Get to know about all the changes made in the ITC (Input Tax Credit) eligibility under GST (Goods and Services Tax) which came into effect on 1st February 2019.
The implied changes in credit limitations are the resultant of the confusion in various possible definitions of the law. The main objective was to clear the doubts and to make sure that the citizens do not face any difficulty because of the law. An analysis has been done which is given below:
Changes in Eligibility of ITC
GST was introduced with the purpose to provide the citizens with easy credits by debarring the cascading effect of taxes which was because of the various state and central indirect tax laws.
The cascading effect, as compared to pre-GST, has been reduced except the IGST on Imports, GST on TCS, IGST on Import Ocean Freight service, and many more. So we can say that the dream of easy credit is still to achieve. Adding more difficulties to the citizen’s life, a new section has been introduced i.e section 49A in which the ITC eligibility has been changed that will result to more collection of CGST (Central Goods and Services Tax) credit and more payment of SGST (State Goods and Services Tax) liability in cash.
Read Also: Full Procedure to File TDS & TCS Credit Received on GST Portal
ITC is eligible when the use of commercial sanctions under Section 17 (5) of CGST (Central Goods and Services Tax) Act is used for further processing, the following are:
ITC on Motor Vehicles
The ITC will be applicable only on the Motor vehicles which will be approved for the seating capacity of only 13 persons including the driver and not more than that. It will not be applicable if-
there is the supply of such motor vehicles ahead; or
the vehicle becomes the transportation of passengers; or
giving driving training on such motors vehicles.
The motor vehicles that were earlier used for goods transportation will still remain eligible. Only the wordings have been modified in the earlier act to remove the ambiguity in interpretation.
The ‘motor vehicle and other conveyance’ has been rephrased as ‘transportation of passengers’.
Through the recent modification, the word ‘transport of goods’ has been isolated from the exceptions which are listed as ineligible ITC under the Act.
Motor Vehicle with More Than 13 Seaters is Eligible for ITC
Motor Vehicle with more than 13 persons including driving is eligible for ITC if it has approved seating capacity.
Physical verification of motor vehicle can be done to confirm the number of available seats
For such a vehicle, the verification of the approved seating capacity will be based on RC-smart card (registration certificate).
ITC on Vessels & Aircrafts
(aa) Aircraft and vessels are eligible for ITC and are not eligible when they –
(I) make the taxable supplies such as:
a further supply of aircraft and vessels; or
transportation of passengers; or
providing navigating training on such vessels; or
Providing flying training on such aircraft;
(II) transport goods;
In the earlier act, aircraft and vessels were not explicitly covered or mentioned under the restricted credits, However, implicitly they were considered to be a part of ‘other conveyances’.
From the recent amendments in ITC eligibility under the GST act, it can be argued that ITC on the same has been restricted. Earlier, from July 2017 to January 2019, ITC was eligible for the same.
Section 17(5) (g) of the CSGT act restricts the eligibility of ITC on the goods and/or services that are used for personal consumption. It also explicitly specify the conditions under Section 15(5) (aa), wherein the claim for ITC by businesses can be rejected by the tax department.
This particular area mentioned under Section 17(5) for eligibility of ITC could be highly legible with high risk and benefits. If the tax departments consider the ITC for the past period, then the same could also be disputed by other tax departments due to ambiguity in new and old rules. For taxpayers, it is better to perform a cost-benefit analysis before giving consideration to any ITC rule. Taxpayers can also seek an expert legal opinion during the departmental officer’s visit.
ITC on Insurance, Repairs & Maintenance, etc.
(ab) General insurance, repair, servicing, and maintenance services are related to the motor vehicles, aircraft or vessels which are mentioned in clause (a) or clause (aa)
Mandatory Conditions for Claiming the ITC:
Where motor vehicles, aircraft or vessels specified in clause (a) or clause (aa) are used for the purposes specified in it;
Where obtained by a taxable person busy-
in the making of motor vehicles, aircraft or vessels; or
In the providing of services of the general insurance ‘in respect of’ motor vehicles, aircraft or vessels which are insured by him.
The eligibility of ITC on motor vehicles, aircraft and vessels and also the eligibility on the repairs & maintenance and related insurance has been clarified. Given below are the possible categories for the above-mentioned goods:
Motor vehicles -> transport of goods
Motor vehicle -> for passengers -> when approved seating capacity is more than 13
Other Motor vehicles -> for passengers -> satisfies approved conditions only
Vessels & aircrafts -> satisfies approved conditions only
Formerly, there were many opinions which are given below-
Some said that such expenses were not mentioned under section 17(5), so the ITC must be eligible. ITC has been claimed from July 2017 to January 2019.
Some said that the words ‘in respect of’ has been included in section 17(5) which means that ITC is ineligible for motor vehicles, i.e. repairs, maintenance and insurance.
Although, I largely believe that the word ‘namely’ mentioned under the Section 17(5) of CGST act was a confirmation that ITC cannot be claimed for the ones which are mentioned below; hence, it cannot be said that the ITC is directly applicable to other related credits.
Recommended: Input Tax Credit Guide Under GST: Calculation with Examples
Now, after the amendments in Section 17(5) by the department, it is very clear to everyone that the Indian government has restricted ITC on the same under GST. Earlier, ITC was eligible for the mentioned categories from July 2017 to January 2019.
ITC on Various Other Goods & Services
(b) the following are the supply of goods or services or both
(i) food and beverages, beauty treatment, outdoor catering, cosmetic health services, and leasing, plastic surgery, renting or hiring of motor vehicles, aircraft or vessels mentioned in clause (a) or clause (aa) except when used for the specified purposes like life insurance and health insurance:
ITC must be eligible for such goods or services or both in which an inward supply of such goods or services or both can be done by a registered person for making an outward taxable supply of the similar category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a health and fitness centre, club; and
(iii) employees got extended travel benefit on vacation such as leave or home travel concession:
ITC must be eligible for such goods or services or both, where it is compulsory for an employer to give its employees for the same time under any law;
The above has been precised in a simple way which is given below:
Renting, leasing, or hiring of motor vehicles, aircraft or vessels
Food and beverages
Cosmetic and plastic surgery
Membership of club, health & fitness centre
Travel benefits extended to employees on vacation
The modification done in the ITC ineligibility under GST (Goods and Services Tax) has some clarity and transparency. Because of the add on of the ITC ineligible, the dream to achieve easy credit has loosen up. So all the ITC mentioned in GSTR-2A (the report filed GSTR 1 by the seller) is not observed as eligible ITC. Under Section 17 (5) of Rule 36 and restriction under documentation requirements, to ensure compliance with GST and to avoid unnecessary burden of interest/fines, it has to be re-verified.
