A Detailed Analysis on GSTR-9 and GSTR-9C

Last Updated On: Feb. 17, 2022, 12:06 p.m.
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ANALYSIS ON GSTR-9 AND GSTR-9C

What is GSTR 9?

As per section 44 of CGST Act r/w Rule 80(1) of CGST Rules, GSTR 9 is an annual return to be filed by every registered taxpayer other than CTP, ISD, NRTP, and TCS & TDS deductors. The return consists of details such as outward/inward supplies, taxes paid, refund claimed and demands raised.

 

What is GSTR 9C?

GSTR 9C is a reconciliation statement, which is to be filed annually by taxpayers. However, registered persons whose aggregate turnover is up to Rs. 5 crores (Notification no.30/2021-CT) have the option to file the same. (The said relaxation is available for previous years as well). It is a reconciliation statement between the filed annual return and the audited annual financial statement of the taxpayer.

 

As per section 2(6) of the CGST Act, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax, and cess.

 

Who should file an annual return?

As per section 44 of the CGST Act, all taxpayers/taxable persons registered under GST must file their annual return i.e., each GSTIN will have to file a separate annual return in case of multiple registrations under a single PAN. However, the following categories are NOT required to file an annual return:

  • Casual Taxable Person
  • Input service distributors
  • Non-resident taxable persons
  • Persons paying tax under section 51 (TDS) or 52 (TCS) of the CGST Act.
  • Proviso: Any department of the CG or an SG or a local authority, whose BOAs are subject to audit by the C&AG, or an auditor appointed for auditing the accounts of local authorities under any law.

 

Vide notification no 31/2021-CT, Government has exempted the registered person from filing annual return whose aggregate turnover in the FY 2020-21 is up to Rs. 2 crores. However, a registered person can file the same voluntarily even if the turnover is less than the said limit. (The said exemption is available for previous years as well).

 

What is the late fee for delay in filing annual return?

As per section 47(2) of the CGST Act, the late fees for not filing the annual return within the due date is Rs 100 per day, per Act. Thus, the total liability is Rs 200 per day by default to a maximum limit of 0.50% of the taxpayer’s turnover (GSTIN turnover). However, the delay in filing GSTR 9C may attract a general penalty u/s 125 of CGST Act, which may extend up to fifty thousand rupees (CGST+SGST).

 

 

Which are the optional tables which need not be filled in GSTR 9 & 9C?

Optional tables in GSTR-9:

  • Table 4 (I), (J), (K) & (L) – These fields cover the reporting of the credit notes, debit notes issued & amendments made during the FY. All these figures can be adjusted directly in tables 4 (B) to (E), for B2B, exports, SEZ’s, and deemed exports respectively.
  • Table 5 (E) & (F) – There is no need to bifurcate outward supplies made during the FY on which tax is not payable as nil-rated and non-GST for Tables 5 (E) and (F) of GSTR-9. A cumulative figure can be entered in Table 5 (D) as exempted.
  • Table 5 (H), (I), (J) & (K) – These fields cover the reporting of the credit notes, debit notes issued & amendments made during the FY. All these figures can be adjusted directly in Tables 5 (A) to (F) respectively.
  • Table 6 (C) – There is no need to bifurcate details of RCM ITC availed during the FY as ‘supplies received from unregistered’ and ‘registered persons’ whereas a cumulative figure can be shown in Table 6 (D).
  • Table 6 (B), (C), (D) & (E) – There is no need to bifurcate details of ITC availed during the FY as inputs & input services whereas a cumulative figure can be entered in inputs. However, there is a requirement to disclose capital goods separately.
  • Table 7 (A), (B), (C), (D) & (E) – Table 7 of GSTR-9 requires reporting of ITC reversed during FY. The requirement to report rule-wise, such as ITC reversal under rules 37, 39, 42, and 43, including blocked credits under section 17(5) of the CGST Act, was made optional. Instead, we can report it as a single total amount of reversal in Table 7 (H) called other reversals.
  • Table 12 & 13 – Table 12 & 13 of GSTR-9 requires reporting of reversal of PY’s ITC and PY’s ITC availed during the FY respectively (optional). E.g.: While filing FY 20-21 annual return, ITC of FY 20-21 reversed or availed in FY 21-22 would be reported in tables 12 & 13. However, the same has been made optional.
  • Table 15 – Table 15 of GSTR-9 requires reporting of particulars of demands and refunds (optional).
  • Table 16 – Table 16 of GSTR-9 requires reporting of information on supplies received from composition taxpayers, deemed supply under section 143, and goods sent on an approval basis (optional).
  • Table 17 & 18 – Table 17 & 18 of GSTR-9 requires reporting of HSN wise summary of outward supply and inward supply respectively (optional).

 

Optional tables in GSTR-9C:

  • Table 5 (B) to 5 (N) – Any adjustments to the AFS’s turnover to match it with the turnover as per GSTR 9 can be cumulatively shown in Table 5 (O).
  • Table 14 – This table is for reconciliation of ITC declared in the Annual Return (GSTR9) against the expenses booked in the audited Annual Financial Statement or books of account (optional).

 

Do's and Don'ts while filing GSTR-9 and GSTR-9C?

 

DO'S:

  • File GSTR 9 & 9C in time - One of the most basic compliances isfiling GSTR 9 & 9C within the due date, which will help the taxpayer to avoid interest, late fees, and notices from the department.
  • Maintain 9&9C workings with links to all the relevant data. Avoid keyed-in workings.
  • Fill accurate data - There area lot of fields to be filled in while filing the GSTR 9 & 9C. The GSTN does not allow for the amendment of the return once it is filed, this causes hardships to taxpayers, caution to be taken at the time of data entry.
  • Perform invoice level reconciliations - A very beneficial exercise to taxpayers, which will help not only in the process of filing the annual return but also to identify the errors.
  • Maintain ITC register with capital goods bifurcation so that it will be helpful while preparing table 6 of GSTR 9.
  • Maintain the details of ITC claimed, reversed, and re-claimed if the taxpayer fulfils the conditions mentioned u/s 16.
  • In case of amendments, outward register to be maintained with original values, so that it will be helpful while table 4 & 5 of GSTR 9.
  • Perform reconciliations on monthly basis or at least for every quarter between books and returns.
  • Rule 42 & 43 ITC reversals to be made and annual re-computation ITC reversal u/r 42 to be performed before September month return filing to avoid interest liability or missing out ITC.
  • Invoice level 2B reconciliation is to be performed for Table 8 disclosure in GSTR-9.
  • Maintain advance and advance adjustment workings so that it will be helpful while preparing table 5 of GSTR 9C.

 

DON'TS:

  • Don't forget to file nil return - This is a very important aspect that taxpayers sometimes tend to ignore. If a business does not have any transactions for the entire financial year, a user should not forget to file a NIL return for that FY.
  • Do not link any of the 9C tables (other than GSTR-9 values itself) to GSTR-9 tables.
  • Do not file without verification, as the returns cannot be revised.

 

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