OPTIONAL FORM GSTR-9 (BELOW 2 CRORES) AND FORM GSTR-9A TO BE FILED WITHIN THE EXTENDED DUE DATES
The Goods and Services Tax Act, 2017 came
into force with effect from 1.7.2017 in India.
Under Section 44
(1) of the Central Goods and Services Tax Act, 2017, every taxpayer, 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 FORM
GSTR-9 and FORM GSTR-9A and FORM GSTR-9C electronically before 31st December
of the succeeding financial year.
The time limit
to file Annual Returns in FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C for the
year 2017-18 has been extended from 31.12.2018 to 31.3.2019, 30.6.2019,
31.8.2019, 30.11.2019 and finally extended upto 31.12.2019.
The time limit
to file Annual Returns in FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C for the
year 2018-19 have been extended from 31.12.2019 to 31.3.2020.
The GST Council,
in its 37th meeting recommended relaxation in filing of annual
returns for MSMEs for Financial year 2017-18 and Financial year 2018-19 as
under:
· Waiver of requirement of filing
FORM GSTR-9A for composition taxpayers for the said periods; and
· Filing of FORM GSTR-9 for those
taxpayers who (are required to file the said return but) have aggregate
turnover up to Rs. 2 Crores made optional for the said tax periods.
CERTAIN PRACTICAL DIFFICULTIES EXPERIENCED IN FILING ANNUAL RETURNS
The suppliers
uploaded FORM GSTR-1 without correct alpha-numeric GSTIN which were not
accepted by the GST Portal and hence the taxpayers disclosed such supplies
under B2C instead of B2B. Such transactions were not auto-populated in the
Recipient’s inward supply details. Opportunity to correct such mistakes was not
utilized by such taxpayers within the stipulated time.
Similarly
suppliers have uploaded all supplies details in the GST Portal. The supplies may relate to business
activities or capital goods or consumables or goods or services for own use
etc. In such cases the Input Tax Credit
auto-populated may be higher than the eligible Input Tax Credit and
such ITC has to be reversed in relevant columns.
Amendments made
by the Suppliers were not considered by the Recipients and in certain cases
there are some variations in auto-populated Input Tax Credit.
The late
migrated taxpayers were allowed to file FORM GSTR-3B and FORM GSTR-1 without
any late fee or interest between 22.12.2018 to 31.3.2019 which were not
auto-populated in recipient’s FORM GSTR-9 or FORM GSTR-9A in certain cases,
Credit Notes or
Debit Notes were not properly accounted for by the taxpayers.
Some taxpayers
have disclosed NIL rated supplies (exempted) under Zero rated supplies (Export
or SEZ) and vice-versa by mistake and Non-GST supplies were not reported.
Reverse Charge
Mechanism applicability were not reported by some taxpayers and there is short
payment of tax.
If there are
omissions in supplies details and omission in reporting Reverse Charge
Mechanism turnover already furnished the same may be rectified in the Simplified
Annual Return and difference of tax payable may be paid through FORM GST DRC-3 only..
Correct inward
supply details may be furnished separately in PDF format duly signed by the
taxpayer without CA approval if necessary.
BENEFITS OF FILING OF OPTIONAL ANNUAL RETURN
The suppliers of
Goods or Services or both whose aggregate turnover is above Rs. 2 Crore will
certainly furnish Annual Returns.
Cross
verification of supplies of suppliers with the inward supplies of Recipients
will result in difference of turnover.
Similarly inward supplies of recipients with the outward supplies of the
suppliers will result in difference of turnover.
If the
difference of non-disclosure of supply or inward supply or non-payment of tax
on Reverse Charge Mechanism is noticed by the Department, the assessing
authority will raise additional demand with late fee, interest and also
penalty.
To avoid such additional demand if any with penalty, all taxpayers whose aggregate turnover
below Rs.2 Crore may file Annual returns and verify the correctness.
The time limit
to file optional Annual Returns were prescribed as shown below:
FORM TYPE
|
YEAR
|
EXTENDED DUE DATE
|
FORM GSTR-9
|
2017-18
2018-19
|
31.12.2019
31.03.2020
|
FORM GSTR-9A
|
2017-18
2018-19
|
31.12.2019
31.03.2020
|
As there is no
provision to levy late fee on optional annual returns, the GST Portal will not
accept the same beyond the extended due date mentioned above.
