FinMin clarifies that Taxpayers have to report only transactions of FY18-19 in GST annual return

Ministry of Finance has issued a press release on Friday, in which it has clarified that the taxpayers are required to report in the GST Annual Return GSTR-9 and GSTR-9C of 2018-19 only the values of transactions of that financial year. And the values pertaining to FY 2017-18 which may have already been reported or adjusted are to be ignored while filing Annual Return for 2018-19.

FORM GSTR-9C is a reconciliation statement between GSTR-9 and the audited annual financial statement. According to notification No. 69/2020 – Central Tax, dated 30.09.2020, the due date for furnishing of the GST Annual Return for the FY 2018-19 got extended till October 30, 2020.

Finance Ministry has mentioned in the press release that certain representations have been received stating that the auto-populated GSTR 9 for the year 2018-19 (Tables 4, 5, 6 and 7) also includes the data for FY 2017-18. However, this information for FY 2017-18 has already been furnished by the taxpayers in the annual return (GSTR-9) filed for FY 2017-18 and there is no mechanism to show the split of two years (2017-18 & 2018-19) in FORM GSTR-9 for 2018-19.

The ministry further clarified that “No adverse view would be taken in cases where there are variations in returns for taxpayers who have already filed their GSTR-9 of Financial Year 2018-19 by including the details of supplies and ITC pertaining to Financial Year 2017-18 in the Annual return for FY 2018-19.”

At last, the finance ministry has also requested to all the taxpayers to avail the benefit of the extended due date and file their Annual Return (FORM GSTR-9) at the earliest to avoid the last-minute rush. FORM GSTR-9 annual return is mandatory only for taxpayers with aggregate annual turnover above Rs.2 crores while reconciliation statement in FORM GSTR-9C is to be furnished by the registered persons having aggregate turnover above Rs.5 crores.

With Warm Regards,

CL Bureau.