Notified Amendments in declaring HSN/SAC in Tax Invoice & GSTR-1

This update is regarding amendments notified in declaring HSN/SAC in Tax Invoice and GSTR-1:

1. HSN/SAC mandatory on Tax Invoices w.e.f.01-04-2021:

S. No Aggregate Turnover in the preceding Financial Year HSN/SAC to be mentioned

  • 1. more than Rs.5crores HSN Code of 6 Digits is mandatory for all tax invoices (B2B & B2C)
  • 2. up to Rs.5crores HSN Code of 4 Digits is mandatory for all B2B tax invoices.
    üOptional for B2C tax invoices

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Implication of above amendment

HSN/SAC has to be mentioned on Tax Invoices for all B2B & B2C transactions

2. Rate of Tax column added in GSTR-1 for each HSN/SAC furnished in HSN summary of outward supplies:

In column 6 of Table 12 -Rate of Tax to be declared instead of Total Value in GSTR-1of May’21and onwards

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Implication of above amendment

There is a requirement to incorporate HSN wise entries in accounting ledgers of accounting software. So that required information i.e., HSN with the rate of tax can be derived for GSTR-1.

Following Information/fields should be available from accounting records to prepare GSTR1:
HSN Description UQC Total Quantity Total Taxable Value Rate % GST-IGST/CGST/SGST

Issues Reported in Filing Form GSTR 9/9C by tax payers: Process to Follow

  • 17 Jun 2019
  • GSTR
  • Comments Off on Issues Reported in Filing Form GSTR 9/9C by tax payers: Process to Follow

For filing of Form GSTR 9/9C, by a normal taxpayer for financial year 2017-18, which is required to be filed by them on GST Portal latest by 30th June, 2019.  Taxpayers have mentioned few issues in submitting their Form GSTR 9/9C, details below:

(A)   Relating to Annual Return Form GSTR 9:

  1. Auto-population of ITC figures in Table 8A of Form GSTR-9 based on Form GSTR-2A: Some taxpayers have mentioned that figures of Input Tax Credit (ITC), as pre-populated in table 8A of Form GSTR-9, do not match with the numbers as appearing in their Form GSTR-2A. Following reasons may possible:
  1. Data in GSTR-2A are auto populated based on filed/ saved / submitted Form GSTR-1 of the supplier taxpayer. But data in table 8A of Form GSTR-9 are auto-populated only on the basis of filed Form GSTR-1 by the supplier taxpayer. In case, Form GSTR -1 is not submitted by your supplier, then credit related to those invoices will not show in table 8A of your Form GSTR-9.

 

  1. Data in table 8A of Form GSTR 9 are auto populated only for those Form GSTR-1, which are submitted by the supplier taxpayer by due date of its filing i.e. 30th April, 2019. Hence, ITC on supplies of the financial year 2017-18, if reported beyond 30th April, 2019, will not get auto-populated in table 8A of Form GSTR-9 but it will be available in Form GSTR-2A.
  1. In table 8A of Form GSTR-9, only recent values have been auto-populated based on filed Form GSTR-1, taking into account all the amendments made, if any. Suppose an invoice with taxable value of Rs 100/- with tax of Rs. 18/- was filed in Form GSTR-1 in the month of January, 2018 and same was amended to Rs 90 as taxable value in the month of March, 2018, then
  2. the Form GSTR-2A of January, 2018 will show ITC of Rs. 18
  3. the Form GSTR-2A of March, 2018 will show ITC of Rs 16.20 &

iii.          the table 8A of Form GSTR-9 will contain ITC of Rs 16.20.

  1. In table 8A of Form GSTR-9, ITC related to all such invoices have been removed in which place of supply lies in supplier’s taxpayers State, instead of State of the receiver taxpayer. These numbers will be shown in Form GSTR-2A of the recipient. For example if a taxpayer of State A visits State B and stays in a hotel in State B, the tax paid by the person to the hotel in State B will appear in his Form GSTR-2A, but the same will not be shown in table 8A of Form GSTR-9.
  1. The data in table 8A of Form GSTR-9 do not contain ITC for the period during which the recipient taxpayer was under composition scheme.
  1. Proceed to File button not enabled: While filing Form GSTR 9 ‘Proceed to File’ button will be enabled only if ‘Compute Liability’ is clicked. This button is there for computation of late fees only. ‘Preview Draft GSTR 9 PDF’ button is clicked to view the submitted information. Thereafter on checking the declaration box and selecting the authorized signatory details, user has to click on ‘File’ button to file the return. Please note Form GSTR 9 once filed cannot be revised.

(B)   Relating to Form GSTR 9C, Reconciliation statement :

  1. Turnover for filing Form GSTR- 9C: Form GSTR-9C is to be filed by all those taxpayers whose aggregate turnover has exceeded Rs 2 crore in a financial year. Turnover of complete year i.e. from 1st April, 2017 to 31st March, 2018 has to be taken into account for calculating the turnover. For example, if a taxpayer has a turnover of Rs. 2.1 Cr for the period 1st April, 2017 to 31st March, 2018 and a turnover of Rs. 1.9 Cr for the period 1st July, 2017 to 31st March, 2018, then the taxpayer has to file form GSTR- 9C.
  2. User getting error message while using Excel version : You are also advised to use Microsoft excel version higher than 2007 while preparing for Form GSTR 9C.
  3. Providing Membership Number by Auditor: While filing Part B of Form GSTR-9C, Auditors are advised to give their membership number without prefixing ‘0’ in their membership number. If membership number is ‘016’, then auditor should enter ’16’ on the aforesaid part in the membership number field & not ‘016’.

