The annual return for the financial year 2018-19 in FORM GSTR-9 is to be filed by tax payers till 31st October, 2020 as last extended vide Notification No. 69/2020 – Central Tax dated 30-09-2020. For the benefit of our readers we have compiled a list of 10 key points in regard to GSTR-9 annual return, that you should know.
Key points on GSTR-9 Annual Return
1. Taxpayers required to file GSTR-9:
As per Section 44(1) of the CGST Act, 2017 read with Rule 80(1) of the CGST Rules, 2017, every registered person is required to furnish an annual return for every financial year in FORM GSTR-9.
However following are not required to file the annual return:
- Input Service Distributor.
- Tax Deductors ( Govt Deptt, PSUs) under Section 51.
- Tax Collectors (Electronic Commerce Operators) under Section 52.
- Casual taxable person.
- Non-resident taxable person.
Further a person paying tax under Section 10 i.e. Composition Supplier shall furnish the annual return in FORM GSTR-9A.
2. Turnover limits for filing of GSTR-9:
Although as per Section 44(1) of the CGST Act, 2017 , the annual return was to be filed by a tax payer irrespective of the turnover. However vide Notification No. 47/2019 – Central Tax dated 09-10-2019 the registered persons whose aggregate turnover in a financial year does not exceed Rs 2 crores and who have not furnished the annual return under section 44(1) be deemed to be furnished on the due date if it has not been furnished before the due date.
Thus the said notification has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed Rs 2 crores. In other words, the tax payers having aggregate turnover exceeding Rs 2 crore are required to furnish GSTR-9 for FY 2018-19.
In this regard it was clarified vide Circular No. 124/43/2019 – GST dated 18-11-2019 that the tax payers having aggregate turnover not exceeding Rs 2 crores, may, at their own option file FORM GSTR-9 for the financial years 2017-18 and 2018-19 before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9 for the said period.
3. Seperate filing of GSTR-9 for each GST Registration:
As discussed above, the tax payers having aggregate turnover exceeding Rs 2 crore are required to furnish GSTR-9 for FY 2018-19. As we know under GST law, a person is required to obtain GST registration in each State from which taxable supplies are made. However the aggregate turnover is computed on All India basis.
The exemption in filing of GSTR-9 is on aggregate turnover basis and not on turnover in State basis , accordingly if a person is having GST registration in 4 States and suppose the turnover of each State is Rs 60 lakhs and aggregate turnover is Rs 2.40 Crores. Such a taxpayer will be required to furnish GSTR-9 seperately for each of the four States.
4. Mandatory to file all GSTR-1 and GSTR 3B for FY 2018-19 before filing GSTR-9
As per paragraph 2 of Instructions to GSTR-9 as amended vide Notification No. 56/2019- Central tax dated 14-11-2019 it is mandatory to file all FORM GSTR-1 and FORM GSTR-3B for the financial year for which return is being filed for, before filing the annual return.
Accordingly before filing of GSTR-9 for FY 2018-19 it should be ensured that GSTR-1 and GSTR-3B for all periods April, 2018 to March, 2019 have been filed.
5. Relaxations provided in filling of various information in GSTR-9:
Following fields in GSTR-9 has been made optional vide Notification No. 56/2019- Central tax dated 14-11-2019 for FY 2017-18 and 2018-19:
- Table 4B to 4E; 5A to 5F- Option to fill net of credit/debit notes and amendments.
- Table 5D, 5E & 5F- Option to fill the amount of all supplies ( exempt, nil rated and non GST) in exempt category
- Table 6B to 6E- Option to fill all credit in input only; split of input tax credit availed on inputs, input services and capital goods not required.
- Table 6C & 6D- Option to fill details( RCM ITC) in table 6D only
- Table 7A to 7E- Option to fill all details of ITC reversal in table 7H (other reversals) only.
- Table 8A to 8D- Option to upload details of these tables (Details of ITC) in pdf format in GSTR-9C (without the CA certification).
