GST Annual Return And GST Audit

GST Annual Return And GST Audit: The Latest Regulatory Compliance Due In 3 Weeks!

If the pressure of monthly returns has not stressed you enough, here’s another critical (new) filing – GST Annual Return and GST Audit. Don’t stress, we’ve got your back! Here’s a quick summary of the tasks at hand.

A Quick Overview:

What Is A GST Audit?

With a year passing by since the introduction of GST into our daily lives, the GST Audit is now a crucial compliance activity to be followed on an annual basis. A GST Audit is a process of checking all your previous GST returns filed, ensuring that there is no mismatch between all the turnover declared, taxes paid, refund claimed an input tax credit availed.

Is It Applicable To You?

Every registered taxable person whose turnover during a financial year exceeds the prescribed limit (as per the latest GST Rules, the turnover limit is above Rs. 2 crores) must undergo a GST audit.

What Is A GST Annual Return (GSTR 9)?

GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGST, and IGST. It consolidates the information furnished in the monthly/quarterly returns during the year.

Classification Of GSTR 9 Forms:

There are four types of return under GSTR 9

1 GSTR 9: Should be filed by regular taxpayers filing GSTR 1.

2 GSTR 9A: Should be filed by persons registered under composition scheme under GST.

3 GSTR 9B: Should be filed by e-commerce operators who have filed GSTR 8 during the financial year.

4 GSTR 9C: Should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year. All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C.

Who Can Conduct The Audit?

The GST Audit can only be conducted by Chartered Accountants or Cost Accountants. There are various firms who also offer GST Services In Mumbai.

Due Date?

31st December 2018 is the due date for the previous financial year where GST was applicable (1st July 2017 – 31st March 2018)

Penalties For Non-Compliance?

Late fees for not filing the GSTR 9 within the due date is Rs. 100 per day per act up to a maximum of an amount calculated at a quarter percent of the taxpayer turnover in the state or union territory. Thus, it is Rs 100 under CGST & 100 under SGST, the total penalty is Rs 200 per day of default.

There is no late fee on IGST. Maximum late fee per day cannot exceed 0.25% of Turnover in the State or Union territory under CGST/SGST/UTGST.

A Few More Details:

Which annual return is to be filed by a taxable person if she/he was earlier registered as composition taxpayer but later switched over from composition scheme and his status as on 31st March 2018 is a regular taxpayer?

In such a case, she/he shall be required to file GSTR-9A for the period she/he was registered as a composition taxpayer and for the remaining fiscal year, she/he shall be required to file GSTR-9. Hence, both the Annual Return GSTR-9A and GSTR-9 must be filed.

Whether Taxpayer Shall Be Required To File GSTR-9 Even Though She/He Had Nil Turnover During The Year 2017-18?

Yes, every registered person is required to file GSTR-9 irrespective of turnover. However, facility to file GSTR-9 on single click may be provided in such case.

Whether Transactions For The Period April-17 To June-17 Is Also To Be Included In GSTR-9 For FY 2017-18?

No – instructions forming part of GSTR-9 which were notified by Notification No. 39/2018 dated 04th September 2018, clearly mentions that only details for the period July 2017 to March 2018 are to be provided in GSTR-9.

If A Taxpayer Has Obtained More Than One GST Registration Even Though He Has A Single PAN, Is GSTR-9 To Be Filed At An Entity-Level Or GSTIN Wise?

As per the Legal provision of Section 44(1) of CGST Act, every registered person shall be required to file GSTR-9. Hence, if a Taxpayer has obtained multiple GST Registrations whether in one state or many states, it shall be treated as a distinct person in respect of each such registration as per section 25(4) of CGST Act. Hence, GSTR-9 is required to be filed separately for each such GSTIN.

If The Taxpayer Has Identified Transaction Data That Was Missed Earlier In GSTR-3B or GSTR-1, Can The Same Be Added While Filing GSTR-9?

GSTR-9 is a mere compilation of data filed in GSTR-3B and GSTR-1 and no other information can be incorporated in GSTR-9. GSTR-9 requires details from monthly/quarterly returns on ‘as is’ basis. Even if a taxpayer has identified data fed in GSTR-1 / GSTR-3B as incorrect, still the same data is to be taken for reporting in annual return. The actual data present in the financial statements and the books of accounts of the entity is not to be considered at all for the purpose of reporting in annual return. So, the intent of the form is not to allow rectification of data filed in the monthly/Quarterly returns but the only aggregation of such data in respect of the financial year.

Here’s How We At Savage & Palmer Can Help:

Reach out to us on +91 90266 40662 or bd@savagepalmer.com for help with filing your GST annual returns