag T4 & C2 denotes onlyservices (i.e., where ITC has been adjusted). All other transactions will be deemed tobe either capital goods or inputs. If an item is charged to revenue, then it will be aninput, if it is charged to Grant 16, it will be a capital good.

• Production Units- ITC is to be bifurcated by looking at HSN Code. If the HSN/SACstarts with “99”, it is to be classified as “Services” and the rest will be “Inputs”.


Details of supplies received from composition taxpayer

• Table 16A of GSTR-9 requires to furnish the taxable value of supplies received fromcomposition taxpayers.

• In this regard, IREPS will open a window for the users from where the same can be fedinto the system.

• In order to determine whether the supplier is “composition taxpayer”, the followingmethod can be applied-• Such supplier shall mention the words “composition taxable person, not eligible to

collect tax on supplies” at the top of the bill of supply issued by him.• Such supplier shall mention his GSTIN on bill of supply issued by him, however,

shall not charge any tax from the recipient on supplies.• The details of any GSTIN can be checked online using the link

https://services.gst.gov.in/services/searchtp

https://services.gst.gov.in/services/searchtp


HSN/SAC summary of Inward Supplies

• Table 18 of GSTR-9 requires to furnish HSN wise summary of Inward Supplies.

• Details are required to be declared only for those inward supplies which in valueindependently account for 10 % or more of the total value of inward supplies.

• In this regard, an additional exercise is to be carried out to identify and report suchsummary from base data as the same is not being captured currently.

• In order to complete this exercise, CRIS will provide to recipient railways thecomplete data of Inward Supplies.

• If HSN/SAC is not fed in the data provided by CRIS, recipient railway will have to feedthe same based on the description.


Separate details of Gross value and credit/debits notes -Exempted, Nil Rated & Non GST supplies

• Table 5D, 5E, 5F of GSTR-9 requires to furnish the Gross Value of Exempted, Nil Rated& Non GST supplies.

• Table 5H, 5I of GSTR-9 requires to furnish separately the values of Credit/Debit notesissued in respect of the above said supplies.

• GSP will carry out this exercise from the data already available with them.


Details of TRAN – I & TRAN – II credits

• Table 6K & 6L of GSTR-9 requires to furnish the details of Transition Credit availedthrough TRAN-I & TRAN-II respectively.

• Further Table 7F & 7G requires to furnish the details of reversal of such TransitionalCredit, if any.

• This data is not available neither with CRIS nor NSDL and therefore Zonal Railwaysneed to collate this data from the filed Form TRAN- I & TRAN-II .


Bifurcation of unavailed (lapsed) GSTR - 2A ITC

• Table 8 of GSTR-9 is a multi purpose table which endeavours to:➢ Reconcile ITC availed in GSTR-3B and GSTR-2A➢ ITC to be lapsed in the current FY

• Aggregate value of ITC which was available in Form GSTR-2A but not availed inForm GSTR-3B need to be arrived at and further classified into the following twocategories-➢ Credit which was Available But Not Availed➢ Credit was not availed as the same was Ineligible Credit


Who will do what?

S. No. What is to be done (New Fields) Table No. Who will do

1.Separate details of gross value and credit/debits notes -Exempted, Nil Rated & Non GST supplies.

5H, 5I GSP/CRIS

2.Trifurcation of Input Tax Credit between Inputs, CapitalGoods and Input Services.

6B, 6C, 6D Recipient Railways

3. Details of TRAN – I & TRAN – II credits 6K,6L,7F,7G Recipient Railways

4.

Bifurcation of unavailed GSTR 2A ITC between ITCavailable but not availed and ineligible ITC.(Reconciliation between credit claimed in GSTR-3B andITC as per GSTR-2A )

8E,8F Recipient Railways

5 Details of supplies received from composition taxpayer. 16A Recipient Railways

6. HSN/SAC summary of Inward Supplies. 18 Recipient Railways


Possible Questions (1/3)

• Whether any additional tax liability be declared? • Yes, additional tax liability, if any for the FY 2017-18 missed to be reported in

FORM GSTR-1 and FORM GSTR-3B can be declared in this return.

• How any additional tax liability, if identified, can be paid ?• Towards the end of the Form GSTR 9, there shall be 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.

• Whether any ITC pertaining to FY 17-18 which was missed to be claimed in theForm GSTR-3B up to Sep 2018, can be claimed through Form GSTR-9?

• No, as on date, taxpayers cannot claim any additional ITC through this return. However, the same can be claimed through GSTR-3B till the month of March 2019.



• Credit/Debit Notes for the transactions pertaining to FY 2017-18 issued after31/03/2018 are to be considered or not?

• Yes, such credit/debit notes shall be declared in Table 10/Table 11 (Part V of GSTR-9)

• How to report any ITC which was availed in GSTR 3B of Nov 2017 but was reversed in Form GSTR 3B of say Sep 2018?