Given the nature and track record of the Indian population, the government has imposed many restrictions in the law. Either we become obedient under Indian law, which will completely reduce our tax liability, or the government should take a leap of faith and enable a large population to simplify the law.
Recently, several changes have been made to the CGST Act, which will benefit the taxpayers in terms of ensuring compliance. The recent update in the different sections of the CSGT Act is related to the tax payments and interest, which will ease out the process of GST return filing for taxpayers. It will also reduce the interest burden from taxpayers.
Here are some of the major amendments that have been made under the CGST Act and how it will benefit the registered taxpayers:
For suppliers of goods, the threshold limit for GST registration has been increased to INR 40 lakh from INR 20 lakh. This change in threshold limit has been suggested by the GST Council during its 32nd meeting, which has now been approved by the Parliament and amended in the CGST act under section 22. Due to this new amendment, the small and medium scale suppliers will be benefited the most. Now, such small suppliers will be able to avoid paying high taxes thanks to the higher tax exemption limit.
Although this higher tax exemption will only be applicable to the supplier of goods. For suppliers in other sections or those selling goods as an e-commerce operation, registration under GST would still be mandatory for inter-state supplies.
For matters related to GST registration, a new subsection has also been added under section 25, that describes the entire registration process. Aadhar authentication for all GST-registered taxpayers, including the first-timers, has also been made mandatory by the government. The registration allocated to a particular person will stand invalid if he/she has not done Aadhaar authentication. This government decision also shows its intention to make Aadhar as a common proof of authentication across all the legal departments.
The best news for taxpayers is that now they will also be able to move their wrongly paid taxes to the correct head as per the latest rectification to section 49 of the CGST Act. In the past, the inability to move wrong paid taxes has made taxpayers hassled a lot, as they were required to pay those taxes again. Now, with this new update, any amount, i.e., taxes, interest, penalties or fee update in electronic cash ledger can be transferred to correct head under IGST, CGST or SGST/UTGST
Another decision that will particularly benefit the registered taxpayers a lot include a reduction in the interest amount levied on taxpayers due to late payment of taxes. Now, with the amendments in section 50 related to interest provisions, taxpayers will only have to pay interest only on that amount of tax which has been paid by debiting the electronic cash ledger. In simple words, the tax amount which has been paid using cash.
Earlier, the taxpayers were bound to pay interest on the entire portion of the tax that was unpaid beyond the due date. This was also inclusive of the input tax credit, which has been critiqued to be unfair or against the established practices by tax experts. Now, the rectification will help taxpayers avoid higher interest burden on them, and even nil interest burden in case of GST payment done utilizing input tax credit.
A new subsection under section 10, which governs the composition scheme has also been added to include the Service Providers under the ploy of this scheme. All Service Providers, having an annual turnover of up to INR 50 lakh and mixed suppliers (supplier of both goods & services) are now also allowed to be a part of the GST composition scheme. This amendment also makes compliance easier for small businesses in terms of filing their returns and maintenance of books of accounts.
Under the revision of CGST Act, a new option for return filing has also been introduced for the specified taxpayers. This return filing option now allows the specified taxpayers to file quarterly returns, unlike the monthly ones applicable earlier. The people option for quarterly returns would still require to make monthly tax payments. Similarly, for composition taxpayers, they need to make tax payments on a quarterly basis while return filing needs to be done annually. This will benefit the small taxpayers in terms of reducing the filing burden and reducing the GST cost associated with it.
The recent changes in the CGST Act also give an indication of the Indian government initiative of moving towards a cashless economy. A new section, namely 31A added in the CSGT Act is a clear reflection of this initiative. This new section added in the CGST Act mandates certain specified suppliers to give the prescribed mode of electronic payments to their recipients. This has been done to curb the usage of cash and to prevent tax evasion, a major problem faced by taxmen today.
In order to stop suppliers from claiming the undeserved benefits under input tax credit and not transferring this benefit to end customers in the form of reduced goods or service prices, the National Anti-profiteering Authority – constituted under section 171 has been formed, which can now force penalty up to 10 per cent on suppliers engaged in such malpractices. This amendment has also been made keeping the end customers in mind, and to pull chains around suppliers engaged in such unethical behaviour.
In conclusion, it can be easily said that the recent amendments made under GST have several welcome moves for the registered taxpayers. It is also anticipated that thejourney of GST 2.0 will be easier for everyone, including taxpayers and taxmen, with a more simplified tax approach.
Here we are to discuss all the major points on the inward supply transaction under the GSTR 9. We will go through all the particulars and the respected financial year with the reporting in the GSTR 9:
Financial Year 17-18
Financial Year 18-19
—————–Reporting in GSTR 9—————-
FY 17-18 Table 6/7
FY 18-19 Table 8/12/13
ITC of inward supplies in books amounts to Rs. 1 Lakhs. In 3B of 2017-18, the ITC of Rs. 1 Lakh was not availed and later in 2018-19, it was availed.
The ITC of Rs. 1 Lakh must be shown in Table 8 Row C and Table 13
ITC of inward supplies in books amounts to Rs. 50k. In 3B of 2017-18, the ITC of Rs.50k was not availed and later it was availed in 3B of 2018-19.
GSTR-9 does not avail any additional ITC.
ITC of inward supplies in books amounts to Rs. 1lakhs. In 3B of 2017-18, the ITC of Rs 50k was availed and later it availed in 2018-19.
In Table 6A and in Table 8B, an amount of Rs 50k would auto-populate
Table 8 Row C and Table 13 to get an entry of amount Rs. 50k
ITC of inward supplies in books amounts to Rs. 10k. In 3B of 2017-18, the ITC of Rs. 11k was availed and the amount was not reversed in 2017-18 and 2018-19.
Table 6A and Table 8B will get an auto-populated amount of Rs. 11k. While ITC of Rs 1k would be reversed in table 7H. Incase of any additional liability the payment will be made through DRC-03.
ITC of inward supplies in books amounts to Rs. 1 lakhs. In 3B of 2017-18, the ITC of Rs. 1.10 lakhs was availed. And in 2018-19, the ITC of Rs. 10k get reversed.
Table 6A and Table 8B to get an auto-populated amount of Rs 1.10 lakhs.
Table 12 to get an entry of Rs 10k as reversal of ITC.
