GST annual return and GST audit



Purpose of this blog: This blog will help you to understand every dimension of the GST Annual return and the GST audit.



Updated as on 21/05/2019

It is the return which every registered taxpayer had to file annually, but the following persons are not required to file the annual return:
·         A person paying tax u/s 51 and 52
·         A casual taxable person
·         An Input service distributor
·         A non-resident taxable person
The GST audit shall be done when the turnover of the registered taxpayer exceeds ₹ 2 crores during a financial year.
Q1.         Is it mandatory to file the GST annual return?
·         Yes, it is mandatory for all the taxpayers to file the GST annual return but subject to a certain exception (see Q2).

Q2.         Who is not required to file the GST annual return?
·         A person paying tax u/s 51 and 52
·         A casual taxable person
·         An Input service distributor
·         A non-resident taxable person

Q3.         What is the due date of filing an annual return?
·         The annual return under GST act, 2017 must be filed on or before 31st December of the following financial year.
·         For July 2017 to March 2018 due date is 30.06.2019.
For example:
For the FY ending on 31.03.2018, the GST annual return must be filed on or before 31st December 2018.


Q4.         What will happen if I had two GST no. of different states like one is of Faridabad (Haryana), and other is of Noida (Uttar Pradesh)?
·         If the person is holding more than one GST number, then that person had to file an annual return for all GST no. of all the states separately.
(It means, GST annual return is to be furnished for each GST number.) 


Q5.         Is it possible to file GST annual return for “NIL” amount?
·         Yes, it is possible in GST act to file an annual return as “NIL” return only if the following all conditions are satisfied simultaneously:
·         NO sale
·         NO purchase of goods or services
·         NO other liability
·         NO ITC claimed
·         NO refund claimed
·         NO Demand notice (received)
·         NO late fees paid

Q6.         Can it be possible to revise the GSTR 9 return?
·         NO, it is not possible to revise GSTR 9.
(Advice: take help of the professionals while filing GSTR 9 return, At Hoogmatic our professionals will prepare and file your return with 100% accuracy.)

Q7.         What will happen, If I had registered to GST, but after a couple of months, I had cancelled my GST number?
·         Let us understand this by the following example:
Suppose Mr B registered to GST on 01st July 2017 and on 31st Jan 2018 he got cancelled his registration.
In this case, Mr B had to file two returns: 
GSTR 10       for 01st July 2017 to 31st Jan 2018 final return in the                                        case of cancellation 
GSTR 9                         for 01st July 2017 to 31st Jan 2018 Annual return 


Q8.         How many types of GST annual returns are present under the GST Act?
·         There are 4 types of Annual return under the GST Act:

Form No.
Return Name
By whom?
GSTR 9
Annual return
Every registered person
GSTR 9A
Annual return
Every Composition supplier
GSTR 9B
Annual return
Every E-commerce operator
GSTR 9C
Annual return with GST audit and Reconciliation statement
Every registered person has turnover more than ₹ 2 crores during a financial year. (first file GSTR 9)

Q9.         What is the late fee levied if the GSTR 9 not filed within the stipulated time?
·         The late will be ₹ 100 per day till the annual return is not filed (subject to a maximum of 0.25% of business turnover in the state or union territory).

Q10.       What will happen, If I had registered to GST under the composition scheme, but after a couple of months, I had shifted to a regular scheme?
·         Let us understand this by the following example:
Suppose Mr B registered to GST under composition scheme in 04th July 2017, but on 31st Jan 2018 he got shifted to a regular scheme.
In this case, Mr B had to file two returns:
GSTR 9A      for 04th July 2017 to 31st Jan 2018
GSTR 9                         for 01st Feb 2018 to 31st Mach 2018 

Q11.       Can I claim Input Tax Credit while filing the GST Annual return?
·         No, ITC cannot be claimed while filing the GST annual return. (GSTR 9, GSTR 9A, GSTR 9B, GSTR 9C)

Q12.       Can I show the additional liability which I had forgotten to show in any other GST returns?
·         Yes, additional liability can be shown in the GST annual return.
(Comment: As per Q11 and Q12, it is quite clear that it’s a one-way road where we can add the additional liability but cannot claim ITC which we forgot in GSTR 1 and GSTR 3B returns).

Q13.       What is the format of the GSTR 9 as per the GST Act?
·         GSTR 9 is divided into 6 parts

Part No.
Particulars
I
Basic Details
II
Details of Outward and inward supplies made during the financial year
III
Details of ITC for the financial year
IV
Details of tax paid as declared in returns filed during the financial year
V
Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual return of previous FY (whichever is earlier)
VI
Other Information


Q14.       What is the format of the GSTR 9A as per the GST Act?
·         GSTR 9A is divided into 5 parts

Part No.
Particulars
I
Basic Details
II
Details of outward and inward supplies made during the financial year
III
Details of tax paid as declared in returns filed during the financial year
IV
Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual return of previous FY (whichever is earlier)
V
Other Information


Q15.       What is the format of the GSTR 9C as per the GST Act?
·         GSTR 9C is divided into 5 parts

Part No.
Particulars
I
Basic Details
II
Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR 9)
III
Reconciliation of tax paid
IV
Reconciliation of Input Tax Credit (ITC)
V
Auditor's recommendation on additional Liability due to non-reconciliation


Q1.         What is the meaning of audit under the GST Act?
·         The meaning of “Audit” under the GST act is the examination of all documents, records, returns maintained or furnished by the registered person under this Act/ rules or under any other law. 


Q2.         When does the GST audit to be conducted under the GST Act?
·         When the annual turnover of the registered person during a financial year is more than ₹ 2 crores.


Q3.         What are the different types of GST audit?
·         There are two types of GST audit:
                                                                     i.            Audit by tax authorities (as per section 65)
                                                                   ii.            Special Audit (as per section 66)


Q4.         Which return is to file when any person falls under a GST audit?
·         The person shall file GSTR 9C.


Q5.         What is Reconciliation statement in GSTR 9C?   
·         “Reconciliation statement.” is for reconciling the value of supplies declared in the annual return with the audited annual return.


Q6.         Who can do a GST audit?
·         GST audit can only be done by the Chartered Accountants or Cost work Accountants.


Q7.         What is the due date of filing an annual return?
·         The annual return under GST act, 2017 must be filed on or before 31st December of the following financial year.
·         For July 2017 to March 2018 due date is 30.06.2019.
For example:
For the FY ending on 31.03.2018, the GST annual return must be filed on or before 31st December 2018.



Q8.         What is the format of the GSTR 9C as per the GST Act?
·         GSTR 9C is divided into 5 parts

Part No.
Particulars
I
Basic Details
II
Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR 9)
III
Reconciliation of tax paid
IV
Reconciliation of Input Tax Credit (ITC)
V
Auditor's recommendation on additional Liability due to non-reconciliation


For more blogs (click Here)
For Hoogmatic


Comments