You would recall Part 1 of this module wherein we discussed various sections of GSTR-3B. Section 4B of GSTR-3B talks about the reversal of input tax credit. We shall now discuss various components of the ITC, such as availability, availment, and reversal. Further, we shall discuss the tax paid during the period under consideration, as well as the process to undertake addition or amendments to any of the supplies already declared in the returns of the financial year for which GSTR-9 is being filed. Now, we proceed to the reversal of ITC made during the financial year. This table includes only those reversals that have not been reclaimed. Table 4B of GSTR-3B may be used for filling these details. Details of ITC reversals required under Rules 37, 39, 42, and 43 of the CGST rules shall be declared under Section 7A to 7D of Table 7, respectively. Section 7E of this table should report details of any ITC reversed under Section 17(5) of the CGST Act. Details of ineligible transitional credit claimed under GST Tran-I, or GST Tran- II and subsequently reversed should be reported under Section 7F and 7G of Table 7, respectively. Any ITC reversed through ITC-03 shall be declared in Section 7H of Table 7 on other reversals. Section I of Table 7, this is auto-computed sum of sections A to H, and denotes the total ITC reversed. Section J of Table 7, this is auto computed difference between sections I of this table and section O of Table 6, and denotes the net ITC available for utilization. It may be noted that for financial year 2020-'21, the taxpayer has the option to disclose the details of reversals separately under each of the head 7A to 7E, or disclose the total of all reversals under Section 7H of Table 7. This relaxation shall not be applicable to the reversal of transitional credit. It is important to note here that if the amount stated in Section 4D of GSTR-3B, that is ineligible ITC was not included in Section 4A of GSTR-3B, that is total ITC, then no entry should be made in section 7E of GSTR-9. However, if the amount mentioned in Section 4D of GSTR-3B was included in Section 4A of GSTR-3B, then the entry should be updated in Section 7E of GSTR-9. To keep a check on the availment of credit by the recipient vis-a-vis the amount of tax the supplier has paid, the government has prescribed requirement for reconciliation of credit availed in GSTR-3B with GSTR-2A as a part of the GSTR-9 return. This table requires the taxpayer to provide a summary comparison of the same. Let us discuss the section specific details required to be provided in Table 8. Section A of Table 8, the amount in this section is auto-computed based on the ITC appearing in GSTR-2A in Tables 3 and 5 only. Details provided by the supplier in their GSTR-1 are auto populated in the recipient's GSTR-2A. Such details as appearing in tables 3 and 5 are auto-populated in this section. These values are non-editable. GSTR-2A is updated on a continuous basis as the vendors file their GSTR-1 returns. The goods and services tax network freezes the value of the credit on a pre-decided date, that is generally a reasonable time just after the last date to avail credit in relation to a financial year. This excludes supplies taxable under a reverse charge, as well as invoices that have been saved on the portal but not submitted. A detailed list of transactions for Table 8A is made available for download on the GST portal. Section B of Table 8. The amount in this section is auto-computed based on the details provided in Sections 6B and 6H of Table 6. This amount represents the ITC availed by the taxpayer in relation to supplies made by registered persons. Section C of Table 8. This section pertains to the ITC availed, uninward supplies, except those on which tax is payable on reverse charge basis, but including supply of services received from SEZs These supplies must be received during the financial year for which the return is being filed, but on which credit has been availed between April to September of the next financial year. Section 4 A, 5 of GSTR-3B may be used for filling these details. Cases where ITC is availed and reversed within the same financial year, are not required to be reported here. The amount of such ITC availed should instead be reported in Table 13. This also includes the credits reclaimed in the next financial year that were reversed in the previous year. Section D of Table 8. This section pertains to the ITC that is available in form GSTR-2A in Tables 3 and 5 only but not availed in GSTR-3B. This amount is auto computed based on the details provided in Sections 8A, 8B, and 8C of Table 8. A negative value appears in this section for instances where credit availed in GSTR-3B is more than the credit available in GSTR-2A. Sections E and F of Table 8, these