Declaring the Actual Tax Paid during the Year (Part IV of GSTR 9)

GSTR 9 Annual Return arrangement is round the corner. With due date expanded twice from 31st December 2018 to 30th June 2019 and from 30th June 2019 to 31st August 2019, it is normal that this time there won’t be any extensions.

The annual return is separated into 6 sections, Part I covers fundamental details while Part II is for outward supplies. Part III is significant section covering ITC related reports in Table 6, Table 7 and Table 8.

Part IV is the actual tax paid during the financial year. This article covers the rules to fill Table IV of GSTR 9.

Payment of tax under Table 6.1 of FORM GSTR-3B might be utilized for filling up the details in Part IV of the Annual Return.

Once after getting details related to outward supplies in Part II and details of Input tax Credit benefited and changed in Part III of GSTR 9, Part IV requires the individual filing an Annual Return to report the details of tax, interest, late charge, punishment and different amounts payable and paid consequently on a cumulative basis for the financial year.

The reason for point number 9 in Part IV is to get the merged estimation of tax liability self assessed including tax payable on additional obligation which has not been accounted for yet and tax paid, released in the monthly returns i.e Form 3B by the Registered Person for the period for which the Annual Return is being filed. The given details alongside differential tax details announced in Sl. No. 14 in Part V of the Form will accept the total tax risk for the financial year which is determined, announced and released by the Registered Person up to the date of filing the Annual Return and balance must be paid in cash through DRC-03.

A. For Tax Payable and Tax Paid

Data required in this condition is of ‘tax payable’ and ‘tax paid’ (with money or credit). Table 6.1 of GSTR 3B is intended for gathering data and including it here. The Table likewise contains ‘tax payable’ and ‘tax paid’. As regards ‘tax payable’, the same must be in arrangement with taxable turnover in Sl.No. 4M of GSTR 9 and comparing ‘tax payable’.

In like manner, where taxable turnover revealed in GSTR 1 and GSTR 3B are in coordinated with one another, there would be no ‘new’ tax risk recognized without precedent for GSTR 9. However, where they are not in coordinated taxable turnover revealed in GSTR 1 and that on which tax is really released through GSTR 3B may not be in agreement. It is hence that Sl.No.9 captures ‘tax payable’ in view of GSTR 9 (4N) yet ‘tax paid’ in view of GSTR 3B (6.1)

Subsequently, section “Tax Payable” would be determined based on 4N however segment “Paid through cash” would spill out of 6.1 of GSTR3B.

B. For Interest Payable and Paid

For revealing the measure of interest under the given section, interest really admitted and paid must be reported here.

The details of interest really paid under Section 50 can be taken from Table 5.1 of GSTR 3B petitioned for the financial year, whenever paid. Further, the details of interest paid, to be accounted in Part IV of GSTR 9 can likewise be cross verified with Credit and Debit related with enthusiasm for Electronic tax Liability Register. I

Interest obligation re-calculated for compliance of arrangement of section 16 of the CGST Act, which accommodates inversion of ITC if creditors for internal supply have not been paid in 180 days. Along these lines, sundry creditors remarkable as on 31.03.2018 must be reconciled that no exceptional amount is lying for internal supplies made by them in the between 1.07.2017 to 2.10.2017.

C. For Late Fees Payable and Paid

For revealing Late Fees appropriately paid during the period July 2017 to March 2018 for late filing of any of the GST Returns on which Late Fees was required and paid by the Registered Person,.

Table6.1 of GSTR 3B will be utilized. Further, the details of Late Fee to be accounted for in Part IV of GSTR 9 can likewise be cross verified with Credit and Debit relating to late fee in Electronic tax Liability Register.

D) For Penalty and Other Dues Payable and Paid

In GSTR 3B, there is no Table determined for payment of any Penalty or Other Dues. But, under the law there can be examples where an individual filing an Annual Return may have paid penalty because of different occurrences, for example, as for causing movement of goods infringing upon arrangements of Rule 138 or because of any order passed by appropriate official and so on.

The planning of GSTR 9 is a diligent procedure and requires great automated answers for avoiding manual errors. IRIS GST is a main GST Suvidha Provider (GSP) giving simple and effective answers for GST (IRIS Sapphire) and E-way bills (IRIS Topaz) compliance.

Reach out to Certicom Consulting for any queries.