In 3B of 17-18, filed ITC for inward supplies is Rs. 20k while in 2A, it was Rs. 25k. In FY 2018-19, Rs. 5k ITC can be availed.
Table 6A and Table 8B to get an auto-populated amount of Rs. 20k while the Table 8A would get auto-populated amount of Rs. 25k
Table 8C and Table 13 to get an entry of Rs 5k as ITC.
Financial Year 17-18
Financial Year 18-19
—————–Reporting in GSTR 9—————-
FY 17-18 Table 6/7/8
FY 18-19 Table 12/13
In 3B of 2017-18 and 2018-19, neither RCM of Rs. 5K paid nor ITC on same was availed.
In Table 4G under GSTR 9, details of inward supplies on which tax will be deducted under RCM and ITC amount not availed in 2017-18. The mentioning of Tax must be in Table 9 while its payment should be made with DRC-03.
Financial Year 17-18
Financial Year 18-19
—————–Reporting in GSTR 9—————-
FY 17-18 Table 6/7
FY 18-19 Table 10/11/12/13/14
In 3B of 2017-18, neither the payment of RCM of Rs 5K made nor ITC is claimed on the same. Later in 3B of 2018-19, it was paid and claimed.
Rs.5K RCM amount should be reported in Table 10 and details of its tax payment in Table 14. In 2017-18, ITC on RCM amount can’t be availed as it will be availed in 2018-19 and it should be mentioned in Table 13.
Financial Year 17-18
Financial Year 18-19
—————–Reporting in GSTR 9—————-
FY 17-18 Table 6/7/9
FY 18-19 Table 08/12/13
GSTR-2A contains RCM liability of Rs. 1.5 lakhs but the same is not mentioned in 3B of 2017-18 and 2018-19.
Table 4G should contain details of Inward supplies on which tax is deducted under RCM and not availed ITC in 2017-18 and in annual return as well. There is required mentioning of levied taxes in Table 9 and its payment should be done with DRC-03.
Financial Year 17-18
Financial Year 18-19
—————–Reporting in GSTR 9—————-
FY 17-18 Table 6/7/8
FY 18-19 Table 12/13
In 3B of 17-18, the ITC on inward supplies was Rs. 20k while in 2A, it was Rs 15k.
Table 6A would get auto-populated amount of Rs. 20k. Table 8A would receive Rs. 15k. And Table 8B would be auto populated with Rs 20k amount. Table 8D would showcase, difference of Rs. 5K. This amount is subjected to pay as availability of ITC considering law. And it should not be reflected in table 14 for payment.
Entitlement of Input Tax Credit means for all the prescribed conditions of Section 16(2) must be satisfied. No matter what is mentioned in Section 16, but it should satisfy provisions of section 36. Any person not registered to file tax would not be able to receive any credit of input tax in lieu of providing any goods and/or services to him unless
The person has any of the taxpaying document likewise a tax invoice or debit note provided by a supplier registered under this Act, or any other documents prescribed in the law.
The person did not get any supply of goods and/or services.
He paid levy tax on such supply to an appropriate account of the Government, in cash or following input tax credit procedure for received supply.
GSTR 9 annual return form is a mandatory return filing form for all the regular taxpayers and has to be filed once in a year. The FY 2017-18 due date of filing GST annual return is 31st August 2019. The form includes all the details of CGST, SGST and IGST transactions done by the taxpayers in a complete year.
SAG Infotech brings you complete details of the GSTR 9 annual return form along with the working procedure of the GSTR 9 on the Gen GST version 2.0. Here we bring all the latest GST forms for the taxpayers with other relevant information i.e. due dates, penalty, and eligibility.
Gen GST Software version 2.0 is a solution for all the GST based work including unlimited client return filing, GST billing, and e-way bill solutions. The software is OS & platform-independent and even works offline.
Recently the government announced that the indirect tax dispute resolution scheme which was discussed in the budget session will be coming from 1st September and will be live till 31st December.
As per the statement released, “Government expects the scheme to be availed by a large number of taxpayers for closing their pending disputes relating to legacy service tax and central excise cases that are now subsumed under the GST so they can focus on the GST.”
It is now known that there will be 2 factors within the scheme including amnesty and dispute resolution. The dispute resolution will be fast-forwarding the disputes under the tax laws.
While the amnesty scheme under GST will give the chance to the taxpayers to clear all the pending dues and taxes to further set themselves free from the legal issues.
Also, the amnesty will be the best way to get through the income tax department compliance giving all freedom from the interest, fine and penalty with no liability of interest, fine or penalty and even no prosecution whatsoever.
As per the statement, “For all the cases pending in adjudication or appeal in any forum, this scheme offers relief of 70% from the duty demand if it is Rs 50 lakh or less and 50% if it is more than Rs 50 lakh.”
Also, the department will offer relief of 60% of the duty of no appeal and if less than 50 lakhs and 40% for more than 50 lakhs. Also, the disclosed duty will have to be paid when disclosure is made.
The statement also mentioned, “As the objective of the scheme is to free a large segment of taxpayers from the legacy taxes the relief given thereunder is substantial. The scheme is specially tailored to free a large number of small taxpayers of their pending disputes with the tax administration. The government urges the taxpayers and all concerned to avail the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 and make a new beginning.”
MGT-7 is an electronic form that is allocated to all the companies by the Ministry of Corporate Affairs for filing details of their annual return. The Registrar of Companies uses to maintain this e-form via electronic mode and on the basis of the statement of correctness given by the company. It is a popular form among the companies which are required to file the form as per the norms and regulations of the ministry of corporate affairs.
Who Need to File the MGT 7 Form?
All the registered companies in India must file this e-form every year doesn’t matter if the company is private or public. The requirement of filing the Form MGT-7 by the company is for its annual return.
What if the Company does not File MCA Form MGT 7?
If any company does not file Form MGT 7 on time, it would attract a penalty of INR 100 per day as default. The levied penalty was remarkably increased in 2018. So, it should be a good approach to file an annual return in this form before the last date.
Download MGT 7 Form Format from MCA Portal
One can easily download the MGT 7 form from MCA portal under “Annual filing e-forms” category.
MGT-7 (MCA) Form Filing Fees
The fee for the filing of company annual return via MGT-7 is determined by the nominal share capital of a company. The MGT-7 form filing fee starts at Rs 200 for the company with Share Capital of less than 1,00,000. The fee amount increases with increase in the share capital of the company. You can find the complete list here. The company must pay this fee when filing the annual return MGT-7 with ROC. For the companies not having a share capital, the MGT-7 Filing Fee is Rs 200.