The Government of India issued Circular No. CBEC-20/16.05.18-GST dated 18.11.2019 and clarified that
The Government of India issued Circular No. CBEC-20/16.05.18-GST dated 18.11.2019 and clarified that
· As per proviso
to sub-rule (1) of rule 80 of the CGST Rules, a person paying tax under
section 10 is required to furnish the annual return in FORM GSTR-9A. Since 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 two
crore rupees, it is clarified that the tax payers under composition scheme, may, at their
own option file FORM GSTR-9A for the said financial years 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-9A for the said period.
· As per sub-rule (1) of rule 80 of the CGST Rules, 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 as specified under
sub-section (1) of section 44 electronically in FORM
GSTR-9. Further, 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 two
crore rupees. Accordingly, it is clarified that the tax payers, may, at their own option
file FORM GSTR-9 for the said financial years 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.
Section 73 of the said Act provides for voluntary payment of tax dues by the taxpayers at
any point in time. Therefore, irrespective of
the time and quantum of tax which has not been paid
or short paid, the taxpayer has the liberty to self-ascertain
such tax amount and pay it through FORM GST DRC-03. Accordingly, it is clarified that if any registered tax payer, during course of reconciliation of his accounts,
notices any short payment of tax or ineligible availment of input
tax credit, he may pay the same through FORM GST DRC-03.
It is better to file optional GST Annual returns as early as possible to avoid additional demand with penalty.
It is better to file optional GST Annual returns as early as possible to avoid additional demand with penalty.
The relevant circular issued is given below for
ready reference:
CBEC-20/16/04/18-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
To,
New Delhi,
Dated the 18th November, 2019
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals/
Director Generals (All)
Madam/Sir,
Sub: Clarification
regarding optional filing of annual return under
notification
No. 47/2019- Central Tax dated 9th October, 2019 - regarding
Attention is invited
to notification No. 47/2019-Central Tax dated 9th October, 2019
(hereinafter referred to as “the said notification”)
issued under section 148 of the Central Goods
and Services Tax Act, 2017 (hereinafter referred to as “the said Act”) providing for special procedure for those registered persons whose aggregate
turnover in a financial year does not
exceed two crore rupees and who have not furnished the annual return under sub-section (1) of section 44 of the said Act read with sub-rule (1) of
rule 80 of the Central
Goods and Services Tax
Rules, 2017 (hereinafter referred to as “the CGST Rules”).
2. Vide the said notification it
is provided that the annual return shall be deemed to be furnished on the due date if it has not been furnished before the due date for the financial year 2017-18 and 2018-19, in respect of those registered persons. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the said Act, hereby clarifies the
issues raised as below:–
a. As per proviso to
sub-rule (1) of rule 80 of the CGST Rules, a person paying tax under section 10 is required to furnish the annual return in FORM GSTR-9A. Since 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 two
crore rupees, it is clarified that the tax payers under composition scheme, may, at their
own option file FORM GSTR-9A for the said financial years 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-9A for the said period.
b. As per sub-rule (1) of rule 80 of the CGST Rules, 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 as specified under sub-section (1) of section 44 electronically in FORM GSTR-9.
Further, 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 two
crore rupees. Accordingly, it is clarified that the tax payers, may, at their own option
file FORM GSTR-9 for the said financial years 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. Section 73 of the said Act provides for voluntary payment of tax dues by the taxpayers at
any point in time. Therefore, irrespective of
the time and quantum of tax which has not been paid
or short paid, the taxpayer has the liberty to self-ascertain
such tax amount and pay it through FORM GST DRC-03. Accordingly, it is clarified that if any registered tax payer, during course of reconciliation of his accounts,
notices any short payment of tax or ineligible availment of input
tax credit, he may pay the same through FORM GST DRC-03.
4. Difficulty if any, in the implementation of this circular may be brought to the notice of the
Board. Hindi version would follow.
*****
(Yogendra Garg) Principal Commissioner y.garg@nic.in