GSTANNUAL RETURN FY 2017-18 Presented by: CA. Raginee Goyal ICAI GUWAHATI Presented by: CA. Raginee Goyal

LEGAL FRAMEWORK OF ANNUAL RETURN

RELEVANT SECTIONAND RULE SECTION – 44(1) ANNUAL RETURN Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non- resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty- first day of December following the end of such financial year. AMENDED RULE – 80(1) ANNUAL RETURN (w.e.f. 01.02.2019) Ever registered person other than those referred to in the proviso to sub-section (5) of Section 35, other than an Input Service Distributor, a person paying tax under Section 51 or Section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return as specified under sub-section (1) of section 44 electronically in FORM GSTR- 9 through the common portal either directly or through a Facilitation Centre notified by the Commissioner: Provided that a person paying tax under Section 10 shall furnish the annual return in FORM GSTR-9A 6 TREY research 3

RELEVANT SECTION, RULE, NOTIFICATIONSAND ORDERS Relevant Section: Section 44 read with Rule 80 Relevant Notification: Notification No. 74/2018-Central Tax Dated 31st December 2018 Order No. 1/2018 - Central Tax- Removal of difficulty order regarding extension of due date for filing of Annual return (in FORMs GSTR-9, GSTR-9A and GSTR-9C) for FY 2017-18 till 31st March, 2019 Order No. 2/2018 - Central Tax- Seeks to extend the due date for availing ITC on the invoices and/ or debit notes relating to such invoices issued during the FY 2017-18 Order No. 3/2018 - Central Tax- Seeks to amend Removal of Difficulty Order No. 1/2018 dated 11.12.2018 so as to extend the due date for furnishing of annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the FY 2017- 2018 till 30.06.2019. TREY research

TREY Annual Compliance Framework under GST Annual Return- Form GSTR- 9/GSTR-9A GST Reconciliation- Form GSTR-9C If Aggregate Turnover Exceeds Rs 2Crores-Yes Annual Return By Regular Tax Payer-Form GSTR-9 Annual Return by a Person under Composition Scheme- Form GSTR-9A If Aggregate Turnover does not exceed Rs 2 Crore-No TREY research

RELEVANT FORMS - ANNUAL RETURN& RECONCILIATION FORMAT GSTR-9 - Annual Return GSTR-9A - Annual Return for (Composition Tax Payers) GSTR-9C - Reconciliation Statement TREY research

Form GSTR-9 return is required to be filed at entity level or GSTIN level? If taxpayer has obtained multiple GST registrations under the same PAN, whether in the same State or different States, he/she is required to file annual return in Form GSTR 9 for each registrations separately, where the GSTIN was registered for some time during the financial year or for the whole of the financial year. Form GSTR-9 return is required to be filed at GSTIN level i.e. for each registration For each regular GSTIN, one GSTR 9 is to be filed. 7

WHO IS NOT REQUIRED TO FILE ANNUAL RETURN A person paying tax under section 51 (Tax Deductor) ; A person paying tax under section 52 (Tax Collector); A casual taxable person; A non-resident taxable person; Input Service Distributor; Whether Department of Central Government or State Government or local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force needs to file annual return ? [Refer: Section 35(5) with proviso thereto; Section 44 (1); Rule 80(1) ] TREY research

SOME FAQ ON GSTR -9

FAQ ‘s on ANNUAL RETURN TREY Q. No. Question Answer 1 2 3 Is this return to be furnished by person whose registration has been cancelled during the year 2017-18? Yes, Annual return would have to be furnished by a person whose registration has been cancelled during the Year 2017-18. Further, if a person had applied for cancellation of registration and his Application for cancellation of registration was pending as on 31st March 2018, annual return has to be filed by such person also. NO, provisionally registered persons would not be required to file Annual Return for the Year 2017- 18, if not registered in regular manner. 2 Is Annual return to be filed by the person who had migrated to GST Regime provisionally but they had not cancelled their registration by filing REG-29 under Rule 24(4) of the CGST Rules, 2017 with effect from 1st July 2017 3 Whether Annual Return can be filed without filing GSTR-1 and GSTR-3B for the Year 2017-18? No, it is mandatory to file FORM GSTR-1 and FORM GSTR-3B for FY 2017-18 before filing Annual return in FORM GSTR-9 TREY research

