GSTR 9 & 9C CA Shankara Narayanan V GPVS & Associates 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets - Multilocation Registered branches in two different States / UTs; Registrants within the same State, as business verticals or otherwise; Business locations outside India; Branches in a State that are found liable to register but are not registered 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Multilocation – Books & Records To be maintained GSTIN wise If Maintained Totally; Methodology to derive Information – Work Sheet 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Multilocation – Books & Records GSTIN-wise trial balance Identification of GST Ledgers GSTR 3B and GSTR 2A match GSTR 3B and GSTR 1 match GSTR 3B & 1 should match with Books of Accounts 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – GST Accounting E-Cash Ledger E-Credit Ledger E-Liability Ledger Additional Ledgers - Advances Regular Location 1 GST E-Cash Ledger A/c CGST ITC - Location A/c CGST Liability - Location A/c CGST Adv Interim - Location A/c SGST ITC - Location A/c SGST Liability - Location A/c SGST Adv Interim - Location A/c IGST ITC - Location A/c IGST Liability - Location A/c IGST Adv Interim - Location A/c 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Revenue Recognition vs Output Tax Liability HSN Classification Rate applicability Goods 177 items 28% to 18% from 15th Nov 17 Service - Maximum Rate Transfer of Right to Use 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Revenue Recognition vs Output Tax Liability Advances For Goods Advances No Tax before GST GST Applicable from 1st July 2017 to 14th Nov 2017 No Tax from 15th Nov 2017 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Revenue Recognition vs Output Tax Liability Advances For Service Advances Service Tax POT was applicable before GST GST Applicable GST continues to be applicable 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Deemed Supply vs Output Tax Liability Supply between Distinct Persons Taxable Involves both Goods & Services Elimination of Intra-Company Turnover Reconciliation within Accounts & Returns 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Deemed Supply vs Output Tax Liability Food / Transportation to Employees Free at Subsidised Rate Section 15 – Related Person Gifts (Rs. 50,000 limit) 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Deemed Supply vs Output Tax Liability – JOB WORK Inputs to be received back in one year Capital Goods to be received back in three years Else it will be regarded as supply by the principal to the job worker 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Outward Liability on Disposal of Assets Motor Vehicles Up to 12th October From 12th October to 24th January From 25th January 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Outward Liability on Disposal of Assets Other than Motor Vehicles 5% per quarter Eligibility Transition Impact 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Outward Liability Other Recon Points Debit Note Interest Liability - Exceptions Credit Note Discount / Incentives – TREATMENT 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Outward Liability Other Recon Points ZERO Rated Supply vs DEEMED Exports LUT Compliance 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Other Outward Liabilities - RCM Reverse Charge Mechanism Section 9 (3) – Notified Section 9 (4) – Unregistered Deferred till 30th September 2019 Limit of Rs. 5,000/- up to 12th October 2017 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Other Outward Liabilities - RCM Reverse Charge Section 9 (3) Goods Cashew Nuts; Tendu Leaves ; Tobacco Leaves Silk yarn ; Raw Cotton Goods disposed by Government Lottery 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Other Outward Liabilities - RCM Reverse Charge Section 9 (3) Services Legal Services by a Lawyer Services of a Director Services supplied by a director of a company or a body corporate to the said company or the body corporate Sponsorship Services 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Other Outward Liabilities - RCM Reverse Charge Section 9 (3) Services Goods Transport Services Imports of Goods on CIF basis Copyrights Import of Services 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Input Tax Credit Tax Invoice Self - Invoice, subject to the payment of tax a debit note issued by a supplier a bill of entry or any similar document under the Customs Act, 1962 an Input Service Distributor ISD invoice 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Input Tax Credit Value of supply with tax payable FAILS to PAY within 180 days from Invoice Date Time Limit 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Input Tax Credit – Capital Goods Claimed Depreciation on tax component Asset purchased for Rs. 1 crore GST Paid Rs. 28 lakhs Asset capitalised for Rs. 1.28 Crores Is ITC eligible ?

