FILING OF ANNUAL RETURN UNDER GST

[Mr. M. GOVINDARAJAN]

Annual Return

Section 44 of the Central Goods and Services Tax Act, 2017 (‘Act’ for short) provides the registered person under GST is liable to file annual return every year on or before 31^st December following the end of the financial year.  The Input Service Distributor, casual taxable person, a non resident taxable person and the persons who are liable to deduct tax at source and collect tax at source are not required to file the Annual Return.   The e-commerce operators are to file annual statement.  The Annual return shall be filed electronically.

Audit of accounts

Section 35(5) of the Act requires that every registered person whose turnover during a financial year exceeds ₹ 2 crores shall get his accounts audited by a chartered accountant or a cost accountant.   The registered person has to furnish the audited accounts along with the Annual return.   A reconciliation Statement shall also be attached along with the annual return reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars.

Forms for Annual Return

Rule 80 of Central Goods and Services Tax Rules, 2017 (‘Rules’ for short) provides the forms to be filed the registered persons as annual return.   The forms for annual return are described as below-

• Form GSTR – 9 – Annual return to be filed by every registered person other than-

• an Input Service Distributor;
• a person deducting tax at source;
• a person collecting tax at source;
• a non resident taxable person;
• a casual taxable person

• Form GSTR – 9A– Annual return in this form is to be filed by the Composition dealer.

Annual Statement

Every electronic commerce operator required to collect tax at source under section 52 shall furnish annual statement referred to in sub-section (5) of the said section in FORM GSTR -9A.

Audited accounts & reconciliation Statement

 Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

Form GSTR – 9 and form GSTR – 9A have been introduced by the Government vide Notification No. 39/2018-Central Tax, dated 04.09.2018.  Form GSTR – 9B and Form GSTR – 9C have  not yet been introduced.  Without Form GSTR -9C in which audited annual accounts and a reconciliation statement are to be certified, the annual return could not be filed by the registered person.  It is hoped that the Central Government would introduced by means of an amendment to the Rules in future.

Form GSTR - 9

The annual return GSTR – 9 has six parts as detailed below-

• Part I – Basic details;
• Part II – Details of outward and inward supplies during the financial year;
• Part III – Details of ITC as declared in returns during the financial year;
• Part IV- Details of tax paid as declared in returns during the financial year;
• Part V – Particulars of the transactions for the previous financial year declared in returns of April to September of current financial year or up to date of filing of annual return of previous financial year whichever is earlier;
• Part VI – Other information.

Basic details

The following information is to be furnished in Part I of the return which contains basic details of the registered person-

1. Financial year;

2. GSTIN

3. Legal Name and Trade Name (if any).

Details of supply

The following information is to be furnished in Part II of the return which contains the details of outward supplies and inward supplies effected during the financial year-

4. Details of advances, inward and outward supplies on which tax is payable as declared in returns filed during the financial year

(a) Supplies made to un-registered persons (B2C);

(b) Supplies made to registered persons (B2B);

(c) Zero rated supplies (Export) on payment of tax (except supplies to SEZ);

(d) Supplies to SEZ on payment of tax;

(e) Deemed Exports;

(f) Advances on which tax has been paid but invoice has not been issued (not covered under (a) to (e) above);

(g) Inward supplies on which tax is to be paid on reverse charge basis;

(h) Sub total(a) to (g) above;

(i) Credit notes issued in respect of transactions specified in (b) to (e) above (-);

(j) Debit notes issued in respect of transactions specified in (b) to (e) above (+);

(k) Supplies/tax declared through amendments (+);

(l) Supplies/tax reduced through amendments (-);

(m) Sub total (i) to (l);

(n) Supplies and advances on which tax is to be paid (h) + (m) above.

