GST Annual Return (GSTR 9) ? A clause by clause analysis – Part III
CA Vishal Jain
With the world cup fever at its peak, the rush for filing GSTR 9 and GSTR 9C is also catching up, continuing the legacy of the first two parts, here we present the 3rd part of our series of article, ?Unravelling GSTR 9- A clause by clause analysis by CA Vishal Jain?.
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This part deals with the next 4 tables of GSTR 9, (table 6 to table 9), which primarily relates to the details of the input tax credit.
Details of ITC for the financial year
|Type||Central Tax||State Tax/UT Tax||Integrated Tax||
Details of ITC availed during the financial year
|Total input tax credit availed in Table 4A of FORM GSTR-3B for the taxpayer would be auto-populated here.|
Total amount of input tax credit availed through FORM GSTR-3B (sum total of Table 4A of FORM GSTR-3B)
|? The amount of ITC already availed in GSTR 3B upto March 2018 will be Auto-populated here.
? ITC availed on all inward supplies through GSTR 3B will be reflected here.
? The amount punched in Table 4A of GSTR 3B will be reflected here.
? ITC received from ISD will we reported here.
? The transitional credit will be reported in table 6K and 6L.
? This is a non-editable field.
|Aggregate value of input tax credit availed on all inward supplies except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. This shall not include ITC which was availed, reversed and then reclaimed in the ITC ledger. This is to be declared separately under 6(H) below.|
Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs)
|Source:? The figures of ITC as per Input Tax Credit Register maintained by the registered person based on which ITC had been availed in the monthly GSTR-3B to be reported here.
? It shall also include the ITC on services received from SEZ.
? The figures are required to be bifurcated into the ITC availed on:
– Input Services
– Capital Goods
? Only amount of ITC is to be disclosed. Value of inward supplies needn?t be reported here but will be handy while preparing table 14 of GSTR 9C.
? ITC availed through table 4A of GSTR 3B and reversed through table 4B of GSTR 3B, will be included here.
? Such bifurcation was not required to be reported in GSTR 3B, but the same is required in GSTR 9.
? If the Registered Person has disclosed gross total ITC [including ineligible ITC u/s 17(5)] in Table 4A of GSTR 3B and reduced the ineligible ITC in Table 4B (2) of GSTR 3B, then he should disclose the gross total ITC [including ineligible ITC u/s 17(5)] in Table 6B of GSTR 9. The ineligible ITC u/s 17(5) would be disclosed in Table 7E of GSTR 9.
? This Table should contain data which has been disclosed in GSTR 3B for the period July 2017 to March 2018. Therefore, there is no scope for revision / addition of data which is available in books of accounts but not disclosed in GSTR 3B.
Exclusions: Following nature of ITC not to be covered in this column:
? ITC availed on tax paid under RCM.
? Import of goods and services
? ISD Credit
? ITC reclaimed which was reversed on account of non-payment to the vendor within 180 days as per section 16(2) read with Rule 37.
? ITC pertaining to financial period but availed in the GSTR-3B after end of financial year ( i.e. 2017-18 invoices on which IITC availed in 2018-19)
Comment: There could be difference between ITC availed in GSTR-3B and ITC as per books of account. Such difference would form part of reconciliation statement in GSTR-9C.
|Aggregate value of input tax credit availed on all inward supplies received from unregistered persons (other than import of services) on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details.|
|C||Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed||Inputs||? The details of inward supplies on which tax is paid under reverse charge basis and whose ITC is availed upto March 2018, is to be reported.
? Supplies only from unregistered person will be disclosed here whether tax paid under 9 (3) or 9 (4).
? In addition to inward supplies under section 9(3), supplies taxable under section 9(4) gets get covered till October 12, 2017 only (N.N. 38/2017- CT(R)).
? In other words, inward supplies for which self-invoicing is required is to be reported here.
? Supplies on which ITC is availed in FY 2018-19, will be reported in Part V.
? Supplies from registered person will be disclosed in table 6D.
? Import of services, although leviable to reverse charge, will be reported in Table 6F.
