Every registered entity is required to file annual return for goods and services tax (GST) by December of the next year. Since the form was not ready in time, the original due date of December 2018 is now extended up to 30 June 2019.
Registered persons, with more than Rs2 crore turnover, have to file GST reconciliation statement and certification (GSTR 9C) as well as annual returns or GSTR9 and audited financial statements. GSTR 9C is required to be certified by a chartered accountant (CA).
GST annual returns or (GSTR9) is a summary of details already reported in GSTR1 (sales returns) and GSTR3B (monthly/ quarterly), i.e., summary of sales and purchases along with tax payments. This, in theory, looks very simple as one-nation-one-tax GST; but when we try to actually fill the returns, there are multiple issues for which no clarifications are available or there are different interpretations by professionals. A few examples are given below:
1. In GSTR9, adjustments or amendments up to September 2018 are asked to be reported. However, the Central Board of Indirect Taxes and Customs (CBIC) has already extended this date up to March 2019. Consequent changes in the form are yet to be made.
2. Table 4 of GSTR9 asks for details of advances, inward and outward supplies made during the financial year on which tax is payable. This data is auto-populated as per GSTR1 filed. However, if some sales are not reported in GSTR1 but tax is already paid through GSTR3B then where to report it is not clarified.
3. The FAQs on this matter issued by CBIC read as under:“In Form GSTR-9, can additional liability not reported earlier in Form GSTR-3B be declared? Yes, additional liability not reported earlier at the time of filing Form GSTR-3B can be declared in Form GSTR-9. The additional liability so declared in Form GSTR-3B is required to be paid through Form GST DRC-03.” First of all, it should be GSTR9 and not GSTR3B in line 3. Further, it just information NOT info known but does not say which table and where to declare this liability.
4. Input reversals done in GSTR3B are shown as utilisation of input tax credit (ITC) in auto-populated table 9. Further, this field in not editable.
5. Headings of table 11 and 12 say that “Details of the previous financial year's transactions reported in next financial year” are to be shown there. However, there is difference in language used in the help file and line item. The help file says, “Particulars for the previous FY transactions declared in returns of April to September of next FY or up to date of filing of annual returns for 2017-18, whichever is earlier.” Whereas individual line item for table 11 and 12 talks only about GSTR1. Now there is confusion as to whether changes made in GSTR3B in the next financial year can be reported here. There is no other table to report these changes either.
6. For those who are not supposed to file audit report in 9C, there is confusion about whether GSTR9 should be based only on returns filed or books of accounts. There is no mention of books of accounts anywhere in GSTR9 frequently asked questions (FAQs).
7. On tax paid on reverse-charge basis, in subsequent financial year through GSTR3B, where does one report in GSTR9? There are no final answers to this. If reported along with normal turnover, it will not match with books of accounts.
8. Table 7 of GSTR9 says, ITC reversed for the financial year is to be disclosed. However, it does not specify in which returns. If reversed during 2018-19 for 2017-18 then it may lead to double reduction while filing next year’s GSTR9.
9. Table 8 of GSTR9 about ITC related information has no column for IGST on import paid but goods still in bonded warehouse, hence credit not taken. Many persons have not taken this credit till goods are cleared. If we follow as per GSTR9 schema, this credit will lapse.
10. The harmonised system of nomenclature (HSN) wise summary of inward supplies where 10% or more of total inward supply is to be given. However, if the supplier has not provided the exact HSN code, it would be very difficult for the taxpayer to now search for it.
These are some of the issues that taxpayers are facing while filing GSTR9 annual return. There are many such issues in GSTR9C audit report form as well. The main issue is that the government has been very slow in giving clarifications and, since returns filed cannot be revised, people are waiting till the last date to file. We all know what happens to GSTN in the last few days of any due date.
Form 16 is the annual salary TDS certificate issued by an employer to an employee. The Central Board of Direct Taxes (CBDT) has notified amendments in Form 16. The new Form 16 is made effective from 12 May 2019. Employers issuing Form 16 for the financial year 2018-19 will have to issue them in the new format.
