Tax Talk

GST Annual Return -Forms GSTR 9 and GSTR 9A Active on GST Portal

2019-03-08T20:17:00.000+05:30

GST Annual Return

Form GSTR 9 and GSTR 9A active on the GST portal

Here we will answer the following questions;

What is GST Annual Return and its types?
Who all are NOT required to file GSTR 9?
Points to be considered while filing GST Annual Return?
Whether Revision of GST Annual Return is possible or not?
Whether Additional Liability (if found) can be paid at the time of filing of Annual Return and If Yes Then how to Pay?
Whether Additional Input Tax Credit can be claimed (if found)at the time of filing of GST Annual Return?
Is it Compulsory to file NIL Return and If Yes, What are the conditions to be taken care of before filing NIL Return?
Due Date for Filing of GST Annual Return?
Penalty for Non-Filing of GST Annual Return?
Check List for Preparation of GST Annual Return?

Once you login into the GST Portal, you will find the Annual Return Tab below the Return Dashboard icon. You can also see that by clicking on Services>Returns>annual return. Please see the snapshot as below;

GST Annual Return

§ GST Annual Return?

An annual return to be filed once in a year by the registered taxpayers under GST and contains supplies made and received during the year. It consolidates the information furnished in the monthly or quarterly returns filed during the year.

§ Types of GST Annual Return?

GST Forms	Category of Tax Payers
GSTR 9	*Regular Tax Payers (Refer Note 1)*
GSTR 9A	Persons registered under Composition Scheme
GSTR 9B	E-Commerce operators who have filed GSTR 8
GSTR 9C	· Taxpayers whose aggregate 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.

Note 1

Who all are NOT required to file GSTR 9 ?

All taxpayers are required to file GSTR 9 except as stated below;

· Input service distributors

· Non-resident taxable persons

· Casual Taxable Person

· Persons paying TDS under section 51 of GST Act.

§Points to be considered while filing GST Annual Return ?

GSTR-9 can be filed online. It can also be prepared on Offline Tool and then uploaded on the Portal and filed.

Annual return in form GSTR-9 is required to be filed by every taxpayer registered as normal taxpayer during the relevant financial year.

· GSTR 9 is required to be filed for each GST registration individually.

All applicable statements in Forms GSTR-1 and returns in Form GSTR 3B of the financial year shall have been filed before filing GSTR-9.

Annual return in Form GSTR-9 once filed CANNOT BE REVISED.

Computation of ITC based on GSTR-2A has been auto-populated by the System based on GSTR-1 filed by your corresponding suppliers upto 29/01/2019. If you have some missing credits in GSTR-2A, you may like to wait till next updation.

Download the draft system computed GSTR-9, summary of Form GSTR-1 and GSTR-3B for the financial year by clicking on relevant buttons. This will facilitate in providing details in actual tables.

After adding and confirming the details, Click on Compute Liabilities for computation of Late fee

Proceed to File button would be enabled once late fee is calculated by system;

Click on Proceed to File to pay liabilities and file the return. However, Additional details can be added even after clicking on ‘Compute Liabilities’ or ‘Proceed to file’ button. But in that case, you would be required to click on compute liabilities button again and then proceed to pay them ;

You can Download Filed GST Annual Return in Excel as well PDF format according to the requirement.

§Whether Additional Liability (if found) can be paid at the time of filing of Annual Return and If Yes Then How to pay?

With the change in the Annual Return format i.e. (“Declared in returns” filed during the year to “Made” during the year), the scope of annual return GSTR-9 is broadened to include the additional supplies which were not disclosed in the monthly returns w.r.t FY 2017-18. Any liability arising out of new additions is required to be paid in cash through FORM GST DRC-03.

§Whether Additional Input Tax Credit can be claimed (if found) at the time of filing of GST Annual Return?

Though annual return allows you to include and pay additional liability, you cannot claim unclaimed input tax credit in GSTR 9. However, ITC Can be claimed by the recipient, till the due date of filing of GSTR 3B for the month of March 2019 i.e till 20^th April 2019, related to the invoices issued by supplier pertaining to the financial year 2017-18.

