GST ANNUAL RETURN FOR F.Y.2018-19

[Ganeshan Kalyani]

A relook into the GST annual return filed for F.Y.2017-18.

The last date to file GST annual return for the period from 01.07.2017 to 31.03.2018 was 31.01.2020. The original due date was 31.12.2018. But, due to several reasons the due date got extended time and again. The main reason was that the said return was the very first return in GST regime. And the detail that was required to be furnished in the return was never maintained by the taxpayers. And collating such information at the time of filing annual return was also practically impossible. For e.g. the table no.18 in GSTR-9 requires furnishing of HSN summary of inward supply and table 14 in GSTR-9C requires furnishing reconciliation of Input Tax Credit (ITC) declared in GSTR-9 with ITC availed on expenses as per books of accounts. Moreover the HSN required to be furnished in the annual return was eight digits level, and the GST law allowed the taxpayer to maintain HSN at four digit level. Several doubts were also there with respect to the return forms. Representations were also filed.

Finally, the Govt. has made most of the tables in GSTR-9 & 9C as optional. Thus the taxpayer was able to file annual return for July, 2017 to March, 2018 without furnishing the information in the tables that was made optional. The same exemption in furnishing information is certain tables are also available to the Annual Return for the year F.Y.2018-19. Thus, the taxpayer can file the return for the second year of GST without much difficulty. The experience gained by the taxpayer at the time of filing of first year’s annual return will also help them to speed up the preparation of the annual return for F.Y.2018-19.  

The original due date for filing annual return for F.Y.2018-19, duly audited from a Chartered Accountant or a Cost Accountant was 31.12.2019. However, due to the reason that annual return for F.Y.2017-18 was not filed by that date (31.12.2019), the due for F.Y.2018-19 was extended till 31.03.2020. However, due to current lockdown situation the due date is further extended to 30.09.2020.

Following tables in GSTR-9 are made optional vide Notification no.56/2019-CT dated 14.11.2019:

1. Table 4: Details of advances, inward and outward supplies made during the year on which tax is payable.

1. Table 4I - Details of Credit Note: This table requires the details of credit notes issued in respect of supplies viz. B2B, Export / Zero rated, supply to SEZ and deemed exports furnished in tables from 4B to 4E to be separately furnished in table 4I. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer is given an option to either furnish such details separately in table 4I or furnish the aforementioned supplies in table 4B to 4E net of credit note.
2. Table 4J - Details of Debit Note: This table requires the details of debit notes issued in respect of supplies viz. B2B, Export / Zero rated, supply to SEZ and deemed exports furnished in tables from 4B to 4E to be separately furnished in table 4J. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer is given an option to either furnish such details separately in table 4J or furnish the aforementioned supplies in table 4B to 4E net of debit note.
3. Table 4K & 4L - Details of amendments: : This table requires the details of amendments either increase or reduction in supplies declared in table 4B to 4E to be separately furnished here in table 4K & 4L. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer is given an option to either furnish such details separately in table 4K in case of increase in supply or in table 4L in case of reduction is supply or furnish the supplies furnished in table 4B to 4E net of such amendments.

