Changes in GSTR-9 with comments

In the process of simplification compliance in GST, Government has carried out lot many changes on fine evening of last day of 2018. One of the important change they have brought is changes in Annual return GSTR-9 . I have made analysis of changes there in for quick reference :

Comparative Analysis of old GSTR-9 (as notified through Notification No.39/2018 dated 04th September 2018) and New GSTR-9 (as notified through Notification no.74/2018 dated 31st December 2018)

Para No.	Old GSTR-9	New GSTR-9
Part-II Table-4	Details of Outward and inward supplies declared during the financial year Details of advances, inward and outward supplies on which tax is payable  as declared in returns filed during the financial year	Details of Outward and inward supplies made during the financial year Details of advances, inward and outward supplies made during the financial year on which tax is payable
Comments	Looking to the heading of the form, it seems that reporting requirement gets changed to actual basis that is based on books of account instead of extracting details from earlier returns filed. In Old GSTR-9, reporting requirement in Part-II captures transactions of July-17 to March-18 reported in July-17 to March-18 returns and Part-V of GSTR-9 captures transactions of July-17 to March-18 reported in April-18 to Sep-18 return. But now in new GSTR-9, transactions which are not reported in returns can also be furnished in GSTR-9. The same fundamental is also proven from the fact that any additional liability can also be added and payment thereof can be made from DRC-03. But vide instruction beneath the form which says that “It may be noted that all the supplies for which payment has been made through FORM GSTR-3B between July 2017 to March 2018 shall be declared in this part-II” So again it means only those information which are reported in GSTR-3B, shall be reported in Part-II (Table-4 and Table-5). There is disconnect between heading of the form and instruction append to it. Example-1 : Taxpayer has made 100 transactions of sales during the month of August-17, out of which only 95 gets reported in GSTR-3B and GSTR-1 for the month of August-17. Rest 5 are not reported till today in any return. Please note that Now reporting requirement of such transactions in GSTR-9 as explained below: In Old GSTR-9 Since old GSTR-9 use language “as declared in return” so one will have to report only 95 transactions. Further since such transactions are not even reported in April-18 to September-18 returns, the same can not be reported in Part-V also. In New GSTR-9 As per heading, supplies made during July-17 to March-18 is 100 so all 100 can be reported in Part-II but if we go by Instruction to fill this Part-II, it says that only supplies declared in GSTR-3B can be reported. Hence again in New GSTR-9 also 95 transactions are only required to be reported same as was there in Old GSTR-9.
Table-5F	Non-GST supply	Non-GST supply (includes - No supply)
Comments	Earlier there was common instruction provided for Table 5D, 5E and 5F. As per instruction is was mentioned that “No supply” shall be declared here but it was not clarified in which table. Now it is clarified that “No Supply” transactions as mentioned in Schedule-III would be reported in Table-5F (Non-GST Supply)
Part-III Table-6	Details of ITC as declared in returns filed during the financial year Details of ITC availed as declared in returns filed during the financial year	Details of ITC for the financial year Details of ITC availed during the financial year
Comments	Same as outward supply, it seems that reporting requirement gets changed to actual basis that is based on books of account instead of extracting details from earlier returns filed. But as per instruction, it says that “taxpayers cannot claim input tax credit unclaimed during FY 2017-18 through this return.” So ITC must be claimed through GSTR-3B only. Again there is disconnect between heading of form and instruction thereon. Hence, it may be a situation that taxpayer identify certain Input tax credit of 2017-18 which is not yet claimed in GSTR-3B till today then he can not claim the same through GSTR-9. He has to furnish such ITC details in GSTR-3B till March-19 and accordingly claim the same in GSTR-9 of 2018-19 but not in GSTR-9 of 2017-18 even though such ITC is for the financial year 2017-18.
Table-7	Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year	Details of ITC Reversed and Ineligible ITC for the financial year
Comments	Since there is no conflicting instruction vis-à-vis heading of Table-7, ITC reversed in books of account and ineligible ITC claimed but not reported in GSTR-3B can be reported in GSTR-9 and resultant additional liability can be paid through DRC-03.
Changes in Instructions
Instruction 7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H	Details of input tax credit reversed due to ineligibility or reversals required under rule 37, 39,42 and 43 of the CGST Rules, 2017 shall be declared here. This column should also contain details of any input tax credit reversed under section 17(5) of the CGST Act, 2017 and details of ineligible transition credit claimed under FORM GST TRAN-I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 shall be declared in 7H.	Details of input tax credit reversed due to ineligibility or reversals required under rule 37, 39, 42 and 43 of the CGST Rules, 2017 shall be declared here. This column should also contain details of any input tax credit reversed under section 17(5) of the CGST Act, 2017 and details of ineligible transition credit claimed under FORM GST TRAN-I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 shall be declared in 7H. If the amount stated in Table 4D of FORM GSTR-3B was not Included in table 4A of FORM GSTR-3B, then no entry should be made in table 7E of FORM GSTR-9. However, if amount mentioned in table 4D of FORM GSTR-3B was included in table 4A of FORM GSTR-3B, then entry will come in 7E of FORM GSTR-9.