Part B of Form 16 has been amended seeking more details about the allowances exempt under section 10 such as HRA, LTA, gratuity etc and deductions allowed under Chapter VI-A of the Income Tax Act, 1961 i.e. section 80 deductions. The important changes are discussed below:
Exemptions under section 10:
Presently, an employer has the option to mention the nature of the allowances exempt under section 10 with the respective amounts. While some employers provided complete disclosure, others aggregated the allowances and disclosed the net amount exempt under section 10.
A summary of the allowances for which information is required against ear-marked fields is provided below:
Exempt Allowances required to be disclosed
Exempt under section
Leave travel concession
Death cum retirement gratuity
Commuted value of pension
House rent allowance
Any other amount exempt under section 10
Deductions under Chapter VI-A:
Presently, employers have the option to present the details of deductions under section 80C to section 80U of the Act. Similar to the disclosure of exempt allowances, some employers provided complete disclosure of the deductions, and others aggregated the allowances and disclosed the total amount of deductions allowed as a single line item in Form 16.
A summary of the deductions for which information is required against ear-marked fields is provided below:
Deductions required to be disclosed
Life insurance premium paid, contribution to PPF etc.
Contribution to pension funds
Employee’s contribution to pension scheme
Taxpayer’s self contribution to notified pension scheme
Employer’s contribution to pension scheme
Health insurance premium paid
Interest paid on loan taken for higher education
Interest income on savings account
Amount deductible under any other provision of Chapter VI-A
The changes mentioned above to Form 16 will ensure that employers follow a uniform format for reporting of salary including the exemptions and deductions. Also, the amendment is in line with changes introduced in the income tax returns notified for AY 2019-20. This would facilitate employees in the filing of their tax returns for AY 2019-20.
In addition to the above, the move would facilitate the Income Tax Department to cross verify income reported by an employee with the TDS certificate/Form 16 issued by the employer.
As the financial year ends, you need to collect proofs of income, investments, bank statements and expenses to file your income tax return. If you are a salaried or pension-earning individual, follow the simple steps listed below to file form ITR – 1.
ITR-1 can be filed only by resident individuals who have income of up to Rs 50 lakh. The income can be from either of the following sources only:
To file ITR-1, the following documents are needed:
Where to file
To e-file a tax return, you should visit the website www.incometaxindiaefiling. gov.in and register with an user id (PAN) and password. If you are already registered, simply click on the registered user tab and add your login credentials to access the dashboard.
Click on the ‘income tax return’ page. Select assessment year, ITR form and submission mode. You can select the ‘Prepare and submit online’ option and select the pre-filled fields. Click on a suitable e-verification option. General information like personal details need to be filled.
Next, you will be taken to the computation page. After adding data in the tax computation details, the tax payable will be generated.
Submission of return
You can pay tax due using Net banking or your debit card. Once all details are filled and verified, a preview of the ITR will be shown for verification and changes, if any. If you are satisfied with the details entered, submit the return and complete the process.
The ITR forms for the assessment year 2019-20 are out. Know the changes you need to watch out for.
The Central Board of Direct Taxes (CBDT) kickstarted the annual income tax return filing ritual recently. The new income tax return (ITR) forms for the assessment year 2019-20 come with a set of changes—essentially more detailed disclosures— taxpayers have to contend with.
While the last date for filing returns is 31 July, the changes and penal clauses for late filing mean one should start the process as soon as possible. Read on to understand the revisions in ITR 1 and 2 – the forms most relevant for individual, salaried taxpayers as well as pensioners. While ITR 1 and ITR 4 are already available on incometaxindiaefiling.gov.in for online filing, the others will be uploaded in due course.
New look ITR 1
The forms take into account announcements made during the Union Budget 2018-19. A field for standard deduction has been introduced—you can claim a flat deduction of Rs 40,000. Likewise, senior citizens can claim exemption of up to Rs 50,000 on interest from savings, fixed deposits as well as post office deposits.
This apart, the form asks taxpayers to specify the nature of income from other sources. Until last year, you only needed to mention the figure. You will also have to furnish details of any exempt income and the clause under which the tax benefit is allowed. This includes HRA claimed during the year.
ITR 2 now requires detailed information on the number of days spent in India while declaring the residential status. Until 2018-19, you had to simply choose between resident, resident but not ordinarily resident and non-resident options.
