GST Annual Returns & Audit Report

Returns under GST FORM PARTICULARS DUE DATE APPLICABLE FOR GSTR1* Outward Supplies 11th of the next month (31st Oct 43/2018) Normal Taxpayer GSTR2* Inward Supplies 15th of the next month (30th Nov 54/2017) GSTR3* Monthly return [periodic] 20th of the next month (11th Dec 54/2017) GSTR3B* Monthly return (Summary return) 20th of the next month (10th Aug 34/2018) GSTR4 Return by composition taxpayers 18th of the month next to the quarter Composition Taxpayer GSTR5 Return by non resident taxpayers [foreigners] 20th of the next month or within 7 days after expiry of registration, whichever is earlier Foreign Non-Resident Taxpayer GSTR6 Return by input service distributors [ISD] 13th of the next month (30-Sep-2018) Input Service Distributor *As per Press Release dated 4 May 2018, filing of Form GSTR 2 and GSTR 3 shall continue to remain suspended. Present system of filing Forms GSTR 1 and GSTR 3B shall continue for a period of 6 months.

Returns under GST Annual Statement of TCS 31st December of next FY* FORM PARTICULARS DUE DATE APPLICABLE FOR GSTR7 TDS** 10th of the next month Tax Deductor GSTR8 TCS** E-Commerce Operator GSTR9 Annual return 31st December of next FY Normal tax payer (other than ISD, casual taxpayer, foreigners) GSTR9A Composition Taxpayer GSTR9B Annual Statement of TCS 31st December of next FY* GSTR9C Annual return along with the copy of audited annual accounts and a reconciliation statement Normal taxpayer having turnover more than 2 crore GSTR10 Final Return Within 3 months of the date of cancellation or date of order of cancellation, whichever is later Persons cancelling registration **Provisions with respect to TDS and TCS have been put on hold upto 30th Sep 2018 * Last year the provisions were put on hold

GST Important Definitions Business includes – any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; any activity or transaction in connection with or incidental or ancillary to above, whether or not there is volume, frequency, continuity or regularity of such transaction; provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; (17/2018 26th July 2018) Note: In the course of business or furtherance of business.

GST Important Definitions 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 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. Exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply. Turnover in State/UT” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or UT by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or UT by the said taxable person but excludes central tax, State tax, UT tax, integrated tax and cess.

GST Audit Section 2 (13) “audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder. Types of Audit : Audit by a Professional Audit by authorities Special Audit

GST Annual Audit Audit by Professional: Section 35 (5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant Accounts and other records and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed. Rule 80 (3) Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

GST Annual Return Types of Return: GSTR 9 - Normal tax payer (other than ISD, casual taxpayer, foreigners) GSTR 9A – Composition Person GSTR 9B – E-commerce Operator Minimal Records: 35. (1) Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of— (a) production or manufacture of goods; (b) inward and outward supply of goods or services or both; (c) stock of goods; (d) input tax credit availed; (e) output tax payable and paid; and (f) such other particulars as may be prescribed: Provided that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business.

GST Annual Return Form GSTR 9 Particulars Part II Table 4 Details of advances, inward and outward supplies on which tax is payable (RCM) as declared in returns filed during the financial year Part II Table 5 Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year Part III Table 6 Details of ITC as declared in returns filed during the financial year Part III Table 7 Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year Part III Table 8 Other ITC related information ITC GSTR 2A Part IV Table 9 Details of tax paid as declared in returns filed during the financial year Part V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier Part VI Demands, Refunds, Composition purchases, deemed supply and Goods sent on approval, HSN Summary Out Ward Supplies

