Role of Chartered Accountants in GSTR-9 and GSTR-9C Filing

Role of CA Role of CA In GSTR 9 and 9C GSTR 9 and 9C Two Day National Conference on GST Rajkot Branch of WIRC of ICAI CA Venugopal Gella CA Venugopal Gella Venu and Vinay Chartered Accountants venu@vnv.ca CA Venugopal Gella

Basic of GSTR 9 and 9C Session Flow Key Validation before filing GST annual Returns Use Excel in Data Extraction Use of Other Automation Tool in R9 and 9C preparation venu@vnv.ca CA Venugopal Gella

Legal Provision venu@vnv.ca CA Venugopal Gella

Annual Return Section 44 o other than an ISD/ TDS /TCS / CTP / NRTP o shall furnish an annual return o which may include a self which may include a self- -certified reconciliation statement, reconciling the value certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, of supplies declared in the return furnished for the financial year, o with the audited annual financial statement for every financial year electronically, o within such time and in such form and in such manner as may be prescribed. 44 requires every registered person, venu@vnv.ca CA Venugopal Gella

Annual Return GSTR-9ABC Annual Returns Annual Return Not Applicable Registered Person: Rule 80(1) Composition Dealer : Rule 80(1) TCS : Rule 80(2) ISD /TDS GSTR 9 GSTR 9 GSTR 9A GSTR 9A GSTR 9B GSTR 9B CTP /NRTP GSTR-4 is Annual Return for Composite Dealer. GSTR-9A not available on the portal venu@vnv.ca CA Venugopal Gella

Threshold limit for FY 2021-22 Aggregate turnover not exceeding Rs.2 cr Optional to file Every Registered Person other than ISD, CTP, NRTP, TDS or TCS Aggregate turnover exceeding Rs.2 cr but not Rs.5cr GSTR 9 is mandatory GSTR 9C optional Aggregate turnover exceeding Rs.5cr Both GSTR 9 & 9C mandatory Due Date for FY 2021-22 is 31st Dec, 2022 venu@vnv.ca CA Venugopal Gella

Context of Annual Returns and Reconciliation GSTR 9 What is Done Turnover on Which taxes paid Exemptions Declared Taxes Paid (3B+ DRC03) Rate of Tax as per user /R1 Gross ITC Availed Net ITC Availed GSTR 9C - What should be Done Turnover on which Tax is payable Exemption as per law Taxes Payable Rate of Tax as per Act ITC Available Net ITC Eligible venu@vnv.ca CA Venugopal Gella

Annual Return GSTR 9 :: 6 Parts 19 Tables Parts Part I Part II Part III Part IV Part V Part VI Circular 26/2017 Adjustments Input Tax Credit Tax paid details Basic Info Liability Other info Table 1-3 Table 4-5 Table 6-8 Table 9 Table 10-14 Table 15-19 venu@vnv.ca CA Venugopal Gella

Reconciliation Statement GSTR 9C :: 6 Parts 19 Tables Parts Part I Part II Part III Part IV Part V Turnover Details Tax Payable & Paid Additional Liability Basic Info Input Tax Credit Table 1-4 Table 5-8 Table 9-11 Table 12-16 venu@vnv.ca CA Venugopal Gella

Source of Information required for Filing GSTR 9 Additional Information Primary Information GSTR 3B GSTR 3B Next year Notice / Order from Department GSTR 1 GSTR 9 Previous year Audited Books Refunds Claimed DRC 03 Tax payments GSTR 2B And a Good filing / Reconciliation Software venu@vnv.ca CA Venugopal Gella

TURNOVER REPORTING venu@vnv.ca CA Venugopal Gella

Part II: Details of Liability on A/c of Outward and inward Part II Transactions having Tax Implications Transactions not having tax implications Table 4 Table 5 venu@vnv.ca CA Venugopal Gella 12

GSTR 9C: GST Turnover Turnover (including exports) as per audited financial statements for the State / UT (For multi-GSTIN units under same PAN the turnover shall be derived from the audited Annual Financial Statement) Unbilled revenue at the beginning of Financial Year Unadjusted advances at the end of the Financial Year Deemed Supply under Schedule I Credit Notes issued after the end of the financial year but reflected in the annual return Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST Turnover from April 2017 to June 2017 Unbilled revenue at the end of Financial Year Unadjusted Advances at the beginning of the Financial Year Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST Adjustments on account of supply of goods by SEZ units to DTA Units Turnover for the period under composition scheme Adjustments in turnover under section 15 and rules thereunder Adjustments in turnover due to foreign exchange fluctuations Adjustments in turnover due to reasons not listed above Annual turnover after adjustments as above Turnover as declared in Annual Return (GSTR9) Un-Reconciled turnover (Q - P) A xxxx (+) (+) (+) (+) (+) (-) (-) (-) (-) (-) (-) (+/-) (+/-) (+/-) B C D E F G H I J K L M N O P Q R <Auto> AT1 venu@vnv.ca CA Venugopal Gella