Non-resident taxpayers will have to report their overseas residency information along with taxpayer identification number. “Overseas Citizens of India (OCI) or Persons of Indian Origin (PIO) selecting residential status as ‘non-resident’ in India are required to report the actual number of days in the relevant financial year and also in the last four financial years immediately preceding the year
House buyer’s information
If you have sold an immovable property, be prepared for tighter scrutiny. “You will have to mention the buyer’s name, PAN, transaction price and the address of the property,” says Archit Gupta, Founder and CEO, Cleartax.in. In case of multiple buyers, the seller will have to share details of each, along with share in ownership and amount. “The objective is to corroborate information provided by the seller and minimise scope for misreporting.
Changes in ITR forms relevant to salaried taxpayers
ITR 1 (Sahaj)
You are an ordinarily resident invidividual with income from salary, pension and interest of up to Rs 50 lakh, agricultural income of up to Rs 5,000, and own one house.
Do not use if...
You are a director in a company or have invested in unlisted shares; or have capital gains/losses to declare
You are a salaried individual or a pensioner who cannot use ITR 1.
Do not use if...
You draw income from any business or profession.
Restrictions on use of ITR 1
If you have invested in unlisted shares, you cannot use ITR 1 this year. It cannot be used by an individual who is a director in a company either. The form is relevant if your agriculture income is less than Rs 5,000. If it crosses this threshold, use ITR 2.
Disclosure of unlisted shares
In ITR 2, you have to provide details of all unlisted shares you hold. You will have to furnish the companies’ names, PAN, number of shares held by you, cost of subscription or purchase, issue/purchase price per share, shares transferred during the year and closing balance. “This could mean that unlisted companies’ employees, who have exercised their employee stock options (ESOPs), will also have to declare their holdings.
ITR 1 (Sahaj)
Income from agriculture is another focus area in the forms this year. “Agricultural income exceeding Rs 5 lakh is now to be reported separately along with additional details such as name of the district with pin code, measurement of land, whether owned or leased and whether irrigated or rain-fed under the ‘exempt income schedule.
1.What is GSTR 3B ?
GSTR 3B is a simple return form introduced by the Government. A separate GSTR 3B form has to be filed for each GSTIN. GSTR 3B form does not require invoice level information. It only requires total values for each field, like a summary, for the month for which filing is done.
Filing GSTR 3B form is mandatory for all those who have registered for the Goods and Services Tax (GST). The GSTR 3B is a simple tax return form introduced by the Central Board of Excise and Customs (CBEC) for the month of July and August. The forms - GSTR-1, GSTR-2 and GSTR-3 - for the months of July and August are to be filed in the month of September. In the interim, all GST registrants have to file GSTR-3B form .
It is must that you have a separate GSTR 3B file for each Goods and Services Tax Identification Number (GSTIN) you have. You can mention only total values for each field in this form; invoice level information is not required for this form.
An important point to note is that some portions of Part B of GSTR-3 will be automatically populated from GSTR 3B file. So, in case there is any discrepancy between the two forms you can correct GSTR-3 later and deposit the taxes payable.
2.Who has to file and what details to be furnished
The Goods and Service Tax mandates filing of GSTR 3B return even by those taxpayers with nil returns. It is a monthly self-declaration form that has to be filed by all taxpayers irrespective of the returns.
The details that have to be furnished in the form include:
Details of sales and purchase made by the registered taxpayer.
GSTR 3B must be filed by everyone who has registered for GST. However, individuals such as - Input Service Distributors, Composition Dealers, Suppliers of online information and database access or retrieval services (who have to pay tax themselves as per Section 14 of the IGST Act, and Non-resident taxable person - do not have to file GSTR 3B.
Following registrants do not have to file GSTR-3B:
9 Important Points About GSTR-3B
Before we take a deeper dive and understand this form, let’s first take a look at few important points that you should know:
Why is it important to file GSTR 3B?
3. GSTR 3B Format
GSTIN : This is a PAN India based 15 digit Goods and Services Taxpayer Identification Number (GSTIN) for each taxpayer. This column will be auto filled.
Name of the registered person : It will be auto filled at the time of logging into the common GST Portal. Trade Name, if any, should be separately provided.
