CA. Virender Chauhan CA. Shaifaly Girdharwalecpl.live/icai/15112019/presentation/FORM_9_and_9C-VK_1.pdf · 1. FORM GSTR-9 to be filed by cancelled dealers 2. Annual return is a final

ISSUES & RESOLUTIONS IN FORM GSTR-9 & GSTR-9C

GST & Indirect Taxes CommitteeThe Institute of Chartered Accountants of India

CA. Virender ChauhanCA. Shaifaly Girdharwal

1

Date: 15-Nov-2019

ISSUES & RESOLUTIONS IN FORM GSTR-9

S. 44(1) read with Rule 80(1) mandates filing of annual return byevery registered person other than an ISD, TDS/ TCS deductor,CTP and a NR before 31-Dec (next year). Now this date gotextended upto 31-Dec-2019 for FY 2017-18 and 31-Mar-2020 forFY 2018-19. [Order No. 8/2019-CT [ROD] dt. 14-Nov-2019]

NN-47/ 2019-CT, dt. 9-Oct-2019 has made filing of FORM GSTR-9optional for those RP whose aggregate turnover in a FY does notexceed Rs. 2 crore.

© GST & Indirect Taxes Committee, ICAI 2


FORM GSTR-9 has been divided into following 6 parts-

Part I. Basic Details:

(i) FY,

(ii) GSTIN,

(iii) Legal/ Trade Name



Part II. Details of outward & inward supplies:T-4: Supplies on which tax is payable

Amendment NN-56/2019-CT, dated 14-Nov-2019Before NN-56/2019, a taxpayer was required to givedetails of outward supplies and details of CN/ DN/amendments under separate sub-tables, whereas theamendment has provided that now a taxpayer can optto provide such information net of CN/ DN etc. in Table4B-B2B, 4C-Exports, 4D-SEZ, and 4E-Deemed Exports



Part II. Details of Outward & inward supplies:T-5: Supplies on which tax is not payable

Amendment NN-56/2019-CT, dated 14-Nov-2019(i) Before NN-56/2019, a taxpayer was required to give details of outwardsupplies and details of CN/ DN/ amendments under separate sub-tables,whereas the amendment has provided that now a taxpayer can opt toprovide such information net of CN/ DN etc. in Table 5A-Exports, 5B-SEZ,5C-RCM supplies, 5D-Exempted, 5E-Nil rated, 5F-Non-GST

(ii) Exempted, nil rated and non-GST supplies which were to be givenseparately T-5D, T-5E, T-5F. Now a taxpayer can opt to give consolidatedfigure in T-5D

Issue: Non-GST supplies/ no supplies, although not defined in law, may be taken asthose supplies which are non-taxable supplies/ Schedule III



Part III. Details of ITC:T-6: Details of ITC availed

Amendment NN-56/2019-CT, dated 14-Nov-2019(i) A taxpayer can opt to provide details of ITC on inputs,

capital goods and input services in aggregate under thehead ITC on inputs only. [T-6B to 6E]

(ii) A taxpayer can opt to provide info in T-6D relating toRCM on URD and RCM on RD

Issue: Table 6H requires a taxpayer to furnish info of ITC availed,reversed and re-claimed. Such info. Is to be extracted from BOA



Part III. Details of ITC:T-7: Details of reversal/ ineligible

Amendment NN-56/2019-CT, dated 14-Nov-2019(i) A taxpayer can opt to give info relating to ITC reversals

under T-7F: Tran-1, T-7G: Tran-2 and T-7H: Otherreversals (instead for T-7A to T-7E)



Part III. Details of ITC:T-8: ITC related information [Comparison with 2A]

Amendment NN-56/2019-CT, dated 14-Nov-2019(i) In T-8, the figures of FORM GSTR-2A would be auto-

populated (FY 2017-18 cut-off date: 1-May-2019 andfor FY 2018-19 cut off date: 1-Nov-2019]

(ii) There may be cases where there may be differencesin FORM GSTR-2A of the taxpayer and the data auto-populated by GSTN and the reasons of suchdifferences have been explained by GSTN vide theirPress release dt. 14/06/2018 (like return submittedv. filed; PoS; Amnd., cut-off date)



(iii) Since T-8 mainly gives statistical info, therefore, NN-56/2019-CT has brought amnd. to the effect that for FY2017-18 & 2018-19, the taxpayer shall have an optionto upload the details for the entries in Table 8A to 8Dduly signed, in PDF format in FORM GSTR-9C (withoutthe CA certification)

Note: It seems that the lawmakers have resolved this issue offinding difficult by taxpayers to fill up T-8 due to auto-populationthat they may upload the correct figures in PDF format and to theextent possible fill up T-8 also.



Part IV. Details of taxes paid: T9: Auto-populated

No Change



Part V. FY 17-18 info given in next FY:

T-10: Debit notes;

T-11: Credit notes;

T-12: Reversal of ITC; (made option)

T-13: ITC availed; (made option)

T-14: Differential tax paid



Part VI. Other information:

T-15: Demands & refunds;

T-16: Info relating to inward supplies from composition; supply under S.

143 and goods sent on approval;

T-17: HSN-outward;

T-18: HSN-inward;

(T-15 to T-18 Made optional)

T-19: Late fee payable and paid



GENERAL INFO/ ISSUES:

1. FORM GSTR-9 to be filed by cancelled dealers2. Annual return is a final chance to rectify mistakes committed in

GSTR-3B/ GSTR-13. It is mandatory to file GSTR-3B/ GSTR-1 before filing FORM

GSTR-94. Any additional liability paid to be paid in cash through FORM

DRC-03 due to the reason mistakes found while filing annualreturn




5. Any ITC not claimed while filing original returns in FORM GSTR-3B cannot be claimed through annual return

6. The taxpayer could be given an option to insert commentswherever it tinkers with the returns figures in FORM GSTR-9 sothat the authorities could find reasons of variances reported bythe taxpayer.