§ Is it Compulsory to file NIL Return and If Yes, what are the conditions to be taken care of before filing NIL Return?

NIL GST Annual Return can be filed, if you have

Not made any outward supply (commonly known as sale);

And Not received any inward supplies (commonly known as purchase) of goods/services;

And No liability of any kind;

And Not claimed any Credit during the Financial Year;

And Not received any order creating demand;

And Not claimed any refund during the Financial Year.

All the conditions as stated above needs to be satisfied before filing of NIL GST Annual Return. Although, after login, GST Portal automatically updates whether person can file NIL return or not.

§ Due Date for Filing of GST Annual Return?

Section 44 of CGST Act 2017	On or before 31^st day of December following the end of such financial year in which such supplies were made i.e. Due date of Annual Return for supplies made in F.Y. 2017-18 will be 31^st Dec 2018
Latest update as on 22^ND December 2018	Due date for filing of GSTR-9, GSTR-9A and GSTR-9C extended up to 30th June 2019

§ Penalty for Non-Filing of GST Annual Return?

Late fees for not filing the GSTR 9 within the due date is Rs.100 per day per act (effectively Rs.200 per day) up to a maximum of an amount calculated at a 0.25% of the taxpayer turnover in the state or union territory.

§ Check List for Preparation of GST Annual Return?

For Output Supplies or Sales made

ü Reconciliation of Turnover as per books and as per GST returns filed during the year;

ü Reconciliation of Turnover and Tax Paid as per GSTR 3B and GSTR 1 filed during the year (this statement can be downloaded from GST Portal refer snapshot below w.r.t tax paid by clicking on computation of liability declared and ITC claimed)

ü Details of amendments OR omissions pertaining to previous FY 2017-18 but reported in current FY 2018-19

ü Transactions on which payment is required to made by recipient under RCM

ü Check whether all RCM liabilities has been paid

ü Check whether advances has been duly recorded and liability paid off

ü Details of Credit notes and Debit notes issued during FY 2017-18

ü HSN wise summary of sales

For Inward Supplies or Purchases made

ü Reconcile whether all credit pertaining to FY 2017-18 has been claimed up to filing of GST Annual Return

ü Reconciliation Statement between GSTR 2A and GSTR 3B (this statement can be downloaded from GST Portal refer snapshot below by clicking on computation of liability declared and ITC claimed)

ü Reconciliation Statement between GSTR 2A and Books

ü If any invoice is missing, contact supplier immediately to update the same before 31^st March 2019 being the last date for amendment for supplies made in FY 2017-18

ü Bifurcation of ITC w.r.t Input, Capital Goods and Input Services

ü Check whether all credit w.r.t RCM liability has been claimed

ü Reversal of Input Tax credit as per section 17(5) being blocked inputs

ü HSN wise summary of Input which accounts for atleast 10% of the total inward supplies.

GST Annual Return

Thank you and Have a nice day !

In case of any further assistance, feel free to contact

GST Update | GST Input Tax Credit (ITC) Set Off New Rules | Section 49A and 49B

2019-03-06T19:00:00.000+05:30

GST Update | GST Input Tax Credit (ITC) Set Off New Rules | Section 49A and 49B

The government has amended CGST Act 2017 with various changes

w.e.f. 1^st Feb 2019 and one of the important change was made in Section 49 of CGST Act by introducing new section 49A & 49B after the section 49, which is as under:

“49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilized towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment.

49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.”.

For detailed reading of section 49, please visit below link http://www.cbic.gov.in/htdocs-cbec/gst/index

However, few points of Section 49 are as below;

(5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of–

(e) the central tax shall not be utilized towards payment of State tax or Union territory tax; and

(f) the State tax or Union territory tax shall not be utilized towards payment of central tax.

In other words, CGST and SGST can’t be cross utilized i.e. no input tax credit on account of CGST shall be utilized towards payment of SGST and vice versa.