Nominal Share Capital
Normal Fee Applicable in Rupees
Less than 1,00,000
1,00,000 to 4,99,999
5,00,000 to 24,99,999
25,00,000 to 99,99,999
1,00,00,000 or more
MGT-7 Form Late Filing Fees (MCA)
In case of delay in the filing of MGT-7 annual company return, a company is required to pay an additional fee as penalty along with the normal fee. For a delay of up to 30 days, the MGT-7 late filing fee is twice the normal fee. Its gets increased depending on the period of delay.
Period of delays
Up to 30 days
2 times of normal fees
More than 30 days and up to 60 days
4 times of normal fees
More than 60 days and up to 90 days
6 times of normal fees
More than 90 days and up to 180 days
10 times of normal fees
More than 180 days
12 times of normal fees
What’s an Objective Behind Filing the e-Form MGT-7?
The Form MGT-7 is filed for annual return however it contains all the particulars as similar to appear in the closing of the financial year. These particulars hold details of :
Read Also: ADT-1 Form Due Date and E-Filing Documents for First Auditor
The registered office, primary business activities, details of its holding, subsidiary and associate companies
The shares, bonds and other securities and shareholding pattern of the company financial obligations of the company
The members and debenture-keepers along with changes associated with them since the end of the last financial year
The promoters, directors, key managerial personnel along with changes associated with them since the end of the last financial year;
Meetings of members or a class thereof, Board and its various committees along with attendance details
Payment of directors and principal managerial personnel;
Details of penalty or punishment imposed on the company, its directors or officers and facts of the composition of offences and appeals made against such penalty or punishment
The issues related to certification of compliances and disclosures as may be specified
It’s a Shareholding format Such different issues as needed in the form
Which are the Needed Attachments to File MGT-7 Form?
One can file this e-form by attaching the scanned copy of documents under the attachment head. This attachment section is provided at the end of the form which requires given below attachments including:
List of investors, debenture holders
Approval letter for augmentation of AGM
Optional Attachment(s), if any
What is the Last Date for Filing MGT 7 MCA Form?
The company required to file the form MGT-7 within 60 days from the Annual General Meeting date.
The last date for conducting annual general meeting is on or before the 30th day of September after closing of every financial year.
Hence, the last date for filing of form MGT-7 is usually 29th of November every year.
For all your filing related compliance for the MGT 07 for MCA, the SAG Infotech is readily available to cater you with the best of ROC/MCA filingsoftware i.e. Gen CompLaw which is used by thousands of tax professionals across India. The Gen CompLaw is capable of minutes register and all the relevant ROC filing as per the due date and regulations.
CAIT recently again asked for the extension in GSTR 9 annual return due dates to be 31st October from the current 31st august. The organization sent a letter regarding this to the union finance minister Nirmala Sitharaman.
The reason being the portal not working efficiently and is been lagging since lakhs of taxpayers are trying to file their annual return is making the portal lag. Therefore it seems that the finance ministry must make some amendments in the due date and should accept the request made by the CAIT.
The concept and obligations for the GSTR-9 and GSTR-9C i.e the Annual Return Form and the reconciliation statement respectively are still a puzzle for may including Chartered Accountants. Amidst this timely compliance may not be possible. The same concern has been raised by the Confederation of All India Traders (CAIT). An appeal also has been registered in this regard with the Union Finance Minister Nirmala Sitharaman.
Here Are the Key Points From the CAIT Appeal:
Extension of the last date of filing annual GST return to 31st October 2019.
The last date for filing GST Annual Returns (GSTR-9) is 31st December. But the CAIT has raised concerns over non-availability of GSTR-9 format as well as lack of clear guidelines. The CAIT in its appeal to the Finance Minister has also communicated that the format for filing GST Annual Return is not even available on the GST website. Moreover, even the option for the GSTR-9 is not available.
Reportedly, GST Annual Returns is the is the only way for GST registered taxpayers to correct any mistakes committed during filing of other returns for a given financial year. Most taxpayers are yet not aware of the repercussion of missing the December 31st deadline. As such an extension will not only pave the way for accurate compliance but also help negate any unwanted friction in input tax credit claims.
Only 10 Days Left For GST Annual Return Filing. It is a very alarming situation for both the taxpayers as well as for the government due to the reduction in GST return filing status. The GST portal is also said to be in slow processing. The portal is currently under stress due to a lot of tax filing application and servers are busy making the website slower and relatively hang sometimes.
After this much scenario, the government is looking forward to carrying away the work of filing GST return soon as there are only less than 10 days left for the last date to file the GST annual return form.
A worrisome scenario has spawned out for CBIC chief when the figure of taxpayers who have filed the GST return observed to be just 15% – 17% of the total.
The due date to file GST Annual Return and GST Audit report is on the verge but the number of returns filed by the central government pinpoints that only 15% to 17% of returns have been filed for the fiscal year 2017-18 in the last five months.
A complicated filing procedure and plentiful data requirements have made the filing process a troublesome and baffling task for the taxpayer. For example, Details like eight-digit product codes (HSN) is required, even though legally only four-digit HSN is needed. Likewise, HSN-based purchase summary is now needed to be furnished although it is not a requirement for the monthly GST return.
Now the question that how the left 83% returns will be filed in only three weeks, is hovering over the minds of government officials. According to the tax practitioners, postponing the due dates for filing GSTreturns is not a solution but a simplification of the process may help taxpayers to comply with it.
Axat Vyas, member of the core committee of National Action Committee (NAC) of GST Practitioners said, “This data has been declared by CBIC. Over 17% of returns have been filed in over five months. How will the remaining 83% returns be filed in the remaining three weeks,” asked an agitated Lalit Ganatra, a tax practitioner. He blames the problems in filing returns to complicated provisions and so extending the deadlines will not work. “We have time and again suggested that the government should make forms for returns simpler,”.
Annual return GSTR-9 is to be filed by the businessmen registered under regular GST and the GSTR-9A is meant to be filed by Composition Dealers who pay lump-sum tax. While those who are filing GSTR-9 have to get their accounts audited and filed under GSTR-9C.
CBIC Chairman Pranab K Das writes about the figures accumulated till August 3 in a letter to all Principal Chief Commissioners and Chief Commissioners of Central Tax, which indicates that only 14,85,863 GSTR-9 has been filed despite the fact that all regular taxpayers (non-composition dealers) which sum up to around 1 crore, have to file annual returns. As far as the status of filing GSTR-9A and GSTR-9C is concerned, it stands out to be at 4,33,148 and 11,334, respectively. Around 12 lakh registered taxpayers are supposed to file audit return in form of GSTR-9C.