FAQ ‘s on ANNUAL RETURN TREY Q. N0. Question Answer 4 Whether any additional liability can be declared through GSTR-9? Yes, Additional liability for the FY 2017-18 not declared in FORM GSTR-1 and FORM GSTR-3B may be declared in this return (Refer Instruction 3 under Form GSTR 9) No, taxpayers cannot claim input tax credit unclaimed during FY 2017-18 through this return (Instruction 4) Such persons would have to file GSTR-9 for the period under which they were under Regular Scheme and GSTR-9A for the period under which they were composition scheme. 5 Whether any additional input tax credit can be claimed through GSTR-9 6 How would Annual Return be filed by a person who was under composition scheme for part of year and under regular scheme for remaining part of the Year TREY research

Will consolidated summary of Form GSTR-1 be made available for the returns filed during the financial year? Yes. Consolidated summary of all filed Form GSTR-1 statement for the relevant financial year is available for download in PDF format. Navigate to Services > Returns > Annual Return > Form GSTR-9 (PREPARE ONLINE) > DOWNLOAD GSTR-1 SUMMARY (PDF) option. Will consolidated summary of Form GSTR-3B be made available for the returns filed during the financial year? Yes. Consolidated summary of all returns filed in Form GSTR-3B for the relevant financial year is available for download in PDF format. Navigate to Services > Returns > Annual Return > Form GSTR-9 (PREPARE ONLINE) > DOWNLOAD GSTR-3B SUMMARY (PDF) option. 12

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WHO CAN FI LE “NI L” ANNUAL RETURN RP who has NOT made any outward supply (commonly known as sale); AND RP who has NOT received any goods/services (commonly known as purchase); AND RP who has NO other liability to report; AND RP who has NOT claimed any credit; AND RP who has NOT claimed any refund; AND RP who has NOT received any order creating demand There is no late fee paid/ to be paid etc. by the RP. TREY research

OUTWARD SUPPLY LEGAL ASPECTS OF LEVY- COLLECTION - VALUATION

DEEMED SUPPLY – HOW TO IDENTIFY SCHEDULE I ?? SCHEDULE II ?? SCHEDULE III?

CONCEPTS FOR LEVY, COLLECTION AND DETERMINATION OF AGGREGATE TURNOVER TAXABLE SUPPLY vs. NON TAXABLE SUPPLY vs. EXEMPT SUPPLY vs. ZERO RATED SUPPLY vs. NIL RATED SUPPLY vs. NON GST SUPPLY vs. NO SUPPLY

SUPPLY Section: 2(108) “taxable supply” means a supply of goods or services or both which is leviable to tax under this Act; Section 2(78) “non-taxable supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act; Illustrations: High sea sale transactions, Supply from custom bonded warehouse, Supply from non-taxable territory to another non-taxable territory Liquor for human consumption Specified Petroleum Products

SUPPLY Section 2(47): “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; Section 16(1): “Zero rated Supply” means any of the following supplies of goods or services or both, namely:–– export of goods or services or both; or supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

SUPPLY Exempt Supply- Supply of Goods or services on which GST rate of 0 % is applicable are called exempted supply. Such goods or services, on which GST rate of 0% is notified under the GST Rate Notifications. Example are salt, jaggery, cereals etc. Nil Rated Supply – Nil rated supplies are also covered under exempt supplies but may be referred as supplies of those goods or services which are wholly exempted under Section 11 of the GST Act. Non GST Supply- Supply of goods or services on which GST is not leviable are called Non GST supply. No Supply:- Supplied listed under Schedule-III, which are outside the scope of Section 7 are referred as no supplies.

VALUATION – RATE – CLASSIFICATION - CONSIDERATION - ETC - VALUATION – OPEN MARKET VALUE - COMPOSITE SUPPLY vs. MIXED SUPPLY vs. INDEPENDENT SUPPLY - PRE GST TRANSACTION - POST GST TRANSACTION - BARTER - FREE SUPPLIES - WHETHER TAXABLE ADVANCES FORM PART OF AGGREGATE TURNOVER - PLACE OF SUPPLY - HSN AND DESCRIPTION - INPUT TAX CREDIT - AMENDMENTS ON THE GO - CHANGES IN TAX RATES - INTEREST - PENALTY - LATE FEE………………………………………………………………….

