E JULY 2019 (E-newsletter) V Issue - Branch · 2019. 8. 26. · JULY 2019 (E-newsletter) V Issue In July, we witnessed for the first time in the history of India that Union Budget

E

From the desk of Chairman

JULY 2019 (E-newsletter) V Issue

In July, we witnessed for the first time in the history of India that Union Budget was presented

by a female Finance Minister. The clarity that our Hon’ble Finance Minister Mrs. Nirmala

Sitaraman possessed was quite evident from the press conference held by her after the budget

was presented in Parliament. Hope policy reforms that are need of the hour will soon be

implemented and executed by her. Looking into the immediate need of members, a 3 Hrs CPE

seminar on Union Budget 2019 proposal was organized on Sunday 07.07.2019 with speaker

CA. Kapil Goel, Delhi deliberating on the subject.

There can always be arguments in favor or against the budget. But I would like to

congratulate Government for one eye catching proposal i.e. introduction of Amnesty Scheme

in Service Tax and Excise matters. This is a reflection of clear intention of the government to

close all old judicial matters and start afresh with new indirect tax regime that has engulfed

India in last 2 years.

This month was full of events. We celebrated our foundation day on 1st July where there was

overwhelming presence at flag hosting, felicitation of members, plantation of saplings, and

members proactively showed awareness towards health by turning in large number for

medical tests and blood donation. An eventful week included Save Water Marathon,

distribution of stationary kit to needy students, Lok-Nukkad Natak at Central Roadways Bus

Stand on Swacch Bharat theme, career counselling and GST literacy seminar in Govt. Meera

Girls College, investor awareness programme and literacy camp on Income Tax and GST.

For students, an industrial visit on 13th July 2019 was organized by our CICASA committee

for CA students which I believe is a perfect way to give practical exposure to students of

what is to come ahead. Then, on 21st-22nd July “CA Student’s Talent Search-2019” was

organized at branch level having competition of quiz/elocution/instrument music/nukkad

drama. Winners at Branch level will now participate at regional/national/international level

Monsoon has set in and we are waiting for heavy downpours. Every time I see heaven pouring

down, I get reminded of this quote - “Life is full of beauty. Notice it. Notice the bumble bee,

the small child and the smiling faces. Smell the rain and feel the wind. Live your life to the

fullest potential, and fight for your dreams.” Let’s pray for lots of rain in coming days.

CA. Manish Nalwaya

Chairman

+91-9214039817

Page 2

Contents in this issue ……...

• VARIOUS BRANCH ACTIVITIES OF JULY MONTH

CAPTURED

• EDITORIAL

A. PRESS RELEASE ISSUED BY CBIC ON 03RD JULY 2019

REGARDING GSTR- 9C

B. TRANSACTIONS WHICH ARE CONSIDERED AS “SUPPLY”

UNDER GST BUT ARE NOT REQUIRED TO BE

RECOGNIZED AS “TURNOVER” IN THE BOOKS

C. TRANSACTIONS / INCOME AS SHOWN IN P & L ACCOUNT

BUT DO NOT HAVE ANY GST IMPACT

D. HOW TO DEAL WITH CASES IN WHICH CREDIT NOTE

HAVING GST IMPACT WHICH WAS REQUIRED TO BE

DISCLOSED IN GSTR-1 AND GSTR-3B BUT SOME ERRORS

AND MISTAKES WERE MADE

Page 3

Page 4

Page 5

Page 6

Page 7

Editorial

Dear Professional Colleagues,

We are pleased to present the July 2019 issue of “Adhyatan”, e-newsletter of

Udaipur Branch of CIRC of ICAI. This edition is devoted towards GSTR-9 i.e.

Annual Return and GSTR-9C, to be filed by the taxpayers latest by 31.08.2019

as of now., by analysing CBIC press release with heading Clarifications on

Filing of Annual Return and GSTR-9C dated 03.07.2019. Also we have put in

some practical case studies regarding credit notes, turnover, etc. to bring more

clarity to simplify issues that an assessee might face while filing GSTR-9 and

GSTR-9C. Hope this edition will serve its purpose of making return filing easier.

