GST Annual Return

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This article will give you a glimpse on the GST annual return.

Let us first have a short brief on GST. GST is an indirect tax imposed on goods and services. It had been introduced with the regime “one nation, one tax”. It has subsumed all the indirect taxes which were in force before, except some state taxes. GST is a multi-staged tax as it is imposed at every step of the production process and it is meant to be refunded to all the parties in various stages of production other than the final consumer as it is destination-based tax. It is collected from the point of consumption and not the point of origin like previous taxes.

When a taxpayer has registered himself under GST, all the records maintained by him and all the returns filed by him are meant to go through the GST annual return. Government is taking various measures for proper implementation of the GST regime and the GST annual return is one such measure. GST annual return makes full examination of full records and returns and other documents maintained by a GST registered person.

The main objective behind the GST annual return is to ensure veracity of the declaration of information in records, to ensure correctness of the turnover declared, taxes paid, and refund claimed, input tax credit availed and to ensure their compliance with GST law, rules and procedures.

Eligibility for GST annual return

As per Sec 35(5) of CGST Act, Every registered person whose aggregate turnover Exceeds Rs.2 Crores during a Financial Year should conduct GST Annual return.

On July 30th 2021, Our Government had notified that every taxpayer, who has aggregate turnover more than 5 crore in a financial year under GSTR-9C form for GST annual return, has to obtain a self-certification of GSTR 9C.

Recent changes made in return 9C and its implications:

  • Option to show adjustment related to turnover as per Audited Financial Statement to the Turnover as per Annual Return:

As per the changes made, now taxpayers are not supposed to show details of adjustment in turnover like, turnover from April to June 17, deemed supply, section 15 adjustment, adjustment due to foreign exchange fluctuations, financial credit notes, unbilled revenue etc.

  • Expense Wise ITC:

The Central Board of Indirect Taxes & Customs (CBIC) notified the amendments regarding the simplification of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) which inter-alia allow the taxpayers to provide split of input tax credit availed on inputs, input services and capital goods.

HSN level information of outputs is mandatory. However, HSN level information of inputs is optional

The following information is now optional for taxpayers:

  • Reversal of ITC which as availed in the previous financial year and ITC availed during the previous financial year.
  • Refunds claimed, pending, rejected, and sanctioned during the year.
  • Tax demands, taxes paid and pending demands for the given year.
  • Supplies received via composition taxpayers, deemed supply (under section 143) and commodities sent on the basis of approval but not returned.
  • HSN- wise summary of inward supplies.

Amendments Made in GSTR9C:

Sl.No. Table Number Existing Amendment
1. 5B to 5F (Turnover Part) Unbilled Revenue at beginning of FY & Unadjusted advances at the end of FY, Deemed Supply, Credit Notes issued after the end of FY but reflect in annual return and Trade discount accounted for but not permissible under GST are required to report separately in the given Taxpayers have an option to not fill this table.

Report all such adjustment in Table 5O, namely adjustment in turnover not listed above.

 
2. 5G (Turnover) Part)

 

 Turnover from April to June 2017

 

 Taxpayers have an option to not fill this table.

Report such adjustment in Table 5O, namely adjustment in turnover not listed above.
3. 5H to 5N (Turnover Part) Unbilled Revenue at the end FY & Unadjusted advances at the beginning of FY , etc, are required to report separately in the given table number Taxpayers have an option to not fill this table.

Report all such adjustment in Table 5O, namely adjustment in turnover not listed above
4. 14 (Expense wise details)

 

 Details of ITC availed on account of purchases; freight, bank charges, etc. are required to report separately Taxpayers have an option to not fill this table

 

If need any assistance in filing 9C Statement of your company, we will be happy to clarify the positions.

 

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