Table 4 Table 4 Inward Supplies subject to reverse charge + Adjustment s & Amendmen ts Unadjusted Advances (Invoice not yet raised ) Taxable Outward Supplies to + - 4A to 4A to 4E 4E 4G 4F Supplies by Amendm ents Supplies by Amendm ents - Credit Notes + Debit Notes SEZ Exports with Pay Deemed Exports Supplies- SEWP B2C B2B 4I 4I 4K 4K 4L 4L 4J 4J 4A 4A 4B 4B 4C 4C 4D 4D 4E 4E venu@vnv.ca CA Venugopal Gella 14

Table 5 : Exempt Outward Supplies to :: 5A to 5F Exports without Pay SEZ Supplies- SEWOP Non-GST supply Outward RCM Exempted Nil Rated 5A 5B 5C 5D 5E 5F venu@vnv.ca CA Venugopal Gella 15

GSTR 9: Table 5 venu@vnv.ca CA Venugopal Gella

Part II Summary 5N Turnover 5N Include Taxable & Exempted Original Taxable Exempted In 17-18 and also in 18-19 Amended Dr /Cr Note 4N - 5M 4G(RCM) The value of no supply shall also be declared here. NON GST venu@vnv.ca CA Venugopal Gella

Freezing of Turnover venu@vnv.ca CA Venugopal Gella

Supply can be anywhere Credit of P&L Debit of P&L Other Income Set off against expenses Asset side of balance sheet Liability side of balance sheet Outside financial statements Sale of Fixed Assets Advances Stock Transfer Sch I venu@vnv.ca CA Venugopal Gella

Outward Supplies Review of the revenues declared as per books: o Taxability Deemed Supplies, Stock Transfers, Cross Charge, Recoveries, etc Tata Motors Ltd Advance Ruling No. GUJ/GAAR/R/39/2021 Tata Motors Ltd Advance Ruling No. GUJ/GAAR/R/39/2021 o Classification Verification of rate + HSN Code o Valuation Sale of Vehicles, Discounts/ Incentives, OMV, etc o Time & Place of Supply, etc Review of Debit Notes o Decrease in tax rate & interest implication Review of Credit Notes Issued o Eligibility, Time Limit for adjustments, shown as ITC, etc Tax Treatment in change in rate of tax Paid on advances @ 28% venu@vnv.ca CA Venugopal Gella

Income for books may not be for GST Prop o Rental Income from Immovable Property o Salary Income Partnership o Introduction of Asset by partner o Receipt of Asset on dissolution of partnership firm o Partners Salary and Interest General o Discounts/Incentives o Foreign Exchange Gain o Profit on Sale of Assets o Recovery of Baddebts o Penalty/Damages/Forfeiture venu@vnv.ca CA Venugopal Gella

Reconciliation Multi Dimensional Reconciliation Reconciliation Reconcile Outward Supply Books vs declared in GSTR-1 Return. GSTR-1 vs GSTR-3B Reconcile for Turnover ( Inter State and Intra State) Report Segregation Report Segregation Rate wise (5%, 12%, 18%, 28%) Supply wise (Taxable, Zero Rated with/without Payment, Exempted/ Nil Rated and Non GST Supply) Parties wise (B2B or B2C) Tax Type (IGST/ CGST/SGST) Registration wise, in case of multiple registration venu@vnv.ca CA Venugopal Gella

Reconciliation with Income Tax Supply of Goods o TCS u/s 206(1H) Supply more than 50 lacs to a party ; Turnover > 10 cr o TCS u/s 206C Scrap Sales Supply of Services o Recon with 26AS o Check Part A Details of TDS Sale of Immovable property venu@vnv.ca CA Venugopal Gella

Reconciliation of Books Turnover Books Turnover Apr to Mar Stock transfer GSTIN 1 GSTIN 2 GSTIN 3 venu@vnv.ca CA Venugopal Gella

Issues venu@vnv.ca CA Venugopal Gella

Incorrect Type of Tax Paid Case Study Sl. No. Correct Type of Tax Mentione d on Invoice Disclosed in GST Return Whether rectification done in GST Return Remarks 1 CGST & SGST CGST & SGST IGST In the same FY Correct Information to be disclosed. As error is rectified 2 CGST & SGST CGST & SGST IGST In the GSTR-3B of subsequent FY Opt 1 Tax Adjustment can be made in table 10, 11 & 14 of GSTR-9. Opt 2 Keep the reconciliations open in GSTR-9 & appropriate comments to be given in GSTR-9C 3 CGST & SGST CGST & SGST IGST No Correct taxes (i.e CGST & SGST) to be disclosed in table 4 of GSTR 9. Additional Tax of CGST & SGST to be paid through DRC-03. Rectification to be given in subsequent GSTR 3B or can be claimed as refund venu@vnv.ca CA Venugopal Gella