GST ITC Set Off

Let us understand the above change in Tabular form along with an example and How exactly does this impact your Business;

Old Rule for GST ITC Set off is as under;

GST Components	First Set Off from	Then set off from
IGST	IGST	CGST & SGST/UTGST
CGST	CGST	IGST
SGST/UTGST	SGST/UTGST	IGST

New Rule for GST ITC Set off effective 1st February 2019 is as under (i.e. Applicable for GSTR3B for the month of February which is going to be filed in the month of March 2019 and onwards)

GST Components	First Set Off from	Then set off from
IGST	IGST	CGST & SGST/UTGST
CGST	IGST	CGST
SGST/UTGST	IGST	SGST/UTGST

So to conclude, the order of GST ITC set off will now start from IGST and then CGST and SGST/UTGST.

In other words, CGST and SGST/UTGST credit will be utilized only when we are not left with any credit in IGST bucket.

Illustration

GST Components	IGST	CGST	SGST
Output Liability	1000	2000	2000
Input Credit	2000	2000	1000

Now we will apply both Old Rule and New Rule for computation of GST ITC set off and payment liability and will analyze how does it impact our working capital ?

First Applying Old Rule:

Particulars	Output Liability	ITC Available			Net Payable	ITC Carry Forward
Particulars	Output Liability	IGST	CGST	SGST	Net Payable	ITC Carry Forward
IGST	1000	1000	-	-	0	-
CGST	2000	-	2000	-	0	-
SGST	2000	1000	-	1000	0	-

We can see, as per Old Rule, First we have to pay IGST liability using IGST credit and then CGST/SGST.

Further, CGST and SGST liability will be first set off from CGST and SGST respectively and then, if any balance left, will be paid from IGST input.

Now Applying New Rule:

Particulars	Output Liability	ITC Available			Net Payable	ITC Carry Forward
Particulars	Output Liability	IGST	CGST	SGST	Net Payable	ITC Carry Forward
IGST	1000	1000	-	-	0	-
CGST	2000	1000	1000	-	0	1000
SGST	2000	-	-	1000	1000	-

We can see, as per New Rules, First we have to pay IGST liability using IGST input and then CGST/SGST.

Further, CGST and SGST liability will be first set off from IGST input and then, if any balance left, will be paid from CGST and SGST respectively.

From above it is clear that due to the applicability of New Rule of GST ITC set off, taxpayer is required to pay Rs.1000 from his pocket even though having sufficient balance in CGST. Hence, this will be going to impact the Working capital of your Business.

Thank you very much!

In case of any further assistance, feel free to contact !
Click here for Download in Word File

Income Tax Standard Deduction , Rebate under Section 87A (Applicability : F.Y. 2019-20 onwards)

2019-03-04T19:07:00.001+05:30

Income Tax Standard Deduction and

Rebate under Section 87A

Union Budget 2018

The Finance Minister of India introduced Standard Deduction of Rs.40,000 in Budget 2018 for salaried employees. However, the deduction of Transport allowance of Rs. 19,200 per annum and medical reimbursement of Rs. 15,000 per annum will no longer be available to salaried employees.

Interim Budget 2019

The Interim Budget presented on 1 February provides an additional Rs.10,000 to the Standard Deduction introduced in 2018 i.e. Now Salaried employees can claim standard deductions of up to Rs.50,000.

Further, The Income* limit to avail Tax Rebate under section 87A raised to Rs.5 Lakh from existing limit of Rs.3.5 Lakh. In other words, persons with Total Income up to Rs. 5 lakh can claim Tax rebate of Rs.12,500. Previously Tax rebate was limited to Rs.2,500.

Income Tax Deduction and Tax Rebate

Please Note : There is no change is Income Tax Slab Rate for F.Y 2019-20.

* Income here means Total Income ( i.e. Sum Total of All incomes whether Salary, House Property, Business Income, Capital Gain and Other sources income Less deductions available under section 80C to 80U).

Condition for Claiming Rebate under Section 87A

Total Income must be equal to or less than Rs.5 Lakh

Individual must be Resident in India

87A will only be available to Individual and not to HUF, Partnership Firm, Company etc.

