Amendment in CGST Rules_Extension of due date for filing annual return and reconciliation statement and simplification in formats of Form GSTR-9 and Form GSTR-9C

by | Nov 22, 2019 | Insight | 2 comments

This is to apprise you regarding extension of time limit for filing annual return and reconciliation statement for financial year (‘FY’) 2017-18 and FY 2018-19 till December 31, 2019 and March 31, 2020 respectively. (Refer Order No. 8/2019-Central Tax dated November 14, 2019)

 

The Government has amended the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’) vide Notification No. 56/2019-Central Tax dated November 14, 2019. Vide this amendment, the Government has simplified Form GSTR-9 and Form GSTR-9C to a major extent by amending the particulars and instructions in these forms. Notably, these relaxations are only for FY 2017-18 and FY 2018-19 and not for subsequent financial years.

 

We have provided comparative analysis of old notified forms and newly simplified forms along with our comments, as under:

 

A.    Annual Return i.e. Form GSTR-9

 

  1. Details regarding outward supplies (on which tax payable or tax not payable)

 

Table

Particulars

Old Instructions

New Instructions

Details of outward supply on which tax is payable

4B

Supplies made to registered persons (B2B)

Gross Value

Net Value

4C

Zero rated supply (Export) on payment of tax (except supplies to SEZs)

Gross Value

Net Value

4D

Supply to SEZs on payment of tax

Gross Value

Net Value

4E

Deemed Exports

Gross Value

Net Value

4I

Credit Notes issued in respect of transactions specified in (4B) to (4E) above (-)

Required

Optional

4J

Debit Notes issued in respect of transactions specified in (4B) to (4E) above (+)

Required

Optional

4K

Supplies / tax declared through Amendments (+)

Required

Optional

4L

Supplies / tax declared through Amendments (-)

Required

Optional

Details of outward supply on which tax is not payable

5A

Zero rated supply (Export) without payment of tax

Gross Value

Net Value

5B

Supply to SEZs without payment of tax

Gross Value

Net Value

5C

Supplies on which tax is to be paid by the recipient on reverse charge basis

Gross Value

Net Value

5D

Exempted

Gross Value

Net Value

5E

Nil Rated

Gross Value

Optional

5F

Non-GST supply

Gross Value

Optional

5H

Credit Notes issued in respect of transactions specified in (5A) to (5F) above (-)

Required

Optional

5I

Debit Notes issued in respect of transactions specified in (5A) to (5F) above (+)

Required

Optional

5J

Supplies / tax declared through Amendments (+)

Required

Optional

5K

Supplies / tax declared through Amendments (-)

Required

Optional

 

NITYA’s Comments:

 

  • Details of credit notes, debit notes and any amendment in respect of B2B supplies, exports, SEZ supplies, deemed exports are not required to be uploaded. Instead, their value can be reported on net basis.

 

  • Taxpayer has an option to report transaction relating to ‘Nil Rated’ and ‘Non-GST supply’ in ‘Exempt supply’ row only.

 

  1. Details of input tax credit (‘ITC’) availed as declared in returns filed during the FY

 

Table

Particulars

Old instructions

New instructions

Details of ITC availed as declared in returns

6B

Forward charge supplies

Inputs

Required

Taxpayer has option to report entire ITC in respect of inputs, capital goods and input services in ‘Inputs’ row only

Capital Goods

Required

Input Services

Required

6C

RCM supplies from unregistered persons

Inputs

Required

Taxpayer has option to report entire ITC of RCM supplies in ‘Inputs’ row of 6D on aggregate basis

Capital Goods

Required

Input Services

Required

6D

RCM supplies from registered persons

Inputs

Required

Capital Goods

Required

Input Services

Required

6E

Import of goods

Inputs

Required

Taxpayer has option to report entire ITC in ‘Inputs’ row only

Capital Goods

Required

 

NITYA’s Comments:

 

Taxpayer can report entire ITC in ‘Inputs’ row only as indicated in above table. The same can be derived from aggregate of all ITC availed in Form GSTR-3B filed during the FY.

 

  1. Details of ITC reversed as declared in returns filed during the FY

 

Table

Particulars

Old instructions

New instructions

Details of ITC reversed

7A

As per Rule 37

Required

Optional

7B

As per Rule 39

Required

Optional

7C

As per Rule 42

Required

Optional

7D

As per Rule 43

Required

Optional

7E

As per Section 17(5)

Required

Optional

7F

Reversal of TRAN-I credit

Required

Required

7G

Reversal of TRAN-II credit

Required

Required

7H

Other reversals (pl. specify)

Required

Required (refer comment below)

 

NITYA’s Comments:

 

Taxpayer can report entire ITC reversal pertaining to Table 7A to 7E in Table 7H. It may be noted that any ITC reversal in respect of TRAN-I or TRAN-II needs to be reported in respective row only.

 

Other points:

 

  • Taxpayer has option not to report details of ITC availed and reversed during FY 2018-19 pertaining to FY 2017-18 and during the period April 2019 to September 2019 relating to FY 2018-19 (Table No. 12 and 13 respectively)

 

  • Taxpayer has option not to report details of demands, refunds, information regarding supplies from composition taxpayers, job-work supplies, goods sent on approval basis, HSN outward and inward supplies (Table No. 15, 16, 17 and 18 respectively)

 

B.      Reconciliation statement i.e. Form GSTR-9C

 

  • Taxpayer has option not to report separate details in respect of adjustment in turnover under Table 5. Instead, an aggregate amount can be reported (Table 5O)

 

  • Taxpayer has option not to report following details of ITC reconciliation:

 

  • ITC booked in earlier FY and claimed in current FY (Table 12B)
  • ITC booked in current FY to be claimed in subsequent FY (Table 12C)

 

NITYA’s Comments:

 

While the instructions provide an option to report all reconciliation items in a single table, this is not recommended. The reconciliation of turnover and ITC is a basic necessity of GST Audit to identify any liability short paid or credit inadvertently claimed. Hence, taxpayers are advisable to undertake turnover and ITC reconciliation while preparing data for Form GSTR-9C.

 

  • Taxpayer has option not to report expense wise bifurcation of ITC (Table 14)

2 Comments

  1. Satyavir singh

    hi nitya tax associates experts.

    Pls advise to ITC reversal Under rule-42 about income received on FDR as a exempt supply or not

    Reply
    • Team NITYA

      It will be an exempt supply. No ITC reversal is required due to specific exclusion in reversal rules.

      Reply

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