The provisions of Goods and Services Tax are such that they seem easy to talk about but their practical follow up is difficult due to its wide concepts and unlimited interpretation of the different provision, this again becomes cumbersome because of the unfamiliarity of the act, interpretations under it and because this will be first audit session under this act.
In this article we are discussing some important points which will help you in filing of Annual Return under GST Act which are prescribed in following notifications:-
| GST form No. | Notification No. | Date of Notification | Amendment Notification | Date of Amendment |
| GSTR Form 9 & 9A | 39/2018-CT | 04/09/2018 | 74/2018-CT | 31/12/2018 |
| GSTR Form 9B | NOT YET NOTIFIED. | |||
| GSTR Form 9C | 49/2018-CT | 13/09/2018 | NA | NA |
While filing Annual Return following question come to our mind:
- Who is required to file annual return?
- What is Annual Return and its salient features?
- What are the conditions of filing the same?
- How to file Annual Return?
Each of these questions is addressed below:
Q1: Who is required to file annual return?
As per section 44 read with rule 80; every registered person who opts for regular registration in the act is required to furnish Annual Return in FORM GSTR-9 for every financial year electronically on or before the day specify by notification following the end of such financial year, Other than-
- Input Service Distributor which covers:
Supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of CGST, SGST, IGST or UTGST paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number of that place.
- Person paying tax under section 51, means
(1) Department or establishment of the Central Government or State Government; or
(2) Local authority; or
(3) Governmental agencies; or
(4) Such persons or category of persons as may be notified by the Government on the recommendations of the Council
Who deducted tax deducted at source on inwards supplies of goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees (TDS provisions)
- Person paying tax under section 52, means
Electronic Commerce operator who is required to collect tax at source is required to furnished Annual Statement in FORM GSTR-9B (TCS provisions)
- Casual taxable person and Non-resident taxable person.
- Person paying tax under section 10, means
Person opt registration under composition scheme is required to furnished Return in FORM GSTR-9A
Q2: What is Annual Return and its salient features?
- Annual Return is Consolidation summary of Inwards and Outwards supply for the Financial Year on which tax is payable.
- Here in Table 4 we can make amend in our previously given figure in return and pay additional liability, if any.
- Here in Table 8 of ITC we can claimed/availed of inputs which are short/not claimed in previous year return.
- It may note that GST paid and input credit of GSTR-2A and GSTR-3B are auto populated, here we cannot make any amendment.
- Here we cannot claim any unclaimed amount that is,
FORM Tran1 credit
FORM Trant2 credit
Credit for which specify form has been prescribed.
- Separate Annual Return is to be filed for each GST registration, where dealer has more than one GST registration due to branches in different states.
- Any additional liability which will be disclosed in annual return is to be paid in cash only through FORM GST DRC-03.
Q3: What is precondition to file the Annual Return :
Further as per aforesaid provision it is Mandatory for every Register person to file GSTR-1 & GST-3B of the financial year on or before furnishing of Annual Return.
Q4: How to file Annual Return:
Before we discuss how to file Annual Return let us first understood some key area over which we have to report.
Part I It Contain Basic detail of Firm
Part II It Contain details of advances, inwards and outwards supplies made during the financial year on which tax is payable.
Part III It Contain details of ITC availed during the financial year
Par IV It Contain details of tax paid as declared in returns filed during the financial year.
Part V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier
Part VI It Contains details of Demand and Refund
| “FORM GSTR – 9 | ||||||||||
| [See rule 80] | ||||||||||
| Annual Return | ||||||||||
| Pt. I | Basic Details | |||||||||
| 1 2 3A 3B |
Financial Year | Year of Annual Return Furnishing | ||||||||
| GSTIN | GST Registration of State for which Annual Return is filing | |||||||||
| Legal Name | Refer GST Registration Certificate Form (FORM GST REG-06 | |||||||||
| Trade Name (if any) |
Refer GST Registration Certificate Form (FORM GST REG-06 | |||||||||
| Pt. II | Details of Outward and inward supplies made during the financial year | |||||||||
| (Amount in ₹ in all tables) | ||||||||||
| Nature of Supplies | Taxable Value | Centra l Tax | State Tax / UT Tax |
Integrat ed Tax | Cess | |||||
| 1 | 2 | 3 | 4 | 5 | 6 | |||||
| 4 | Details of advances, inward and outward supplies made during the financial year on which tax is payable |
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| A | Supplies made to un-registered persons (B2C) |
It contains details of taxable supplies to consumer and unregistered persons.