Pranab K Das writes in a letter, “Considering the last date is approaching fast, there is a need to reach out to the taxpayers to ask and help them to file the annual returns/reconciliation statement before the due date. Wherever required, they should be guided through the various steps of the return filing process. Towards this end, I request you to organize outreach initiatives in your ones to help taxpayers file their returns in time. Such outreach program may be organized at the Commissionerate level as Division level. The overarching objective of the exercise is to ensure that the best help and assistance is available to taxpayers in filing their annual returns/reconciliation statement well before the due date,”.
August 31, 2019, is the due date to file GSTR 9, GSTR-9A and GSTR-9C, however, the disheartening digit of returns filed till yet has pushed CBIC Chairman to urge the tax Commissioners to ease and accelerate the return filing process.
The due dates for annual returns filing for the F.Y. 2017-18 have been extended in the past because of numerous issues. The last date for filing of Income Tax Returns has also been postponed to August 31 and now it is coinciding with the deadline for filing GST annual returns, this has summed up the complexities even more, according to tax practitioners. CBIC has ordered its field staff to go for overextended exercise to make sure that all returns are filed. But tax practitioners hold a different perspective about this.
GSTR 9C is an annual audit form for all the taxpayers having the turnover above 2 crores in a particular financial year. Along with the GSTR 9C audit form, the taxpayer will also have to fill up the reconciliation statement along with the certification of an audit.
Under this, the authorities have also introduced the format of GSTR 9C in the notification No. 49/ 2018 – Central tax dated September 13, 2018.
SAG Infotech is here to provide all the relevant details of GSTR 9 and 9C form and step by step procedure to file them along with the screenshots. The GSTR 9C form has a reconciliation statement for reconciling turnover, input tax credits and tax payments. The taxpayers can also view anddownload the GSTR 9C form in PDF format.
Who is Required to File GSTR 9C
Significance of GSTR 9C Audit Form
GSTR 9C Due Dates Extension & Penalty Norms
How to File the GSTR 9C Form?
General Queries on GSTR 9C Form
GSTR 9C Filing By Gen GST Software
What is GSTR 9C Annual GST Audit Form?
As per the rules, all the taxpayer will have to file an annual return formwith GSTR 9 but now in an addition to the current rule, Section 35 of CGST Act, 2017, all those taxpayers having turnover exceeding 2 crores in a financial year will have to submit audited annual accounts along with a reconciliation statement in GSTR 9C form.
Who is Required to File the GSTR 9C (GST Audit Form)?
All those taxpayers having the turnover above 2 crores in a financial year are required to file GSTR 9C form along with the reconciliation statement and certification of an audit.
Significance of GSTR 9C Audit Form
GSTR-9C is a reconciliation statement which must be certified by a Chartered Accountant or a CMA. Taxpayers whose aggregate turnover in a financial year exceeds Rs 2 Crores need to file GSTR-9C. The GSTR-9C must be digitally signed by the GST Auditor and must report all discrepancies or liabilities in filing any of the GST returns during the financial year. All additional liabilities arising out of the reconciliation exercise and GST audit must be reported and certified by a CS in GSTR-9C. The GSTR-9c is the only yardstick or indicator for GST Authorities to measure the correctness of GST returns filed by taxpayers during a given financial Year.
Due Date Extension for Filing GSTR 9C Audit Form Under GST?
The revised due date of GSTR 9C is 31st August 2019 for eligible taxpayers of India as announced by CBIC department.
GSTR 9C Audit Form Penalty Norms If Miss the Last Date
As per the penalty provisions of GSTR 9C audit return form, the taxpayer has to pay Rs. 200 per day as a penalty in which Rs. 100 consist of SGST and Rs. 100 for CGST. Also, it is to be noted that the total penalty cannot exceed 0.25% of the total turnover on which the said penalty is being levied.
Updates in GSTR 9C Reconciliation Form By GST Council 31st Meeting
FORM GSTR-1 & FORM GSTR-3B returns are required to be filed before the filing of FORM GSTR-9 & FORM GSTR-9C
FORM GSTR-9 & FORM GSTR-9C cannot be used for availing ITC
FORM GSTR-9C would include verification by the taxpayer who had uploaded reconciliation statement
Where to Download GSTR 9C Offline Utility?
The government has released the GSTR 9C offline utility through excel sheet which can be filed up by the taxpayers and then uploaded to the portal. The offline utility is given in a zip folder which has to be downloaded:
To download the offline utility for the GSTR 9C first visit the gst.gov.in portal
Opt on the download tab on the main menu
Now click on the offline tools in the option and it will redirect to download page
Click on download option and extract the file
Where to Find GSTR 9C Online Filing Option on Portal?
Also, there is now available GSTR 9C online utility. To start filing the GSTR 9C reconciliation audit report, perform given steps:
First of all, login with username id & password on www.gst.gov.in
After that, the dashboard will open, click on the ‘Annual Return’ tab
Now click on the financial year for the desired period to file the return, click on the FY 2017-18
An option like ‘Initiate e-filing’ will appear on the screen, click on that
But as soon as you will select the filing option, you will be asked for filing GSTR 9 form before you can file reconciliation form. Know more
How to File the GST Audit Form GSTR 9C – Step by Step:
The GSTR-9 has two major parts:
Part-A: Reconciliation Statement
GSTR 9C Part-B: Certification
GSTR 9C Part-A: Reconciliation Statement Format
Part 1: Basic Details has the following four sections: Financial Year for which return is being filed.
1. Financial Year
2. GSTIN of the taxpayer
3A. Legal Name of the registered person
3B. Trade Name (if any) of the registered business
4. If the taxpayer is liable for any audit under this act?
Note: For FY 2017-18, it will contain details for July 2017 to March 2018 period.
Part 2: Reconciliation of turnover declared in the audited Annual Financial Statement with turnover declared in Annual Return (GSTR9)
5. Reconciliation of Gross Turnover
5A. 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): The turnover as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons/entities with a presence over multiple States. Such persons/entities will have to internally derive their GSTIN wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons/entities having a presence over multiple States.
5B. Unbilled revenue at the beginning of Financial Year (+): Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here.
C. Unadjusted advances at the end of the Financial Year (+): Value of all advances for which GST has been paid but the same has not been recognized as revenue in the audited Annual Financial Statement shall be declared here.