CA. Navneet Mangal

(Editor)

+91-9462922978

Page 8

A. PRESS RELEASE ISSUED BY CBIC ON 03RD JULY 2019

REGARDING GSTR- 9CQuery in Comment

Role of chartered accountant or a cost accountant in

certifying reconciliation statement - There are

apprehensions that the chartered accountant or cost

accountant may go beyond the books of account in their

recommendations under FORM GSTR-9C. The GST Act is

clear in this regard. With respect to the reconciliation

statement, their role is limited to reconciling the values

declared in annual return (FORM GSTR-9) with the audited

annual accounts of the taxpayer

This is first time that a GSTR-9C will be certified by

Chartered Accountant/ Cost Accountant. The biggest

challenge is that scope of this certification on bare reading of

statement of GSTR-9C along-with certification seems to be

humongous. This press release might be clarifying that we

don’t have to look for transactions beyond the annual

accounts. Just to highlight the fact that press release has

used annual accounts and not books of account because

both have different meaning. Books of account is much

wider term and particularly in context of GST, Section 35

read with Rule 56 has to be referred to. By referring annual

accounts in press release scope is curtailed to annual

accounts as compared to scope that was evident from

certification part given in GSTR-9C which required an

auditor to certify whether “ books of account” are properly

maintained or not.

Turnover for eligibility of filing of reconciliation

statement: It may be noted that the aggregate turnover i.e.

the turnover of all the registrations having the same

Permanent Account Number is to be used for determining

the requirement of filing of reconciliation statement.

Therefore, if there are two registrations in two different

States on the same PAN, say State A (with turnover of Rs.

1.2 Crore) and State B (with turnover of Rs. 1 Crore) they

are both required to file reconciliation statements

individually for their registrations since their aggregate

turnover is greater than Rs. 2 Crore. The aggregate turnover

for this purpose shall be reckoned for the period July, 2017

to March, 2018

It was point of huge confusion that whether aggregate

turnover is to be taken from April 17 to March 18 or July 17

to March 2018 for finding out eligibility of whether GSTR-

9C is required to be filed by the taxpayer. This clarification

comes as big relief for taxpayers as aggregate turnover for 2

crore limit for GST Audit is to be reckoned only for July

2017 to March 2019

Treatment of Credit Notes / Debit Notes issued during

FY 2018-19 for FY 2017-18 - It may be noted that no credit

note which has a tax implication can be issued after the

month of September 2018 for any supply pertaining to FY

2017-18; a financial/commercial credit note can, however,

be issued. If the credit or debit note for any supply was

issued and declared in returns of FY 2018-19 and the

provision for the same has been made in the books of

accounts for FY 2017-18, the same shall be declared in Pt. V

of the annual return. Many taxpayers have also represented

that there is no provision in Pt. II of the reconciliation

statement for adjustment in turnover in lieu of debit notes

issued during FY 2018-19 although provision for the same

was made in the books of accounts for FY 2017-18. In such

cases, they may adjust the same in Table 5O of the

reconciliation statement in FORM GSTR-9C

Clarification relating to presentation of credit note/ debit

note in GSTR-9 and consequently in GSTR-9C when

provision made in 17-18 itself for credit note though issued

in 18-19.

Reconciliation of input tax credit availed on expenses -

Table 14 of the reconciliation statement calls for

reconciliation of input tax credit availed on expenses with

input tax credit declared in the annual return. It may be

noted that only those expenses are to be reconciled where

Complete Reconciliation of expense is not required, only

those expenses has to be scrutinized relating to which ITC

has been availed.

Page 9

Query in Comment

input tax credit has been availed. Further, the list of

expenses given in Table 14 is a representative list of heads

under which input tax credit may have been availed. The

taxpayer has the option to add any head of expenses.