Table 5, Table 7 along with respective amendments in Table 9 and Table 10 of FORM GSTR-1 may be used for filling up these details. |
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| B | Supplies made to registered persons (B2B) |
It contains details of taxable supplies to registered persons.
Table 4A and Table 4C of FORM GSTR-1 may be used for filling up these details
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| C | Zero rated supply (Export) on payment of tax (except supplies to SEZs) |
It Contains details Export supplies on payment of IGST and where we can claim refund of such tax paid on goods or services or both supplied.(refer sec 16 IGST Act)
Table 6A of FORM GSTR-1 may be used for filling up these details |
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| D | Supply to SEZs on payment of tax |
It Contains details of Supplies to Special Economic Zone developer or a Special Economic Zone unit on payment of IGST and where we can claim refund of such tax paid on goods or services or both supplied.(refer sec 16 IGST Act)
Table 6B of GSTR-1 may be used for filling up these details |
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| E | Deemed Exports | It Contains details of Supplies to Deemed Export persons who are notify by Government and
* Where goods supplied do not leave India, *Where payment for such supplies is received either in Indian rupees or in convertible foreign exchange, Provided such goods are manufactured in India. Table 6C of FORM GSTR-1 may be used for filling up these details. |
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| F | Advances on which tax has been paid but invoice has not been issued (not covered under (A) to (E) above) |
IT Contains details of Unadjusted Advances remain outstanding on the closing of Financial year for which invoice will be issued in subsequent Financial year.
Table 11A of FORM GSTR-1 may be used for filling up these detail |
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| G | Inward supplies on which tax is to be paid on reverse charge basis |
IT Contains details of Inwards supplies on which RCM to be paid such as advocate fees, freight, import services and unregistered purchase.
Table 3.1(d) of FORM GSTR-3B may be used for filling up these details
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| H | Sub-total (A to G above) | |||||||||
| I | Credit Notes issued in respect of transactions specified in (B) to (E) above (-) |
It Contains details of credit note issued in respect of Outwards taxable supplies to registered persons (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. | ||||||||
| J | Debit Notes issued in respect of transactions specified in (B) to (E) above (+) |
It Contains details of debit note issued in respect of Outwards taxable supplies to registered persons (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 4J | ||||||||
| K | Supplies / tax declared through Amendments (+) |
It Contains details of Supplies / tax declared through Amendments in respect of Outwards taxable supplies to registered persons (4B), exports (4C), supplies to SEZs (4D) , deemed exports (4E), And credit notes (4I), debit notes (4J) and refund vouchers . Table 9A and Table 9C of FORM GSTR-1 may be used for filling up these details (Note: Here we have to report only the Amendment done by issuing revised invoice/credit note/debit note in Jul-17 to Mar-18) | ||||||||
| L | Supplies / tax reduced through Amendments (-) |
It Contains details of Supplies / tax reduced through Amendments in respect of Outwards taxable supplies to registered persons (4B), exports (4C), supplies to SEZs (4D) , deemed exports (4E), And credit notes (4I), debit notes (4J) and refund vouchers. Table 9A and Table 9C of FORM GSTR-1 may be used for filling up these details (Here we have to report only the Amendment done by issuing revised invoice/credit note/debit note in Jul-17 to Mar-18) |
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| M | Sub-total (I to L above) | |||||||||
| N | Supplies and advances on which tax is to be paid (H + M) above |
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| 5 | Details of Outward supplies made during the financial year on which tax is not payable |
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| A | Zero rated supply (Export) without payment of tax |
It Contains details of Export supplies without payment of IGST on the condition that he may supply goods or services or both under bond or Letter of Undertaking, and claim refund of unutilised input tax credit. Table 6A of FORM GSTR-1 may be used for filling up these details.
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| B | Supply to SEZs without payment of tax |
It Contains details of Supplies to Special Economic Zone developer or a Special Economic Zone unit without payment of IGST, on the condition that he may supply goods or services or both under bond or Letter of Undertaking, and claim refund of unutilised input tax credit
Table 6B of GSTR-1 may be used for filling up these details. |
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| C | Supplies on which tax is to be paid by the recipient on reverse charge basis |
This column should be fill by person specify through notification (i.e. GTA to registered persons) to registered persons who are liable to pay GST on reverse charges basis (refer sec 9 under CGST Act). Further Details of debit and credit notes are to be mentioned separately.