Comments	Ineligible credit as per section 17(5) is not getting reduced from Net ITC available in GSTR-3B but in GSTR-9 the same is getting reduced from total ITC. Hence, it is clarified that Ineligible ITC as per section 17(5) is to be reported in Table-7E of GSTR-9 only if the same is included in Table-4A of GSTR-3B. In nutshell, If no ineligible ITC availed earlier then no need to reverse it.
Instruction 8D	No Instruction given	Aggregate value of the input tax credit which was available in FORM GSTR2A (table 3 & 5 only) but not availed in FORM GSTR-3B returns shall be computed based on values of 8A, 8B and 8C. However, there may be circumstances where the credit availed in FORM GSTR-3B was greater than the credit available in FORM GSTR-2A. In such cases, the value in row 8D shall be negative.
Comments	It may possible that ITC as per GSTR-3B is more than ITC as per GSTR-2A. Now, it is clarified that in such case, there will be negative value reporting in Table-8D.
Instruction 8E and 8F	Aggregate value of the input tax credit which was available in FORM GSTR-2A (table 3 & 5 only) but not availed in any of the FORM GSTR-3B returns shall be declared here. The credit shall be classified as credit which was available and not availed or the credit was not availed as the same was ineligible. The sum total of both the rows should be equal to difference in 8D.	The credit which was available and not availed in FORM GSTR-3B and the credit was not availed in FORM GSTR-3B as the same was ineligible shall be declared here. Ideally, if 8D is positive, the sum of 8E and 8F shall be equal to 8D.
Comments	If there is difference between ITC as per GSTR-2A vs ITC as per GSTR-3B then the same will be reported in Table-8D either positive or negative. If Table-8D is positive then Instruction clarifies that sum total of ITC available but not availed (8E) and ITC available but ineligible (8F) shall be equal to Table-8D.
Instruction Table-13	Details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April to September of the current financial year or date of filing of Annual Return for the previous financial year whichever is earlier shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details.	Details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April to September of the current financial year or date of filing of Annual Return for the previous financial year whichever is earlier shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2017-18 as per second proviso to subsection (2) of section 16 but was reclaimed in FY 2018-19, the details of such ITC reclaimed shall be furnished in the annual return for FY 2018-19.
Comments	On non-payment of consideration within 180 days, ITC shall be reversed as per second proviso to section 16(2).  The same would be reclaimed on payment as per third proviso to section 16(2).  Instruction clarifies that if such ITC reclaimed in FY 2018-19, then the same will be reported in GSTR-9 of 2018-19 and not in GSTR-9 of 2017-18.
Instruction Table 17 & 18	Summary of supplies effected and received against a particular HSN code to be reported only in this table. It will be optional for taxpayers having annual turnover upto ₹ 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above ₹ 1.50 Cr but upto ₹ 5.00 Cr and at four digits’ level for taxpayers having annual turnover above ₹ 5.00 Cr. UQC details to be furnished only for supply of goods. Quantity is to be reported net of returns. Table 12 of FORM GSTR-1 may be used for filling up details in Table 17.	Summary of supplies effected and received against a particular HSN code to be reported only in this table. It will be optional for taxpayers having annual turnover upto ₹ 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above ₹ 1.50 Cr but upto ₹ 5.00 Cr and at four digits‘ level for taxpayers having annual turnover above ₹ 5.00 Cr. UQC details to be furnished only for supply of goods. Quantity is to be reported net of returns. Table 12 of FORM GSTR1 may be used for filling up details in Table 17. It may be noted that this summary details are required to be declared only for those inward supplies which in value independently account for 10 % or more of the total value of inward supplies.
Comments	Reporting of HSN wise summary of inward supply is very cumbersome process. To grant relief to this requirement, it is clarified that only those inward supply HSN summary is required to be reported which in value independently account for 10 % or more of the total value of inward supplies.
At the end of return	No such provision	Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select ―Annual Return in the drop down provided in FORM DRC-03. It may be noted that such liability can be paid through Electronic cash ledger only.
Comments	Since in GSTR-9, now additional liability can also be reported, it is clarified that such additional liability can be paid through DRC-03. To make payment through DRC-03, no ITC can be used. Payment needs to be made through cash only. This provision is against section 49(4) where additional tax liability can be paid through ITC also.