5. Details of Outward Supplies on which tax is not payable as declared in returns during the financial year-

(a) Zero rated supply (Export) without payment of tax;

(b) Supply to SEZs without payment of tax;

(c) Supplies on which tax is to be paid by the recipient on reverse charge basis;

(d) Exempted;

(e) NIL rated;

(f) Non –GST supply;

(g) Sub total (a) to (f) above

(h) Credit notes issued in respect of transactions specified in (a) to (f) above;

(i) Debit notes issued in respect of transactions specified in (a) to (f) above;

(j) Supplies declared through amendments (+);

(k) Supplies reduced through amendments (-);

(l) Sub total (h) to (k) above

(m) Turnover on which tax is not to be paid (g) + (l) above;

(n) Total turnover (including advances) [(4n)+5(m)-(4g)]

6. Details of ITC availed as declared in returns filed 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)

(b) Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) – Inputs/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/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/Capital goods/Input services

(e) Import of goods (including supplies from SEZs) – Inputs/Capital goods

(f) Import of services (excluding inward supplies from SEZs)

(g) Input Tax credit received from ISD

(h) Amount of ITC reclaimed (other than B above) under the provisions of the Act

(i) Sub-total (b to h above)

(j) Difference (i - a above)

(k) Transition Credit through TRAN-1 (including revisions if any

(l) Transition Credit through TRAN-II

(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 as declared in returns filed during the financial year

(a) As per Rule 37

(b) As per Rule 39

(c) As per Rule 42

(d) As per Rule 43

(e) As per Section 17(5)

(f) Reversal of TRAN-1 credit

(g) Reversal of TRAN-II credit

(h) Other reversals(pl. specify)

(i) Total ITC reversed [(a) + (h)]

(j) Net ITC available for Utilization [6(a) – 7(i)]

8. Other ITC related information

(a) ITC as per GSTR-2A (Table 3 & 5 thereof)

(b) ITC as per sum total of 6(b) and 6(h) above

(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 – September 2018

(d) Difference [a-(b+c)]

(e) ITC available but not availed (out of d)

(f) ITC available but ineligible (out of d)

(g) IGST paid on import of goods (including supplies from SEZ)

(h) IGST credit availed on import of goods [as per 6(e)]

(i) Difference [(g) – (h)]

(j) ITC available but not availed on import of goods [Equal to (i)]

(k) Total ITC to be lapsed in current financial year (e+f+j)

9. Details of tax paid as declared in returns filed during the financial year

• Integrated tax
• Central Tax
• State/UT Tax
• Cess
• Interest
• Late fee
• Penalty
• Other

For all the above the details as furnished below should be given-

• Tax payable
• Tax paid though-

• Cash
• ITC (IGST/CGST/SGST/UTGST/Cess

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

10. Supplies / tax declared through Amendments (+) (net of debit notes)

11. Supplies / tax reduced through Amendments (-) (net of credit notes)

12. Reversal of ITC availed during previous financial year

13. ITC availed for the previous financial year

14. Differential tax paid on account of declaration in 10 & 11 above

15. Other Information – Particulars of demand and refunds

(a) Total Refund claimed

(b) Total Refund sanctioned

(c) Total Refund Rejected

(d) Total Refund Pending

(e) Total demand of taxes

(f) Total taxes paid in respect of E above

(g) Total demands pending out of E above

16. Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis

(a) Supplies received from Composition tax payers

(b) Deemed supply under Section 143

(c) Goods sent on approval basis but not returned

17. HSN Wise Summary of outward supplies

18. HSN Wise Summary of Inward supplies

19. Late fee payable and paid.

Lastly verification is to be done.  The registered person or his authorized person is to verify that the information given herein above is true and correct to the best of his knowledge and belief and nothing has been concealed there from and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.

Late fee

Section 47(2) of the Act provides that any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent. of his turnover in the State or Union territory.

Penalty

There is no provision for imposing penalty for non filing of annual return under the Act.  However Section 125 of the Act provides that any person, who contravenes any of the provisions of this Act or any rules made there under for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.