All the taxpayers are requested to file their FORM GSTR-9 & 9C sooner possible to avoid last minute rush and to avoid payment of late fee.

For any concerns or further info, please contact Certicom.

Annual Return Filing, Format, Eligibility & Rules for GSTR 9

1. What is GSTR-9 yearly return?

GSTR 9 shape is a yearly come back to be recorded once in a year by the enrolled citizens under GST including those enlisted under organization require plot. It comprises of insights about the provisions made and got amid the year under various duty heads i.e. CGST, SGSTand IGST. It solidifies the data outfitted in the month to month/quarterly returns amid the year.

2. Who should record GSTR 9 yearly return?

All the enrolled assessable people under GST must record GSTR 9 shape. In any case, the accompanying people are not required to document GSTR 9

  • Easygoing Taxable Person
  • Information benefit merchants
  • Non-inhabitant assessable people
  • People paying TDS under segment 51 of GST Act.

3. What are distinctive sorts of return under GSTR-9 shape?

There are 4 kinds of return under GSTR 9 :

i. GSTR 9: GSTR 9 ought to be recorded by the normal citizens documenting GSTR 1, GSTR 2, GSTR 3.

ii. GSTR 9A: GSTR 9A ought to be documented by the people enrolled under composition scheme under GST.

iii. GSTR 9B: GSTR 9B ought to be documented by the internet business administrators who have recorded GSTR 8 amid the budgetary year.

iv. GSTR 9C: GSTR 9C ought to be documented by the citizens whose yearly turnover surpasses Rs 2 crores amid the budgetary year. Every single such citizen are likewise required to get their records evaluated and document a duplicate of reviewed yearly records and compromise articulation of assessment effectively made good on and government expense payable according to inspected accounts alongside GSTR 9C.

4. What is the due date of GSTR-9?

GSTR-9 due date is prior to 31st December of the ensuing budgetary year.

For example, for FY 2017-18, the due date for recording GSTR 9 is 31st December 2018*.

5. What is the Penalty for the late recording of GSTR-9 frame?

Late charges for not documenting the GSTR 9 inside the due date is Rs. 100 every day for every misbehave to a most extreme of a sum determined at a quarter percent of the citizen turnover in the state or association region. Along these lines it is Rs 100 under CGST and 100 under SGST, the aggregate punishment is Rs 200 every day of default. There is no late expense on IGST.

6. Details required in the GSTR-9 form?

Sl no Parts of the GSTR-9 Information required
1 Part-I Basic details of the taxpayer. This detail will be auto-populated.
2 Part-II Details of Outward and Inward supplies declared during the financial year(FY). This detail must be picked up by consolidating summary from all GST returns filed in previous FY.
3 Part-III Details of ITC declared in returns filed during the FY. This will be summarised values picked up from all the GST returns filed in previous FY.
4 Part-IV Details of tax paid as declared in returns filed during the FY.
5 Part-V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual returns of previous FY whichever is earlier. Usually, the summary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared here.
6 Part-VI Other Information comprising details of:
-GST Demands and refunds,
-HSN wise summary information of the quantity of goods supplied and received with its corresponding Tax details against each HSN code,
-Late fees payable and paid details and
-Segregation of inward supplies received from different categories of taxpayers like Composition dealers, deemed supply and goods supplied on approval basis.

7. Step by step instructions to get ready GSTR-9 and a point by point exchange of shape

The revelation of the data in the Annual returns has various ramifications. Any off base data can draw in duty requests, intrigue and punishments on the equivalent, take off alone the long haul suits that pursue years after the fact.

The chief hotspot for planning GSTR-9 will be GSTR-1 and GSTR-3B returns. All data must be cross-checked with the books of records before pronouncing in the yearly returns.

Comprehensively, the shape involves the revelation of yearly deals, bifurcating it between the cases subject to assessment and cases not expose to charge. On the buy side, the yearly estimation of internal supplies and ITC profited subsequently, delegated inputs, input administrations and capital merchandise and the ITC to be switched because of ineligibility.

While at it, GSTR-9 is partitioned into six sections. Here is an extensive rundown of what should be announced and from where one can bring the data.

Imperative focuses to note:

Principally, there are sure exchanges that have not been accounted for in the GST returns but rather which influence the assessment obligation toward the finish of the yearly time frame. Supply without thought and products sent on endorsement premise to give some examples. One of the prominent ones being the regarded supplies where citizens have sent data sources or capital products to the activity specialists and have not gotten them by one or three years individually.

Albeit no lucidity is acquired with respect to the treatment of any extra obligation emerging because of confound or ITC recognized as accessible however not announced in intermittent returns, it is prudent that the risk so distinguished, be paid before documenting yearly returns. Henceforth, the yearly returns must be set up according to the GSTR-1 and GSTR-3B on an ‘as is’ premise.

8. Disadvantages/Issues with GSTR 9 frame and conceivable recommendations

Configurations of GSTR 9 discharged early this September had a great deal of ambiguities. The issues were generally founded on the way that the yearly return shape would not auto-populate the data which was at that point recorded in the occasional returns. So as to make the recording of yearly return basic for citizens, the GSTN refreshed the shape and settled a large portion of the issues. These are a portion of the issues as yet persevering in the yearly return shape.

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