sections pertain to credit appearing in GSTR-2A. However, since such credit is ineligible, the same has not been availed in GSTR-3B. Section G of Table 8, this section pertains to the integrated GST paid for import of goods during the financial year, including imports from SEZs. Section H of Table 8. This section is auto-populated based on the details provided in Section 6E of Table 6. This amount pertains to the ITC availed on import of goods. Section I of Table 8. This section is auto-computed based on the details provided in Sections 8G and 8H of Table 8. The difference generally occurs in a scenario where IGST has been paid on the import, but credit has not been availed as the conditions for availing credit have not been met. Section J of Table 8, this section pertains to the ITC available but not availed on import of goods. This value is equal to the value computed in section 8I of Table 8. Section K of Table 8. This is auto-computed based on the details provided in various sections of Table 8. This amount pertains to ITC, which shall lapse for the current financial year. It is important to note here that the remaining ITC lapse that appears in is for informative purposes only and would not subsequently reduce the balance from the electronic credit ledger. Tables 6, 7, and 8 form Part 3 of GSTR-9. In summary, details of the ITC availed, ITC reversed, and input tax lapsed during the financial year need to be provided in Part 3 of GSTR-9. Table 9. This table forms Part 4 of GSTR-9. Details of tax payable and tax paid are provided in the table. The details of tax payable should match the output tax liability declared in Table 4. Moreover, details of tax paid under each tax head is auto-populated based on the details provided in the monthly GSTR-3B. Any difference in tax payable and tax paid should be discharged at the time of filing GSTR-9 by way of DRC-3. The payments through DRC-3 can only be made in cash and not credit. Tables 10 and 11. These tables pertain to the additions or amendments made in supplies declared in the returns for a financial year, that is, the year for which the annual return is being filed, but they were furnished in sections 9A, 9B, and 9C of GSTR-1 of April to September of the subsequent financial year or before filing of the annual return, whichever is earlier. This section also includes credit and debit notes in respect of supplies made during a financial year for which the return is being filed but issued during the April to September period, falling after such financial year. Table 12. This table pertains to the reversal of ITC that was availed in the financial year, that is, for which the annual return is being filed, but it was reversed in returns filed for the month of April to September of the subsequent financial year or date of filing of annual return, whichever is earlier. Section 4B of GSTR-3B may be used for filling these details. Taxpayers have been given relaxation from providing details under this table for financial year 2020-'21. Table 13. This table pertains to goods or services received in the financial year, that is, for which the annual return is being filed, but for which the ITC was availed in returns filed for the month of April to September of the ubsequent financial year or date of filing of annual return, whichever is earlier. Table 4A of GSTR-3B may be used for filling these details. For instance, for financial year 2020-'21. Details of ITC that were received in financial year 2020-'21 but availed after the due date of return for September 2021, were declared in the annual return of financial year 2020-'21. However, for any ITC that was reversed in financial year 2020-'21 as per the second proviso to subsection 2 of Section 16 of CGST Act but was reclaimed in financial year 2021-'22, details of such ITC reclaimed were to be furnished in the annual return for financial year 2021-'22. Taxpayers were given relaxation from providing these details under this table for financial year 2020-'21. Table 14. This table pertains to details of the differential tax paid for the declaration made in tables 10 and 11. Tables 10 to 14 form part 5 of GSTR-9. To summarize, amendments in liability and reversal or availment of ITC pertaining to outward and inward supplies respectively for the financial year for which the annual return is being filed, are reported in returns for the months of April to September of the subsequent financial year or the date of filing of annual return, whichever is earlier. Table 15. This table pertains to details of the refunds claimed, sanctioned, rejected, and pending for processing, along with details of any demand raised by the authorities. Section 15A table 15 shall contain details of refund claimed, which will be the aggregate value of all the refund claims