GSTR-1 *

Part II - Details of Outward and inward supplies declared during the financial year Table-4 Particulars Reference A B2C Supplies Net off Debit/Credit Notes 1 – 5, 7, 9B, 10 B B2B Supplies 1 – 4A, 4C C Zero Rated Supplies (payment of tax) Export 1 – 6A D SEZ Supplies 1 – 6B E Deemed Exports 1 – 6C F Advances received but not invoiced 1 – 11 G Inward supplies liable to RCM 3B – 3.1(d) I/J Credit / Debit Notes 1 – 9B K/L Supplies declared through amendments 1 – 9A, 9C Table 5 Particulars Reference Zero Rated, SEZ, RCM outward, Exempted, NIL Rated, Non GST Mainly Table 8 of GSTR 1 Few Exceptions: HSN for outward, Document Summary

Total input tax credit availed through FORM GSTR-3B (Table 6) Part III - Details of ITC as declared in returns filed during the financial year Total input tax credit availed through FORM GSTR-3B (Table 6) Inward Supplies and SEZ Services URD Supplies and RCM paid Registered RCM Supplies Import of Goods and SEZ Goods Import of Services ITC From ISD ITC Reclaimed (Availed, reversed) Tran I, Tran II Any other ITC availed but not specified above Note: ITC to be split into – Inputs, Capital Goods, Services ITC availed but supplier not uploaded (Missing Invoice)

ITC Reversal and Ineligible ITC – (Table 7) Part III - Details of ITC as declared in returns filed during the financial year ITC Reversal and Ineligible ITC – (Table 7) Rule 37 Payment not made with in 180 days  Rule 39 ISD reversal Rule 42 reversal of common inputs Rule 43 reversal of common assets ITC Sec. 17 (5) Reversal Reversal of Tran I & II Credit Other ITC Reversal

Other ITC Related Information – (Table 8) Part III - Details of ITC as declared in returns filed during the financial year Other ITC Related Information – (Table 8) ITC as per GSTR 2A ITC as per B2B and reclaimed Availed during Apr to Sep ITC Available but not availed ITC Available but ineligible IGST on import of goods (-) availed

 Other Information Particulars References Details of Taxes Paid in cash In Part IV refer to GSTR 3B Transactions of PY disclosed in Apr to Sep CY returns In Part V (Sales not disclosed in last year) or shown as B2C instead of B2B Demands and Refunds Part VI – RFD 01, manual demands Composition Supplies (Inward) Deemed Supply Goods sent on approval basis (SOA) HSN Summary outward , HSN Summary Inward  Vs Income Tax Document Summary  Exempted, NIL Rated, Non GST GST bill available but GSTN not mentioned

GST Audit Report Form GSTR 9C Particulars Part II Table 5,6,7,8 Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9) Part III Table 9,10,11 Reconciliation of tax paid Part IV Table 12,13 Reconciliation of Input Tax Credit (ITC) Part IV Table 14,15,16 Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of account Part V Table Auditor's recommendation on additional Liability due to non-reconciliation

GST Reconciliation Reports Types of Reconciliations: Sales Reconciliation ( Intra, Inter, Export, Deemed, other incomes, returns) Vs Audited books, E-way bill, Advances. Unbilled revenue. Purchases/ Expenses/ ITC (Intra, Inter, Import, others, returns) Claimed Not Claimed reasons RCM (13th October 2017) Payment not made within 180 days and reclaimed ITC disallowed Sec 17 read with Rules 37-44 Transition ITC HSN / Description GSTR 3B vs 1 and GSTR 3B vs 2A Challans, Ledgers Monthly/quarterly vs Annual Returns Refunds Stock statement vs Physical Stock for Transition credit. Trans 1 vs Tran 2

GST Proposed Returns Monthly Return and due date (i) NIL Returns (ii) Small Taxpayers. Continuous uploading and viewing. Due date for uploading and action to be taken by the recipient. Invoices uploaded but return not filed. Unidirectional flow of document. Missing invoice reporting (two months) Offline IT tool Payment of tax Recovery of Input credit Locking of invoices Rejected Invoices Pending Invoices Deemed locking of Invoices Unlocking of Invoices HSN Payment of multiple liablity Amendment return, invoices, other details, payment (Higher Late Fees) Profile based return.

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