Significance of GSTR-1 & GSTR-2 : Filing of GSTR-9, GSTR-9A, GSTR-9B, GSTR-9C

Significance of GSTR-1 & GSTR-2 : Filing of GSTR-9, GSTR-9A, GSTR-9B, GSTR-9Ch.

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(A) ANNUAL RETURN (GST):

For the Financial Year 2017-18, due date for filing Gstr-9 – Annual Return, is 31st December 2018 according to Goods and Services Act, 2017.

GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme. It consists of details regarding the supplies made and received during the year.

It is the consolidation of information furnished in the monthly/quarterly returns (GST) during the year.http://dptaxexperts.com/company-registration.html

The following persons are not required to file GSTR 9:

> Casual Taxable Person

> Input service distributors

> Non-resident taxable persons

> Persons paying TDS. (Section 51 of GST Act).

Four types of annual returns has been notified under Good and Services Tax viz.,- GSTR-9, GSTR-9A, GSTR-9B and GSTR-9C.:

Persons who are filing GSTR-1, GSTR-2, GSTR-3 and GSTR-3B need to file GSTR-9 Returns. This is divided into 6 Parts and 19 Tables for providing of information and data relating to the business.

(B) MONTHLY / QUARTERLY RETURN/ ANNUAL FINANCIAL STATEMENT:

(I) GSTR – 1

GSTR-1 is the returns which consist of details of Outwards supplies of goods or services during the month or a quarter of a business, as the case may be.

Department responsible in business:

Usually, Sales / Excise department would be responsible for the outward movement of goods or services in Small, medium or large undertakings.

(II) GSTR- 2

GSTR-2 is the returns which consist of details of inwards of supplies of goods or services (including Input tax credit) during the month or a quarter of a business, as the case may be.

Department responsible in business:

Usually, Purchase / Stores department would be responsible for the inward movement of goods or services in Small, medium or large undertakings.

(III) ANNUAL FINANCIAL STATEMENT: (AUDITED ANNUAL ACCOUNTS)

Annual Financial Statement is the statement which consists of Trading, Profit and loss statement and Balance sheet prepared annually.

Department responsible in business:

(c) COMPILATION OF DATA – Annual Returns:

As far as the Annual return is concerned, it is nothing but the compilation of figures submitted monthly/quarterly in the GST returns.

Thus, it is significant that monthly reports require proper attention before submission to the Government.

The details sought under GSTR-9, GSTR-9A and GSTR-9B is given hereunder for easier understanding:

(i) GSTR 9:

Part-IBasic details of taxpayer(auto populated)
Part-IIOutward and Inward supplies
Part IIIDetails of Input tax credit.
Part IVDetails of tax paid
Part VSummary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared.
Part VIOther information

(ii) GSTR 9A:

GSTR 9A should be filed by the persons registered under composition scheme filing GSTR 4A during the financial year.

(iii) GSTR 9B:

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

(iv) GSTR 9C:

GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year as per rule 80(3) vide notification no. 49/2018 dated 13 September 2018.

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 withThis form is to be prepared and audited by a chartered accountant or cost accountant. This statement is to be filled for every GSTIN separately.This form is divided into mainly 2 parts- h(PART-A): RECONCILIATION STATEMENT

Part-I: Basic details:

Part-II: Reconciliation of turnover declared in the Audited Annual Financial Statement with turnover declared in Annual Return (GSTR-9)-

Part-III: Reconciliation of tax paid-

Part-IV: Reconciliation of Input Tax Credit (ITC)-

Part-V: Auditor’s recommendation on additional Liability due to non-reconciliation-

(PART-B): CERTIFICATIONhThe GSTR-9C can be certified by the same CA who conducted the GST audit or it can be also certified by any other CA who did not conduct the GST Audit for that particular GSTIN.

http://dptaxexperts.com/gst-registration.htmlFew factors has to be focused and pursued by every business undertaking to ensure 100% accuracy in furnishing of details in returns. They are:

Factor 1:

CO-ORDINATION:

It is needless to say that whether a size of the business is Small, medium or large undertakings, will have different departments, to look after Purchase, Storage and accounting of goods.

There may be a variation in the employment numbers but whereas a minimum number of employees will be employed to pursue the day to day activities of a business undertaking.

However, it is very much essential that each and every department is coordinating with each other and exchanging the information wherever required for the efficient and effective running of the business.

Co-ordination among department is emphasized because GSTR-1 and GSTR-2 becomes the basis for filing of GSTR-9 returns. The details furnished in the Annual returns are the consolidation of monthly returns filed earlier.

Factor 2:

COLLECTION OF DATA:

Collection of data, available in different departments and finalizing before the submission of various returns, to submit the uniform figures, will result in successful compliance of data, when looked from the point of view of business as a whole.

Factor 3:

RECONCILIATION:

Every business undertaking must have the system of reconciling the records of each and every department which provides the data and information for the preparation and submission of Goods and services tax returns monthly or otherwise.

