RSM India

Clarification on Annual Returns (GSTR 9) and Reconciliation Statement (GSTR 9C)

Newsflash on the press release issued by the Central Board of Indirect Taxes and Customs, wherein certain issues being faced by the taxpayers regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C) have been clarified in view of numerous representations made. While we have attached a detailed newsflash, the major points covered in the press release are as follows:

  1. Any supplies pertaining to Financial Year 2017 – 18  on which tax has not been paid and which have not been disclosed either in Form GSTR – 1 and Form GSTR – 3B, any erroneous refund, any incorrect availment of input tax credit etc.  needs to be declared in annual return and tax needs to be paid on such supplies through Form DRC – 03 along with interest as may be applicable. There shall be no penalty for self-disclosure. Thus, GSTR 9 represents the final opportunity for tax payers to declare supply on which tax ought to have been paid.
  2. It has been clarified that time limit for availing input tax credit pertaining to Financial Year 2017 – 18 appearing in the Form GTSR 2A has already been elapsed. Hence, taxpayer cannot avail such credit as this credit had never entered the electronic credit ledger of the taxpayer. Certain procedural aspects of the Form GSTR – 2A related disclosures have also been clarified.
  3. For reverse charge related to expenses forming part of Financial Year 2017 – 18 on which tax has been paid in Financial Year 2018 – 19 need not be reported in annual return for Financial Year 2017 – 18.
  4. It has been clarified that for purpose of aggregate turnover the turnover on PAN basis needs to be considered. However the period for which such turnover is to be reckoned shall be July 2017 to March 2018.

Suitable clarifications on various aspects of annual return and reconciliation statement such as expense head wise reconciliation, credit and debit note related aspects, information related to exempted, nil rated and non GST supplies, ITC available but not availed on imports of goods, source of data for preparation of annual return, among various others.

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