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Sep Amendment to CGST Rules – Annual Return Notified & ITC 04 Amended

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Amendment to CGST Rules – Annual Return Notified & ITC 04 Amended

 

CGST Rules have been amended by Notification No. 39/2018 – Central Tax dt. 4th September, 2018.

The Notification has 11 clauses. The most important being the Notification of “Annual Return” in Form GSTR – 9.

Legal Background for Annual Return:

Sec. 44(1) of the CGST Act provides that every every person shall file Annual Return before the 31st of December. Rule 80 (1) of CGST Rules provides that the Annual Return shall be filed electronically in Form GSTR – 9. Though the Rule existed, the Form was not notified. This Form GSTR – 9 has been notified today vide this Notification No.39/2018 – Central Tax dt. 4th September, 2018.

Format of GSTR – 9:

The form is categorized into VI broad areas totally comprising 19 clauses each of which has multiple sub-clauses. The 19 clauses of the Form GSTR – 9 are as under –

1. Financial Year

2. GSTIN

3. Legal Name & Trade Name (if any)

4. Details of advances, inward and outward supplies on which tax is payable as declared in returns filed during the financial year

5. Details of Outward supplies on which tax is NOT payable as declared in returns filed during the financial year

6. Details of ITC availed as declared in returns filed during the financial year [ITC as per GSTR 3B filed is auto populated in this Clause]

7. Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year

8. Other ITC related information [ITC as per GSTR-2A (Table 3 & 5 thereof) is Auto populated in this Clause]

9. Details of tax paid as declared in returns filed during the financial year

10. Supplies / tax declared through Amendments (+) (net of debit notes) [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]

11. Supplies / tax reduced through Amendments (-) (net of credit notes)  [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]

12. Reversal of ITC availed during previous financial year  [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]

13. ITC availed for the previous financial year  [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]

14. Differential tax paid on account of declaration in 10 & 11 above

15. Particulars of Demands and Refunds

16. Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis

17. HSN Wise Summary of outward supplies

18. HSN Wise Summary of Inward supplies

19. Late fee payable and paid

In addition to Form GSTR – 9, the Government is yet to Notify Form GSTR – 9C which contains the details relating to Audited Annual Accounts and Reconciliation Statement. Rule 80(3) of the CGST Rules requires that every registered person whose turnover exceeds Rs.2 Crores shall get their accounts audited. These assessees have to file GSTR – 9C which is yet to be Notified.

Based on the perusal of the Annual Return as Notified, it can be well understood that the Form has been drafted in a very comprehensive manner. Details relating to ITC as per GSTR 3B and as per GSTR 2A is auto populated in the Form GSTR 9. This also notes the importance for a detailed invoice level reconciliation between GSTR 2A and ITC as per books. Assessees may use Paul & Aravind’s GST – ITC Recon Tool for easy identification of any missed out Input Tax Credits. The form also requires detailed information relating to entries which have been made by way of Amendment in GSTR – 1, Debit Notes and Credit Notes. Transactions relating to the Financial Year which have been reported in the returns of April to September of the subsequent Financial Year have to be reported separately.

In summary, filing of GSTR – 9 has to be done with due care and diligence.

 

Amendment in Form ITC – 04

The Notification has also amended Form ITC – 04. Form ITC – 04 is a form to be filed by all persons sending goods for job-work.

 

However, the Form GSTR – 9 and the amended Form ITC – 04 are yet to be made available in the online GSTN portal.

Notification No.39/2018 – Central Tax