Super Senior Citizens (80 years or above) are not allowed to claim Rebate under this section as their Total income is already exempt up to Rs.5 lakh

Total Tax Rebate allowed would be Rs.12,500 or tax payable whichever is lower

Tax Rebate will be allowed before the levy of Health and Education cess of 4%

Let us understand the above deductions in Tabular form along with an example ;

Particulars	F.Y. 2018-19	F.Y. 2019-20
Transport Allowance (Allowed till F.Y.2017-18)	Not Available	Not Available
Medical Reimbursement (Allowed till F.Y.2017-18)	Not Available	Not Available
Standard deduction	40,000 /-	50,000 /-
Total Income Eligible for 87A Rebate	3,50,000	5,00,000
Limit of Tax Rebate	2,500	12,500

Illustration

Case 1: Where Total Income after all deductions is up to Rs.5 Lakh

Particulars Salary (say)	FY. 2018-19 7,40,000	FY. 2019-20 7,50,000
Less: Standard Deduction House Property Income	-40,000	-50,000
Less: Standard Deduction House Property Income	-	-
Business Income	-	-
Capital Gains	-	-
Other Sources	-	-
Gross Total Income	7,00,000	7,00,000
Less Deductions (say)	-200,000	-200,000
80 C to 80U
Total Income	5,00,000**	5,00,000

Calculation of Tax Liability
Up to 2,50,000 (A)	-	-
2,50,001-5,00,000 @ 5% (B)	12,500	12,500

Tax (A+B)	12,500	12,500
Less: Rebate u/s 87A	-	12,500
Net Tax	12,500	-
Add: E. Cess @ 4%	500	-
Total Tax Payable	13,000	-

** As Total Income is more than Rs.3,50,000, Rebate u/s 87A will not be available in F.Y. 2018-19.

Case 2: Where Total Income after all deductions exceeds Rs.5 Lakh

Particulars Salary (say)	FY. 2018-19 7,90,000	FY. 2019-20 800,000
Less: Standard Deduction House Property Income	-40,000	-50,000
Less: Standard Deduction House Property Income	-	-
Business Income	-	-
Capital Gains	-	-
Other Sources	-	-
Gross Total Income	7,50,000	7,50,000
Less Deductions (say)	-200,000	-200,000
80 C to 80U
Total Income	5,50,000	5,50,000

Calculation of Tax Liability

Up to 2,50,000 (A)	-	-
2,50,001-5,00,000 @ 5% (B)	12,500	12,500
5,00,001 - 10,00,000 @ 20% ©	10000	10000
Tax (A+B+C)	22,500	22,500
Less: Rebate u/s 87A	-	-
Net Tax	22,500	22,500
Add: E. Cess @ 4%	900	900
Total Tax Payable	23,400	23,400

Here, Rebate under section 87A will not be available in both financial year as total Income exceed the limit prescribed.

Thank you !

For any further clarification, feel free to connect.

GST on under-construction flats slashed to 5%, affordable housing to 1%

2019-03-02T21:48:00.001+05:30

GST on under-construction flats slashed

As per GST law, construction of a complex, building, civil structure intended for sale to a buyer is considered a service (As per Schedule II of CGST Act, 2017) and liable for GST – if any consideration is received before issuance of completion certificate. However, GST is not applicable if the whole of the consideration for a property is paid after issuance of completion certificate by a competent authority or after its first occupancy, whichever is earlier.

So, if a property is purchased in a secondary transaction from an owner, then GST would not be applicable as the payment is being made after issuance of completion certificate or first occupancy. Please refer Table below for better understanding ;

Type of Transaction And ITC availability to Builder	Applicability of GST	Rate of Tax
Ready to Move in Properties (Provided completion certificates have been issued) ITC : Not Available	Not Applicable as per Schedule III of CGST Act, 2017	NA
On Resale Properties ITC : Not Available	Not Applicable as payment is made after first occupancy	NA
On Under Construction Properties purchased under Affordable Housing Scheme ITC : Available	As per Schedule II of CGST Act, 2017	Rate is 12%. However, effective rate is 8% (after deducting the 1/3^rd percentage towards the cost of undivided share of land) *(Please refer Note 1 as below)*
On Under Construction Properties purchased under other than Affordable Housing Scheme ITC : Available	As per Schedule II of CGST Act, 2017	Rate is 18%. However, effective rate is 12% (after deducting the 1/3^rd percentage towards the cost of undivided share of land) *(Please refer Note 1 as below)*
Sale or Purchase of Land ITC : Not Available	Not Applicable as per Schedule III of CGST Act, 2017	NA