Incorrect Type of Tax Charged - Case Study Sl. No Correct Type of Tax Mentioned on Invoice Disclosed in GST Return Whether rectification done in GST Return Remarks 1 CGST & SGST IGST CGST & SGST No Applicable Correct taxes (i.e CGST & SGST) to be disclosed in table 4 of GSTR-9. Tax Payable and paid would match in table 9 of GSTR 9 2 CGST & SGST IGST IGST No Applicable Opt 1 Correct taxes (i.e CGST & SGST) to be disclosed in table 4 of GSTR-9 and paid through DRC-03. Wrongly paid IGST can be claimed as refund. Table 9 of GSTR 9 would show excess & short payment of respective taxes. Appropriate comment to be given in 9C. Opt 2 Disclosed IGST as per returns and wait for departmental audit/ assessment. venu@vnv.ca CA Venugopal Gella

Adjustment of Advances Case Study Sl. No Advance Received Invoice Issued Whether Adjusted in GSTR 3B Disclosure in GSTR 9 Disclosur e in GSTR 9C Remarks 1 FY 2020-21 FY 2020- 21 - Table 4 Table 5Q Disclose/ create liability only once by disclosure in table 4. Tax paid in table 9 of GSTR 9 would show more amount than tax payable. Need to give reconciliation comments in table 9 & 10 of 9C Since it is double payment of tax. Disclosure of excess tax paid must be shown in GSTR 9 and the same can be claimed as a refund u/s 54 or adjusted in subsequent GSTR 3B..? venu@vnv.ca CA Venugopal Gella

REPORTING venu@vnv.ca CA Venugopal Gella

GSTR-9/ 9C Input Tax Credits R9 Input Tax Credits-9C Table 6 Availed as per 3B Table 12 Availed/ B/f/ C/f as per Books Table 7 Reversals as per 3B Table 14 Table 8 Expenses wise bifurcation Reconciliation with 2A venu@vnv.ca CA Venugopal Gella

Credit flow Credits to Electronic Credit Ledger(ECrL) Reported thru GSTR 3B Direct Entry to ECrL Table 6B to 6H >> << Table 6K- 6M 4A-4B=4C Trans I Trans II ITC 01 ITC 02 venu@vnv.ca CA Venugopal Gella

Reconciliation of GSTR 9 ITC Utilised During the Year Table 9 Net ITC Availed = 7J ECL Balance for March 22 Unused ITC venu@vnv.ca CA Venugopal Gella

Total Reporting of INPUT TAX CREDIT ITC 2021 ITC 2021- -22 22 Availed Availed Reversed Reversed In 21 In 21- -22 22 In 22 In 22- -23 23 In 21 In 21- -22 22 In 22 In 22- -23 23 Table 6 Table 6 Table 13 Table 13 Table 7 Table 7 Table 12 Table 12 venu@vnv.ca CA Venugopal Gella 33

Credit Flow of GSTR 3B into GSTR 9 GSTR 9 GSTR 3B Forward Charge Credit 6B + 6H 4A5 Reverse Charge Credit 6C + 6D 4A3 Matching Credits Import of Goods 6E 4A1 Import of Services 6F 4A2 6G 4A4 ISD Credit venu@vnv.ca CA Venugopal Gella

Match the Net Credits Availed through 3B Table 4C of GSTR 3B (Net ITC available after deducting reversals) Table 6I of GSTR 9 Table 7I of GSTR 9 minus 6B to 6H ITC reversed Difference can be only if a) Erroneous Credit reported in GSTR9, either excess or short b) Reversal of Credits now done in GSTR9 venu@vnv.ca CA Venugopal Gella

Freezing ITC venu@vnv.ca CA Venugopal Gella

Segregate Expenses into 2 Categories Expense analysis Without GST With GST Eligible ITC Ineligible ITC Exempt/ Non-GST RCM venu@vnv.ca CA Venugopal Gella

ITC Available on the Basis of use Use of input tax credit Non- taxable Supplies Taxable Supplies Zero-rated Supplies Exempt Supplies Nil-rated Supplies ITC not available available ITC not ITC not not not not available ITC ITC Available Available Note: Attribution of ITC to be made as per the manner prescribed in the ITC Rules VnV venu@vnv.ca CA Venugopal Gella 38

Time limit Time limit (earlier of) Due date of Sept return of next FY 30th Nov, 2022 Date of Filing Annual returns venu@vnv.ca CA Venugopal Gella