WHETHER TAXABLE TURNOVER IS VALUE OF SUPPLY? WHAT IS AGGREGATE TURNOVER? WHAT ALL NEEDS TO BE REPORTED?

STARTERS FOR DISCUSSION REPORTABILITY OF TRANSACTIONS IN RETURNS AND INCLUDIBILITY IN AGGREGATE TURNOVER NEEDS TO BE DETERMINED 1. Proprietor for trading firm owns land in his name and cultivates fruits and vegetables which are sold in individual name. 2. Individual has property in own name which is let out to unregistered society as office. 3.Training and workshop income receipts in savings account of proprietor. 4. CA who is partner in firm has individual reciepts in savings account as miscellaneous income 5. Income from roadshows, concerts, exhibitions, content writing and consultancy in individual name shown as misc receipts

STARTERS FOR DISCUSSION 1. Whether interest income earned from saving bank, PPF and fixed deposit which is shown in individual files will come under the definition of supply and whether we have to show this in GSTR- 9? 2. Whether income earned from residential house property which is shown in individual file is required to be reported in GSTR- 9? Will the answer vary if Individual Balance Sheet is separately prepared for Income Tax Purposes and is not a part of Business Balance Sheet?

Turnover – One demon, many faces GSTR-3B GSTR-1 Books As per GST Provisions TREY 10 research 19

GSTR 9 – HOW IT IS STRUCTURED

Broad Structure of Annual Return in FormGSTR-9 Part Particulars Table Part-I Basic information of Taxpayer Table 1 to 3 Details of Outward and inward supplies made during the financial year Part-II Table 4 & 5 Part-III Details of ITC for the financial year Table 6 to 8 Part IV Details of tax paid as declared in returns filed during the financial year Table 9 Details of the previous financial year’s transactions reported in next Financial Year Part V Table 10 to 14 Part VI Other information Table 15 to 19 TREY research

Which tables in Form GSTR-9 has auto-populated data from filed Form GSTR-1 and Form GSTR-3B? Below tables has auto-populated data, from already filed Form GSTR-1 and Form GSTR-3B of the relevant financial year: Table 4. Details of advances, inward and outward supplies made during the financial year on which tax is payable (Form GSTR 1) Table 5. Details of Outward supplies made during the financial year on which tax is not payable (Form GSTR 1) Table 6A. Total amount of input tax credit availed through FORM GSTR-3B (sum total of Table 4A of FORM GSTR-3B) Table 6G. Input Tax credit received from ISD Table 6K. Transition Credit through TRAN-I (including revisions if any) Table 6L. Transition Credit through TRAN-II Table 9. Details of tax paid as declared in returns filed during the financial year 18

Which table in Form GSTR-9 has auto-populated data from Form GSTR-2A Which table in Form GSTR-9 has auto-populated data from Form GSTR-2A? Can I edit auto-populated data from filed Form GSTR-1 and GSTR-3B in Form GSTR-9? Table no. 8A: ITC as per GSTR-2A (Table 3 & 5 thereof) in Form GSTR-9 has auto-populated data from Form GSTR-2A of the relevant financial year. Yes, one can edit auto-populated data from filed Form GSTR-1 and GSTR-3B in Form GSTR-9, except data in below mentioned tables: • Table no. 6A: Total amount of input tax credit availed through FORM GSTR-3B (sum total of Table 4A of FORM GSTR-3B) • Table no. 8A: ITC as per GSTR-2A (Table 3 & 5 thereof) • Table no. 9: Details of tax paid as declared in returns filed for the financial year (Except tax payable column) 19

TREY Part II of Form GSTR-9 Table-4- Details of advances, inward and outward supplies made during the financial year on which tax is payable Table-5- Details of Outward supplies made during the financial year on which tax is not payable Table 4A to 4G: Details of Supplies (Without any amendment and Impact of Debit Note and Credit Note) Table 5A to 5F: Supplies (Without any amendment and Impact of Debit Note and Credit Note) Table 4I to 4L:Impact on Supplies as declared in Table 4A to 4G by way of Amendments and Debit and Credit Note Table 5H to 5K: Impact on Supplies as declared in Table 5A to 5F by way of Amendments and Debit and Credit Note TREY research 20