Table 4B of FORM GSTR-1 may be used for filling up these details |
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| D | Exempted | It contains Value of Exempted Outwards supplies
Table 8 of FORM GSTR-1 may be used for filling up these details |
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| E | Nil Rated | It contains Value of NIL rated Outwards supplies
Table 8 of FORM GSTR-1 may be used for filling up these details |
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| F | Non-GST supply (includes ‘no supply’) |
It Contains Value of Non-Gst Supplies (i.e. in case of Bar and restaurant supplies of foods is liable for GST while supplies of liquors is Non –GST supplies)
The value of ―no supply shall be declared under Non-GST supply (5F). |
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| G | Sub-total (A to F above) | |||||||||
| H | Credit Notes issued in respect of transactions specified in A to F above (-) |
It contain details of Credit note issued in respect of Outwards Supply on which no tax payable | ||||||||
| I | Debit Notes issued in respect of transactions specified in A to F above (+) |
It contain details of Debit note issued in respect of Outwards Supply on which no tax payable | ||||||||
| J | Supplies declared through Amendments (+) |
Details of addition or Amendment done in respect of Outwards Supply on which no tax payable | ||||||||
| K | Supplies reduced through Amendments (-) |
Details of reduced through Amendment done in respect of Outwards Supply on which no tax payable | ||||||||
| L | Sub-Total (H to K above) | |||||||||
| M | Turnover on which tax is not to be paid (G + L above) |
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| N | Total Turnover (including advances) (4N + 5M – 4G above) |
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| Pt. III |
Details of ITC for the financial year | |||||||||
| Description | Type | Centra l Tax | State Tax / UT Tax |
Integrat ed Tax | Cess | |||||
| 1 | 2 | 3 | 4 | 5 | 6 | |||||
| 6 | Details of ITC availed during the financial year | |||||||||
| A | Total amount of input tax credit availed through FORM GSTR-3B (sum total of Table 4A of FORM GSTR-3B) |
This column Auto populated from GSTR-3B, contain details of total amount of input tax credit claim/availed in previous filed return for said financial year. | ||||||||
| B | Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) |
Inputs | It contains the bifurcation of total Input tax credit into goods, capital goods and services that has been claim/availed In GSTR-3B Return
Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. This shall not include ITC which was availed, reversed and then reclaimed in the ITC ledger. This is to be declared separately under 6(H) below |
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| Capital Goods | ||||||||||
| Input Services | ||||||||||
| C | Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed |
Inputs | It contains the bifurcation of total Input tax credit into goods, capital goods and services that have been claim/availed In GSTR-3B Return in respect of goods/services supplies by unregistered person’s And on which reverse charge tax paid by registered persons. (Ref sec 5 of CGST Act.)
Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details |
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| Capital Goods | ||||||||||
| Input Services | ||||||||||
| D | Inward supplies received from registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed |
Inputs | It contains the bifurcation of total Input tax credit into goods, capital goods and services that have been claim/availed In GSTR-3B Return in respect supplies by registered persons as specify u/s 9 of CGST Act. Other than import of services as same is to be declared separately in 6(F) below.
Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details. 6E |
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| Capital Goods | ||||||||||
| Input Services | ||||||||||
| E | Import of goods (including supplies from SEZs) | Inputs | It contains the bifurcation of total Input tax credit into goods and capital goods that have been claim/availed In GSTR-3B Return in respect of Import of goods on which IGST paid at the time of Importation.
Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details. |
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| Capital Goods | ||||||||||
| F | Import of services (excluding inward supplies from SEZs) |
It contains total input tax credit claim on import services paid on reverse charge u/s 9
Table 4(A)(2) of FORM GSTR3B may be used for filling up these details |
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| G | Input Tax credit received from ISD | It contains input tax credit given by Input Service Distributor on the base of prescribed documents.
