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Thursday, June 6, 2019

FORM GSTR-9 Annual Return filing instructions issued on 4.6.2019

FORM GSTR-9 ANNUAL RETURN FILING INSTRUCTIONS



The Goods and Services Tax Act, 2017 came into force in India with effect from 1.7.2017.

FORM GSTR-9 Annual Return filing instructions issued on 4.6.2019

All taxpayers (except Casual Taxable Persons, Input Service Distributors, Non-resident Taxable Persons and Persons paying TDS under Section 51 of CGST Act, 2017) will have to file Annual Return in FORM GSTR-9 and FORM GSTR-9A before 30.6.2019 as per Press Release dated 22.12.2018.

The details of transactions from 1.7.2017 to 31.3.2018 (only for 9 months) were to be disclosed in the Annual Returns for the year 2017-18 as per Notification No. 39/2018 dated 4.9.2018.

In FORM GSTR-9 there are 6 parts as shown below:

I)     Basic Details (Auto-populated)
II)    Details of Outward and Inward supplies declared      during the financial year
III)   Details of ITC as declared in returns filed during the  financial year
IV)   Details of tax paid as declared in returns filed during the financial year
V)    Particulars of transactions for the previous year declared in returns of April to September of current Financial Year or upto date of filing of annual return of previous financial year whichever is earlier
VI)  Other Information

The recipients of Goods or Services or both have filed their FORM GSTR-3B and FORM GSTR-1 well in advance or within the stipulated time. 

But the suppliers of Goods or Services or both to the recipients   have furnished their returns belatedly and hence the recipients were not able to take Input Tax Credit. In some cases auto-populated details were not readily available in FORM GSTR-2A for adjustment of ITC even though the recipients were having Tax Invoice issued by the recipients.

In some cases the taxpayers has not filed the requisite details such as PAN Card Details, Proprietor details, Partners details, Bank Account details, Owner / Rent / Lease agreement details, e-mail iD details, Mobile Number details, Power of attorney details and hence the applications are incomplete without 100% and in certain cases ARN not received for some other reasons. For such taxpayers, the Government has extended time limit to complete the migration process till 31.1.2019 and such taxpayers were allowed extension of time till 31.3.2019 to file FORM GSTR-3B and FORM GSTR-1 for the return period from July 2017 to December 2018.

Certain suppliers of Goods or Services or both have furnished their GST returns for the period July 2017 to March 2018 only during April 2018 to March 2019 belatedly (after December 2018) as per the 31st GST Council meeting held on 22.12.2018.

As the time limit has been extended to the late migrated taxpayers till 31.3.2019 (July 2017 to December 2018) the recipients who have effected inward supplies from such taxpayers were not able to adjust the ITC in time and hence there are practical difficulties experienced by recipients.

In order to adjust the ITC by the recipients the Government has allowed to auto-populate the above details available as on 1.5.2019 (FORM GSTR-2A). 

The Government has issued clarifications regarding furnishing of such details in FORM GSTR-9. The relevant Press Release is given below for ready reference:

Press Release


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-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.

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

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