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Every now and then the government keeps amending and updating rules and procedures related to Goods and Service Tax (GST). Due Date of GST Annual Return (GSTR 9) and GST Audit (Form GSTR 9C) for FY 2018-19 is 31st December 2020. One of the major issues is the GST Audit Turnover. For GST Audit, one must know whether GST Audit is mandatory for them or not. This has led to chaos and confusion among the practitioners and Chartered Accountants. Here, let us clarify some frequently raised doubts related to the GST Audit Turnover.

What is the GST Audit turnover limit for Financial Year 2017-18, FY 2018-19?

Financial Year 2018-19

Businesses having an annual turnover of more than Rs 5 crore are required for GST Audit for Financial Year 2018-19. For the same financial year (FY 2018-19) requirement of GST Audit, for business with turnover less than Rs 5 crore is waived off.

Financial Year 2017-18

In the case of the financial Year 2017-18, if the annual turnover of a registered taxpayer exceeds Rs. 2 crores in a financial year, then he was required to get his accounts audited by a Chartered Accountant or Cost Accountant.

Who is required to file GST Annual Return or GSTR-9?

GST Annual return is filed in Form GSTR-9. It contains the detailed summary of outward supply, taxes paid thereon, input tax credits claimed, taxes paid, and refund claimed in the financial year. For FY 2018-19, Form GSTR 9 is mandatory for a turnover of more than Rs 2 crores.

GST Audit Turnover for FY 2018-19 - GSTR 9 and GSTR 9C

Therefore, the Requirement of GSTR 9 and 9C for FY 2018-19 is as follows-

Aggregate Turnover Annual Return
(GSTR – 9)
GST Audit
(GSTR – 9C)
Turnover less than 2 crores Optional
Turnover more than 2 crores up to 5 crores Mandatory Optional
Turnover exceeding 5 crores Mandatory

Mandatory

What is Aggregate Turnover in GST?

The term "aggregated turnover" means the aggregate value of all taxable supplies, exports of goods and services or both, exempt supplies and interstate supplies of business having the same Permanent Account Number (PAN), to be computed on all India basis. However, such taxable supplies do not include the value of inward supplies on which GST is paid under a reverse charge basis. The aggregate turnover in whole also does not include Central tax, State tax, Union territory tax, Integrated tax, and cess also.

In simpler words, the total of the following shall be considered as an aggregate turnover:

  • Total Value of all taxable supplies of goods and services
  • Total Value of all Inter-state supplies
  • Total Value of all exempt supplies of goods and services
  • Total Value of all export of goods or services or both

However, the following items would be excluded from Turnover:

  • Inward supplies on which taxes are paid under reverse charge.
  • Tax and cess under Goods and Service Tax.
  • Goods supplied for or received back as job work
  • Transactions which are neither supply of goods nor service.

Therefore, Turnover would also include the following:

  • All taxable supplies other than supplies on which reverse charge is applicable.
  • Supplies between distinct entities of the same business.
  • Inter-sate supplies.
  • Goods supplied to job worker on principal to principal basis.
  • Export or zero rated supplies.
  • Goods received from job worker on principal to principal basis.
  • Supplies of agents/ job worker on behalf of the principal.
  • Exempted supplies under GST: like Diesel, Petrol, Liquor, etc.

As per the relevant section of GST exempt supply means any supply of goods or/and services or both which may be wholly exempt from tax under the relevant section that attracts nil rate of tax, and includes the non-taxable supply.

GST Audit is applicable when Total Turnover on PAN India basis exceeds 5 crores in FY 2018-19. However, GST Audit will be done GSTIN wise. 

Who is not required to file GST Annual Return and Audit?

Ans. Following person are not required to file GST Annual Return (GSTR-9) and GST Audit (GSTR 9C)

  • Input Service Distributor
  • Tax deductor
  • Tax collector
  • Casual taxable person
  • Non-resident taxable person
  • Person supplying OIDAR service from Place outside India [Notification No 30/2019 Central Tax Non Rate]
  • Foreign Airlines are not required to submit Form GSTR9C [Notification No 30/2019 Central Tax Non Rate]
 

What do you mean by PAN INDIA in GST?

The purchase and sales that took place in different states by a single person using their Permanent Account Number (PAN), will be taken cumulatively to consider the total turnover of an entity or person. With respect to, the GST registration threshold limit as well. Therefore, it means GST registrations, need to be taken state-wise but it is included under the same PAN. As GST is PAN India not a state-wise tax levy system.

 

The author of the above article is Sneha Bhalotia

Disclaimer: The article or blog or post on this website is based on the writer's personal views and interpretation of the Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.  

Link: https://babatax.com/

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