D. Deemed Supply under Schedule I (+): an Aggregate value of deemed supplies under Schedule I of the CGST Act, 2017 shall be declared here. Any deemed supply which is already part of the turnover in the audited Annual Financial Statement is not required to be included here.
E. Credit Notes issued after the end of the financial year but reflected in the annual return (+): an Aggregate value of credit notes which were issued after 31st of March for any supply accounted in the current financial year but such credit notes were reflected in the annual return (GSTR-9)shall be declared here.
F. Trade Discounts accounted for in the audited Annual (+) Financial Statement but are not permissible under GST: Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable(being not permissible) shall be declared here.
G. Turnover from April 2017 to June 2017 (-): Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall be declared here
H. Unbilled revenue at the end of Financial Year (-): Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here.
I. Unadjusted Advances at the beginning of the Financial Year (-): Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here.
J. Credit notes accounted for in the audited Annual Financial Statement but is not permissible under GST (-): an Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under Section 34 of the CGST Act shall be declared here
K. Adjustments on account of supply of goods by SEZ units to DTA Units (-): an Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed the bill of entry shall be declared here.Easy Guide to GSTR 9C GST Audit Form with Online Return Filing Process
L. Turnover for the period under composition scheme (-): There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as per the audited Annual Financial Statement would include turnover both as for composition taxpayer as well as the normal taxpayer. Therefore, the turnover for which GST was paid under the composition scheme shall be declared here.
M. Adjustments in a turnover under section 15 and rules thereunder (+/- ): There may be cases where the taxable value and the invoice value differ due to valuation principles under section 15 of the CGST Act, 2017 and rules thereunder. Therefore, any difference between the turnover reported in the Annual Return (GSTR 9) and turnover reported in the audited Annual Financial Statement due to the difference in valuation of supplies shall be declared here.
N. Adjustments in turnover due to foreign exchange fluctuations (+/- ): Any difference between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here
O. Adjustments in turnover due to reasons not listed above (+/-): Any difference between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here.
P. Annual turnover after adjustments as above
Q. Turnover as declared in Annual Return (GSTR9): Annual turnover as declared in the Annual Return (GSTR 9) shall be declared here. This turnover may be derived from Sr. No. 5N, 10 and 11 of Annual Return (GSTR 9)
R. Un-Reconciled turnover (Q – P) AT1
6. Reasons for Un – Reconciled difference in Annual Gross Turnover
Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9) shall be specified here.
7. Reconciliation of Taxable Turnover
The table provides for the reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9).
A. Annual turnover after adjustments (from 5P above): Annual turnover as derived in Table 5P above would be auto-populated here.
B. Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover: Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any.
C. Zero-rated supplies without payment of tax: Value of zero-rated supplies (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any.
D. Supplies on which tax is to be paid by the recipient on reverse charge basis: Value of reverse charge supplies on which tax is to be paid by the recipient shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any
E. Taxable turnover as per adjustments above (A-B-C-D): The taxable turnover is derived as the difference between the annual turnover after adjustments declared in Table 7A above and the sum of all supplies (exempted, non-GST, reverse charge etc.) declared in Table 7B, 7C and 7D above.
F. Taxable turnover as per liability declared in Annual Return (GSTR9): Taxable turnover as declared in Table 4N of the Annual Return (GSTR9) shall be declared here.
G. Unreconciled taxable turnover (F-E)
8. Reasons for Un – Reconciled difference in taxable turnover
Reasons for non-reconciliation between adjusted annual taxable turnover as derived from Table 7E above and the taxable turnover declared in Table 7F shall be specified here.
Part 3: Reconciliation of tax paid
9. Reconciliation of rate wise liability and amount payable thereon
The table provides for the reconciliation of tax paid as per reconciliation statement and amount of tax paid as declared in Annual Return (GSTR 9). Under the head labeled ―RC‖, supplies where the tax was paid on reverse charge basis by the recipient (i.e. the person for whom reconciliation statement has been prepared ) shall be declared.file an annual return form with GSTR 9file an annual return form with GSTR 9
P. Total amount to be paid as per tables above: The total amount to be paid as per liability declared in Table 9A to 9O is auto-populated here
Q. Total amount paid as declared in Annual Return (GSTR 9): The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9)
10. Reasons for un-reconciled payment of amount: Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified Part-B: Certification.
11. Additional amount payable but not paid (due to reasons specified under Tables 6,8 and 10 above): Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here.
Part 4: Reconciliation of ITC (Input Tax Credit)
12. Reconciliation of Net ITC (Input Tax Credit)
A. ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts): ITC availed (after reversals) as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (Statewise) registrations exist on the same PAN. This is common for persons/entities with a presence over multiple States. Such persons/entities will have to internally derive their ITC for each individual GSTIN and declare the same here. It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons/entities having the presence over multiple States.
B. ITC booked in earlier Financial Years claimed in current Financial Year (+): Any ITC which was booked in the audited Annual Financial Statement of an earlier financial year(s)but availed in the ITC ledger in the financial year for which the reconciliation statement is being filed for shall be declared here. This shall include transitional credit which was booked in earlier years but availed during Financial Year 2017-18.
C. ITC booked in current Financial Year to be claimed in subsequent Financial Years (-): Any ITC which has been booked in the audited Annual Financial Statement of the current financial year but the same has not been credited to the ITC ledger for the said financial year shall be declared here.
D. ITC availed as per audited financial statements or books of account: ITC availed as per audited Annual Financial Statement or books of accounts as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here.
E. ITC claimed in Annual Return (GSTR 9): Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR9) shall be declared here.
13. Reasons for un-reconciled difference in ITC
Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table12E) availed in the Annual Return (GSTR9) shall be specified here.
14. Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of account.
This table is for the reconciliation of ITC declared in the Annual Return (GSTR9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads under which expenses are generally booked. Taxpayers may add or delete any of these heads but all heads of expenses on which GST has been paid/was payable are to be declared here.
B. Freight / Carriage
C. Power and Fuel
D. Imported goods (Including received from SEZs)
E. Rent and Insurance F Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
H. Employees’ Cost (Salaries, wages, Bonus etc.)
I. Conveyance charges
J. Bank Charges
K. Entertainment charges
L. Stationery Expenses (including postage etc.)
M. Repair and Maintenance
N. Other Miscellaneous expenses
O. Capital goods
P. Any other expense 1
Q. Any other expense 2
R. Total amount of eligible ITC availed: Total ITC declared in Table 14A to 14Q above shall be auto-populated here.
S. ITC claimed in Annual Return (GSTR9): Net ITC availed as declared in the Annual Return (GSTR9) shall be declared here. Table 7J of the Annual Return (GSTR9) may be used for filing this Table.