- Option to not to fill these tables: Table 12 & 13( ITC reversed / availed for FY 2017-18 in GSTR-3B of FY 2018-19), 15A to 15D( Refund details), Table 15E to 15G( Demands), Table 16A( Supplies received from composition taxpayer), Table 16B( Deemed supplies from principal to job worker), 16C( Deemed supplies which were sent on approval basis), Table 17 & 18( HSN wise details of inputs or outputs).
6. Additional tax liability cannot be paid through Credit Ledger and will be paid through DRC-03
Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORM GSTR-3B of FY 2018-19 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.
7. No Input Credit can be taken through GSTR-9
It is very important to note that Input Tax Credit cannot be availed through GSTR-9 annual return. The credit can only be availed through GSTR-3B return.
In case any Input Tax Credit was not availed in FY 2018-19 and was availed in GSTR-3B for period April, 2019 to September, 2019. In such cases the ITC of FY 2018-19 availed in GSTR-3B of FY 2019-20 (upto September,2019) will be required to be disclosed in Table 13 of GSTR-9 Annual return of FY 2018-19.
Where while filing the Annual Return for FY 2018-19 in case you have now identified certain credits which were ommitted to be taken, credit towards the same cannot be availed now as same has become time barred as per Section 16(4) of the CGST Act, 2017.
8. Disclosure of FY 2017-18 transactions in GSTR-9 of FY 2018-19:
In this regard CBIC has issued a clarification vide Press Release dated 9-10-2020 which is reproduced below:
It is clarified that the taxpayers are required to report only the values pertaining to Financial Year 2018-19 and the values pertaining to Financial Year 2017-18 which may have already been reported or adjusted are to be ignored. No adverse view would be taken in cases where there are variations in returns for taxpayers who have already filed their GSTR-9 of Financial Year 2018-19 by including the details of supplies and ITC pertaining to Financial Year 2017-18 in the Annual return for FY 2018-19.
As per above clarification the Outward liability or Input tax credit pertaining to F.Y. 2017-18 reported in GSTR-3B of F.Y. 2018-19 should be excluded by the taxpayer from the auto populated figures in respective Tables 4,5,6 & 7 of GSTR-9 for FY 2018-19.
For detailed discussion on above please Click here.
9. Treatment of FY 2018-19 transactions reported in GSTR-3B of FY 2019-20:
Adjustments in output tax liability / ITC related to FY 2018-19 but reported in GSTr-3B of FY 2019-20, needs to be reported in Table 10 to Table 14 of GSTR-9 of FY 2018-19. Under Table 10 increase in output liability is disclosed whereas Table 11 is for reduction in output liability i.e. where in GSTR-3B for FY 2018-19 excess output tax liability was disclosed and tax paid.
Similarly in cases of reversal of excess ITC availed during 2018-19, in GSTR-3B of 2019-20, such reversal is to be disclosed in Table 12 of GSTR-9 of FY 2018-19. ITC less availed in FY 2018-19 and availed in GSTR-3B of 2019-20 should be reported in Table 13 of GSTR-9 for FY 2018-19.
It may be noted that taxable turnover for FY 2018-19 to be reported in GSTR-9 of FY 2018-19 will equal to Table 4 + Table 10 – Table 11. Further the ITC for FY 2018-19 will be equal to Table 6 -Table 7 + Table 13 – Table 12 of GSTR-9 of said year.
For detailed discussion on above please Click here.
10. GSTR-9 cannot be revised
GSTR-9 should be filed with utter caution as once filed, the GSTR-9 annual return cannot be revised.
***
[addthis tool=addthis_horizontal_follow_toolbox]
[rainbow]Don’t miss the next GST Update / Article / Judicial pronouncement[/rainbow]
Subscribe to our newsletter from FREE to stay updated on GST Law
Resolve your GST queries from national level experts on GST free of cost.
CA. Mohammad Salim is an ICAI award winning Chartered Accountant having rich experience of more than 20 years in the field of indirect taxes. He is the Member, Indirect Taxes Committee of PHD Chamber of Commerce and Industry. He is author of four successful books on GST published by Taxmann Publication and is also GST expert on taxmann portal.
