Registered taxpayers and composition dealers must file an annual return under the GST regime. This annual return is known as the ‘GSTR-9.’ There are four different sorts of annual returns based on the type of taxpayer, namely GSTR-9, GSTR-9A, GSTR-9B, and GSTR-9C. One of the most difficult or common areas where people make mistakes while filing GST forms is determining which form to use. Tax HelpDesk’s GST Consultation services are among the most reputable. Keep reading this blog to explore more.
Major Challenges of Filing GSTR 9
Before proceeding, it is important to note that the following individuals are not required to file GSTR 9 (since they are required to file other Annual Returns) –
- Dealers in Composition (as they are subjected to file GSTR-9A)
- Casual Taxable Individuals
- Non-resident taxable individuals
- Collectors of TDS
The most specific difficulties in filing the Annual GST Return are difficulty in filing Details of 6A of Table No. III of GSTR-9, Outward Supply in Line Nos. 6C and 6D of Part-III of GSTR-9, Previous Year Sales in Table No.5 of Part-I of GSTR-9A, tax paid as declared in returns filed during the Financial Year Table 9 of GSTR-9A, Error in RCM Payment, In Tables 17 and 18 of the GSTR-9 for the Regular Taxpayer, we were obliged to disclose the HSN No. of inward supplies that account for 10% or more of the total value of inward supplies and to request permission to make corrections in inward and outgoing supply parties.
6A of Table No. III
The annual return requires the bifurcation of Input Tax Credit claimed between Inputs, Services, and Capital Goods under Table 6A; however, it is worth noting that GSTR 3B did not require such a bifurcation until recently, and GSTR-3 has not yet been implemented. As a result, trade and industry have not kept such separate accounting records. Furthermore, the Accounting software is not constructed in such a way that it can give the bifurcation. As a result, such a bifurcation will be impossible to achieve in less than two years. As a result, it is recommended to supply single-line Input Tax Credit information.
8A of Table No. III
Table 8A of GSTR 9 compares GSTR-2A to ITC claimed in GSTR-3B. As a result, you should be aware that GSTR-2 was not operational at the outset, and the excel export utility for GSTR-2A was only made accessible in August 2018, approximately 6 months after the end of the fiscal year, making data comparison impossible. Furthermore, you must examine the Tweet by Hon. Finance Minister, who declared that “GSTR-2A is simply for reference purposes and there is no need to compare the same” trading was loosened and no comparison was made. As a result, it is recommended that this information be postponed for the fiscal year 2017-18.
GSTR-9 is auto-populated
During the GSTR-9 format, the figures are either totaled from GSTR-1 or from GSTR 3B. There is no distinct area for figures from books of accounts. It is important to highlight that GSTR should have enough weight for books of accounts, and trade should be permitted to submit the facts as per their books of accounts in order to reflect true and fair liability. As a result, it is advised that the government create a new format for GSTR-9 with the necessary adjustments.
Making mistakes in Payment of RCM
During the first year of deployment, numerous errors in RCM payment and credit claims were discovered. Essentially, GSTR-9 takes the total of RCM reported in GSTR-3B, therefore there should be a proper space to disclose the RCM liability that was left out during the year in the Annual Return, and appropriate credit, if available, should be allowed to be claimed in GSTR-9 As a result, appropriate action should be made to clarify the situation by GST consultation.
As a result, the new format should enable the taxpayer to provide accurate information on RCM Paid and Input Tax Credit obtained.