GST Annual Return & Reconciliation Statement filing for F.Y.2017-18 is extended

[Ganeshan Kalyani]

Section 44(1) of CGST Act, 2017 provides for Annual Return as "Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year". Thus, the Annual Return is required to be filed by every registered person (except few tax payers) for every financial year electronically on or before 31st of December following the end of the financial year.

The tax payers who are exempted from filing annual return under this section are Input Service Distributor, a person paying tax under tax deduction at source, a person paying tax under tax collection at source, a casual taxable person and a non-resident taxable person. Accordingly, the annual return for F.Y.2017-18, being the first of implementation of GST was to be filed by 31.12.2018. Since, GST implemented on 01.07.2017, the period covered in the first year would be July, 2017 to March, 2018.

Sub-section (2) of the Section 44 states that "Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed."

Section 35(5) states as "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 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.

Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force."

Rule 80 of CGST Rules, 2017 prescribes form for filing of annual return. Form GSTR-9 is for regular tax payer, GSTR-9A is for composition tax payer u/s 10, GSTR-9B is for e-commerce tax payer required to collect tax at source u/s 52 and the Reconciliation Statement in FORM GSTR-9C which is common to all tax payer should be filed.

Rule 80(3) states as "Every registered person other than those referred to in the proviso to sub-section (5) of section 35, 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."

The rule reproduced above states that every registered person except some tax payer whose aggregate turnover during a financial year exceeds ₹ 2 Crores shall get his accounts audited from a chartered accountant or a cost accountant and shall also furnish a copy of audited annual accounts and a reconciliation statement, duly certified in Form 9C electronically.

First year GST Annual Return

The annual return for the first financial year consisting of period from July, 2017 to March, 2018 was required to be filed by 31.12.2018 as per section 44(1) of CGST Act, 2017.

First extension of filing of annual return of FY 2017-18

Vide Order 1/2018-Central Tax dated 11.12.2018, it was stated that the electronic system to be developed for the purpose of filing annual return is at the advance stage and is likely to be made operational by the 31.01.2019. Hence, the due date was extended up to 31.03.2019.

Second extension of filing of annual return of FY 2017-18

Vide Order 3/2018-Central Tax dated 31.12.2018, it was stated that the electronic system to be developed for the purpose of filing annual return is at the advance stage and is likely to take some more time for being made operational. Hence, the due date was extended up to 30.06.2019.

Third extension of filing of annual return of FY 2017-18

Vide Order 6/2019-Central Tax dated 28.06.2019, it was stated that certain technical problem are being faced by the taxpayers as a result the return could not be furnished by the registered person. Hence, the due date was extended up to 31.08.2019.

Fourth extension of filing of annual return of FY 2017-18

Vide Order 7/2019-Central Tax dated 26.08.2019, it was stated that certain technical problem are being faced by the taxpayers as a result the return could not be furnished by the registered person. Hence, the due date was extended up to 30.11.2019.

Fifth extension of filing of annual return of FY 2017-18 & FY 2018-19

Vide Order 8/2019-Central Tax dated 14.11.2019, it was stated that certain technical problem are being faced by the taxpayers as a result the return could not be furnished by the registered person for FY 2017-18 & 2018-19. Hence, the due date for FY 2017-18 was extended up to 31.12.2019 & for FY 2018-19 was extended up to 31.03.2020.

Sixth extension of filing of annual return of FY 2017-18 & FY 2018-19

Vide Order 10/2019-Central Tax dated 26.12.2019, it is stated that certain technical problem are being faced by the taxpayers as a result the return could not be furnished by the registered person. Hence, the due date is extended up to 31.01.2020.

Availability of Form Annual Return and its modification

Form GSTR-9 & 9A was first prescribed vide Notification no. 39/2018-Central Tax dated 04.09.2018. The said forms was substituted vide Notification no.74/2018-Central Tax dated 31.12.2018. The Form GSTR-9 was amended vide Notification no. 31/2019-Central Tax dated 28.06.2019. The said form was again amended vide Notification no. 56/2019-Central Tax dated 14.11.2019.

Availability of Form Annual Return in GSTN & its modification in GSTN

Vide Notification no. 56/2019-Central Tax dated 14.11.2019, certain tables in the Form GSTR-9 & 9C was made optional. To give effect to the said notification, the Form GSTR-9C was to be modified. A flash news in GSTN stated at first that the modified form will be available till 10.12.2019. The flash news subsequently stated that the modified form will be available till 17.12.2019. Thereafter the flash news stated that the modified form will be available till 21.12.2019. And eventually on 24.12.2019, the modified form made available in GSTN.

However, on 27.12.2019, a news flash in GSTN stated that the updated version of offline tool of GSTR-9C (version 1.5) was made available on the portal on 24.12.2019. A minor issue has come to notice in auditor's certificate issued in Part-B(ii). The issue will be fixed shortly. In the meantime, where Part-B(ii) of the certificate is not applicable i.e. auditor preparing GSTR-9 has also conducted audit of the business and same number is applicable, they may continue with statement preparation and filing.

Author's view: The Annual Return form is modified a couple of times with a substantial changes being brought into the form. Taxpayers, Auditors worked hard to understand the form at the first instance and then collated the details in the manner required in the form. There was practical difficulties like inward HSN maintained at four digit level by the taxpayers during the year as per GST provision but in return eight digit HSN was to be furnished. Since, the data was not maintained at eight digit level, it was posing a challenges to furnish eight HSN. Similarly, there were other issues in the Forms. GST Council, being responsive, has considered the request of the trade, industries and modified the return forms. Lastly, the form is modified to make some tables option. And in some table, detailed reconciliation is made optional. With these modifications the taxpayers should be able to file the annual return on or before the revised due date of 31.01.2020. Importantly, to avoid last minute rush and technical glitches taxpayer should file returns as early as possible.