Details of Outward supplies and inward supplies liable to reverse charge (Part A) : Here you need to capture the total taxable value (both intrastate and interstate) along with the total tax (IGST, CGST, SGST/UTGST) as applicable:
Details of Inter?State supplies made to unregistered persons, composition dealer, and UIN holders (Part B) : This table shows the bifurcation of the interstate outward supplies made to Unregistered Persons, Composition Dealers, and UIN Holders. These details need to be captured State?wise/ Union?Territory?wise total with taxable value and total IGST levied on these supplies.
Details of eligible Input Tax Credit : Here in this table the summary of your eligible ITC available and the ITC reversals made by you to arrive at the Net ITC is captured.
ITC Availability (whether in Full or Part): Mention the break?up of inward supplies on which ITC is availed. The following are the details you need to capture:
Inward supplies liable to reverse charge: Mention the GST paid on inward supplies which are liable for a reverse charge as, sponsorship services, and purchase from URD etc. other than import of goods or services. To know more, read inward supplies liable to reverse the charge.
Details of Input Tax credit to be reversed : Mention the ITC reversible on the usage of inputs/input services/capital goods used for the non?business purpose, or partly used for exempt supplies. Also, if the depreciation is claimed on tax component of capital goods, and plant & machinery, then also the ITC will not be allowed.
The ITC available as reported when reduced by the amount of ITC to be revered as reported under this table, the resultant balance will be called your eligible ITC.
Details of Ineligible ITC : GST paid on inward supplies listed in the negative list is not eligible for Input Tax Credit (ITC). The details of GST paid on such supplies are recorded in this table. To know more, see the list of supplies ineligible for ITCIT
Details of exempt, nil?rated and non?GST inward supplies : Here you have been asked to give away the value of inward supplies pertaining to supply transactions with suppliers under composition scheme, nil rated and exempt supplies and Non GST supplies made during the tax period (for both inter state and intra state supplies carried out by you)
Payment of tax : In here you are required to declare the self-ascertained tax payable by you. This is based on the details of outward supplies and inwards supplies liable to be paid on reverse charge captured in Table No. 3 The tax-wise break-up of payment of tax by way of utilization of ITC and cash deposit needs to be provided.
TDS/TCS Credit : Here you are required to capture the details of TDS (Tax withheld by the Government establishment) and TCS (Tax withheld by E-commerce operator). However, these provisions are deferred from initial rollout of GST. Accordingly, TDS and TCS is not applicable till it is notified further.
The government has extended the last date for filing summary sales return, GSTR-3B, for March month by three days until April 23.
The last date for filing summary sales return and payment of taxes for March is April 20, 2019.
Need to make additional GST payment? DRC-03: Applicability and Procedure
During the course of filing GST Return, a taxpayer may discover additional tax liabilities that he or she may need to pay. GST tax portal has the provision that allows you to do so.
“There is a section in the GST portal that talks about user services. There you need to choose DRC 03 and then opt for annual returns. You can use this to make any additional tax deposits, but need to ensure you have sufficient funds in your electronic cash ledger while using this form to make any additional tax payments.
What is form DRC-03?
DRC-03 is a payment form in which a taxpayer can pay the tax by raising its liability voluntarily or in response to the show cause notice (SCN) raised by the Department. Below is the format of Form DRC-03:
When should a taxpayer make a payment in DRC-03?
Form DRC-03 is filed for making a voluntary payment of outstanding liabilities u/s 73 and 74 of the CGST Act. A taxpayer can self ascertain the tax before issuance of SCN or within 30 days of SCN determination to avoid the hassles of demand and recovery provisions.
Section 73 – deals with cases where there is non-payment/under-payment of tax without any intention or invocation of fraud.
Section 74 – deals with cases where there is non-payment/under-payment of tax with intention or invocation of fraud.
Point to note: All the payments need to be made either from input tax credit available in electronic credit ledger or cash balance available in the electronic cash ledger. But, in case of interest and penalties ITC utilisation is not available. It has to be compulsorily paid in cash.
Prerequisites before filing DRC-03
Form DRC-03 is used for making a voluntary payment of tax. Voluntary payment can be made either:
Steps to file DRC-03
Step I: Login and navigate to User Services
Login to GST Portal and go to ‘My Applications’ under ‘User Services’.