filed in the financial year and will include refunds that have been sanctioned, rejected, or appending for processing. Section 15B of table 15 shall report details of the refund sanctioned, which means the aggregate value of all refunds sanctioned by the authorities. Sections 15C and 15D of table 15 will disclose the value of the refunds rejected and pending respectively, which will be the aggregate amount of all refund applications for which acknowledgment has been received. It will exclude the provisional refunds received. These will not include details of non-GST refund claims. The taxpayer should also include cases where shipping bills are reported subsequently in GST returns as the same are considered as deemed refund applications. Sections 15E-15G of table 15 require disclosure of the total value of demand for which an order confirming demand has been issued by the adjudicating authority with details of taxes paid against the demand and amount pending for recovery. The taxpayer shall have the option to not fill this table for financial year 2020-'21. Table 16. This table pertains to supplies received by the registered person from composition dealers, deemed supplied by job worker, and goods sent on approval basis. It has three sections. Section A of Table 16. Aggregate value of supplies received from composition taxpayers is required to be provided in this section. Table 5 of GSTR-3B may be used for filling these details. Section B of Table 16, aggregate value of deemed supplies from the principal to job worker is required to be provided here. These are cases where the goods sent for job work are not received back within one year for inputs or three years for capital goods. Section C of Table 16, aggregate value of deemed supplies for goods that were sent on approval basis, but were not returned to the principal supplier. Within 180 days of such supply is required to be provided here. Taxpayers have been given relaxation from providing details in this table for financial year 2020-'21. Table 17 and 18. These tables pertain to the harmonized system of nomenclature or HSN, summary of inward and outward supplies made by the taxpayer. Table 12 of form GSTR-1 may be used for filling details in Table 17 of GSTR-9. This table is optional for taxpayers having annual turnover up to 1.5 crore rupees. However, it is mandatory to report the HSN code at the two-digit level for taxpayers having annual turnover in the preceding year of above 1.5 crore rupees up to five crore rupees and at the four-digit level for taxpayers having annual turnover above five croew rupees. Details on the unique quantity code are to be furnished only for the supply of goods. Taxpayers have been given relaxation from providing details in this table for financial year 2022-'21. The HSN summary for inward supplies is required to be provided only for supplies whose value independently accounts for 10 percent, or more of the total value of inward supplies. Taxpayers have been given relaxation from providing details in these tables for financial year 2020-'21. Concluding the discussion on GSTR-9, let us see certain key points to consider while filing GSTR-9. In case of any difference between GSTR-3B and GSTR-1, details of GSTR-3B may be taken. Wherever, this difference between the financials and GSTR-3B, the amount of supplies as per the financials may be considered. Differential tax on supplies, if any, that is omitted from being reported in GSTR-1 or GSTR-3B is to be paid through form DRC-03, which would be reported in GSTR-9C. Non-GST or no supply should include income from dividends, sale of land, scheduled three transactions, etc. Book adjustments such as depreciation written off, bad debt recovery, and advances written off would not form part of the annual return. No input tax credit can be reversed through the annual return. However, if the same is realized at the time of filing the annual return, liability is to be discharged through DRC-03. GSTR-9 return once filed cannot be amended or revised. GSTR-9 can be filed using a digital signature certificate or DSC, or an electronic verification code or EVC. With this, we conclude our lesson on GSTR-9. In summary, you learnt about various sections and tables constituting GSTR-9. GSTR-9 is to be filed on or before 31st December of subsequent financial year. In case of difference between the output liability declared in GSTR-1 and tax liability discharge in GSTR-3B, the differential liability can be paid through DRC-03, and the same can be reported in GSTR-9. Similar to other forms for GST return, once GSTR-9 has been filed it can not be amended or revised, and it can be filed either through DSC or EVC. We hope you have grasped the information and fundamentals required to prepare and file GSTR-9 for a taxpayer.
