To be or not to be - Filing of GST audit and annual return

Arjuna (Fictional Character): Krishna, what is the debate going on for filing of GSTR-9 and GSTR-9C GST returns?

Krishna (Fictional Character): Arjuna, As Shakespeare had a question “To be or not to be” a similar question is bothering Auditors and Taxpayers after the issue of notification on 14-11-2019, wherein form GSTR-9 (Annual Return) and GSTR-9C (Audit report) were simplified. As per latest tweet, the new template for filing returns would be made available on 10th December 2019. So, the question is whether to file GSTR-9 and GSTR-9C before 10th December 2019 or not.

Arjuna: Krishna, what if the taxpayers file GSTR-9 for F.Y 17-18, before 10th December 2019?

Krishna: Arjuna, if the taxpayers file GSTR-9 for F.Y 17-18, before 10th December 2019 there would be no issue but following details may be provided

• The taxpayer would have to report taxable outward supplies and debit and credit notes separately.
• The amendments of taxable outward supplies are to be reported separately.
• The Exempted, Nil-rated, Non-GST are to be shown separately along with debit and credit notes.
•  In Table 15 of Demand and Refund details are to be provided.
• The bifurcation of ITC as Input, Input services and capital goods is to be provided.
• Also, the bifurcation of ITC reversals is to be provided.
• The HSN-wise summary to be provided for both inward and outward supplies.
• One should note that the above requirements have been made optional via Notification issued on 14th November 2019. One may file return before 10th December in old utility proper note that one has opted such option of not providing above mentioned details should be enough.

Arjuna: Krishna, what if the taxpayers file GSTR-9C for F.Y 17-18 before 10th December 2019?

Krishna: Arjuna, if the taxpayers file GSTR-9C before 10th December 2019 there would be no issue but following details may be provided-

• Cashflow statement is to be provided“True and Fair” is to be reported by an auditor instead of "True and Correct" as the same cannot be edited in old utility.
• The taxpayer would have to report the details of reconciliation of gross turn-over in Table 5
• The taxpayer would have to provide data of ITC booked in earlier F.Y and claimed in the current year and ITC booked in current F.Y and claimed in the subsequent year.
• Expense head-wise details of ITC in Table 14 are to be provided.
• One should note that the above requirements have been made optional via Notification issued on 14th November 2019. One may file return before 10th December in old utility. A proper disclosure that one has opted such an option of not providing above mentioned details should be sufficient.

Arjuna: Krishna, what if the taxpayers file GSTR-9 and GSTR-9C for F.Y 17-18 after 10th December 2019?

Krishna: Arjuna, the utility for filing GSTR-9 and GSTR-9C would be available till 10th December 2019. The taxpayers would get relief from various reporting requirement, as it is made optional. But the due date for filing GSTR-9 and GSTR-9C is 31th December 2019.

Arjuna: Krishna, When should one file Annual return and Audit report for F.Y 18-19?

Krishna: Arjuna, the utility for filing GSTR-9 and GSTR-9C is not yet made available. So, one cannot file returns as of now.

Arjuna: Krishna, what lesson one should learn from this?

Krishna: Arjuna, there are continuous changes made in GST, which is leading to confusion. One should cautiously file GSTR-9 and GSTR-9C, if one decides to file it before 10th December 2019. Proper notes and disclosures should be made and if one decides to wait till new utility is made available care must be taken that there is no last-minute hurry.

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