9 Questions on GST Annual return and Audit
The legal requirement to present the annual declaration hereinafter referred to as GSTR-9 is governed by section 35 (5) and section 44 (1) of the CGST Act. Section 44 (1) of the CGST Act, read with Rule 80 (1) of the CGST Rules, requires that each registered person who is not
- an Input Service Distributor,
- a person paying tax under section 51 (TDS) or section 52 (TCS),
- a casual taxable person and
- a non-resident taxable person,
You must file an annual return for each financial year in electronic form on Form GSTR-9 on or before December 31 following the end of that financial year. In addition, according to section 35 (5) of the CGST Act, any registered person whose turnover during a fiscal year exceeds the prescribed limit (Rs. 2 cr.) Will have their accounts audited by an authorized accountant or accountant. costs and submit a copy of the audited annual accounts, the conciliation status (GSTR-9C) under subsection (2) of section 44 and any other document in the form and manner prescribed. Reconciliation statement: GSTR-9C is a reconciliation of data according to the account and data books as reported in GSTR-9
No, the instructions that are part of the GSTR-9, which were notified by Notification No. 39/2018 dated September 4, 2018, clearly mention that only the details of the period from July 2017 to March 2018 will be provided. in the GSTR-9.
In accordance with the statutory provision of Section 44 (1) of the CGST Act, each registered person must submit the GSTR-9. Therefore, if a Taxpayer has obtained multiple GST Registrations, either in one state or in more than one state, it will be treated as a separate person with respect to each such record according to section 25 (4) of the CGST Law Therefore, it is required that GSTR-9 be presented separately for each GSTIN.
In accordance with section 35 (5) of the CGST Act, any registered person whose turnover during the financial year exceeds the prescribed limit (Rs.2 cr.) Must obtain their audited accounts by an authorized accountant or a cost accountant and must present a copy of the audited annual accounts, the conciliation declaration under subsection (2) of section 44 that is called GSTR-9C and any other document in the form and form prescribed. Therefore, the GST Audit u / s 35 (5) requirement would arise only if the prescribed rotation limit exceeds Rs. 2 cr. and the certified conciliation statement -GSTR-9C must be presented. On the other hand, GSTR-9 is an annual declaration that must be presented by each registered person, regardless of the volume limit of business.
For fiscal year 2017-18, the GST period comprises 9 months, while the relevant section 35 (5) uses the term Financial year; Therefore, in the absence of clarification by the government, also to avoid any case of non-compliance, it is reasonable to understand that the rotation limits prescribed for the audit are taken into account, ie 2 Cr. One has to calculate the volume of the entire financial year, which would include the first quarter of the 2017-18 fiscal year.
GSTR-9 is simply a compilation of archived data in GSTR-3B and GSTR-1. According to the instructions in the GSTR-9 form, it is stated that the information of the outgoing supplies “may” be derived from the GSTR Form 1. Therefore, with regard to outgoing supplies and taxes payable in the annual return , the same is to be extracted from the GSTR 1 Form only. The entry supplies, the entry tax credit and the net tax paid in cash must be obtained from the GSTR 3B Form. But before presenting GSTR-9, the value according to GSTR-3B and GSTR-1 must be aligned. If there is a difference, then it must be adjusted to the subsequent declarations submitted until September 18 according to circular 26/26/2017-GST dated December 29, 2017.
It seems that the inherent assumption that was made when drafting the Form is that the GSTR Form 3B and the GSTR Form 1 are in tune with each other, which may not always be true. In the event that the values according to the Form GSTR 3B and GSTR 1 do not coincide with each other, a differential value of the tax payable and the tax paid according to the annual declaration can be reached. You can expect clarification from the government regarding the form of payment of any additional liability (if applicable). However, if faced with a situation of this type, the additional tax liability can be paid through Form GSTR 3B of the subsequent month / Form DRC-03.
No such option has been provided in the law till now.
According to section 47 (2) of the CGST Act, the late fee for the late filing of GSTR-9 is Rs.100 per day, subject to a maximum of 0.25% of the billing in a state / UT. A similar provision is also there in the SGST Law. Therefore, in total there will be a surcharge of Rs.200 per day subject to 0.50% of the turnover in a statement on the late submission of GSTR-9.
If one fails to file GSTR-9 then first late fees will be payable as discussed above. A notice may be issued u/s 46 requiring him to furnish such return within stipulated time.