Important FAQ's - GST Annual Return & Audit

Government through Notification number 39/2018-CT dated 04.09.2018 and Notification number 49/2018 -CT dated 13.09.2018 have notified GSTR 9, 9A & 9B (Annual Return for Regular, Composite dealer, E Commerce operator) and GSTR 9C (GST Audit) form.

Legal requirement of filing Annual return hereafter called GSTR-9 is governed by section 35(5) and section 44(1) of CGST Act.

Section 44(1): Every Registered person other than

- an Input Service Distributor,

- a person paying tax under section 51 (TDS) or section 52 (TCS),

- a casual taxable person and

- a non-resident taxable person, Shall furnish an annual return for every financial year electronically in Form GSTR-9 on or before the thirty-first day of December following the end of such financial year.

Section 35(5): Every registered person whose turnover during a financial year exceeds the prescribed limit Rs. 2 Cr shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement (GSTR-9C) and such other documents in such form and manner as may be prescribed.

*Reconciliation statement – GSTR-9C is reconciliation of data as per books of accounts and data as reported in GSTR-9.

Here are few important FAQ's on issues facing by every assesses w. r. to Annual return and Audit. Let’s see in detailed and how we can interpret.

1. Whether transactions for the period April-17 to June-17 are also to be included in GSTR-9 for FY 2017-18?

Answer: No, Notification No. 39/2018 dated 04th September 2018, clearly mentions that only details for the period July 2017 to March 2018 are to be provided in GSTR-9.

2. If a Taxpayer has obtained more than one GST Registration even though he has a single PAN, then whether GSTR-9 is to be filed at Entity level or GSTIN wise?

Answer: As per Legal provision of Section 44(1) of CGST Act, every registered person shall be required to file GSTR-9. Hence, if a Taxpayer has obtained multiple GST Registrations whether in one state or more than one state, it shall be treated as a distinct person in respect of each such registration as per section 25(4) of CGST Act. Hence, GSTR-9 is required to be filed separately for each such GSTIN.

3. Whether Turnover of 2 Cr. for GST Audit is for 9 months or Full Financial year?

Answer: For the FY 2017-18, the GST period comprises of 9 months whereas the relevant section 35(5) uses the expression Financial Year; Therefore to avoid any cases of default, it is reasonable to understand that for 2 Cr limit one has to reckon the turnover for the whole of the Financial Year which would include the first quarter of FY 2017-18.

4. Source of information for filling GSTR-9?

Answer: GSTR-9 is just a compilation of data filed in GSTR-3B and GSTR-1. The information of outward supplies ‘may’ be derived from Form GSTR 1. Inward supplies, input tax credit and the net tax paid in cash are to be gathered from Form GSTR 3B. But before filing GSTR-9, Value as per GSTR-3B and GSTR-1 must align. If there are changes, then the same must be adjusted in subsequent returns filed up to September'18.

5. Whether GSTR-9 can be revised?

Answer: No such option has been available in the act.

6. Late fee is payable for late filing of GSTR-9?

Answer: As per section 47(2) of CGST Act, Late fee for belated filing of GSTR-9 is Rs.200 per day(CGST + SGST) subject to maximum of 0.50% of turnover in a state/UT.

7. What are the consequences of the failure to file GSTR-9?

Answer: If one fails to file GSTR-9 then first late fees will be payable as discussed above. A notice may be issued u/s 46 requiring him to furnish such return within stipulated time.

Note: This article is for reference purpose only. Views expressed are not bound by the law.

56 views0 comments

Recent Posts

See All

Guidance issued by CBIC for filing annual return GSTR-9

Filing of Annual Return, Form GSTR-9 for financial year 2017-18, by 30th June, 2019 (1) Kindly note that Annual Return is to be filed even if you may have cancelled your GST Registration during the fi

Change in input credit set off rules w.e.f 01.02.2019

The government has amended CGST Act 2017 vide CGST Amendment Act 2018 with various changes w.e.f 01.02.2019 and one of the important amendment was made in Section 49 of CGST Act by introducing new sec

©2020 by