Table 4(A)(4) of FORM GSTR-3B may be used for filling up these details |
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| H | Amount of ITC reclaimed (other than B above) under the provisions of the Act |
It Contains input tax credit which has been previously reverse due non-fulfilment of certain condition (i.e. where payment not made of goods and services or both within 180 days from date of invoice same will reverse and will be reclaimed only on payment of it.) | ||||||||
| I | Sub-total (B to H above) | |||||||||
| J | Difference (I – A above) | |||||||||
| K | Transition Credit through TRAN-I (including revisions if any) |
It will Auto populated if TRAN 1 filed | ||||||||
| L | Transition Credit through TRAN-II | It will Auto populated if TRAN 2 filed | ||||||||
| M | Any other ITC availed but not specified above | |||||||||
| N | Sub-total (K to M above) | |||||||||
| O | Total ITC availed (I + N above) | |||||||||
| 7 | Details of ITC Reversed and Ineligible ITC for the financial year | |||||||||
| A | As per Rule 37 | It Contain Reversal of Input Tax credit due to non-payment of consideration within 180 days. | ||||||||
| B | As per Rule 39 | It contain reversal of Input tax credit distribute by Input Service distributor and which was reduced to any reasons | ||||||||
| C | As per Rule 42 | It contain reversal of Input tax credit which has been reverse due to
Using of taxable goods or services for supply of partly for business and partly for other purpose; Using of taxable goods or services for supply both for supply of exempted and taxable goods or services; Using of taxable goods or services for zero rated supply Where Supply is of exempted goods and also include exempted supply on which receipt of goods liable for reverse charges (e.g. used car) |
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| D | As per Rule 43 | It contain capital goods input tax credit reversal, when used for above purpose (i.e. for Rule 42) | ||||||||
| E | As per section 17(5) | It contain general Input tax credit reversal such as food, building, gift | ||||||||
| F | Reversal of TRAN-I credit | This column contains details of ineligible transition credit claimed under FORM GST TRAN-I then subsequently reversed. | ||||||||
| G | Reversal of TRAN-II credit | This column contains details of ineligible transition credit claimed under FORM GST TRAN-II then subsequently reversed | ||||||||
| H | Other reversals (pl. specify) | |||||||||
| I | Total ITC Reversed (Sum of A to H above) | |||||||||
| J | Net ITC Available for Utilization (6O – 7I) | |||||||||
| 8 | Other ITC related information | |||||||||
| A | ITC as per GSTR-2A (Table 3 & 5 thereof) | GSTR-2A Auto populated and exclude input tax credit for which Return status shows Not-Submitted | ||||||||
| B | ITC as per sum total of 6(B) and 6(H) above | <Auto > |
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| C | ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018 |
Here we Can Claim short/not claimed Input Tax Credit which was not availed in GSTR-3B return till Mar-18 Return and same has been claimed in subsequent year during April-18 To Sept-18 in GSTR-3B Return(Note: We can’t claim input tax credit more than GSTR2A) | ||||||||
| D | Difference [A-(B+C)] | |||||||||
| E | ITC available but not availed | Here we have to Report ITC which has not claimed in GSTR-3B return till Sept-18. Include both Eligible and Not Eligible. (i.e. eligible item goods and ineligible items food, gift) | ||||||||
| F | ITC available but ineligible | |||||||||
| G | IGST paid on import of goods (including supplies from SEZ) |
Here we can claim IGST paid at the time of imports (including imports from SEZs) during the financial year shall be declared here | ||||||||
| H | IGST credit availed on import of goods (as per 6(E) above) |
<Auto > |
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| I | Difference (G-H) | |||||||||
| J | ITC available but not availed on import of goods (Equal to I) |
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| K | Total ITC to be lapsed in current financial year (E + F + J) |
<Auto > |
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| Pt. IV |
Details of tax paid as declared in returns filed during the financial year | |||||||||
| 9 | Description | Tax Payable | Paid through cash | Paid through ITC | ||||||
| Centra l Tax | State Tax / UT Tax |
Integrat ed Tax | Cess | |||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | ||||
| Integrated Tax | Here we can view/entered the revised figure | This Column is Auto populated base on GSTR-3B return | ||||||||
| Central Tax | ||||||||||
| State/UT Tax | ||||||||||
| Cess | ||||||||||
| Interest | ||||||||||
| Late fee | ||||||||||
| Penalty | ||||||||||
| Other | ||||||||||
| Pt. V | Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier |
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| Description | Taxable Value | Centra l Tax | State Tax / UT Tax |
Integrat ed Tax | Cess | |||||
| 1 | 2 | 3 | 4 | 5 | 6 | |||||
| 10 | Supplies / tax declared through Amendments (+) (net of debit notes) |
Here we have to report only the amendment done in GSTR-1 of April to Sept-18 related to previous year supplies. Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April to September of the current financial year or date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here (Note: Here we have to report only the Amendment done by issuing revised invoice/credit note/debit note in April-18 to Sept-18, and on which we paid differential in GSTR-3B of April-18 to Sept-18 ) | ||||||||