Step II: Choose either of the 3 circumstances under which a taxpayer makes payment:
Case 1: A taxpayer has not made any payment and does not have a payment Reference Number (PRN).
Case 2: A taxpayer has generated PRN but is unutilized and comes for payment within 30 minutes of generation of PRN.
Case 3: A taxpayer has generated PRN and is unutilized and the taxpayer comes for payment after 30 minutes of generation of PRN.
Steps to be performed for Case 1:
Step (a) Select the Application Type as ‘Intimation of Voluntary Payment – DRC-03’ and then click ‘New Application.’
Step (b) A taxpayer will get 2 options whether payment is made Voluntary or against SCN:
1. Voluntary payment: Payment date will be auto-populated without an option to edit.
2. Payment against SCN: A taxpayer has to manually enter SCN Number and select the issue date which must be within 30 days of making payment.
Note: Application for intimation of voluntary payment can be saved at any stage of completion for a maximum time period of 15 days. If the same is not filed within 15 days, the saved draft will be purged from the GST database. To view your saved application, navigate to Services > User Services > My Saved Applications option.
Step (c) Select the Section under which payment is being made, the Financial Year and then select the from date and to date of the overall tax period.
Step (d) Provide details of payment including interest and penalty. A taxpayer can provide additional details by clicking on ‘Add’. Then, click ‘Proceed To Pay’.
Step (e) Voluntary payment page will be displayed which will be divided into 3 sections:
-LiabilityDetails: Liabilities are displayed in this table.Cash Ledger balance: The cash balance available as on a particular date is reflected in this table. The taxpayer has to enter the value of cash to be paid from the available balance against outstanding liabilities.
-Credit Ledger balance: ITC available as on date is reflected in this table. The taxpayer has to enter the value of liability to be paid through ITC and click Set Off.
Step (f) A confirmation message will pop up stating the cash and ITC balance being used up for making payment. On clicking ‘Ok’, a PRN will be generated along with a successful payment message.
Note: If PRN is not available, it can be extracted from the ‘Electronic Liability Register’ under Services>Ledgers>Electronic Liability Register.
Step (g) To view the draft DRC-03, Click the ‘Preview’ button on the page-‘Intimation of payment made voluntarily or against SCN’.
Step (h) Provide reasons if any, in the field provided. Choose a file in the attachments section to upload. Click on the verification checkbox and then select the ‘Authorised Signatory’ and enter the ‘Place’.
Step (i) Click on ‘File’. Two options will be available:
File with DSC: Browse the certificate and click on the button ‘sign’.
File with EVC: An OTP will be sent to the registered mobile number and email ID. On validation of OTP, a success message will be received along with ARN.
Steps to be performed for Case 2:
Step (a) Follow the steps as mentioned in Case 1 till the taxpayer reaches on Intimation of payment made voluntarily or against the SCN page.
Step (b) Select ‘Yes’ for the option – Have you made payment? and enter the PRN.
Step (c) A link, known as ‘Get payment details’ will be displayed. Once the taxpayer clicks on it, details will be auto-populated on the basis of the respective payment that was made.
Step (d) Click on ‘Preview’ to view draft DRC-03 and then follow the same steps to file the application as mentioned in Case 1.
Steps to be performed for Case 3:
Step (a) Follow the steps as mentioned in Case 1 till the taxpayer reaches on Intimation of payment made voluntarily or against the SCN page.
Step (b) Select Yes for the option – Have you made payment? and enter the PRN.
Step (c) A link, known as ‘Get payment details’ will be displayed. Click on the link and enter the details, since the details will not be auto-populated as mentioned in Case 2. This happens because the time limit of 30 minutes has passed.
Note: The processing will happen in the Back end, wherein the system will check whether the amount entered by taxpayer matches with the payment made. If yes, the intimation form will be accepted. If no, an error message will pop up.
Step (d) Hereafter, follow the same steps as mentioned in Case 1 for filing the application DRC-03.
Note: With respect to Case 2 and Case 3 if the PRN is already utilized, an error message will be displayed asking the taxpayer to enter the unutilized PRN.