? In case the ITC is not availed, reporting in not required.
|Aggregate value of input tax credit availed on all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details.|
|D||Inward supplies received from registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed||Inputs||? The details of inward supplies on which tax is paid under reverse charge basis and whose ITC is availed upto March 2018, is to be reported.
? Supplies on which ITC is availed in FY 2018-19, will be reported in Part V.
? Supplies only from registered person will be disclosed here.
? inward supplies under section 9(3) will only get covered.
? In case the ITC is not availed, reporting in not required.
|Details of input tax credit availed on import of goods including supply of goods received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details.|
|E||Import of goods (including supplies from SEZs)||Inputs||? ITC availed on import of goods is to be reported here.
? Inward supplies of goods from SEZ would be reported here.
? Only IGST will be reported, customs duty i.e. BCD, social welfare surcharge will not be reported.
? ITC availed from July 2017 to March 2018 will be disclosed here.
? ITC availed in 2018-19 in respect of bill of entry pertaining to FY 2017-18 will be reported in Part V.
Note: The Government has clarified vide press release dated 4.6.2019 that import of goods on which ITC have been availed (whether in 2017-18 or 2018-19) to be disclosed here. However, it is to be noted that if the ITC availed in 2018-19 is shown here, it would result in wrong disclosure of ITC as such credit was not available for utilisation for the FY 2017-18 which has to be suitably explained by auditor in GSTR-9C.
|Details of input tax credit availed on import of services (excluding inward supplies from SEZs) shall be declared here. Table 4(A)(2) of FORM GSTR- 3B may be used for filling up these details.|
|F||Import of services (excluding inward supplies from SEZs)||? ITC availed on import of services will be reported.
? The details would be available in the table 4(A)(2) of GSTR-3B.
? In case of services provided by SEZ to DTA, the tax is charged by the SEZ itself and hence such supplies do not get covered in the RCM.
? Import of service means:
– Supplier- outside India
– Recipient- In India
– POS- India
|Aggregate value of input tax credit received from input service distributor shall be declared here. Table 4(A)(4) of FORM GSTR-3B may be used for filling up these details.|
|G||ITC received from ISD||? Aggregate value of ITC received from input service distributor will be reported here.
? Only eligible portion received from ISD is to be reported here.
? The details would be available in the table 4(A)(4) of GSTR-3B
? Ineligible credit received from ISD will not appear.
? The figures should be reported after considering the effect of ISD credit notes.
|Aggregate value of input tax credit availed, reversed and reclaimed under the provisions of the Act shall be declared here.|
|H||Amount of ITC reclaimed (other than B above) under the provisions of the Act||? This table specifically deals with the situation where the credit was availed at first with subsequent reversal and re-availment of the same.
? The situation could arise where ITC, which was earlier reversed pursuant to section 16(2) r/w rule 37, on account of non-payment of ITC to the vendor, is reclaimed.
? ITC reversed in 2017-18 but reclaimed in 18-19 will be reported in part V.
– Total ITC availed during the period is Rs.1,00,000/-
– Less: The ITC reversed due to non-payment of value including tax to the supplier is Rs.20,000/-
– Add: The ITC reclaimed after payment made to the supplier is Rs.8,000/-
In this ex; the ITC to be disclosed in
– table 6B is Rs.92,000/-
– table 6H is Rs.8,000/-
– table 7A is Rs.12,000/- [20,000-8,000]
|I||Sub-Total (B to H above)||Auto-populated|
|The difference between the total amount of input tax credit availed through FORM GSTR-3B and input tax credit declared in row B to H shall be declared here. Ideally, this amount should be zero.|
|J||Difference (I – A above)||? This is an auto-populated field.? This should be ?zero?.