| 11 | Supplies / tax reduced through Amendments (-) (net of credit notes) |
Here we have to report only the amendment done in GSTR-1 of April to Sept-18 related to previous year supplies. Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April to September of the current financial year or date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here (Note: Here we have to report only the Amendment done by issuing revised invoice/credit note/debit note in April-18 to Sept-18, and on which we paid differential in GSTR-3B of April-18 to Sept-18 ) | ||||||||
| 12 13 |
Reversal of ITC availed during previous financial year |
Here we have to report ITC excess claimed in GSTR-3B till Mar-18 and same has been reverse in April to Sept-18 GSTR-3B return. Table 4(B) of FORM GSTR-3B may be used for filling up these details | ||||||||
| ITC availed for the previous financial year |
Here we have to report ITC short/not claimed in GSTR-3B till Mar-18 and same has been claimed/ availed in April to Sept-18 GSTR-3B return. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2017-18 as per second proviso to subsection (2) of section 16 but was reclaimed in FY 2018-19, the details of such ITC reclaimed shall be furnished in the annual return for FY 2018-19 | |||||||||
| 14 | Differential tax paid on account of declaration in 10 & 11 above | |||||||||
| Description | Payable | Paid | ||||||||
| 1 | 2 | 3 | ||||||||
| Integrated Tax | ||||||||||
| Central Tax | ||||||||||
| State/UT Tax | ||||||||||
| Cess | ||||||||||
| Interest | ||||||||||
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| Pt. VI 15 |
Other Information | |||||||||
| Particulars of Demands and Refunds | ||||||||||
| Details | Central Tax | State Tax / UT Tax |
Integrated Tax | Cess | Intere st | Penalty | Late Fee / Other s |
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| 1 | 2 | 3 | 4 | 5 | ||||||
| A | Total Refund claimed |
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims. |
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| B | Total Refund sanction ed |
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| C | Total Refund Rejected |
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| D | Total Refund Pending |
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| E | Total demand of taxes |
Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand as declared in 15E above shall be declared here. Aggregate value of demands pending recovery out of 15E above shall be declared here |
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| F | Total taxes paid in respect of E above |
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| G | Total demands pending out of E above |
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| 16 | Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis |
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| Details | Taxable Value | Centra l Tax | State Tax / UT Tax |
Integrat ed Tax | Cess | |||||
| 1 | 2 | 3 | 4 | 5 | 6 | |||||
| A | Supplies received from Composition taxpayers |
Aggregate value of supplies received from composition taxpayers shall be declared here. Table 5 of FORM GSTR-3B may be used for filling up these details | ||||||||
| B | Deemed supply under Section 143 |
Aggregate value of all deemed supplies from the principal to the job-worker in 166 terms of sub-section (3) and sub-section (4) of Section 143 of the CGST Act shall be declared here | ||||||||
| C | Goods sent on approval basis but not returned |
Aggregate value of all deemed supplies for goods which were sent on approval basis but were not returned to the principal supplier within one eighty days of such supply shall be declared here | ||||||||
| 17 | HSN Wise Summary of outward supplies | |||||||||
| HSN Cod |
UQC | Total Quanti | Taxable Value | Rate of Tax | Centra l Tax | State Tax / | Integrat ed Tax | Cess | ||
| e | ty | UT Tax |
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| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | ||
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| 18 | HSN Wise Summary of Inward supplies | |||||||||
| HSN Cod e |
UQC | Total Quanti ty | Taxable Value | Rate of Tax | Centra l Tax | State Tax / UT Tax |
Integrat ed Tax | Cess | ||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | ||
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| 19 | Late fee payable and paid | |||||||||
| Description | Payable | Paid | ||||||||
| 1 | 2 | 3 | ||||||||
| A | Central Tax | Late fee will be payable if annual return is filed after the due date. | ||||||||
| B | State Tax | |||||||||
Conclusion:
The Annual Returns under GST Act are summary of your books and not that of your returns, it can be said that this is a combination of GSTR-1 and GSTR-3B in which data is to be entered as per books, and any additional liability related to the previous year can be disclosed here and settled. (in cash only)
Important point is to be noted for all the dealers for whom the Audit Reconciliation Statement GSTR-9C is applicable must make sure that their Annual Return GSTR-9/9A is completely matched with their financial statements hence the GST Annual Returns should be given importance at par to the audit.
–By CA Gaurav J. Popli
CHARTERED ACCOUNTANT