2. Table 5: Details of outward supplies made during the financial year on which tax is not payable.

1. Table 5D requires the details of exempted supplies, table 5E requires the details of Nil rated supplies, table 5F requires the details of Non-GST supply (including ‘no supply’). Generally, the taxpayer maintains supply into two - supplies attracting tax and supplies that do not attract tax. The supplies that do not attract tax is not further drilled down into exempted, nil rated or non-GST supply. Thus, it was difficult for the taxpayer to furnish the details in table 5D, 5E and 5F separately. Hence, the govt. has allowed the taxpayer to furnish all the supplies viz. exempted, nil rate and non-gst in table 5D as exempt.
2. Table 5H - Details of Credit Note: This table requires the details of credit notes issued in respect of supplies viz. zero rated, supply to SEZ, supplies on which recipient paid tax, exempted, nil rated, non-gst supplies furnished in tables from 5A to 5F to be separately furnished in table 5H. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer is given an option to either furnish such details separately in table 5H or furnish the supplies in table 5A to 5F net of credit note.
3. Table 5I - Details of Debit Note: This table requires the details of debit note issued in respect of supplies viz. zero rated, supply to SEZ, supplies on which recipient paid tax, exempted, nil rated, non-gst supplies furnished in tables 5A to 5F to be separately furnished in table 5I. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer is given an option to either furnish such details separately in table 5I or furnish the supplies in table 5A to 5F net of debit note.
4. Table 5J & 5K - Details of amendments: : This table requires the details of amendments either increase or reduction in supplies declared in table 5A to 5F to be separately furnished. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer is given an option to either furnish such details separately in table 5J in case of increase in supply or in table 5K in case of reduction is supply or furnish the supplies in table 5A to 5F net of such amendments.

3. Table 6: Details of ITC availed during the financial year.

1. Table 6B – This table requires the details of ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) to be furnished here, in the manner that ITC on inputs, capital goods and input services to be shown separately. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer has an option to either furnish such details separately or furnish ITC on inputs, capital goods or input services under the head ‘inputs’. Since, there is seem less flow of credit on goods and services, the taxpayer did not maintained ITC on goods and services separately. The exemption from furnishing the details duly bifurcated into inputs, capital goods and input services is a great relax to the taxpayer.
2. Table 6C & 6D – the detail of ITC on:
   1. inward supplies received from unregistered person liable to reverse charge on which tax is paid and ITC availed (except the supplies declared in table 6B) required to be furnished in table 6C.
   2. inward supplies  received from registered person liable to reverse charge on which tax is paid and ITC availed (except the supplies declared in table 6B) required to be furnished in table 6D.
   3. the ITC in table 6C and table 6D to be furnished separately into inputs, capital goods and input services.
   4. However, for F.Y.2017-18 and F.Y.2018-19 the taxpayer has an option to either show the details in table 6C and 6D separately or furnish the consolidated details in table 6D. Also, it is an option to either furnish the ITC as inputs, capital goods and input services or furnish all ITC under ‘inputs’.
3. Table 6E: ITC on import of goods including supplies from SEZs to be furnished here, under inputs and capital goods. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer has an option to either furnish ITC separately under inputs and capital goods or furnish both ITC under the head ‘inputs’.

4. Table 7: Details of ITC reversed and ineligible ITC for the financial year.

1. Table 7A to 7E: The reversal of ITC u/s 37, 39, 42, 43, 17(5) is required to be furnished in table 7A to 7E. However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer has an option to either furnish the reversal of ITC separately in table 7A to 7E or furnish all the reversal of ITC under table 7H as ‘other reversal’. However, it is specifically mentioned that the reversal on account of TRAN-1 and TRAN-2 are to be mandatorily reported in table 7F and 7G.

5. Table 8: Other ITC related information.

1. Table 8A to 8D: These tables require complete reconciliation of ITC which gets auto-populated in table 8A with the ITC declared in table 6(B) and 6(H) and ITC of F.Y.2018-19 but taken during April, 2019 to September, 2019. For F.Y.2018-19, GSTR-2A as on 01.11.2019 shall be auto-populated in table 8A.  However, for F.Y. 2017-18 and F.Y.2018-19, the taxpayer has an option to either furnish the reconciliation in these tables or prepare the reconciliation and upload it in GSTR-9C without CA certification.