• Such reversal shall be declared in Table 12 (Part V of GSTR-9)

• Whether GSTR-9 can be revised?• No provision so far in the GST law.



• What will happen to excess credit in GSTR 2A which can be on account of any of the following-

a. Ineligible credits;b. Wrongly uploaded by suppliers and un-known parties;c. Few transactions were not reflected in books and 3B ( e.g. Bank charges, etc);

• Such excess ITC is required to be classified into-(a)credit which was available but not availed or [Table 8 (E)](b)he credit was not availed as the same was ineligible [Table 8 (F)]and such excess ITC shall lapse [Table 8 (K)]


GST Audit u/s 35(5)

• Every registered person whose turnover exceeds Rs. 2 crore inthe financial year shall get his account audited by a CharteredAccountant/ Cost and Work Accountant.

• File GST Audit report along with – Annual Return andReconciliation statement.

• As per the CGST Amendment Act, 2018 the department ofCentral Government whose books of accounts are audited byC&AG shall not be liable for GST Audit.

Statutory Provisions

Amendment


GST Annual Return (Form GSTR – 9)

Table-wise Analysis


Annual Return- Part-I & Part-II(1/4)

General information like Financial yeari.e..2017-18, GSTIN, Legal name andtrade name are required to be filled inPart I.

Part-II contains details of outward and inwardsupplies declared in the Financial year. Table 4contains following:• B2C-Supply to unregistered person. Supplies net

of Debit and Credit Note including amendmentif any. Table 5,7,9 & 10 of GSTR-1 may be usedto fill these details.

• B2B-Supply to registered person. Supplieswithout giving effect of Debit Note & CreditNote. Table 4A and 4C of GSTR-1 may be used tofill these details.

• Zero rated supplies on payment of tax exceptsupplies to SEZ. Table 6A of GSTR-1 maybeused.

• Supplies to SEZ on payment of tax. Table 6B ofGSTR-1 may be used.

• Deemed exports. Table 6C of GSTR-1 may beused.



Details of supplies on which tax has been paid on advancereceived but invoice has not been issued in the current year are tobe captured here. Table 11A of GSTR-1 can be used for suchdetails.

This table requires to declare the details of supplies received frompersons covered under Section 9(3) & Section 9(4) of the CGSTAct (RCM). Net of credit/debit notes to be reported. Table 3.1(d)of GSTR-3B can be used for filling the details.

Table 4I and 4J requires to declare the details of Credit Note and DebitNote issued in respect of all B2B supplies including exports. Table 9Bof GSTR-1 may be used for filling the details.

Details of amendment made for B2B supplies including exports isrequired to be declared in Table Nos. 4K & 4L. Tables 9A and 9C ofGSTR-1 may be used for filling the details. Pl note that this Table doesnot include amendments in B2C supplies.



This section requires to declare details of supplies on which taxis not payable.

This table requires to declare details of supplies to SEZ unitmade under cover of LUT/Bond. Table 6B of GSTR-1 may beused to fill these details.

Details of exports made under cover of LUT are to be capturedhere. Table 6A of GSTR-1 may be used to fill these details.

This table requires to declare details of supplies on which is taxis to be paid by the recipient on RCM basis. Table 4B of GSTR-1may be used to fill these details.

These table requires to declare details of-• supplies which are wholly exempted from tax under Section

11 of the CGST Act/Section 6 of the IGST Act• Nil Rated supplies• supplies which are Not taxable under GST



Table 5H and 5I requires to declare the details ofCredit Note and Debit Note issued in respect of allsupplies covered in table 5A to 5F.

Table 9B of GSTR-1 may be used for filling the details.

In table 5J and 5K details of amendment made toexports (except Supplies to SEZs) and supplies to SEZunder LUT are to be captured.

Table 9A and 9C of GSTR-1 may be used for filling thedetails.


Annual Return- Part-III (1/6)

Part-III contains the details of all ITC availed andreversed

This table requires details of ITC, separately for inputs, capital goodsand input services, except ITC availed on imports and supplies onwhich tax is payable under RCM basis. Table 4(A)(5) of GSTR-3B maybe used to fill these details - needs further breakup.

This table requires details of ITC, separately for inputs, capital goodsand input services, on supplies received from unregistered personon which tax is payable under RCM basis. Table 4(A)(3) of GSTR-3Bmay be used to fill these details – needs further breakup.

This table requires details of ITC, separately for inputs, capital goods and input services , on supplies received from registered person on which tax is payable under RCM basis. Table 4(A)(3) of GSTR-3B may be used to fill these details – needs further breakup.



Details of ITC, separately for inputs and capital goods, availedon imports of goods including supplies from SEZ. Table 4(A)(1)of FORM GSTR-3B may be used for filling up these details.