? The difference in this column should be zero. However, in case the difference is in negative, the registered person has to identify the reason of such differences. If the difference is on account of excess availment of ITC for which no supporting exists, it may have to be paid through DRC-03.
|Details of transition credit received in the electronic credit ledger on filing of FORM GST TRAN-I including revision of TRAN-I (whether upwards or downwards), if any shall be declared here.|
|K||Transition Credit through TRAN-I (including revisions if any)||? Details of transitional credit obtained through GST FORM TRAN -1 would be reflected here.? In case the TRAN-1 was not filled in FY 18 due to technical glitches, and has been filled in FY 19 upto March 31, 2019, in pursuance of Rule 117(1A), then such credit would not be reported here.|
|Details of transition credit received in the electronic credit ledger after filing of FORM GST TRAN-II shall be declared here.|
|L||Transition Credit through TRAN-II||? Details of transitional credit obtained through GST FORM TRAN -2 would be reflected here.? In case the TRAN -2 credit is reflected in Electronic credit ledger in 2018-19 or upto April 30, 2019 pursuant to rule 117(4), then the same would not be reported here.|
|Details of ITC availed but not covered in any of heads specified under 6B to 6L above shall be declared here. Details of ITC availed through FORM ITC- 01 and FORM ITC-02 in the financial year shall be declared here.|
|M||Any other ITC availed but not specified above||? ITC availed due to reasons other than listed above, would be reported here.? Ex: the credit transferred by the transferor company to transferee company under Form ITC-02 or the ITC availed by the composition scheme when he is opted out from the composition scheme to regular.Note: This table should not be construed as residuary table wherein any non-reconciled/ unexplainable ITC could be added. It should be on account of specific reasons as indicated above.|
|N||Sub-total (K to M above)||Auto-populated|
|O||Total ITC availed (I + N above)||Auto-populated|
|7||Details of ITC Reversed and Ineligible ITC for the financial year|
|Instructions-Table 7A, 7B, 7C, 7D|
|Details of input tax credit reversed due to ineligibility or reversals required under rule 37, 39, 42 and 43 of the CGST Rules, 2017 shall be declared here.|
|A||As per Rule 37||? ITC reversed and reported in table 4B of GSTR 3B during the period July 2017 to March 2018, would be reported here.? In case the amount of ITC required to be reversed is shown by reducing the ITC in table 4A of GSTR 3B, then no amount would be disclosed here.? Rule 37: ITC reversed on account of non-payment to the vendor for a period beyond 180 days of the invoice date.
? Rule 39 :ITC reversed on account of ISD credit notes received.
? Rule 42& Rule 43: ITC reversed on account of common inward supplies being used partly for business purposes and partly for non-business purposes, or partly used for making taxable supplies, including zero-rated supplies and partly for making exempt supplies.
? In case of Rule 42/43, there is requirement of reversal of ITC on monthly as well as on annual basis. This column should contain only such ITC which has been reversed in the monthly return.
? There could be instances where the ITC reversed under these provisions is less than ITC required to be reversed or some ineligible ITC has been availed based on the invoice issued by ISD. There is no specific column for reversal of such ITC in the GSTR-9. In the absence of the same, there could be two approach to deal with the same:
1. The ITC in these columns may be shown net of ineligible ITC. This would result in difference between ITC availed as per GSTR-3B viz a vizfinal ITC to be taken in GSTR-9 which may have to be explained by the auditor in GSTR-9C.
2. Such excess credit may be reversed by disclosing it in the Table 7H of the GSTR-9.
In both the cases, the differential credit may be paid through DRC-03. There would be difference to that extent in Table 12 of GSTR-9C which could be explained by the auditor along with giving details of DRC-03 based on which such ITC has been reversed.
|B||As per Rule 39|
|C||As per Rule 42|
|D||As per Rule 43|
|Instructions-Table 7E, 7F, 7G, 7H|
|This column should also contain details of any input tax credit reversed under section 17(5) of the CGST Act, 2017 and details of ineligible transition credit claimed under FORM GST TRAN-I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 shall be declared in 7H. If the amount stated in Table 4D of FORM GSTR-3B was not included in table 4A of FORM GSTR-3B, then no entry should be made in table 7E of FORM GSTR-9. However, if amount mentioned in table 4D of FORM GSTR-3B was included in table 4A of FORM GSTR-3B, then entry will come in 7E of FORM GSTR-9.|
|E||As per section 17(5)||? Taxes paid on the inward supplies listed in section 17(5) and is reported in table 4B of GSTR 3B, after availing the same in table 4A of GSTR 3B, would be reported here.? In case the amount of taxes paid on the inward supplies listed in section 17(5) is merely disclosed in table 4C of GSTR 3B, then such amount would not be reported anywhere in GSTR 9.