Matching of Credits All inward data Credit matching with those appearing in the portal Credit appearing only in books and not in portal Credit existing only in portal and not in books Check whether the same credits can be taken as per Rule 36(4) or Invoice based No action to be taken Missed accounting; ineligible; not my credit venu@vnv.ca CA Venugopal Gella

Quantum of Entailment Rule 36(4) Input tax credit to be availed by a registered person o in respect of invoices or debit notes, o the details of which have not been uploaded not been uploaded by the suppliers under sub-section (1) of section 37, o shall not exceed 5 per cent. of the eligible credit available o in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37. Value of Missing Credit = Min ( Actual Missing or 5% of Visible Credit) W.e.f 1st Jan, 2022 additional 5% ITC is not available venu@vnv.ca CA Venugopal Gella

Reconciliation with GSTR-2A All the missed out credit may be availed subject to GSTR-2A. Credits appearing in GSTR 2A but not availed in Purchase register/ GSTR-3B: o Eligibility of such credits should be identified and availed by 30th November, 2022. Any left out ITC for the period of 2021-22 may be loss to the registered person if not claimed by 30th November, 2022 Transaction is not reflected in GSTR-2A, follow up may be undertaken. Credit Availed onto different GSTN of the same assessess Total ITC Avail cannot exceed cannot exceed the eligible credit appearing in GSTR-2A venu@vnv.ca CA Venugopal Gella

Reversal of ITC Instances when ITC to be reversed o Reversal in case of Availment of Ineligible/ Blocked Credit o Reversal in case of Non Payment within 180 days o Actualization of Apportionment of ITC as per Rule 42 & 43 in case of Exempt Supplies venu@vnv.ca CA Venugopal Gella

SECTION 17(5)- Blocked Credits Motor vehicles and conveyances, rent-a- cab, vessels, aircraft Penalty u/s 74, 129 and 130 Non Resident taxable person Food and beverages Beauty treatment, cosmetic and plastic surgery, Construction and works contract Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples Personal Consumption Life insurance, medical insurance venu@vnv.ca CA Venugopal Gella

Payment to the Vendor within 180 days Input Tax credit For supply of goods or services, other than tax payable on reverse charge, the value of supply along with tax shall be paid to the supplier period of 180 days from the date of invoice. Payment within 180 days from the date of Invoice Payment after 180 days from the date of Invoice payable Avail the credit after payment towards goods and tax is made Reverse the credit availed along with the interest within a No time limit for Re- availment of Credit venu@vnv.ca CA Venugopal Gella

ITC Reconciliation with Books Reversal of ITC availed during previous FY (Table 12 of GSTR 9) ITC availed for the Previous FY (Table 13 of GSTR 9) Net ITC available (Table 7J of GSTR 9) ITC as per Books venu@vnv.ca CA Venugopal Gella

Issues venu@vnv.ca CA Venugopal Gella

Input Tax Credit Reconciliation of ITC between Books vs GSTR 3B ITC Available in return but not reflected in Form GSTR-2A/2B [Arise India Limited Del India Limited Del- -HC & Sri HC & Sri Ranganathar Ranganathar Vavles [Arise Vavles Pvt Ltd Mad Pvt Ltd Mad- -HC] HC] ITC on import of goods by filing a Bill of Entry Time limit u/s 16(4) Invoice defined u/s 2(66) to cover Tax Invoice as per sec 31 Credit Availed onto different GSTN of the same assessess venu@vnv.ca CA Venugopal Gella

Input Tax Credit Impact of ITC reconciliation in table 12 of Form GSTR 9C whether leads to any tax liability ITC with POS of other States SGST Credit claimed by a Company located in Mumbai in which the invoice issued by supplier had mentioned POS as Rajasthan? Should ITC be reversed? Break up of ITC into I/IS/CG relevance, capitalized, service, ITC reversal, refund Reversal of ITC exclusive attributable, Common Usage, etc Rule 42 & 43 venu@vnv.ca CA Venugopal Gella

Incorrect claim of ITC Case Study Mentioned on the Invoice Disclosed in GST Return Whether rectification done in GST Return Remarks IGST CGST & SGST No Assessee may rectify the error in GSTR- 3B of the current period & disclosed the details of such rectification in Part V (table 12 & 13) Further the details of ITC taken as per 3B of FY 20-21 must be disclosed in table 6 of GSTR 9. Ideally, the entire situation become revenue neutral. Cir No. 26/26/2017-GST dated 29.12.2017 & Bharti Airtel Delhi High Court Sun Dye Chem v/s The Commissioner of Central Tax (Mad HC) WP No. 29676 of 2019 venu@vnv.ca CA Venugopal Gella