This table requires details of ITC on import of servicesexcluding the inward supplies from SEZ. Table 4(A)(2) of FORMGSTR-3B may be used for filling up these details.

The difference between the total amount of ITC availed throughGSTR-3B and ITC declared in row B to H shall be declared here.Ideally, this amount should be zero.

This table requires to provide the details of ITC received fromISD. Table 4(A)(4) of GSTR-3B may be used to fill these details.

Value of ITC availed, reversed and reclaimed under the provisionsof the Act shall be declared here. Cases can be as follows:

-Non payment of consideration within 180 days.

-ITC reversed on claim of refund application and refund rejected



Details of transition credit received in the electronic credit ledgeron filing of FORM GST TRAN-I including revision of TRAN-I(whether upwards or downwards), if any shall be declared here.

Details of transition credit received in the electronic credit ledgerafter filing of FORM GST TRAN-II shall be declared here.

Details of ITC availed but not covered in any of heads specifiedunder 6B to 6L above shall be declared here e.g. ITC availedthrough FORM ITC-01 and FORM ITC-02.



Table 7 requires to declare details of ITC reversed dueto ineligibility or reversals due to following reasons:• Rule 37-Reversal of ITC in the case of non-payment

of consideration within 180 days of invoice.• Rule-39-Reversal on account of excess distribution

of ITC by ISD.• Rule-42-Reversal of common ITC in respect of input

and input services.• Rule-43- Reversal of common ITC in respect of

capital goods.• Section 17(5)-Ineligible ITC .• Details of ineligible transition credit claimed under

TRAN-I or TRAN-II and then subsequently reversed.• ITC availed under normal scheme then opted for

composition scheme• ITC availed for inputs, capital goods or services in

respect of goods, if such goods subsequentlybecame wholly exempt.

Table 4(B) of FORM GSTR-3B may be used for filling upthese details.



The total ITC reflected in GSTR-2A (table 3 & 5 only) shall be auto-populated in this table.

Details of ITC availed between April to September 2018 in respectof supplies received during July 2017 to March 2018 is to becaptured in this field.

Table 4(A)(5) of FORM GSTR-3B may be used for filling up thesedetails.

Details of ITC which was available in GSTR-2A but not availed inany of the GSTR-3B returns is to be filled here. ITC is required to beclassified as credit which was available but not availed and thecredit was not availed as the same was ineligible.

The sum total of both the rows should be equal to difference in 8D.

Details of IGST paid at the time of imports (including imports fromSEZs) is to be captured in this field.



Table 8K- Following ITC is to be lapsed :

- ITC reflected in GSTR-2A of Jul 17 to Mar 18, but not availed though GSTR 3B of Jul 17 to Sep18

- IGST paid on import of Goods during Jul 17 to Mar 18, but not availed though GSTR 3B of July17 to Sep 18


Annual Return- Part-IV

Part IV contains the details of actual taxes paid during the financial year.

Payment of tax under Table 6.1 of GSTR-3B may be used for filling up these details.


Annual Return- Part-V (1/2)

Part V consists of particulars of transactions for the FY 17-18 but declared in the returns of Apr to Sep 18 or date of filing of Annual Return of FY 17-18, whichever is earlier.

- Table 10 and 11 requires to provide the details of amendments to any of the supplies already declared in the returns of the FY 17-18 but such amendments were furnished in Table 9A, Table 9B and Table 9C of GSTR-1 of Apr to Sept 18.

- Table 12 requires to provide the details of ITC availed in the FY 17-18 but reversed in Apr to Sept 18. Table 4(B) of FORM GSTR-3B of Apr to Sept 18 may be used for filling up these details.

- Table 13 requires to provide the details of ITC, pertaining to invoices of the FY 17-18, availed through GSTR-3B of Apr to Sept 18. Table 4(A) of FORM GSTR-3B may be used for filling up these details.


Annual Return- Part-V (2/2)

Table 14 requires to provide the details of differential tax payable and subsequently paid if any on account ofdeclaration in table 10 & 11.


Annual Return- Part-VI (1/3)

Details of GST Refunds claimed & GST Demands raised, if any during the period July 17 to March 18 are to be captured in Table 15.



In Table 16, details of-

(a)supplies received from persons registered under composition scheme,

(b)cases of deemed supply

(c)goods sent on approval basis but not returned,

are to be captured in Table 16.



HSN wise summary of outward supplies and inward supplies are to be reported in Table 17 and 18 respectively.

With respect to HSN wise summary of inward supplies, an additional exercise is to be carried out to identify andreport such summary from books of accounts as the same is not being reported in the monthly return being filedcurrently.

It is to be noted that for those inward supplies which in value independently account for 10 % or more of the totalvalue of inward supplies

Thank You

gst annual return - indian railways...•zonal railways- itc is allowed only for services....

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