Payment of any unpaid tax -Section 73 of the CGST Act

provides a unique opportunity of self – correction to all

taxpayers i.e. if a taxpayer has not paid, short paid or has

erroneously obtained/been granted refund or has wrongly

availed or utilized input tax credit then before the service of

a notice by any tax authority, the taxpayer may pay the

amount of tax with interest. In such cases, no penalty shall

be leviable on such tax payer. Therefore, in cases where

some information has not been furnished in the statement of

outward supplies in FORM GSTR-1 or in the regular

returns in FORM GSTR-3B, such taxpayers may pay the

tax with interest through FORM GST DRC-03 at any time.

In fact, the annual return provides an additional opportunity

for such taxpayers to declare the summary of supply against

which payment of tax is made.

Annual return provides an opportunity to taxpayer to

reconcile and if any additional liability is found to be

payable then the same can be paid vide DRC-03 challan.

Here it is pertinent to mention here that if annual return is

selected as drop down while making payment through DRC-

03 challan then the same is to be paid in cash only.

In normal course credit can be used while making payment

through DRC-03 challan. In author’s view credit can be used

for payment of additional liability declared through annual

return.

Primary data source for declaration in annual return -

Time and again taxpayers have been requesting as to what

should be the primary source of data for filing of the annual

return and the reconciliation statement. There has been some

confusion over using FORM GSTR-1, FORM GSTR-3B

or books of accounts as the primary source of information. It

is important to note that both FORM GSTR-1 and FORM

GSTR-3B serve different purposes. While, FORM GSTR-1

is an account of details of outward supplies, FORM GSTR-

3B is where the summaries of all transactions are declared

and payments are made. Ideally, information in FORM

GSTR-1, FORM GSTR-3B and books of accounts should

be synchronous and the values should match across different

forms and the books of accounts. If the same does not

match, there can be broadly two scenarios, either tax was not

paid to the Government or tax was paid in excess. In the first

case, the same shall be declared in the annual return and

tax should be paid and in the latter all information may

be declared in the annual return and refund (if eligible) may

be applied through FORM GST RFD-01A. Further, no

input tax credit can be reversed or availed through the

annual return. If taxpayers find themselves liable for

reversing any input tax credit, they may do the same

through FORM GST DRC-03 separately.

It was popularly misconceived by the taxpayers that annual

return is summary of all the returns filed for the period July

2017 to March 2018. Unfortunately some assesse taxpayer

might have filed the return on the basis of auto populated

data in GSTR-9 by the site. However GSTR-9 as notified by

NN 74/2018- CT cannot be interpreted in a way to conclude

that GSTR-9 is a mere summarization of annual return.

Earlier press release and this instruction in press release

clarified that synchronization between GSTR-1, GSTR-3B

and books of account should be made while preparing

annual return. In nutshell, books of account along-with

GSTR-3b should be the basis for preparing annual return.

Premise of Table 8D of Annual Return - There appears to

be some confusion regarding declaration of input tax credit

in Table 8 of the annual return. The input tax credit which is

declared / computed in Table 8D is basically credit that was

available to a taxpayer in his FORM GSTR-2A but was

not availed by him between July 2017 to March 2019.

The deadline has already passed and the taxpayer cannot

avail such credit now. There is no question of lapsing of any

such credit, since this credit

Table 8D is the difference between the credit as availed by

the taxpayer and the credit as appearing in GSTR-2A as on

01.05.2019. Government has clarified that this is merely an

information which it needs for settlement purpose. This

sentence can be constructed as big relief for taxpayers who

have taken credit in excess of appearing in GSTR-2A,

though taken on the basis of valid invoiced and were

worrying of lapsing of credit on account of difference with

GSTR-2A.

Page 10

.Query in Comment

never entered the electronic credit ledger of any taxpayer.

Therefore, taxpayers need not be concerned about the

values reflected in this table. This is merely an information

that the Government needs for settlement purposes. Figures

in Table 8A of FORM GSTR-9 are auto-populated only

for those FORM GSTR-1 which were furnished by the

corresponding suppliers by the due date. Thus, ITC on

supplies made during the financial year 2017-18, if reported

beyond the said date by the corresponding supplier, will not

get auto-populated in said Table 8A. It may also be noted

that FORM GSTR-2A continues to be auto-populated on

the basis of the corresponding FORM GSTR-1 furnished

by suppliers even after the due date. In such cases there

would be a mis-match between the updated FORM GSTR-

2A and the auto-populated information in Table 8A. It is

important to note that Table 8A of the annual returns is

auto- populated from FORM GSTR-2A as on 1st May,

2019.

