QUESTION

Sir, 1. We have claimed wrong credit of ITC in F.Y 2017-18 in GSTR-3B. Now we want to pay the same through DRC-03. Should we shown the same in GSTR-9 also in table-7 `other reversal`. As per press realease we can not take ITC and can not reverse ITC through GSTR-9. As per your questions asnser given in software, you have mentioned, in similiar query raised by others, that reverse the same in table-7`other reversal` and then paid through DRC-03. Please suggest. Furher you have also mentioned do not show the breakup of ITC as capital goods, input, services in table-6 but shown in table-6H` other ITC` . As per guidelines of ICAI, we have to show some other transcation in table-6H. (eg. ITC-2). Please clarify. 2. Should we shown other income in GSTR-9 or 9C like exchnage flucations, sundry balances wriiten off, interst income on FDR, provision on investment fluctaurtions, etc. 3. We have two units in different states. one state transfer stock with consideration to other state. Should we shown the same in GSTR -9C in sales recon as Deemed supply in table 5? Thanks

ANSWER

1. Press Release dt. 03.07.2019-Clarification regarding Annual Returns and Reconciliation Statement

a) Payment of any unpaid tax: Section 73 of the CGST Act provides a unique opportunity of self ' correction to all taxpayers i.e. if a taxpayer has not paid, short paid or has erroneously obtained/been granted refund or has wrongly availed or utilized input tax credit then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty shall be leviable on such taxpayer. Therefore, in cases where some information has not been furnished in the statement of outward supplies in FORM GSTR-1 or in the regular returns in FORM GSTR-3B, such taxpayers may pay the tax with interest through FORM GST DRC-03 at any time. In fact, the annual return provides an additional opportunity for such taxpayers to declare the summary of supply against which payment of tax is made.

If you have claimed wrong ITC, then pay the same through DRC-03 and report in Table 7H. Reporting in Table 7H is merely a disclosure and not a reversal. Thus there is no reversal of ITC through GSTR-9.

In case you have wrongly claimed any ITC then there is no need to show the breakup of same in Table 6B instead show the same in Table 6M as any other ITC claimed not specified above because there is no other specific column to show these wrongly claimed ITC.

2. There is no requirement to report other income like exchange fluctuations, sundry balances written off, provision on investment fluctuations, etc. in GSTR-9, however interest income on FDR shall be reported as exempt supply in Table 5D.

In GSTR-9C reporting of such above mentioned incomes is optional for FY 17-18 and FY 18-19. Difference if arises shall be reconciled in Table 5O. Although the same can also be reported in respective columns of Table 5.

3. Stock transfer between two branches in different states with consideration is supply u/s 7 and not deemed supply under Schedule I. Therefore it will be treated as normal B2B supply and should form part of the turnover.(Reply dt. 13-01-2020)