Checklists & Worksheets – Input Tax Credit – Capital Goods What is Capitalisation Does taking to CWIP means Capitalisation When the Credit can be availed 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Input Tax Credit – Taxable & Exempted Total Input Tax Credit Credit Ineligible Credit Specific Other Credits To Taxable Proportionate to Taxable To Exempt Proportionate to Exempt 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Input Tax Credit Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples Impact Areas Stock shortage on Physical Verification ? Goods given on Warranty ? Goods given as Free samples ? 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Input Tax Credit Impact Areas Goods used for Testing ? New Year or Diwali Gifts ? Inventory Written-Off ? Slow moving Inventory PROVISION ? Impairment on Fixed Assets ? 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Interest 18% per annum - Scenarios 24% per annum - Scenarios Interest on Gross Liability Tax Liability for the Month – Rs. 50 lakhs Input Tax availed during the month – Rs. 30 lakhs Interest Payable on ? 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists & Worksheets – Interest Interest till filing Tax Liability for the Month – Rs. 50 lakhs Input Tax availed during the month – Rs. 30 lakhs Rs. 20 lakhs Cash Paid on 20th Return filed on 25th Is Interest Payable? 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR – 9 Clause by Clause 23-03-2019 CA Shankara Narayanan V, Chennai

GST Annual Return On Screen Filing 23-03-2019 CA Shankara Narayanan V, Chennai

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GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN – Consol GSTR-1 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN – Consol GSTR 3B 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GSTR 9 – Table 4 23-03-2019 CA Shankara Narayanan V, Chennai

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GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

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GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

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GSTR 9 – ANNUAL RETURN 23-03-2019 CA Shankara Narayanan V, Chennai

GST - Reconciliation Statement & Audit by External Auditors CA Shankara Narayanan V 23-03-2019 CA Shankara Narayanan V, Chennai

Types of Audit under GST – Audit by a Chartered Accountant – Sec.35 (5) of the CGST Act, read with rule 80(3) of the CGST rules, 2017. Annual return to be filed u/s 44 in Form GSTR-9/9A/9B shall be supported by a certified reconciliation statement between Audited Financial statements and Returns filed. 23-03-2019 CA Shankara Narayanan V, Chennai

Audit by a Chartered Accountant Aggregate turnover > 2 crores Rule 80(3) of the CGST rules provides that, Every registered person turnover whose during a aggregate financial All India PAN basis Includes year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) Taxable supplies Export of Goods and services Exempted supplies of section 35 and he shall furnish a annual copy of audited accounts and a duly reconciliation statement, certified, in FORM GSTR-9C. 23-03-2019 CA Shankara Narayanan V, Chennai

Audit by a Chartered Accountant “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 23-03-2019 CA Shankara Narayanan V, Chennai

Audit by a Chartered Accountant Annual Turnover – Rule 80(3) provides if aggregate turnover during the financial year exceeds INR 2 crores. GST is effective from 1st July 2017 i.e, only for 9 months during FYE 2017-18. What is the threshold for turnover for FYE 2017-18 is yet to be clarified by Government Whether to consider INR 2 crores or proportionate for 9 months 23-03-2019 CA Shankara Narayanan V, Chennai

Part – A Reconciliation statements Part – B Certifications GSTR – 9C Part - I Part - II Part - III Part - IV Part - V Basic details Reconciliation of Reconciliation of taxes paid Reconciliation of Net Input Tax Credit Auditor's recommendation on additional Liability due to non- reconciliation turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9) 23-03-2019 CA Shankara Narayanan V, Chennai

Part B - Certification Verification: I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from. Signature and stamp/Seal of the Auditor 23-03-2019 CA Shankara Narayanan V, Chennai

Part B - Certification Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts: 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is GST Auditor 1. I/we have examined the— balance sheet as on ……… the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., and the cash flow statement for the period beginning from ……..…to ending on ………, —attached herewith, of M/s …………… (Name), …………………….………… (Address), ..…………………(GSTIN). 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is GST Auditor 2. Based on our audit I/we report that the said registered person— *has maintained the books of accounts, records and documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is GST Auditor 3. (a) *I/we report the following observations/ comments / discrepancies / inconsistencies; if any: ……………………………………. 3. (b) *I/we further report that, - (A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were not provided/partially provided to us. 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is GST Auditor In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books. I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and ** ……………………additional place of business within the State. 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is GST Auditor The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form No. GSTR-9C. In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the particulars given in the said Form No.GSTR-9C are true and correct subject to following observations/qualifications, if any: …………………………………………… 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is NOT GST Auditor *I/we report that the audit of the books of accounts and the financial statements of M/s. ………...........…………………. (Name and address of the assessee with GSTIN) was conducted by M/s. …………………………………..………. (full name and address of auditor along with status), bearing membership number in pursuance of the provisions of the …………………………….Act, and *I/we annex hereto a copy of their audit report dated ……………………………. along with a copy of each of :- 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is NOT GST Auditor balance sheet as on ……… the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., the cash flow statement for the period beginning from ……..…to ending on ………, and documents declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet. 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is NOT GST Auditor 2. I/we report that the said registered person— *has maintained the books of accounts, records and documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder 23-03-2019 CA Shankara Narayanan V, Chennai