Premises of Table 8J of Annual Return - In the press

release on annual return issued earlier on 4th June 2019, it

has already been clarified that all credit of IGST paid at the

time of imports between July 2017 to March 2019 may be

declared in Table 6E. If the same is done properly by a

taxpayer, then Table 8I and 8J shall contain information on

credit which was available to the taxpayer and the taxpayer

chose not to avail the same. The deadline has already passed

and the taxpayer cannot avail such credit now. There is no

question of lapsing of any such credit, since this credit never

entered the electronic credit ledger of any taxpayer.

Therefore, taxpayers need not be concerned about the values

reflected in this table. This is information that the

Government needs for settlement purposes

In the press release on annual return issued earlier on 4th

June 2019, it has already been clarified that all credit of

IGST paid at the time of imports between July 2017 to

March 2019 may be declared in Table 6E. If the same is

done properly by a taxpayer, then Table 8I and 8J shall

contain information on credit which was available to the

taxpayer and the taxpayer chose not to avail the same. As

per the press release deadline to avail the credit was 31st

March 2019 hence the same cannot be availed.

Difficulty in reporting of information not reported in

regular returns - There have been a number of

representations regarding non-availability of information in

Table16A or 18 of Annual return in FORM GSTR-9. It has

been observed that smaller taxpayers are facing a lot of

challenge in reporting information that was not being

explicitly reported in their regular statement/returns (FORM

GSTR-1 and FORM GSTR-3B). Therefore, taxpayers are

advised to declare all such data / details (which are not part

of their regular statement/returns) to the best of their

knowledge and records. This data is only for information

purposes and reasonable/explainable variations in the

information reported in these tables will not be viewed

adversely

There is certain information as required in annual return like

inward supplies from composition taxpayers, HSN wise

summary of inward supplies which was not asked in GSTR-

1, GSTR-4 and GSTR-3B, hence great difficulty is being

faced by taxpayers in filling this data. Government has

clarified that information can be filled to the best of

knowledge on the basis of records, since the same is

informative purpose.

Question that stands before an assesse is whether it can be

argued that such information cannot be demanded by the

government. Unfortunately answer is negative because as

per Section 35(5) read with Rule 56, 57 and 58 every

registered person is required to maintain the inward supplies

records.

Now second question arises what if the same information is

not furnished. Will it be treated as suppression of facts to

invoke any demand under Section 74 of CGST Act.

Unfortunately answer is yes in our view but courts have also

held that suppression should go hand in hand with intention

to evade duty for invoking demand under extended period.

Hence there is always a shelter for assesse to prove that there

was no intention to evade duty in not providing those details.

Page 11

Query in Comment

Information in Table 5D (Exempted), Table 5E (Nil

Rated) and Table 5F (Non-GST Supply): It has been

represented by various trade bodies/associations that there

appears to be some confusion over what values are to be

entered in Table 5D,5E and 5F of FORM GSTR-9. Since,

there is some overlap between supplies that are classifiable

as exempted and nil rated and since there is no tax payable

on such supplies, if there is a reasonable/explainable overlap

of information reported across these tables, such overlap will

not be viewed adversely. The other concern raised by

taxpayers is the inclusion of no supply in the category of

Non-GST supplies in Table 5F. For the purposes of

reporting, non-GST supplies includes supply of alcoholic

liquor for human consumption, motor spirit (commonly

known as petrol), high speed diesel, aviation turbine fuel,

petroleum crude and natural gas and transactions specified in

Schedule III of the CGST Act.

Exempted, Nil rated and Non GST supplies cannot be

clearly segregated as per GST Law read with rules,

notification etc., however there is a separate requirement to

report exempted, nil rated and non GST supply in GSTR-9.

Hence such difficulty is sought to be removed by this

instruction by expressing reporting under the three will not

be viewed adversely.

