June 15 2019

Issues and Controversies in GSTR 9/9C

Why GSTR 9/9C? There is no clarity if GSTR 1/3B are returns or just compliance documents Only reconciliations can be asked from compliance documents Assessments can only be done on returns Hence GSTR 9/9C

How many have been filed?

Issue No 1 Annual return and Audit is being asked for the most volatile period in GST

Most common errors in GSTR 1/3B July 2017- March 2018 What is Supply? B2B/B2C Whether exports were exempt or tax refundable? Wrong HSN Arithmetical errors while filing forms ITC had no checks and balances

Issue No 2 Why is this information being asked for 15 months after the end of the financial year? Data, Data, Data

Most asked questions Will there be an extension? Will the forms change? We always live in hope.

GST?

Walk through of GSTR 9

Table 4

Table 4

Table 4

Table 5

Table 5

Table 6

Importance of Auto-population

Table 6

Table 6

Table 7/8

Table 8

Table 9

Other Tables

Issue No 3 The mystery form GSTR 2A Counter-Party did not filed GSTR 1 yet Counter-Party filed GSTR 1 with our Bill shown in B2C Counter-Party filed GSTR 1 with our Bill shown with GSTN of other party In GSTR 1 Counter Party wrongly clicked Composition tick on our Bill Counter-Party filed GSTR 1 without our Bill etc 6B of GSTR 9

ITC Reporting of ITC for 2017-18 in GSTR 3B in next year i.e. 2018-19 8C and 13 of GSTR 9 Non-Reporting of ITC for 2017-18 in GSTR 3B till 31.03.2019 ITC Lapsed- 8E of GSTR 9

ITC Wrong reporting of ITC in 2A 8F of GSTR 9 CGST – SGST wrongly shown as IGST in GSTR 3B, not rectified upto 31.03.19 i.e. Correct ITC lapsed & Wrong ITC availed not rectified 8E of GSTR 9 DRC -03 challan

Classification CGST – SGST wrongly shown as IGST in GSTR 3B, but rectified upto 31.03.18 6B of GSTR 9

Walk through of GSTR 9C

Reco

Reco

Reco

Reco

Reco

Reco

Reco

What can the auditor recommend in Part V? Gross Negligence of GST laws

Responses to Questions sent

Questions Whether ITC can be taken in respect of RCM relating to 2017-18, paid after September 2018 in the light of Order No 02-2018? Please claim it. 8C of GSTR 9 Where to show credit note raised after March 18, relating to 17-18? Whether it is to be shown in annual return for 17-18 or 18-19? 4I of GSTR 9 for 2017-18

Questions Where to show RCM paid after March 2018 relating to 2017-18 in the Annual Return? 6M is a possible option Whether Form 9C is in the true sense an audit report or a reconciliation statement to be certified by auditor? In the true sense it is only a reconciliation statement

Questions Is there any liability on the GST auditor to report about transactions (for example Schedule I transactions), which are neither included in the books of accounts nor reported in Annual return in the light of Part V of 9C? There is no liability but it is always preferable to report since there will no tax liability Further, what is responsibility, if the taxpayer has disclosed transactions liable to RCM in the books and not paid RCM tax under GST? Report in Part V of 9C

Questions Similarly, what is responsibility, if the HSN numbers provided in respect of outward & inward supplies are not accurate? Input correct HSN in Table 17 of GSTR 1 Can Form 9 be filed individually without filing Form 9C in respect of persons liable to audit u/s 35(5)? Definitely. But there will be a violation of 35(5)

Questions Where do we show the RCM rectifications (inward supply against which tax is payable under Reverse Charge Mechanism) related to 2017-18 done in 2018-19 with payment of Tax in GSTR 9? If this can be shown in Table 4 or Table 10, where would the related tax payment find place in GSTR 9? Table 10 – tax declared through amendments Tax- Table 14

Questions Where can the interest paid on reversal of ITC or on RCM (payable against inward supply) related to 2017-18 paid in 2018-19 can be shown in GSTR – 9. Interest column – Table 14 Is GSTR 9C required for a State where GSTR 9 is Nil Return; however their PAN India Turnover exceeds the threshold and all other states where they have places of business are subject to audit under GST. Unfortunately, Yes

Questions What is the way out for dealer who lost all the records in flood occurred in Kerala last year for filing Form 9 and 9C?  Write to the GST Council and local GST officer stating the inability to file before June 30, and also seeking exemption from filing.

Own Question What if a mistake is made in filing GSTR 9/9C? Depending on the mistake Defend the mistake Rectify in June 1/3B

Simple Solution Devise a Form 3BA to revise returns for 2017-18

THANK YOU! Mohan.lavi@gmail.com + 91 99000 22040