7. Revision facility not available8. Consolidated summary of GSTR-3B/ GSTR-1 available




9. Taxes paid under RCM pertaining to FY 2017-18 in next year i.e.FY 2018-19 are to be claimed and reported in annual return of FY2018-19


ISSUES & RESOLUTIONS IN FORM GSTR-9C

S. 35(5), S. 44(2) read with Rule 80(3) mandates a taxpayer tofurnish a reconciliation statement duly certified by theauditors.

Non-compliance of S. 44 entails late fee of Rs. 100 + Rs. 100per day subject to maximum of 0.25%+0.25% of his turnover inthe State



FORM GSTR-9C comprises Part A-Reconciliation Statement and Part B-

Certification

Part A is divided into following 5 parts-

Part I. Basic Details

(i) T-1: FY

(ii) T-2: GSTIN

(iii) T-3: Legal name/ trade name

(iv) T-4: Are you liable for audit under any Act



Part II. Reconciliation of turnover

(i) T-5: Gross turnover

(ii) T-6: Reasons for un-reconciled GTO

Amendment NN-56/2019-CT, dated 14-Nov-2019

(i) NN-56/2019-CT has given option to the taxpayer to give

consolidated adjustments from T-5B to T-5N in T-5O



Part II. Reconciliation of turnover

(i) T-7: Taxable turnover

(ii) T-8: Reasons for un-reconciled taxable turnover

(No Change)



Part III. Reconciliation of tax paid

(i) T-9: Rate-wise details

(ii) T-10: Reasons for un-reconciled payments

(iii) T-11: Additional amount payable due to T-6, T-8 and T-10

(No Change)



Part IV. Reconciliation of ITC

(i) T-12: Reconciliation of Net ITC

(ii) T-13: Reasons for un-reconciled ITC

(iii) T-14: Reconciliation of expenses

(iv) T-15: Reasons for un-reconciled ITC

(v) T-16: Tax payable due to un-reconciled ITC in T-13 and T-15



Amendment NN-56/ 2019-CT, dt. 14-Nov-2019

(i) While reconciling ITC claim in the BOA with that being claimed

in FORM GSTR-9, a taxpayer have an option not to fill T-12B and

T-12C, whereas he can directly give reasons of variance, if any.

(ii) T-14 has been made optional



Part V. Auditor’s recommendation

(No change)



Part B: Certification

Amendment NN-56/2019-CT, dt. 14-Nov-2019

(i) Furnishing of Cash Flow Statement has been stated to be

furnished, in case, the same is available with the taxpayer

(ii) While giving opinion, the auditors may state whether the

particulars given in FORM GSTR-9C are true and fair




1. Aggregate turnover to be seen for the period 1-Jul-17 to 31-Mar-2018

2. Schedule III items are not to be considered in aggregateturnover

3. Anything which is outside the purview of the definition of goodsand services like securities, money are not to be considered inaggregate turnover.




5. Cross-charge issues6. Valuation issues7. Classification issues8. PoS issues9. Issuance of CN/ DN for post-sale discounts10. Technical glitches relating to filing process of FORM GSTR-9 and

GSTR-9C like PAN verification, DSC, emSigner etc. may beresolved by the members by visiting GSTN website




11. Press release 3-Jul-2019, states about the role of CA in certifyingreconciliation statement stating that there are apprehensionsthat the CA or cost accountant may go beyond the BOA in theirrecommendations in FORM GSTR-9C. The Act is clear in thisregard. With respect to the reconciliation statement their role islimited to reconciling the values declared in annual return withthe audited annual accounts.




In this respect it is significant to note the definition of “audit” ascontained under S. 2(13) of the CGST Act, which reads as under-

“audit” means the examination of records, returns and otherdocuments maintained or furnished by the registered personunder this Act or the rules made thereunder or under any otherlaw for the time being in force to verify the correctness ofturnover declared, taxes paid, refund claimed and input taxcredit availed, and to assess his compliance with the provisionsof this Act or the rules made thereunder.




12. Difficulty in quantification say, of ineligible credits. E.g. ITCclaimed on car maintenance, payments not made within 180days

13. Audit of those units which do not maintain separate auditedbooks of accounts like branches

14. Significance of Disclaimer15. Principle of neutrality/ independence of an auditor-SA 200-

internal auditor not to undertake GST audit simultaneously




16. Non-compliance of procedural matters. E.g. issuances of self-invoices for RCM.

17. While reporting gross turnover in T-5 all credit entries in the P&LA/c like sale, dividend, interest, exchange fluctuation, sale ofassets, income of foreign branches

18. Variances in revenue recognition on account of AS and theprovisions of GST may be reported

19. SA-299 “Responsibility of Joint Auditors” may be taken care of.




20. Items falling under Schedule-I are to be taken care of by theauditors. E.g. stock transfers, assets donated, decommissioningof plants, impairment of assets, assets taken by owners,transaction with foreign branches, sharing of cloud services

21. Transactions with related parties to be specifically taken care of.


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GST &Indirect Taxes Committee The Institute of Chartered Accountants of India [email protected] www.idtc.icai.org; www.icai.org

© GST & Indirect Taxes Committee, ICAI

http://www.idtc.icai.org/

http://www.icai.org/

Documents

CA. Virender Chauhan CA. Shaifaly Girdharwalecpl.live/icai/15112019/presentation/FORM_9_and_9C-VK_1.pdf · 1. FORM GSTR-9 to be filed by cancelled dealers 2. Annual return is a final