Part B – Certification – Statutory is NOT GST Auditor The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form No. GSTR-9C. In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the particulars given in the said Form No.GSTR-9C are true and correct subject to following observations/qualifications, if any: …………………………………………… 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Revenue Recognition vs Output Tax Liability Unbilled Revenue Revenue recognised for Accounting Purposes NOT YET in GST Bi-monthly / quarterly billing Work completed (30 days / 45 days) Continuous Supply of Service – Construction / Works Contract 23-03-2019 CA Shankara Narayanan V, Chennai

Checklists – Revenue Recognition vs Output Tax Liability Deferred Revenue Revenue recognised in GST but not in Accounts GST paid on Invoicing Insurance Contracts AMC 23-03-2019 CA Shankara Narayanan V, Chennai

Reconciliation of Gross Turnover Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9) Reconciliation of Gross Turnover 1 Turnover (including exports) as per audited financial statements for the State / UT 2 Unbilled revenue at the beginning of Financial Year + 3 Unadjusted advances at the end of the Financial Year 4 Deemed Supply under Schedule I 5 Credit Notes issued after the end of the financial year but reflected in the annual return 6 Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST 23-03-2019 CA Shankara Narayanan V, Chennai

Reconciliation of Gross Turnover Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9) Reconciliation of Gross Turnover 7 Turnover from April 2017 to June 2017 (-) 8 Unbilled revenue at the end of Financial Year 9 Unadjusted Advances at the beginning of the Financial Year 10 Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST (+) 11 Adjustments on account of supply of goods by SEZ units to DTA Units 12 Turnover for the period under composition scheme 13 Adjustments in turnover under section 15 and rules thereunder and Foreign exchange fluctuations + / (-) 23-03-2019 CA Shankara Narayanan V, Chennai

Annual turnover after adjustments as above Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9) Annual turnover after adjustments as above Turnover as declared in Annual Return (GSTR9) Un-Reconciled turnover Reasons for Un - Reconciled difference in Annual Gross Turnover Reconciliation of rate wise liability and amount payable thereon Additional amount payable but not paid - To be paid in cash 23-03-2019 CA Shankara Narayanan V, Chennai

Reconciliation of rate wise liability and amount payable thereon Reconciliation of Taxable Turnover Annual turnover after adjustments (A) < Auto > Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover (B) ( - ) Zero rated supplies without payment of tax (C) Supplies on which tax is to be paid by the recipient on reverse charge basis (D) Taxable turnover as per adjustments above (A-B-C-D) Taxable turnover as per liability declared in Annual Return (GSTR9) Unreconciled taxable turnover Reasons for Un - Reconciled difference in taxable turnover Reconciliation of rate wise liability and amount payable thereon 23-03-2019 CA Shankara Narayanan V, Chennai

Reconciliation of Input Tax Credit (ITC) Reconciliation of Net Input Tax Credit (ITC) ITC availed as per audited Annual Financial Statement for the State/ UT ITC booked in earlier Financial Years claimed in current Financial Year (+) ITC booked in current Financial Year to be claimed in subsequent Financial Years ( - ) ITC availed as per audited financial statements or books of account ITC claimed in Annual Return (GSTR - 9) Un-reconciled ITC and Reasons thereof 23-03-2019 CA Shankara Narayanan V, Chennai

Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of account Purchases Freight / Carriage Power and Fuel Imported goods (Including received from SEZs) Rent and Insurance Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples Royalties Employees' Cost (Salaries, wages, Bonus etc.) Conveyance charges Bank Charges Entertainment charges Stationery Expenses (including postage etc.) Repair and Maintenance Other Miscellaneous expenses Capital goods 23-03-2019 CA Shankara Narayanan V, Chennai

Tax payable on un-reconciled difference in ITC Auditor's recommendation on additional Liability due to non-reconciliation Tax payable on un-reconciled difference in ITC 23-03-2019 CA Shankara Narayanan V, Chennai

Thank you CA Shankar Narayanan V Mail@ shankar@gpvs.co.in 23-03-2019 CA Shankara Narayanan V, Chennai