? Normally, the registered persons do not include the ineligible credit in their GSTR-3B and hence this column should be nil. However, there could be instances where ITC is availed but it becomes ineligible subsequently (i.e. goods lost, stolen, destroyed etc). This Table should capture all such ITC which have been reversed by the registered person u/s 17 (5) of the Act.
|F||Reversal of TRAN-I credit||? Transitional credit availed, as reported in table 6K and 6L above, and reversed would be reported here.|
|G||Reversal of TRAN-II credit|
|H||Other reversals (pl. specify)||? Reversal of ITC on account of grounds other than listed above, such as reversal of ITC on cancellation of registration under section 29(5) r/w rule 44.? Any other amount of ineligible credit which registered person comes across at the time of preparation of GSTR-9 may also be reversed here and tax paid through DRC-03.|
|I||Total ITC Reversed (A to H above)||Auto-populated|
|J||Net ITC Available for Utilization (6O – 7I)||Auto-populated|
|8||Other ITC related information|
|The total credit available for inwards supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs) pertaining to FY 2017-18 and reflected in FORM GSTR-2A (table 3 & 5 only) shall be auto-populated in this table. This would be the aggregate of all the input tax credit that has been declared by the corresponding suppliers in their FORM GSTR-1.|
|A||ITC as per GSTR-2A (Table 3 & 5 thereof)||? GSTR-2A has following tables:- Table 3: for normal inward supply where vendor has reported invoice in GSTR-1
– Table 4: Supplier registered under GST Law but the supplies made by them is liable under RCM for the recipient of supply
– Table 5: Credit Note/Debit Note issued by the supplier against original supply
– Table 6: Invoice issued by ISD based on which the ITC appears in GSTR-2A of the recipient entity
? Out of above tables, only Table 3 and 5 (invoice issued by vendors and adjustment thereto on account of debit notes/credit notes issued) would only get reflected in this table.
? ITC on import of services and on supplies under RCM is not considered here.
? Table seeks at the comparison of ITC being reflected in GSTR 2A and the ITC availed in GSTR 3B.
? There is no breakup available for the information auto populated in this table. The taxpayer is required to download GSTR-2A from common portal to examine the details as per Table 3 and 5 of GSTR-2A so that the break up can be compared with the ITC availed in GSTR-3B.
|The input tax credit as declared in Table 6B and 6H shall be auto-populated here.|
|B||ITC as per sum total of 6(B) and 6(H) above||? Here, the figures auto-populates from the table 6(B) and 6(H) above, which reflects the credit availed or re-availed on the inward supplies under forward charge, respectively.|
|Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during July 2017 to March 2018 but credit on which was availed between April to September 2018 shall be declared here. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details.|
|C||ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018||? The ITC booked in 17-18 is availed in GSTR 3B in 18-19, will be reported here.
? This would be same figure as reported in table 13 of GSTR 9other than ITC availed on RCM.
|Aggregate value of the input tax credit which was available in FORM GSTR- 2A (table 3 & 5 only) but not availed in FORM GSTR-3B returns shall be computed based on values of 8A, 8B and 8C. However, there may be circumstances where the credit availed in FORM GSTR-3B was greater than the credit available in FORM GSTR-2A. In such cases, the value in row 8D shall be negative.|
|D||Difference [A-(B+C)]||? This indicates the difference between the ITC reflecting in GSTR 2A and the ITC availed in books, on normal inward supplies.? A positive figures would reflect the short availment of ITC in GSTR 3B and could be on account of:
1. Inward supplies on which the ITC is blocked under section 17(5), or
2. Inward supplies not belonging to the registered person, or
3. ITC omitted to be availed.
4. Double reporting of the invoices by the vendor.
? The above reason for differences is also required to be reported in table 8E and table 8F.
