1 GST Annual Returns & Audit Report - PowerPoint Presentation

1. 1GST Annual Returns & Audit Report

2. Returns under GST2 FORMPARTICULARSDUE DATEAPPLICABLE FORGSTR1*Outward Supplies11th of the next month (31st Oct 43/2018)Normal Taxpayer GSTR2*Inward Supplies15th of the next month (30th Nov 54/2017)Normal Taxpayer GSTR3*Monthly return [periodic]20th of the next month (11th Dec 54/2017)Normal Taxpayer GSTR3B*Monthly return (Summary return)20th of the next month (10th Aug 34/2018)Normal Taxpayer GSTR4Return by composition taxpayers18th of the month next to the quarterComposition Taxpayer GSTR5Return by non resident taxpayers [foreigners]20th of the next month or within 7 days after expiry of registration, whichever is earlierForeign Non-Resident Taxpayer GSTR6Return by input service distributors [ISD]13th of the next month (30-Sep-2018)Input Service Distributor *As per Press Release dated 4 May 2018, filing of Form GSTR 2 and GSTR 3 shall continue to remain suspended. Present system of filing Forms GSTR 1 and GSTR 3B shall continue for a period of 6 months.

3. 3 FORMPARTICULARSDUE DATEAPPLICABLE FORGSTR7TDS**10th of the next monthTax DeductorGSTR8TCS**10th of the next monthE-Commerce OperatorGSTR9Annual return31st December of next FYNormal tax payer (other than ISD, casual taxpayer, foreigners) GSTR9AAnnual return31st December of next FYComposition Taxpayer GSTR9BAnnual Statement of TCS31st December of next FY*E-Commerce OperatorGSTR9CAnnual return along with the copy of audited annual accounts and a reconciliation statement31st December of next FYNormal taxpayer having turnover more than 2 croreGSTR10Final ReturnWithin 3 months of the date of cancellation or date of order of cancellation, whichever is laterPersons cancelling registration**Provisions with respect to TDS and TCS have been put on hold upto 30th Sep 2018* Last year the provisions were put on holdReturns under GST

4. 4GST Important DefinitionsBusiness includes –any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; any activity or transaction in connection with or incidental or ancillary to above, whether or not there is volume, frequency, continuity or regularity of such transaction;provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; (17/2018 26th July 2018)Note: In the course of business or furtherance of business.

5. 5GST Important DefinitionsAggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.Exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.Turnover in State/UT” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or UT by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or UT by the said taxable person but excludes central tax, State tax, UT tax, integrated tax and cess.

6. 6GST AuditSection 2 (13) “audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.Types of Audit :Audit by a ProfessionalAudit by authoritiesSpecial Audit

7. 7GST Annual AuditAudit by Professional: Section 35 (5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant Accounts and other records and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed.Rule 80 (3) Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

8. 8GST Annual ReturnTypes of Return:GSTR 9 - Normal tax payer (other than ISD, casual taxpayer, foreigners) GSTR 9A – Composition PersonGSTR 9B – E-commerce OperatorMinimal Records: 35. (1) Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of—(a) production or manufacture of goods;(b) inward and outward supply of goods or services or both;(c) stock of goods;(d) input tax credit availed;(e) output tax payable and paid; and(f) such other particulars as may be prescribed:Provided that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business.

9. 9GST Annual ReturnForm GSTR 9ParticularsPart II Table 4Details of advances, inward and outward supplies on which tax is payable (RCM) as declared in returns filed during the financial year Part II Table 5Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year Part III Table 6Details of ITC as declared in returns filed during the financial year Part III Table 7Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year Part III Table 8Other ITC related information ITC GSTR 2APart IV Table 9Details of tax paid as declared in returns filed during the financial yearPart VParticulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier Part VIDemands, Refunds, Composition purchases, deemed supply and Goods sent on approval, HSN Summary Out Ward Supplies

10. 10GSTR-1*

11. Part II - Details of Outward and inward supplies declared during the financial year Few Exceptions: HSN for outward, Document Summary Table-4ParticularsReferenceAB2C Supplies Net off Debit/Credit Notes1 – 5, 7, 9B, 10BB2B Supplies1 – 4A, 4C CZero Rated Supplies (payment of tax) Export1 – 6ADSEZ Supplies1 – 6BEDeemed Exports1 – 6CFAdvances received but not invoiced1 – 11GInward supplies liable to RCM3B – 3.1(d)I/JCredit / Debit Notes1 – 9BK/LSupplies declared through amendments1 – 9A, 9C Table 5ParticularsReferenceZero Rated, SEZ, RCM outward, Exempted, NIL Rated, Non GST Mainly Table 8 of GSTR 1

12. Part III - Details of ITC as declared in returns filed during the financial year Note: ITC to be split into – Inputs, Capital Goods, Services ITC availed but supplier not uploaded (Missing Invoice)Tran I, Tran II Any other ITC availed but not specified above

13. Part III - Details of ITC as declared in returns filed during the financial year

14. Part III - Details of ITC as declared in returns filed during the financial year

15. Other Information ParticularsReferencesDetails of Taxes Paid in cashIn Part IV refer to GSTR 3BTransactions of PY disclosed in Apr to Sep CY returnsIn Part V (Sales not disclosed in last year) or shown as B2C instead of B2BDemands and RefundsPart VI – RFD 01, manual demandsComposition Supplies (Inward)Deemed SupplyGoods sent on approval basis (SOA)HSN Summary outward , HSN Summary Inward  Vs Income TaxDocument SummaryExempted, NIL Rated, Non GSTGST bill available but GSTN not mentioned

16. 16GST Audit ReportForm GSTR 9CParticularsPart II Table 5,6,7,8Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9)Part III Table 9,10,11Reconciliation of tax paidPart IV Table 12,13Reconciliation of Input Tax Credit (ITC)Part IV Table 14,15,16Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of accountPart V TableAuditor's recommendation on additional Liability due to non-reconciliation

17. 17GST Reconciliation ReportsTypes of Reconciliations: Sales Reconciliation ( Intra, Inter, Export, Deemed, other incomes, returns)Vs Audited books, E-way bill, Advances.Unbilled revenue.Purchases/ Expenses/ ITC (Intra, Inter, Import, others, returns)ClaimedNot Claimed reasonsRCM (13th October 2017)Payment not made within 180 days and reclaimedITC disallowed Sec 17 read with Rules 37-44Transition ITCHSN / DescriptionGSTR 3B vs 1 and GSTR 3B vs 2AChallans, LedgersMonthly/quarterly vs Annual ReturnsRefundsStock statement vs Physical Stock for Transition credit.Trans 1 vs Tran 2

18. 18GST Proposed ReturnsMonthly Return and due date(i) NIL Returns (ii) Small Taxpayers. Continuous uploading and viewing.Due date for uploading and action to be taken by the recipient.Invoices uploaded but return not filed.Unidirectional flow of document.Missing invoice reporting (two months)Offline IT toolPayment of taxRecovery of Input creditLocking of invoicesRejected InvoicesPending InvoicesDeemed locking of InvoicesUnlocking of InvoicesHSNPayment of multiple liablityAmendment return, invoices, other details, payment (Higher Late Fees)Profile based return.

19. 19Thank youCA P.Prasanna KumarMob:9133128576