The reconciliation of data ensures the accuracy and correctness of the information furnished in the GST returns and all other returns furnished by the business.

R. Prakash

(A) ANNUAL RETURN (GST):

For the Financial Year 2017-18, due date for filing Gstr-9 – Annual Return, is 31st December 2018 according to Goods and Services Act, 2017.

GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme. It consists of details regarding the supplies made and received during the year.

It is the consolidation of information furnished in the monthly/quarterly returns (GST) during the year.

The following persons are not required to file GSTR 9:

> Casual Taxable Person

> Input service distributors

> Non-resident taxable persons

> Persons paying TDS. (Section 51 of GST Act).

Four types of annual returns has been notified under Good and Services Tax viz.,- GSTR-9, GSTR-9A, GSTR-9B and GSTR-9C.:

Persons who are filing GSTR-1, GSTR-2, GSTR-3 and GSTR-3B need to file GSTR-9 Returns. This is divided into 6 Parts and 19 Tables for providing of information and data relating to the business.

(B) MONTHLY / QUARTERLY RETURN/ ANNUAL FINANCIAL STATEMENT:

TR – 1

GSTR-1 is the returns which consist of details of Outwards supplies of goods or services during the month or a quarter of a business, as the case may be.

Department responsible in business:

Usually, Sales / Excise department would be responsible for the outward movement of goods or services in Small, medium or large undertakings.

(II) GSTR- 2

GSTR-2 is the returns which consist of details of inwards of supplies of goods or services (including Input tax credit) during the month or a quarter of a business, as the case may be.

Department responsible in business:

Usually, Purchase / Stores department would be responsible for the inward movement of goods or services in Small, medium or large undertakings.

(III) ANNUAL FINANCIAL STATEMENT: (AUDITED ANNUAL ACCOUNTS)

Annual Financial Statement is the statement which consists of Trading, Profit and loss statement and Balance sheet prepared annually.

Department responsible in business:

Usually, Accounts and Finance departments would be responsible for the preparation of Annual financial statement in all undertakings irrespective of the size of the business they perform.

(c) COMPILATION OF DATA – Annual Returns:

As far as the Annual return is concerned, it is nothing but the compilation of figures submitted monthly/quarterly in the GST returns.

Thus, it is significant that monthly reports require proper attention before submission to the Government.

The details sought under GSTR-9, GSTR-9A and GSTR-9B is given hereunder for easier understanding:

(i) GSTR 9:

Part-IBasic details of taxpayer(auto populated)
Part-IIOutward and Inward supplies
Part IIIDetails of Input tax credit.
Part IVDetails of tax paid
Part VSummary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared.
Part VIOther information

(ii) GSTR 9A:

GSTR 9A should be filed by the persons registered under composition scheme filing GSTR 4A during the financial year.

(iii) GSTR 9B:

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

(iv) GSTR 9C:

GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year as per rule 80(3) vide notification no. 49/2018 dated 13 September 2018.

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.

This form is to be prepared and audited by a chartered accountant or cost accountant. This statement is to be filled for every GSTIN separately.

This form is divided into mainly 2 parts-

(PART-A): RECONCILIATION STATEMENT

Part-I: Basic details:

Part-II: Reconciliation of turnover declared in the Audited Annual Financial Statement with turnover declared in Annual Return (GSTR-9)-

Part-III: Reconciliation of tax paid-

Part-IV: Reconciliation of Input Tax Credit (ITC)-

Part-V: Auditor’s recommendation on additional Liability due to non-reconciliation-

(PART-B): CERTIFICATION

The GSTR-9C can be certified by the same CA who conducted the GST audit or it can be also certified by any other CA who did not conduct the GST Audit for that particular GSTIN.

Few factors has to be focused and pursued by every business undertaking to ensure 100% accuracy in furnishing of details in returns. They are:

Factor 1:

CO-ORDINATION:

It is needless to say that whether a size of the business is Small, medium or large undertakings, will have different departments, to look after Purchase, Storage and accounting of goods.

There may be a variation in the employment numbers but whereas a minimum number of employees will be employed to pursue the day to day activities of a business undertaking.

However, it is very much essential that each and every department is coordinating with each other and exchanging the information wherever required for the efficient and effective running of the business.

Co-ordination among department is emphasized because GSTR-1 and GSTR-2 becomes the basis for filing of GSTR-9 returns. The details furnished in the Annual returns are the consolidation of monthly returns filed earlier.

Factor 2:

COLLECTION OF DATA:

Collection of data, available in different departments and finalizing before the submission of various returns, to submit the uniform figures, will result in successful compliance of data, when looked from the point of view of business as a whole.

Factor 3:

RECONCILIATION:

Every business undertaking must have the system of reconciling the records of each and every department which provides the data and information for the preparation and submission of Goods and services tax returns monthly or otherwise.

The reconciliation of data ensures the accuracy and correctness of the information furnished in the GST returns and all other returns furnished by the business.

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