6. Table 12: Reversal of ITC availed during previous financial year – This table requires information of ITC which was availed in previous financial year F.Y.2018-19, but reversed in return filed for the months of April, 2019 to September, 2019. However, for 2017-18 and F.Y.2018-19, the taxpayer has an option to not to fill this table.
7. Table 13: ITC availed for the previous financial year – This table requires information of ITC which was received in previous financial year F.Y.2018-19, but the same was availed in return filed for the months of April, 2019 to September, 2019. However, for 2017-18 and F.Y.2018-19, the taxpayer has an option to not to fill this table 13. Further, any ITC which was reversed in financial year 2018-19 on account of non-payment of taxable and tax to the supplier of goods or services within a period of 180 days but was reclaimed during the period April, 2019 to September, 2019 will be declared in the annual return of F.Y.2019-20.
8. Table 15: Particulars of demands and refunds. The following tables are required to be filled up.  However, for 2017-18 and F.Y.2018-19, the taxpayer has an option to not to fill this table 15.
   1. table 15A - total refund claimed
   2. table 15B - total refund sanctioned
   3. table 15C - total refund rejected
   4. table 15D - total refund pending
   5. table 15E – total demand of taxes
   6. table 15F – total taxes paid respect of total demand of taxes.
   7. table 15G – total demand pending out of total demand of taxes.
1. Table 16: This table requires the following information. However, for 2017-18 and F.Y.2018-19, the taxpayer has an option to not to fill this table 16.
   1. table 16A - supplies received from composition taxpayers
   2. table 16B - deemed supply under section 143, and
   3. table 16C -  goods sent on approval basis but not returned
10. Table 17: this table requires the information of HSN wise summary of outward supplies. However, for 2017-18 and F.Y.2018-19, the taxpayer has an option to not to fill this table 17.
11. Table 18: this table requires the information of HSN wise summary of inward supplies. However, for 2017-18 and F.Y.2018-19, the taxpayer has an option to not to fill this table 18. This is a major relief to the taxpayer.

Following tables in GSTR-9C are made optional vide Notification no.56/2019-CT dated 14.11.2019:

1. Table 5: Reconciliation of turnover declared in audited annual financial statement with turnover declared in annual return in Form GST-9.
   1. table 5A requires the details of turnover as per audited financial statements for the state.
   2. table 5B to 5N requires the details of supplies which when added or subtracted to the turnover furnished in table 5A , leads to turnover furnished in GSTR-9. However, for F.Y.2017-18 & 2018-19 the taxpayer is allowed to show all the adjustments in table 5O instead of furnishing reconciliation in table 5B to 5N.
2. Table 12: This table requires the information of reconciliation of Input Tax Credit (ITC). However, for F.Y.2017-18 and F.Y.2018-19, the registered person has an option to not fill this table.
   1. Table 12B, requires the ITC booked in earlier financial year claimed in current financial year.
   2. Table 12C, requires the ITC booked in current financial year to be claimed in subsequent financial year.
3. Table 14: Reconciliation of ITC declared in annual return in Form GST-9 with ITC availed on expenses (see listing) as per audited financial statement or books of account.
   1. purchases,
   2. freight / carriage,
   3. power and fuel,
   4. imported goods (including received from SEZ),
   5. rent and insurance,
   6. other expense GLs.
   7. The above mentioned ledgers are example. 
   8. It is very challenging to the taxpayer to prepare this table as there are numerous ledgers and enormous bookings/entries in the books of accounts. Hence, for F.Y.2017-18 and F.Y.2018-19, the registered person has an option to not fill this table.

Reference of Notifications:

1. Notification 39/2018-CT dated 04.09.2018: GSTR-9 inserted in the rule.
2. Notification 49/2018-CT dated 13.09.2018: GSTR-9A & 9C inserted in the rule.
3. Notification 74/2018-CT dated 31.12.2018: GSTR-9 as inserted vide notification in point no.1 is substituted.
4. Notification 31/2019-CT dated 28.06.2019: amends GSTR-9 format.
5. Notification 56/2019-CT dated 14.11.2019: some tables in GSTR-9 made optional.

Suggestion:  

The reconciliation of returns with the books is very much necessary to ensure that all the liabilities are declared and appropriate taxes are paid. There is sufficient time for the taxpayer to carry out entire year’s reconciliation in a detailed manner. The time taking tasks are GSTR-2A reconciliation and turnover reconciliation. The taxpayer can scrutinize expense ledger to ensure that all RCM liabilities are discharged. The taxpayer must make use of the available time and prepare the return for F.Y.2018-19 with appropriate data.