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

[pt_view id=”c8bb8e9z6d”]

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

India’s once-in-a-century budget runs into trouble as virus strikes back

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

9A or 9C – Which one to go for GST Annual Summary?

Since the day yearly return recording has been reported in GST hall, the taxpayers are amazed on the appropriateness of the structure type to them. Would it be a good idea for them to document GSTR 9 or GSTR 9 C or both? What’s more, who is to document what?

This blog illuminates the base rationale behind the two structures and encourages you choose which one is for you.

To begin with, yearly return is an announcement of return which is required to be recorded every year by each enrolled individual (aside from few indicated classifications of people) under GST giving condensed subtleness of outward supply and expenses paid subsequently, input charge credits asserted, charges paid and discount guaranteed in the budgetary year in regard of which such month to month/quarterly returns are documented. This yearly return must be documented with the GSTN utilizing structure GSTR 9.

Presently the GSTR 9 in itself is sorted in different structure types dependent on taxpayers entities.

Sr. No. Annual Return Applicability to Taxpayers
1 GSTR 9 All taxpayers except mentioned below in note 1
2 GSTR 9A Taxpayer those applies for composition scheme
3 GSTR 9B Tax collector who files GSTR 8. Read Note 2 mentioned
4 GSTR 9C Taxpayer whose aggregate turnover exceeds 2 cr. & need to audit his

accounts under GST

Note 1 – Following citizens don’t have to document GSTR 9

  • Easygoing Taxable Person
  • Non-Resident Taxable Person
  • Information Service Distributor
  • Arrangement Dealers
  • People subject to TCS or TDS arrangement

Note 2 – GSTR 9B isn’t relevant for Financial year 2017-2018 in light of the fact that GSTR 8 got appropriate from first Oct 2018.

As 9A is a totally extraordinary class to be utilized by citizens in composite plan and 9B not material this year, how about we have a short correlation of GSTR 9 and GSTR 9C, their organizations, pertinence and variety in structure types.

While GSTR 9 is a yearly return structure recording, GSTR 9C is basically a compromise proclamation to be set up by citizens whose total turnover surpasses Rs. 2 crore and have experienced GST review. Such organizations need to document their CA ensured inspected fiscal summaries alongside GSTR 9C. In this way, in a perfect world, GSTR 9C is reliant on arrangement of your GSTR 9 return.

Extra point to note here is that there are no amendment arrangements for the yearly return yet. Thus, the arrival ought to be set up with complete exactness. IRISGST, a powerful GST recording stage is presently outfitted with GSTR 9 documenting utility. With IRISGST you can without much of a stretch mass bring auto-drafted subtleties from GSTN servers, analyze auto-drafted subtleties utilizing GSTR 1 and 3B and your records, audit table-wise GSTR 9 information and get comprehensive reports dependent on GST returns and compromise results to set up the information for extra segments of GSTR 9.

Give us now a chance to see some essential distinction between the two forms:

 

Key Points GSTR-9 Annual Return GSTR-9C Reconciliation Statement
Nature It is combination of all details provided in GST returns i.e. GSTR 1 and GSTR 3B made during financial year 2017-2018. It is reconciliation between annual GSTR 9

return filed and audited annual financial

statements
Applicable to As per Legal provision of Section 44(1) of CGST Act, every registered person is required to file GSTR-9. Hence, irrespective of the Turnover, every registered person under GST is required to file GSTR-9. Every registered person, whose aggregate

turnover during a financial year exceeds the

prescribed limit of Rs. 2 Crore, shall get his

accounts audited by a chartered accountant

or a cost accountant and need to file GSTR 9C.
Not applicable to
  • Casual Taxable Person
  • Non-Resident Taxable Person
  • Input Service Distributor
  • Input Service Distributor
  • Composition Dealers
  • Those who are not applicable to file

GSTR-9

  • And also a registered person whose

aggregate turnover in an FY is less

than INR 2 Cr.
Due date for filing
  • 31st December of the subsequent financial year
    E.g. 31st December 2018 for FY 2017-18
  • This due date extended till 30th June 2019 (Order No.03/2018-Central tax)
  • 31st December of the subsequent

financial year

  • E.g. 31st December 2018 with or after

filing GSTR-9 for FY 2017-18

  • This due date extended till 30th June

2019 (Order No.03/2018-Central tax)
Late fees &
  • As per section 47(2) of CGST Act, Late fee for belated filing of GSTR-9 is Rs.100 per day
 In a situation where a registered person files

only GSTR 9, but fails to file GSTR 9C,

the filing of GSTR 9C is not considered to
penalty subject to maximum of 0.25% of turnover in a state/UT. Similar provision is there in SGST Act also.

  • Hence, in total there will be late fee of Rs.200 per day subject to 0.50% of turnover in a state on late filing of GSTR-9.
 have been defaulted. However, For GSTR 9C

there may be consequences of default in

complying with the provisions of Section 44(2).
Additional Tax liability Additional liability for the FY 2017-18 not declared in FORM GSTR-1 and FORM GSTR-3B may be declared in this return. (As per Notification 74/2018 dt 31/12/2018 ) In GSTR 9C, GST auditor need to mention

additional tax liability arise and it’s reasons of

arise.
Payment of additional Tax liability
  • Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select ?Annual Return? in the drop down provided in FORM DRC-03.
  • It may be noted that such liability can be paid through electronic cash ledger only (As per notification 74/2018 dt 31-12-2018)
  • Towards the end of the return,

taxpayers shall be given an option to

pay any additional liability declared in

this form, through FORM DRC-03.

Taxpayers shall select ?reconciliation

statement in the drop down provided in

FORM DRC-03.

  • It may be noted that such liability can be

paid through electronic cash ledger

only

(As per notification 74/2018 dt 31-12-2018)
Availed ITC Taxpayers cannot claim input tax credit unclaimed during FY 2017-18 through this return. ITC cannot be availed through GSTR 9C
Details need to provide in Return  

  • Details of the outward supplies, inward supplies on which tax is payable, ITC and tax paid, late fees as per the GST returns filed between July 2017 and March 2018
  • Along with its amendments made between April 2018 and September 2018.
  • Declaration of demands/ refunds, supplies from composition dealers, Job works, goods sent on an approval basis
  • HSN wise summary of outward Supplies
  • HSN summary for inward supplies. Here for inward supplies need to consider only which in value independently account for 10% or more of total value of inward supplies (As per notification no 74/2018 dt 31/12/2018)
  • • Late fees payable is required.
  

  • Part-A -Reporting of reconciliation needed

between turnover, tax paid and ITC.

  • Report on Auditor’s recommendation of any

additional tax liability.

  • Part -B -Certificate by GST Auditor/ CA/

CMA
Return Mandatory  

  • It is mandatory to file all your FORM GSTR-1 and FORM GSTR-3B for the FY 2017- 18 before filing this GSTR 9 return.
  • The details for the period from July 2017 to March 2018 are needed to be provided in this return.
 GSTR 9 is mandatory to file before filing of GSTR 9C
Annexures No annexures to be attached Annexure of Audited financial statement is required

 

Additionally as of late 31st GST board Meeting was hung on 22 December 2018. To know the features of gathering contact us.

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.

[frontpage_news widget=”879″ name=”Certicom – A Group of Chartered Accountants – Articles”]