T. Un-reconciled ITC | ITC 2
15. Reasons for the un-reconciled the difference in ITC: Reasons for non-reconciliation between ITC availed on the various expenses declared in Table 14R and ITC declared in Table 14S shall be specified here.
16. Tax payable on the un-reconciled difference in ITC (due to reasons specified in 13 and 15 above): Any amount which is payable due to reasons specified in Table 13 and 15 above shall be declared here.
Part 5: Auditor’s recommendation on additional Liability due to non-reconciliation
Part V consists of the auditor’s recommendation on the additional liability to be discharged by the taxpayer due to non-reconciliation of turnover or non-reconciliation of the input tax credit. The auditor shall also recommend if there is any other amount to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which are recommended to be settled by the auditor shall be declared in this Table.
GSTR 9C Part-B: Certification
A certification part is also done once after the GSTR 9 audit is conducted by the person responsible for the audit. The form has two major parts including
1 – Certification in cases where the reconciliation statement (Form GSTR 9C) is drawn up by the person who had conducted the audit.
A – Balance sheet date
B – P&L Account including dates
C – Cash flow statement including dates
2 – Based on audit the auditor mentioned:
Proper maintenance of books status Or not maintained
3(A) – Based on any observations done by the auditor, reporting any differences:
3(B) – Further reporting
4 – Documents required under section 35(5) of CGST and reconciliation statement required which are to furnished under section 44(2) of CGST Act annexed in form no. GSTR 9C
5 – All the details and transactional information stated in GSTR form 9C are validated in this point.
Credentials With Signature, Name of the signatory, Membership no. and Date
General Queries on GSTR 9C Form
Q.1 Is the Audit of Accounts maintained by the registered taxable person required to be got done by a Chartered Accountant/Cost Accountant under GST?
As per the GST law, it is mandatory for all the Registered person to get their accounts audited by a chartered accountant or a cost accountant whose aggregate turnover during a financial year exceeds the threshold limit of Rs. 2 Crore. Whence, no such audit is required to be got done by the Chartered or Cost accountant in cases other than mentioned above.
Q.2 – Does ‘aggregate turnover’ deals with topics such as stock transfers/ cross charges effected between branches located in two different states?
Aggregate Turnover has been defined in Section 2(6) of CGST/ SGST Act and the definition of aggregate turnover includes ‘inter-state supplies of a person having the same PAN’. Thus, we see that stock transfers/ cross-charges of services provided from a branch, located in one state to a branch located in another state is included in the definition of Aggregate turnover of the related branch supplying goods/ services.
Q.3 – Does the term ‘aggregate turnover,’ includes stock transfers which are effective within the States having same GSTIN for determining the threshold limits?
The term ‘aggregate turnover’ is not supposed to be included in stock transfers effective within the same state having single GSTIN for the purpose of determining the threshold limit. However, in cases where more than one GSTIN has been allotted for the different branches located in the same state, such branch transfers shall be included for computing threshold limit of Rs. 2 crore to get to the conclusion that whether there is any requirement for audit or not.
Q.4 – Will a Registered Taxpayer who has exclusively exempted supply of goods or services exceeding Rs. 2 crores, would require to fill the GSTR 9C form?
As ‘aggregate turnover’ has been defined under the GST Act, it includes ‘exempt supplies’. Thus, even in the case of a registered person under GST who provides exempted supplies, will have to file Form GSTR 9C.
Q.5 Does the Form GSTR 9C be required to be filed by a person against each registration obtained by him in respect of each of the States?
Provision is that Section 35(5) of SGST Act requires Audit to be conducted in addition to Section 35(5) of CGST Act. Thus, to maintain Compliance audit is required to be conducted state wise as per Section 35(5) of SGST Act. Thus, if we consider an example like if a person is having registration in Karnataka and Tamil Nadu, then he is required to be audited for his accounts under KGST Act, 17 and TNGST Act, 17. The GSTR 9C form is required to be filed under Rule 80(3) of KGST Rules, 2017 and the TNGST Rules. Thus, it is evident that a person registered in more than one state is supposed to file form GSTR 9C registration wise for each and every state.
Q.6 – Is it required for a Chartered Accountant to be got registered as a GST practitioner to get certified the Form GSTR 9C?
A GST practitioner gets authorization for the practice of the below-mentioned rules as per Section 48 of the CGST/ SGST Act under Rule 83(8) of the CGST/ SGST Act:
a) furnishing the details of outward and inward supplies
b) to furnish monthly, quarterly, annual or final return
c) Can make deposits to get amount credited into the electronic cash ledger
d) he could file a claim for any sort of refund
e) filing application for getting the registration amended or getting the registration canceled
The GST Act/ Rules does not give the ‘Power to Audit’ to a GST practitioner as per section 35(5). ‘Power to Audit’ is only granted to Chartered Accountants or Cost Accountants. Thus, it is not required for a Chartered Accountant to get registered as a GST practitioner for certifying Form GSTR 9C.
Q.7 – What are the documents to be enclosed along with GSTR 9C?
Under section 35(5), it is stated that a copy of audited accounts and other such documents in the prescribed manner along with the reconciliation statement (Form GSTR 9C) to be submitted.
The ‘Prescription’ which is mentioned in the Act should be provided as mentioned in the term ‘as may be prescribed’. Only the audited annual accounts have been prescribed in Rule 80(3) in the name of documents.
Talking about Part B of GSTR 9C, it is required by the GST Auditor to get a copy of audit report of the entity enclosed where the audit of the entity has been conducted by another person under a statute other than the GST Act.
In the mentioned case, the documents which has been declared by the statute, which would further be considered as audited financial statements, must be annexed to the audit report.
Q.8 – Should the Form GSTR 9 and Form GSTR 9C get filed separately?
As per Section 44(2) of the CGST/ SGST Act 2017, a Registered person is required to file his Annual return in Form GSTR 9 along with this he has to provide a reconciliation statement through Form GSTR 9C. Thus we see, Form GSTR 9C is required to be filed along with Form GSTR 9 where the turnover exceeds Rs. 2 crores.
Q.9 – Is there any time limit to file Form GSTR 9C?