Reverse charge in respect of Financial Year 2017-18

paid during Financial Year 2018- 19 - Many taxpayers

have requested for clarification on the appropriate column or

table in which tax which was to be paid on reverse charge

basis for the FY 2017-18 but was paid during FY 2018-19.

It may be noted that since the payment was made during FY

2018-19, the input tax credit on such payment of tax would

have been availed in FY 2018-19 only. Therefore, such

details will not be declared in the annual return for the FY

2017-18 and will be declared in the annual return for FY

2018-19. If there are any variations in the calculation of

turnover on account of this adjustment, the same may be

reported with reasons in the reconciliation statement

(FORM GSTR-9C).

This clarification was much required as there was huge

confusion about this aspect on the appropriate column or

table in which tax which was to be paid on reverse charge

basis for the FY 2017-18 but was paid during FY 2018-19.

As per the press release the same is required to be reported

in 18-19 annual return instead of 17-18 annual return.

What will happen in case when RCM liability of 17-18 is

not paid in 18-19 is not made clear?

As per author’s view the same needs to be identified and

paid before filing of annual return of 17-18 so that assesse

might save the credit in such case on such RCM liability

paid.

Duplication of information in Table 6B and 6H - Many

taxpayers have represented about duplication of

information in Table 6B and 6H of the annual return. It may

be noted that the label in Table 6H clearly states that

information declared in Table 6H is exclusive of Table 6B.

Therefore, information of such input tax credit is to be

declared in one of the rows only

Page 12

B. TRANSACTIONS WHICH ARE CONSIDERED AS “SUPPLY”

UNDER GST BUT ARE NOT REQUIRED TO BE RECOGNIZED AS

“TURNOVER” IN THE BOOKSS.

No.

Particulars Discussion on

taxability

Whether

treated as

outward

supply and

disclosed in

GSTR-9

What is the treatment in

GSTR- 9C

How to be

checked by the

auditor

1 Sale of

capital

goods

In respect of sale of

capital goods, only the

profit / loss arising on

the sale of such capital

goods is disclosed in the

Profit and Loss account.

However, the GST on

the supply of capital

goods is leviable on the

transaction value or

input tax credit is

reversed as per the

formula prescribed in

Section 18(6) of the

CGST Act.

Yes In order to reconcile the

difference between GSTR-9

and GSTR-9C, the profit / loss

arising from the sale of such

capital goods has to be

deducted from the Gross

turnover of the audited Annual

Financial Statement and the

value on which GST has been

paid has to be added under

Table 5O of GSTR 9C to

reconcile with the amount

disclosed in Form GSTR 9.

Data for such

transactions can

be ascertained

from deletions

disclosed in the

Fixed Asset

schedule

No To be shown in Part V of

GSTR-9C as auditor’s

recommendation on additional

liability under the head- Any

other amount to be paid for

supplies not included in the

annual return OR will become

part of non-reconciliation OR

will become part of non-

reconciliation

2 Inward

supply

returns

considered

as Outward

supply

Taxable persons may

have adopted the

practice of raising a tax

invoice for the purpose

of inward supply

returns. However, for

the purpose of accounts,

the same would be

considered inward

supply return and

reduced from the total

purchase value instead

of disclosing as revenue

in books of accounts.

Yes In such a situation, the

aggregate value of inward

supply returns which have

been considered outward

supply under the GST have to

be added to the Gross turnover

as per the audited Annual

Financial Statement to

reconcile with the amount

disclosed in Form GSTR-9.

Data for such

transactions can

be ascertained

from credit

entries in the

Purchase

ledgers.








part of non-reconciliation

Page 13

S.

No.


taxability

Whether

treated as

outward

supply and

disclosed in

GSTR-9

What is the treatment

in GSTR- 9C

How to be

checked by

the auditor

3 Outward supply

returns considered

as Inward supply

Where taxable persons

have adopted the

practice of treating

outward supply returns

as inward supply but

have reduced such

outward supply return

from the revenue,

Yes Aggregate value of such

turnover has to be reduced

from the gross turnover

declared in the audited

Annual Financial

Statements to reconcile with

the turnover declared in

Form GSTR 9.

