TMI BlogFILING GSTR 9/9C: CRITICAL ISSUES FOR PREPARING FOR SCRUTINYX X X X Extracts X X X X X X X X Extracts X X X X ..... FILING GSTR 9/9C: CRITICAL ISSUES FOR PREPARING FOR SCRUTINY - By: - Vivek Jalan - Goods and Services Tax - GST - Dated:- 24-12-2021 - - Section 61 of The CGST Act 2017 empowers the revenue authorities to scrutinize the return and related particulars furnished by the taxpayers to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto. GSTR 9 and GSTR 9C for 2020-21 which would be filed by 31st December 2021 are also subject to Scrutiny u/s 61 . Over the past periods we have witnessed that the scrutiny of GSTR 9 and 9C is conducted by the revenue authorities. The following is a sample of an auto-generated notice which a t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axpayer may receive - Notice for intimating discrepancies in the return atter scrutiny This is to inform that during scrutiny of the return for the tax period referred to above, discrepancies noticed have been mentioned in the attached annexure.. You are hereby directed to explain the reasons for aforesaid discrepancies by the date mentioned in the table below. If no explanation is received by the said date, it will be presumed that you have nothing to say in the matter and proceedings in accordance with law may be initiated against you without making any further reference to you in th is regard. Sr. No. Description Particulars 1 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection under which notice is issued 61 2 Date by which reply has to be submitted 3 Date of personal hearing NA 4 Time of personal hearing NA 5 Venue where personal hearing will be held NA S. No. Item Part Row No 1 2 3 4 1 Taxable supplies II 4N 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Increase by Amendments V 10 3 Deemed Supply VI 169 4 Unreturned Goods VI 160 5 Pending Demands VI 15G 6 ITC to be recovered on account of excess claim over 2A (only if -ve) III 8D 7 ITC to be recovered on account of excess claim of IGST on Import (only if -ve) 111 81 8 ITC to be recovered o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of Excess claimed in GSTR 39 than GSTR 9 (only if - ve) III (60.6A). Total column of Tran I and Tran 2 returns 6046A+ Trani +Tran2] 9 ITC to be recovered on account of Excess Reversals in GSTR-09 as compared to 3B (only if +ve) III (71.7E).Total of July 2017 to March 2018 4(b)(1) and 4(b)(2) of GSTR 3B (71-7E]-[Total of 4(9)(1) and 4(9)(2) in GSTR 3B ] 10a Total excess ITC ( sum of 6 to 9) 10b ITC claimed in 6A + 6N of GSTR 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10c ITC to be recovered ( 10a or 10b. whichever is less) 11a Gross liability (Sum of 1 to S + 10c) 11 b Trani - CCF in VAT 200 return for June,17 11 c Total liability (sum of 11a+11 b) 12 Less: Decrease by Amendments V 11 12a Increase in liability because of diff. in liability on outward supplies between RI R9 = GSTR1 (1+2-12) col. of the above (onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y if tax values are positive) 13 Net Liability = 11c+12a-12 14 Paid in Cash in Returns IV 9 15 Paid through ITC IV 9 16 Differential tax paid on Amendments V 14 17 Total Payment (Sum of 14 to 16) 18 Payable on account of GSTR 9 (13-17) if +ye The following is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the analysis of the above notice and precautions to be taken while filing GSTR 9 and GSTR 9C of 2020-21- Taxpayers need to take note of Instruction 2A of GSTR 9 as below. This is an important instruction and it is to be noted that all figures reported in GSTR 9 should be the figures pertaining to 2020-21 only. Hence while following Circular 26/26/2017 , incase any ITC or outward supply of 2019-20 have been reported in GSTR 3B of April 20 Sep 20, they need to be culled out and not reported in GSTR 9 of 2020-21. The following is the text of Instruction 2A of GSTR 9 - 15[2A. In the Table, against serial numbers 4, 5, 6 and 7, the taxpayers shall report the values pertaining to the financial year only. The value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pertaining to the preceding financial year shall not be reported here.] Table 15G of GSTR 9 is important to note. Incase any admitted tax is not paid, the above reconciliation may auto-generate a demand. Hence it is important that admitted taxes are paid. Incase of disputed taxes not paid, the same may again result in an auto generated demand as per the above reconciliation. Hence, if this be the case, it becomes important to attach suitable explanations along with GSTR 9C. Table 8D is the most important. The formula for 8D is - 8D = 8A 8B 8C The following needs to be noted in this regard Incase the figure of 8A is not equal to that reflected in GSTR 2A , then one may attach a suitable explanation wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h GSTR 9C . Please do not report any transaction of 2019-20 in Table 6B. Table 8B pulls figures from 6B. Incase of ITC reclaimed, it is important that the same is reported only in 6H and not in 6B as it would result in double effect in 8B. Incase of Table 8C, it is important that the figures pertaining to 2020-21 culled out from GSTR 3B of Apr 2021 Sep-2021 is reported in Table 8C. A proper reconciliation needs to be kept ready as to the figures reported in GSTR 3B of Apr 2021 Sep-2021 vis- -vis the ITC for 2020-21 and 2021-22. Incase Table 8I is negative, it may give rise to a demand. Such a situation may arise incase say on 31st March 2020 the taxpayer has made the payment for clearance of a Bill of Entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the material has been received in its premises in April 2020. In this case, the payment of the BoE is pertaining to 2020-21 and should be reported in 8G. A suitable declaration may be attached with GSTR 9C to this effect. The reversals done in GSTR 3B should match with that reflected in GSTR 9. The amounts paid vide ITC and vide Cash is to be reported in Table 9 of GSTR 9. Lastly, the amount payable as per Row 13 of the reconciliation above is to be matched with amount paid/adjusted as reflected in Row 17 above. Incase there is a difference the same may be explained. A suitable declaration may be attached with GSTR 9C to this effect. It is thus important for taxpayers to evolve as the Revenue evolv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es so as to keep a check on the risks and obtain maximum benefit of GST Implemetation. Happy GSTR 9 and GSTR 9C filing! - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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