Lets now understand the various parties that could possibly be involved in a Real estate transaction;

Any real estate transaction starts with Builder acquiring land for constructing a building (Residential/Commercial) upon it. Land is either purchased from the Landowner, or the Builder enters in to “Joint Development Agreement” (JDA, ) with the Landowner. Please refer Table below for better understanding ;

Note 1

Press note on recommendations of the 33rd GST Council meeting held on 24th February, 2019

GST Rate Effective date: The new rate shall become applicable from 1st of April 2019.		Definition of Affordable Housing Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
The benefit of reduced rate should be passed on to the buyer as per section 171 of CGST Act, 2017 and provisions of Anti -Profiteering will come into play.
GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment;	GST shall be levied at effective GST rate of 1% without ITC on affordable housing properties	· Value up to Rs.45Lakhs both for Metro and Non-Metro cities · residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns · residential house/flat of carpet area of up to 60 sqm in metropolitan cities/towns

Tax on Development Rights (TDR)

Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential property on which GST is payable.

To conclude, The Residential Property on which GST is not payable , shall not be eligible for the exemption on TDR i.e. Landowner shall be required to charge GST from the Builder.

However, the same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.

Thank you !

In case of any further assistance, feel free to connect.

GST Composition Scheme (Last date - 31st March 2019 for next F.Y. 2019-20 )

2019-03-01T22:10:00.000+05:30

GST Composition Scheme

Composition scheme is a simple scheme under GST that helps small businesses get rid of complicated processes and pay GST at a fixed rate of turnover.

Persons Eligible for Composition

Scheme ?

A taxpayer whose Turnover* is below Rs.1.5 crore can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs.75 lakh.
As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher.
This amendment will be applicable from the 1st of Feb, 2019. Earlier the limit was up to Rs.5 lakhs.
This limit will be checked individually for each state.

*Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.

The GST Council in its 32nd Meeting introduced A new composition scheme for services sector with turnover limit of Rs.50 lakhs (whether supplying only goods or mixed supply) and they have to pay GST at 6% of Turnover.

Persons Ineligible for Composition Scheme ?

A person supplying Exempt Supply of goods

Manufacturer of ice cream, pan masala, or tobacco

A person making inter-state supplies

A casual taxable person or a non-resident taxable person

Businesses which supply goods through an e-commerce operator

Mandatory Conditions for availing Composition Scheme ?

The taxpayer must mention the words ‘composition taxable person’ on every signboard displayed prominently at their place of business.

The taxpayer must mention the words ‘composition taxable person’ on every bill of supply issued by him.

· The taxpayer must mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Supply.

The taxpayer must pay tax at normal rates for transactions under the Reverse Charge Mechanism

If a taxable person has different segments of businesses under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme.

No Input Tax Credit can be claimed by a dealer opting for composition scheme

The dealer cannot supply GST exempted goods

Last date for Applying under Composition scheme ?

A taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST portal.

This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme.

Like, GST composition scheme last date for the next F.Y 2019-20 will be 31st of March of the previous financial year i.e. March 31, 2019.

Invoicing Rules for a dealer registered under Composition scheme ?

A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. Hence, the dealer must issue a "Bill of Supply".

Returns to be filed by a Composition dealer ?

Return Form	Due Date
GSTR-4	by 18th of the month after the end of the quarter
GSTR-9A	by 31st December of next financial year**

**The due date for filing of annual returns for financial year 2017-18 has been extended to June 30, 2019, according to a Finance Ministry press released as on Dec 22, 2018.

GST rates under Composition Scheme ?

Tax Payer	CGST	SGST	Total
Manufacturers and Traders	0.5%	0.5%	1.0%
Restaurants Service	2.5%	2.5%	5.0%
Other Service Providers	3.0%	3.0%	6.0%

Thank you

In case of any further assistance, feel free to connect.