? On the other hand, the negative figures would reflect the excess availment of ITC. It could be on account of:
1. Invoices not reported by the vendor in its GSTR 1.
2. Excess availment of ITC.
? The appearance of negative figures would be matter of concern.
|Instructions-Table 8E, 8F|
|The credit which was available and not availed in FORM GSTR-3B and the credit was not availed in FORM GSTR-3B as the same was ineligible shall be declared here. Ideally, if 8D is positive, the sum of 8E and 8F shall be equal to 8D.|
|E||ITC available but not availed||? The positive difference (excess ITC in GSTR 2A) appearing in table 8D needs to be distinguished between table 8E and table 8F.? 8E indicates those cases where ITC is legally available to the taxpayers but it could not be availed in the GSTR-3B and hence it gets lapsed.
? Table 8F covers instances of ineligible credits which could be on account of supplies covered under section 17 (5), vendors not pertaining to the registered persons or such other supplies which are appearing in the GSTR-2A but the registered person is not entitled to avail the ITC.
|F||ITC available but ineligible|
|Aggregate value of IGST paid at the time of imports (including imports from SEZs) during the financial year shall be declared here.|
|G||IGST paid on import of goods (including supplies from SEZ)||? IGST paid on the import of goods (including supplies from SEZ ) would be reported here. There is no cross referencing of the information from the GST portal. However, this information could be gauzed from the ICE GATE wherein details of all the bill of entries filed by the importers are covered.? Further, the purchase made from SEZ unit is also covered in this as it is treated as import of goods in the India and credit is taken based on the bill of entry.|
|The input tax credit as declared in Table 6E shall be auto-populated here.|
|H||IGST credit availed on import of goods (as per 6(E) above)||? ITC on imports of goods availed in FY 17-18 would be reported here.
? Further, as per the recent clarifications by CBIC, ITC on importsmade in 17-18, availed in 18-19 would also be reported here.
|J||ITC available but not availed on import of goods (Equal to I)||? That part of ITC which is not availed upto GSTR 3B of March 2019, would be reported here.|
|The total input tax credit which shall lapse for the current financial year shall be computed in this row.|
|K||Total ITC to be lapsed in current financial year (E + F + J)||Auto-populated.|
|Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up these details.|
|Pt IV||Details of tax paid as declared in returns filed during the financial year|
|9||Description||Tax Payable||Paid through cash||Paid through ITC|
|Integrated Tax||– The ?actual tax payable? as per table 4 above should be disclosed here.
– In case there is any difference in tax payable and tax already paid in GSTR 3B for the FY 17-18, the differential liability should be paid via Challan DRC-03.
– The tax payable in this column should match with the tax payable as arrived at in the Table 4 of Part II of GSTR-9.
|– The actual liability paid through CASH upto GSTR 3B of March 2018, would be reported here.? This could be obtained from GSTR 3B for the 9 months.||– The actual liability paid through ITC on self-assessment basis, upto GSTR 3B of March 2018, would be reported here.- This could be obtained from the GSTR 3B for the 9 months.
– System generated GSTR-9 is computing this amount based on the tax paid by utilising ITC as per GSTR-3B
|State Tax/UT Tax|
This is the third part of the series of article on GSTR-9, ?unravelling GSTR 9- A clause by clause analysis by CA Vishal Jain?, there is much more to explore in these annual return and GST audits and the suspense will hold its breath till publishing of the next article.
Special thanks to CA Ashish Chaudhary Sir for vetting this.
The members who have already started assisting in filing of the Form-9 or conducting the GST audits and even those who are planning to start these activities could refer to this write-up and give us their comments on any practical issues arising therefrom.
Disclaimer: The information cited in this Guide has been drawn primarily from the www.cbec.gov.in and other sources. Readers are requested to note Sl. Nos / Table no?s etc., wherever mentioned refer to the appropriate part / table of the relevant Forms. While every effort has been made in this write-up to avoid any kind of errors or omissions. It is likely that errors may have crept in. Any mistake, error or discrepancy noted by the reader should be brought to the notice of the author so that suitable edits / corrections shall be effected in the next edition. It is notified that the author will not be responsible for any damage or loss to anyone of any kind or in any manner whatsoever by the use of this write-up.
The author is a qualified chartered accountant and can be reached at :
Email : [email protected],
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