Details ofVariousTables inGSTR-1 Table Headings and Sub-Headings along with referred tables Table 4 Taxable outward supplies made to registered persons (including UIN-holders) other than supplies covered by Table 6 Table 4A: Supplies to registered persons other than those (i) attracting reverse charge and (ii) supplies made through ecommerce operator Table 4B: Supplies to registered persons attracting tax on reverse charge basis Table 4C: Supplies to registered persons through e-commerce operator attracting TCS (operator wise, rate wise) Table 5 Taxable outward inter-State supplies to un-registered persons where the invoice value is more than Rs 2.5 lakh Table 5A: Outward supplies (other than supplies made through e-commerce operator, rate wise) Table 5B: Supplies made through e-commerce operator attracting TCS (operator wise, rate wise) TREY research

Details ofVariousTables inGSTR-1 Table Headings and Sub-Headings along with referred tables 6 Zero rated supplies and Deemed Exports Table 6A: Exports Table 6B: Supplies made to SEZ unit or SEZ Developer Table 6C: Deemed exports Table 7 Taxable supplies (Net of debit notes and credit notes) to unregistered persons other than the supplies covered in Table 5 Table 7A: Intra-State supplies Table 7B: Inter-State Supplies where invoice value is upto Rs 2.5 Lakh [Rate wise] Table 8 Nil rated, exempted and non-GST outward supplies TREY research

Details ofVariousTables inGSTR-1 Table Headings and Sub-Headings along with referred tables Table 9 Amendments to taxable outward supply details furnished in returns for earlier tax periods in Table 4, 5 and 6 [including debit notes, credit notes, refund vouchers issued during current period and amendments thereof] Table 4: Taxable outward supplies made to registered persons (including UIN-holders) other than supplies covered by Table 6 Table 5: Taxable outward inter-State supplies to un-registered persons where the invoice value is more than Rs 2.5 lakh Table 6: Zero rated supplies and Deemed Exports 10 Amendments to taxable outward supplies to unregistered persons furnished in returns for earlier tax periods in Table 7 Table 7: Taxable supplies (Net of debit notes and credit notes) to unregistered persons other than the supplies covered in Table 5 (Taxable outward inter-State supplies to un-registered persons where the invoice value is more than Rs 2.5 lakh) Table 11 Consolidated Statement of Advances Received/Advance adjusted in the current tax period/ Amendments of information furnished in earlier tax period TREY research

Figures in GSTR-9 : From GSTR-3B. or GSTR-1. Any other Figures in GSTR-9 : From GSTR-3B ? or GSTR-1 ? Any other? Suggestive Treatment of Mismatches Agenda of 31st GST Council Meeting for Approval of GSTR-9 If the payment of tax for a supply has been made in the return for FY 2017-18, then supply is required to be declared in Part II of FORM GSTR-9. If payment for a supply has been made between April to September, 2018, then supply related to such payment shall be declared in Part V of FORM GSTR-9. Instructions to GSTR-9 Part II consists of the details of all outward supplies & advances received during the financial year for which the annual return is filed. It may be noted that all the supplies for which payment has been made through FORM GSTR-3B between July 2017 to March 2018 shall be declared in this part. Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR- 3B of April to September of current FY or date of filing of Annual Return for previous financial year (for example in the annual return for the FY 2017-18, the transactions declared in April to September 2018 for the FY 2017-18 shall be declared), whichever is earlier. TREY research

Relevant FAQ by IDTC of ICAI-December 2018 Q21 Whether supply made to registered person (B2B) as required in Table-4B also includes outward supply on which tax is payable by recipient on reverse charge basis? Ans. No, only outward supply made to registered person on which tax is payable on forward charge basis by supplier will be reported in Table 4B. Outward supplies under reverse charge shall be reported in Table-5C. e.g. in case of GTA operator filing his GSTR-9, he is required to report outward supply in Table-5C. Q22 Where to report stock transfer made to another branch situated in another state if both are registered? Ans. Since both branches are registered persons for a particular state, these transactions are to be reported in supplies made to registered person (B2B) Table 4B. TREY research