The Section 44(2) states that the reconciliation statement is required to be provided in Form GSTR 9C along with the Form GSTR 9. Section 44(1), on the other hand, declares the due dates. As per this section, the due date for filing the annual return is on or before the thirty-first day of December following the end of the FY for which the Annual return is prepared. Thus, the conclusion could be drawn that the due date for filing reconciliation statement in Form GSTR 9C is on or before the thirty-first day of December following the end of the financial year for which the reconciliation statement is being prepared.
Q.10 – Could the late fee be waived off in Genuine and special cases?
The Government has the right to get a part or full of the late fee, mentioned in section 47, waived through notification, for such section of taxpayers and under such mitigating and specified circumstances. All this could be done on the recommendation of the Council. However, no such notification is evident to till date issued by the Central Government/ State Government.
Q.11 – Is Audit, mentioned under Section 35(5), be applicable to the Non-Filers or unregistered Persons who are liable to get registered?
As per Section 35(5) of the CGST Act, only a Registered person is required to get his accounts audited by a CA or CWA. Again, a non-filer is a Registered Person according to Section 25 of the CGST Act, thus he must get audit conducted under Section 35(5) of the said Act. Considering practically, such a person would never had filed his returns and hence, Form 9 & 9C wouldn’t be possible in his case and no audit for him is required.
Understanding clearly, an unregistered person who is eligible for registration under Section 25 of the CGST is a taxable person. Here, the unregistered Person is not a Registered Person as per Section 2(94) of the CGST Act 2017. Hence, following Section 35(5) of the Act, audit is not required.
Q.12 – Mention the records which are required to be reconciled in Form GSTR-9C?
The records to be reconciled in GSTR-9C are:
Books of accounts of the registered person – If a registered person has multiple registrations, The required information could be derived from the Audited financials of the entity.
Annual Return of Registered Person in Form GSTR 9.
Q.13 – What are the contents of Form GSTR 9C?
Form GSTR 9C consists of 2 parts. Part-A consists of Reconciliation statement and Part B is Certificate to be issued by GST Auditor.
Q.14 – What are the details which are to be provided in SI. No.5B (Unbilled revenue at the beginning of Financial Year)?
The unbilled revenue at the beginning of Financial Year are required to be added in Clause 5B. The unbilled revenue recorded on the basis of the accrual system of Accounts in the Books of accounts for the earlier financial year for which the invoice is issued under GST law, is required to be declared here. Understanding more clearly, the value of such Revenue which has been recognized as income during a financial year on which GST is liable to be paid, is required to be mentioned in SI. No.5B
Q.15 – Mention the adjustments to be included/excluded from SI. No.5C of Form GSTR-9C?
The advances which are received could be of various purposes. Therefore, the Advances on which GST is liable should only be considered for the adjustment. The illustrations of advances to be included/excluded are as follows:
Include for Adjustment
Advance received in respect of services for which the supply has not been made as on 31st March 2018
Revenue not recognized in books, but offered to tax for GST
Advance received for Goods before 15th Nov 2017 and the supply of goods not complete as on 31st March 2018
Revenue not recognized in books, but offered to tax for GST
Do NOT include for Adjustment
Advance received for EXEMPTED services as on 31St March 2018
GST is not applicable
Advance received for Goods after 15th Nov 2017
GST is not applicable
Financial Advances received which are not adjustable against any services
The taxpayers at the time of filing their income tax return (ITR) have to clear their previous tax pending to complete the process of ITR filing. Adding to this, any mistakes made while submitting self-assessment tax or advance tax during the year will also result in non-deposit of tax. Such tax deposits will also not reflect in Form 26AS, and further, the facility of the claim tax credit will also be unavailable for the same.
It is possible that you, as a taxpayer, select wrong assessment year or the wrong tax category while furnishing your advance tax or self-assessment tax for a given year, leading to discrepancy. There are common ways to correct the errors in income tax payments made by taxpayers in India.
Before that, the taxpayers should know that ITR can be filed to the credit of the government in two ways:
Through online payments (by visiting the ‘Quick links’ tab present on the e-filing website of the income tax department, www.incometaxefiling.gov.in.)
By submitting physical challans at the bank branch
In Case of Online ITR Filing:
In the case of online ITR, the correction in it can only be made by the assessing officer of the taxpayer. As per the ITR filing website, “the taxpayer must visit the assessing officer and request him to correct the mistake made by him in ITR. The office of the assessing officer can be easily located on the e-filing website of the income tax department.”
Here are detailed steps to find assessing officer address on the official e-filing website:
Step 1: Visit www.incometaxindiaefiling.gov.in
Step 2: Once the user land on the home page, click on the AO (‘Know your TAN|AO’) present under the ‘Quick Links’ tab.
Step 3: A new web page will appear on the screen.
Step 4: Select your TAN or Name after which select category of deductor, State and enter name with mobile no.
Step 5: Enter the OTP received on your registered number
Step 6: The address of your Income Tax Assessing officer will be shown after correct OTP is entered.
After getting the address, you should visit the AO’s office to get the correction done.
In case of Income Tax Return (ITR) filed via a Bank Branch:
If the payment of advance tax or self-assessment tax has been made via a bank branch, the bank has the authority to correct certain mistakes in ITR within a given time period.
The mistake that can be corrected in ITR by the bank include:
Major Head Code
Nature of payment (TDS Codes)
Minor Head Code
Note: Other income tax return errors can only be corrected by the assessing officer
Bank can make correction in ITR, but with certain conditions applied. These conditions are as follows:
Correction in the name is not allowed
Correction in Both Minor Head, e.g. self-assessment taxes and Assessment Year, is not allowed together.
PAN/TAN correction is allowed only when challan name matches with the name in PAN/TAN.
ITR Amount under rectification must match with the figure received by bank and govt account
Correction is allowed only once in case of a single challan. Although, if the first is made only for amount, the second one can be raised for correction in other fields
No partial acceptance of change correction request will be allowed. Either all the requested changes will be allowed on passing the validation, or all change request gets rejected.
Detailed Procedure for Correction in Self-Assesment Tax via a bank:
Step 1: Visit the bank branch receipt where tax was deposited and carry original challan receipt with you.
Step 2: Ask and fill up the request form for tax correction. Submit the duplicate copy of the same to the related bank branch.
Step 3: Submit the original challan counterfoil along with the correction application. Keep an application copy with you as well. In the case of challan number starting from 280,282 and 283, copy of PAN card will be needed too.
For more than one correction in income tax return form, separate request form for correction needs to be submitted. The Bank will make a process the correction request within a period of seven days.