Data for such

transactions

can be

ascertained

from credit

entries in the

Sales ledgers.



recommendation on

additional liability under the

head- Any other amount to

be paid for supplies not

included in the annual

return OR will become part

of non-reconciliation

4 Out of pocket

expenses

considered in the

value of supply

which has not been

considered as

income in the profit

& loss account

Where the taxable

person has received

some out of pocket

expenses and has

considered the same as

the value of supply of

goods/services, but the

same is not recognized

as income in P&L

account.

Yes Such Amount should be

added under Table 5O of

GSTR 9C to reconcile with

the amount disclosed in

Form GSTR 9.

Data for such

transactions

can be

ascertained

from credit

entries in the

expense

ledgers.



recommendation on




included in the annual

return OR will become part

of non-reconciliation

5 Sales return relating

to sales made for

the period prior to

July 2017

As per Section 142(1)

of the CGST Act, in

respect of goods on

which duty/tax had

been paid under the

existing law, but were

returned on or after

01.07.2017, the taxable

person was entitled to

claim refund of the tax

paid under the existing

law, but the person to

whom the goods were

supplied was not

registered.

Yes In such a situation the sales

return would not have been

disclosed in the GST

returns. However, the sales

return would have been

deducted from the revenue

in the books of accounts.

Therefore, the value of such

sales return should be added

to the gross turnover

declared in the audited

Annual Financial

Statements.

Data for such

transactions

can be

ascertained

from credit

entries in the

Sales ledgers

Page 14

S.

No

.

Particulars Discussion on taxability Whether

treated as

outward

supply and

disclosed in

GSTR-9


GSTR- 9C

How to be

checked by

the auditor

In respect of goods returned by

a customer who was registered,

as per Section 142(1), the

customer should raise tax

invoice and return the goods. In

such a situation, the discussion

in point no. 3 would be

applicable

No To be shown in Part V of GSTR-

9C as auditor’s recommendation

on additional liability under the

head- Any other amount to be

paid for supplies not included in

the annual return OR will

become part of non-

reconciliation

6 Income in

Profit and

Loss account

recognized

based on

special

circumstance

s –

In respect of taxable persons

engaged in construction services,

the revenue in Profit and Loss

account is recognized based on

Percentage of Completion

method, and the turnover under

the GST would be based on the

advances received towards such

construction services.

Yes In such a situation, the turnover

recognized in the Profit and Loss

account should be reduced and

the value of advances on which

GST is liable to be paid has to be

added to reconcile with the

turnover declared in Form GSTR

9

Data for

such

transaction

s can be

ascertaine

d from the

amount

disclosed

in the

Profit and

Loss

Account

and the

Notes to

Accounts

forming

part of the

audited

Annual

Financial

Statements







become part of non-

reconciliation

7 Inputs and

Capital

Goods sent

to job worker

but not

returned

within the

prescribed

period of one

year or three

years,

respectively

As per Section 143(3) and 143(4)

of the CGST Act, where goods

and inputs are sent to a job

worker and are not received back

within the prescribed period of

one year or three years

respectively, it would be deemed

to be a supply as on the date on

which such goods were sent to

the job worker. However, such

supply may not be treated as

income in the audited Annual

Financial Statements.

Yes In such a situation, the value on

which GST is liable to be paid on

the goods sent to the job worker

is liable to be added under Table

5O of GSTR 9C.

–Data for

such

transaction

s can be

ascertaine

d from the

inventory

records

and Form

ITC-04.







become part of non-

reconciliation

Page 15

S.

No

.


taxability

Whether

treated as

outward

supply and

disclosed in

GSTR-9


GSTR- 9C

How to be

checked by

the auditor

8 Goods sent

on approval

basis but not

approved

and received

back within

the

prescribed

period –

Goods supplied on

approval basis, but not

approved within a

period of six months

from the date of goods

sent, are deemed to be

supply under the GST.

Yes Where the taxable person has

disclosed such supply in GSTR

9, but not considered as income

in audited Annual Financial

Statements, adjustment should

be made under Table 5O of

GSTR 9C.