Relevant FAQ by IDTC of ICAI-December 2018 Q24 What is the meaning of deemed exports to be reported in Table-4E? Ans. As per Notification No. 48/2017-central tax dated 18th October 2017, following supplies are to be regarded as deemed exports: - Supply of goods against advance authorization. - Supply of capital goods against EPCG authorization - Supply of goods to EOU (export- oriented undertakings) - Supply of gold by bank/PSU specified in Notification No. 50/2017- Customs dated 30th June, 2017. Since such supplies are notified as deemed export from 18th October 2017 only, supply before that will not be termed as deemed export. Q25 Whether all advances on which tax is paid but subsequently got adjusted against invoices shall also to be reported in Table-4F? Ans. No, only outstanding advances as on 31st March 2018 on which tax was paid but invoice not issued against the same are to be reported in Table-4F. TREY research

Relevant FAQ by IDTC of ICAI-December 2018 Q28 Whether credit note / debit note issued during 18-19 in respect of transactions of July-17 to March-18 is to be reported in Table 4I and 4J? Ans. No, only credit note / debit note issued and disclosed in the GST returns between July-17 to March-18 is to be reported in 4I and 4J. If the issue date of credit note/debit note is ranging between July 2017 to March 2018 and if the same has been reported in the GST returns during the period April – September 2018 March 2019, then it will form part of Part V of the Annual return. However, if the issue date of the credit note/debit note is after 31st March 2018, then it needs to be reported in the Annual return of 2018-19 even though the invoice to which it relates may belong to the period 2017-18. TREY research

Figures in GSTR-9 : From GSTR-3B. or GSTR-1. Any other Figures in GSTR-9 : From GSTR-3B ? or GSTR-1 ? Any other? Suggestive Treatment of Mismatches Details provided in GSTR-3B are relevant since the tax was discharged through GSTR-3B The values being auto-populated in GSTR-9 are from GSTR-1 but details provided in GSTR-1 only have suggestive impact The instructions mention that all supplies payment for which has been made through GSTR-3B are to be shown here. If 3B was not filed accurately, details would have to be provided as per books of accounts. Differential tax, if any arising upon the details shall be required to be paid. Last chance to rectify mismatches, though it is possible that mismatches MAY be called up for scrutiny / verification subsequently. TREY research

Part III-Details of ITC for the Financial Year Table 7:-Details of ITC Reversed and Ineligible ITC for the financial year Table 8:-Other ITC related information (incl. Matching With GSTR-2A) Table 6:-Details of ITC availed during the financial year TREY research

Part-IV (Details of Tax Deposited) 9 Description Tax Payable Paid Through Cash Paid Through ITC   CGST SGST IGST CESS Cess Interest Late Fee Penalty Other

Part-VI ( Other Information) 15 Particulars of Demands and Refunds   Details CGST SGST IGST CESS PENALTY LATE FEE 15A Total Refund Claimed 15B Total Refund Sanctioned 15C Total Refund Rejected 15D Total Refund Pending 15E Total Demand of Taxes 15F Total Tax Paid in respect of 15E 15G Total Demand pending out of 15E above

Information on supply received from Composition dealer, Job work transaction and goods sent on approval but received after specified period   Details Taxable Value CGST SGST IGST CESS 16A Purchases from Composition Dealers 16B Goods sent on Job Work but not returned in specified period 365 days 16C Goods sent on Approval Basis but not returned in specified period 180 days

HSN wise summary of Sales & Purchases & Late Fee 17 HSN wise summary of Sales HSN Code UQC Total Quantity Taxable Value Rate of Tax CGST SGST IGST CESS GSTR-1 Table-12   18 HSN wise summary of Purchases  19 Late fee payable and paid Description Payable Paid 19A 19B

Last Date and Penal Provision Last date of filing is 30/06/2019 Late fee is Rs. 200/- (Rs. 100/- CGST + Rs. 100/- SGST) per day Subject to 0.5% (0.25% CGST + 0.25% SGST) of the Turnover of the year 2017-18

POINT TO REMEMBER All returns in FORM GSTR-1 & FORM GSTR-3B have to be filed before filing of FORM GSTR-9 All returns in FORM GSTR-4 have to be filed before filing of FORM GSTR-9A; HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies; Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash; ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C; All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in FORM GSTR-1) would be auto-populated in Table 8A of FORM GSTR-9; Value of “non-GST supply” shall also include the value of “no supply” and may be reported in Table 5D, 5E and 5F of FORM GSTR-9;

Yours sincerely, CA RAGINEE GOYAL, FCA, DISA (ICAI), Email: raginee@gmail.com