Critical Issues in Filing of GST Annual Return – Key Dates | Penalties | Compliance

Table of Contents

1. Due Date
2. Late Fee & Penalty
3. Optional Tables
4. ITC Reversal and Reclaim under Rule 37A
5. Relevance of Table
6. Issues and Resolutions

1. Due Date

2. Late Fee & Penalty

3. Optional Tables

4. ITC Reversal and Reclaim under Rule 37A

4.1 Rule 37A is the new point: Reversal and Reclaim

Reversal of ITC under Rule 37A of CGST Rules: It may be noted that this rule is inserted w.e.f. 26-12-2022 and one should be aware of the same while annual return.

• Applicability of Rule 37A: Care must be taken that ITC shall be liable to be reversed in case invoice or debit note has been furnished in GSTR-1/IFF but the supplier has not furnished the corresponding GSTR 3B on or before 30th September of next FY. (Say, a supplier has declared the invoice in GSTR-1/IFF of any tax period of FY 2022-23 but the supplier has not furnished GSTR 3B of such tax period on or before 30th September 2023)
• Timeline of Reversal of ITC: In such case, ITC shall be reversed while furnishing GSTR-3B on or before the 30th November of next financial year. (In the above scenario, the ITC should be reversed through GSTR 3B on or before 30th Nov 2023)
• Applicability of Interest: If the ITC has not been reversed on or before the 30th November of next financial year in GSTR 3B then it shall be liable to be paid along with the interest as per section 50.
• Reclaiming the ITC: Where the said supplier subsequently furnishes the GSTR 3B for the said tax period, the said registered person may re-avail the amount of such credit in FORM GSTR-3B for a tax period thereafter. The time limit of section 16(4) is not applicable in such case.
• Declaration in GSTR 9: Such reversal is shown in Table 12 of GSTR 9 (though this is the optional table). As per authors, as and when it is re-availed it will be shown in Table 6H of GSTR 9. Though the reavailment aspect does not come in the purview annual return of FY 2022-23 as it is this is very first FY of application of rule 37A.

4.2 Queries

• WhetherRule 37A is applicable for the annual return of FY 2022-23?
• Where the reversal caused due to rule 37A is required to be shown?
• Where the ITC reavailment to be shown?

5. Relevance of Table

Queries

Observations related to Table 8A:

• Table 8A is based on GSTR 2A and not based on GSTR 2B
• GSTR 2B has been given the basis to claim the ITC

Issue:

• When GSTR 2B is the basis to claim the ITC, what is the relevance of Table 8A?
• ITC is shown as Gross Basis in GSTR 3B then how to check he impact the Table 8D

6. Issues and Resolutions

Case 1

Issue:

GSTR 9 & 9C contains the reporting of data of relevant FY only. Is there any exception?

Refer: Press Release, Dated 3-7-2019

Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018-19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C).

Case 2

Issue:

GSTR 9A is not applicable? Is this true?

Observation:

Those who were under the composition scheme and then converted in the regular scheme during the FY due to excess turnover and also having aggregate turnover exceeding INR 2 Cr will have to furnish GSTR 9A and GSTR 9 as per the law.

Case 3

Issue:

I have not furnished GSTR 9 & 9C of FY 2017-18 till now. Could I furnish now?

Refer: Sec 44(2)

Sec 44(2) A registered person shall not be allowed to furnish an annual return under sub-section (1) for a financial year after the expiry of a period of three years from the due date of furnishing the said annual return:

Provided that the Government may, on the recommendations of the Council, by notification, and subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish an annual return for a financial year under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said annual return.

Case 4

Issue:

Mr Ram has earned 2 types of income:

1. Interest from FD = INR 90 Cr;
2. Rental Income from Residential House = INR 12 Lakhs

Whether GSTR-9 is applicable?

Refer: Firstly check whether it is supply and then refer registration provision and definition of aggregate turnover

Sec 2(6): “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess

Case 5

Issue:

GSTR 9 contains the reporting of data of outward supply. The activity which is not a supply is not to be furnished in GSTR 1, GSTR 3B and GSTR 9. Is this true?

Refer: Form GSTR 1, 3B and 9

• GSTR 1 and 3B do not require to furnish the Sch III activity
• GSTR 9 requires it to be furnished in GSTR 5F

Case 6

Issue:

GSTR 2B is the basis of availment of ITC. So there is no significance of asking for reconciliation based on GSTR 2A in Table 8 of GSTR 9. Is this true?

Refer: Form GSTR 9

Case 7

Issue:

I am CA and preparing books as per Cash basis in line with the income tax (ITR and being audited under Income Tax). What should I take care while preparing the GSTR 9 & 9C?

Refer: Firstly check whether it is supply and then refer registration provision and definition of aggregate turnover

• Basis of preparation of books shall be different for Income Tax and GST both
• Prepare the reconciliation

Case 8

Issue:

ITC has been written off in financial books but not reversed in GSTR 3B and GSTR 9. What can be the consequence?

Refer:

1. Table 12 of GSTR 9C
2. See detailed Trial Balance whether ITC is written off in financial books

Case 9

Issue:

I am GTA. I shifted from RCM to FCM on 18-7-2022 as per Notification No. 3/2022- Central Tax (Rate), dated 13-7-2022. In what manner I should prepare the GSTR 9 & 9C.

Refer: Form GSTR 1, 3B and 9

• Outward Supplies: Table 4 & 5C
• ITC
• Common Credit Reversal
• Sec 18: Any applicability?

Case 10

Issue:

My output tax liability is negative due to issuance of credit note. Supplies in FY 2021-22 is INR 10 Cr; Credit note issued in FY 2022-23 for INR 4 Cr whereas outward supplies in FY 2022-23 is INR 2 Cr. How should it impact in preparing GSTR 9 & 9C of FY 2022-23?

Refer: Form GSTR 1, 3B and 9

Case 11

Issue:

Responsibility of Professional in furnishing the GSTR 9 & 9C.

Refer: CA Act, 1949 and SRS-4400