Data for such

transaction can

be ascertained

from the

inventory

records,

delivery

challans and e-

way bills

raised









9 Notice pay

recovered

from

employees

If the taxable person has

considered the notice

pay recovered from

employees as a taxable

supply but has not

disclosed the amount as

income in the Profit and

Loss account,

yes It would be reported under this

5O and added to the gross

turnover as per the audited

Annual Financial Statement

Data for such

recoveries can

be ascertained

from credits in

the Salary /

Wages ledger

maintained in

the books of

accounts









10 Gifts given

to

customers/ve

ndors/distrib

utors

– If it is established that

there is a non- monetary

consideration flowing to

the taxable person

distributing the gifts,

such transactions would

be liable to GST. The

gifts purchased and

distributed by the

taxable person are

normally charged as

expense in the Profit

and Loss account.

Yes However, if the taxable person

has disclosed the same in GSTR

9, then adjustment has to be

made in Table 5O of GSTR 9C

to add it to the Gross turnover

declared under the audited

Annual Financial Statement to

reconcile with turnover in

GSTR9

Data for such

transactions

can be

ascertained

from inventory

records as well

as expenses in

the

Marketing/Sale

s promotion

ledgersNo To be shown in Part V of








Page 16

S.

N

o.


taxability

Whether

treated as

outward

supply and

disclosed in

GSTR-9

What is the treatment

in GSTR- 9C

How to be

checked by the

auditor

11 Stocks issued to

discharge CSR

obligations

Where the taxable

person has considered

stocks issued for

discharge of CSR

obligation as taxable

supply,

Ye then the amount of such

taxable value has to be

added under Table 5O of

GSTR 9C to reconcile with

the turnover declared in

GSTR9

Data for such

transactions can

be ascertained

from inventory

records as well

as expenses in

the CSR

expenditure

ledger



recommendation on




included in the annual return

OR will become part of non-

reconciliation



recommendation on




included in the annual return

OR will become part of non-

reconciliation

C. TRANSACTIONS / INCOME AS SHOWN IN P & L ACCOUNT BUT

DO NOT HAVE ANY GST IMPACT

Types of Income Applicability of GST

Duty Drawback No

Creditors written back No

Provisions written back No

Dividend Income from subsidiaries, companies and/or joint ventures abroad/in

India, current investments, non-current investments

No

Advance forfeited No

Stale cheque written back No

Page 17

D. HOW TO DEAL WITH CASES IN WHICH CREDIT NOTE HAVING

GST IMPACT WHICH WAS REQUIRED TO BE DISCLOSED IN

GSTR-1 AND GSTR-3B BUT SOME ERRORS AND MISTAKES WERE

MADE

Particulars GSTR-1 GSTR-3B Amendment

made between

April 18 to

March 19

GSTR-9 GSTR-9C

Credit note was

issued between July

17 to March 2018

due to applicability

of Section 142(2) of

CGST Act for supply

made prior to 1st July

2017

Not shown in

GSTR-1 of

July to March

filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Amendment made in

GSTR-1 and GSTR-

3B during the period

April 18 to March

2019

To be shown in

Table 11 of

GSTR- 9

Not to be

disclosed

separately

anywhere in

GSTR-9C

Credit note was

issued between July

17 to March 2018



CGST Act for supply


2017

Not shown in

GSTR-1 of

July to March

filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Amendment not

made in GSTR-1

and but made in

GSTR-3B during the

period April 18 to

March 2019

To be shown in

Table 11 of

GSTR- 9

Not to be

disclosed

separately

anywhere in

GSTR-9C

Credit note was

issued between July

17 to March 2018



CGST Act for supply


2017

Not shown in

GSTR-1 of

July to March

filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Amendment not

made in GSTR-1 as

well as during the

period April 18 to

March 2019

Cannot be

shown in

Annual return

To be shown in

Table 5J of

GSTR-9C i.e.

