GST annual return and audit return

Updated as on 21/05/2019

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.

GST annual return
GST AUDIT

It is the return which every registered taxpayer had to file annually, but the following persons are not required to file the annual return:

  1. A person paying tax u/s 51 and 52
  2. A casual taxable person
  3. An Input service distributor
  4. 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.

  • Yes, it is mandatory for all the taxpayers to file the GST annual return but subject to a certain exception (see Q2).
  • A person paying tax u/s 51 and 52
  • A casual taxable person
  • An Input service distributor
  • A non-resident taxable person
  • 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.

  • 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.)

Yes, it is possible in GST act to file an annual return as “NIL” return only if the following all conditions are satisfied simultaneously:

  1. NO sale
  2. NO purchase of goods or services
  3. NO other liability
  4. NO ITC claimed
  5. NO refund claimed
  6. NO Demand notice (received)
  7. NO late fees paid
  • 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.)

  • 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:

  1. GSTR 10 for 01st July 2017 to 31st Jan 2018 final return in the case of cancellation
  2. GSTR 9 for 01st July 2017 to 31st Jan 2018 Annual return
  • 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)
  • 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).
  • 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:

  1. GSTR 9A for 04th July 2017 to 31st Jan 2018
  2. GSTR 9 for 01st Feb 2018 to 31st Mach 2018
  • No, ITC cannot be claimed while filing the GST annual return. (GSTR 9,GSTR 9A, GSTR 9B, GSTR 9C)

(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).

  • 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
  • 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
  • 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

GST AUDIT

  • 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.
  • When the annual turnover of the registered person during a financial year is more than ₹ 2 crores.
  • There are two types of GST audit:
    1. Audit by tax authorities (as per section 65)
    2. Special Audit (as per section 66)
  • The person shall file GSTR 9C.
  • “Reconciliation statement.” is for reconciling the value of supplies declared in the annual return with the audited annual return.

  • GST audit can only be done by the Chartered Accountants or Cost work Accountants.
  • 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.

  • 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
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By |2019-06-02T09:12:19+05:30May 21st, 2019|GST|0 Comments

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