Credit note

accounted for in

the audited

financial

statement but are

not permissible

under GST

Credit note was

issued between July

17 to March 2018



CGST Act for supply


2017

Not shown in

GSTR-1 of

July to March

filed

Reduced from the

taxable supply

and taxes were

also reduced

between July 17

to March 2018

Whether or not

amendment made

in GSTR-1, will

have no impact as

per author’s view

Not to be

disclosed

separately

anywhere in

GSTR-9C

Credit note was

issued between July

17 to March 2018



CGST Act for supply


2017

Shown in

GSTR-1 of

July to March

filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Reduced from the

taxable supply and

taxes were also

reduced between

April 18 to March

2019

To be shown in

Table 11 of

GSTR- 9

Not to be

disclosed

separately

anywhere in

GSTR-9C

Page 18


made between

April 18 to

March 19

GSTR-9 GSTR-9C

Credit note was

issued between

July 17 to March

2018 due to

applicability of

Section 142(2) of

CGST Act for

supply made prior

to 1st July 2017

Shown in GSTR-

1 of July to

March filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Not Reduced

from the taxable

supply and taxes

were also not

reduced between

April 18 to March

2019

Cannot be shown

in Annual return

To be shown in

Table 5J of

GSTR-9C i.e.

Credit note

accounted for in

the audited

financial

statement but are

not permissible

under GST

Credit note was

issued between

July 17 to March

2018 as per

Section 34 of

CGST Act for

supply made

between July 17

to March 2018

Not shown in

GSTR-1 of July

to March filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Amendment

made in GSTR-1

and GSTR-3B

during the period

April 18 to March

2019

To be shown in

Table 11 of

GSTR- 9

Not to be

disclosed

separately

anywhere in

*GSTR-9C

Credit note was

issued between

July 17 to March

2018 as per

Section 34 of

CGST Act for

supply made

between July 17

to March 2018

Not shown in

GSTR-1 of July

to March filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Amendment not

made in GSTR-1

and but made in

GSTR-3B during

the period April

18 to March 2019

To be shown in

Table 11 of

GSTR- 9

Not to be

disclosed

separately

anywhere in

GSTR-9C

Credit note was

issued between

July 17 to March

2018 as per

Section 34 of

CGST Act for

supply made

between July 17

to March 2018

Not shown in

GSTR-1 of July

to March filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Amendment not

made in GSTR-1

as well as during

the period April

18 to March 2019

Cannot be shown

in Annual return

To be shown in

Table 5J of

GSTR-9C i.e.

Credit note

accounted for in

the audited

financial

statement but are

not permissible

under GST

Credit note was

issued between

July 17 to March

2018 as per

Section 34 of

CGST Act for

supply made

between July 17

to March 2018

Not shown in

GSTR-1 of July

to March filed

Reduced from the

taxable supply

and taxes were

also reduced

between July 17

to March 2018

Whether or not

amendment

made in GSTR-

1, will have no

impact

To be shown in

4A if issued to

unregistered

person as net off.

To be shown in 4

Not to be

disclosed

separately

anywhere in

GSTR-9C

Page 19


made between

April 18 to

March 19

GSTR-9 GSTR-9C

Credit note was

issued between

July 17 to March

2018 as per

Section 34 of

CGST Act for

supply made

between July 17

to March 2018

Shown in GSTR-

1 of July to

March filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Reduced from the

taxable supply

and taxes were

also reduced

between April 18

to March 2019

To be shown in

Table 11 of

GSTR- 9

Not to be

disclosed

separately

anywhere in

GSTR-9C

Credit note was

issued between

July 17 to March

2018 as per

Section 34 of

CGST Act for

supply made

between July 17

to March 2018

Shown in GSTR-

1 of July to

March filed

Not reduced from

the taxable supply

and taxes were

also not reduced

between July 17

to March 2018

Not Reduced

from the taxable

supply and taxes

were also not

reduced between

April 18 to March

2019

Cannot be shown

in Annual return

To be shown in

Table 5J of

GSTR-9C i.e.

Credit note

accounted for in

the audited

financial

statement but are

not permissible

under GST

Documents

E JULY 2019 (E-newsletter) V Issue - Branch · 2019. 8. 26. · JULY 2019 (E-newsletter) V Issue In July, we witnessed for the first time in the history of India that Union Budget