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Weekend MCQ Self Challenge #022 – Key Highlights of FORM GSTR – 9C

Key Highlights of FORM GSTR – 9C

 

Dear Professional Seniors & Friends,
Welcome to this wonderful weekend MCQ self challenge!

This weekend challenge is on Key Highlights of GSTR-9C having 5 MCQs to be self answered by participants to take self challenge. The detailed answer of these MCQs shall be posted on Monday for the self assessment of the participants. This post shall be of immense use of the participant.

MCQ 22.1: Reconciliation Statement under Form 9-C shall be done after the preparation of

A. Audited Financial Statement.
B. Annual Return of GST.
C. Tax Audit.
D. Both A and B.

MCQ 22.2: XYZ having business operations in Gurgaon & Gujarat are having different registrations at different places. Reconciliation Statement in form GSTR-9C shall be filed

A. Separately for different registrations.
B. Single Statement for all the registrations.
C. At the option of the auditor.
D. None of the above.

MCQ 22.3: XYZ having turnover of Rs 2.5 crores have get the statutory audit done by Mr.A while the tax audit has been completed by Mr.C. Who can certify the Form 9C of entity?

A. Mr. A
B. Mr. C
C. Any Chartered accountant or Cost Accountant
D. Anyone among Mr. A & Mr. C

MCQ 22.4: At the End of Reconciliation statement in Form 9C, auditor shall recommend on the additional liability to be discharged by the taxpayer.

A. It is mandatory for the taxpayer to pay the taxes.
B. Taxpayers shall be given an option to pay their taxes recommended by auditor.
C. Tax payer can adjust the tax liability in next return.
D. B or C.

MCQ 22.5: Reconciliation of Turnover from the Annual Return shall include

A. Deduction of Turnover under Composition Scheme
B. Deduction of Turnover from April 2017 to June 2017
C. Adjustments in Turnover due to Exchange rate Fluctuation
D. All of the Above

Sincere Regards!

CA Sanjay Kumar Agrawal
Mobile: 9810116321

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Answer MCQ Self Challenge #022

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

Answer MCQ 22.1: D) Both A and B

 

Answer MCQ 22.2: A) Separately for different registrations.

 

Answer MCQ 22.3: C) Any Chartered accountant or Cost Accountant

Answer MCQ 22.4: B) Taxpayers shall be given an option to pay their taxes recommended by auditor.

 

Answer MCQ 22.5: D) All of the Above

 

Practical Analysis for MCQ 22.1 to 22.5:

 

  • According to Section 35(5) of the CGST Act, every registered person whose turnover during a financial year exceeds the prescribed limit (presently Two crore rupees) shall get his accounts audited by a Chartered Accountant or a Cost Accountant and shall submit a copy of the audited annual accounts along with a reconciliation statement (reconciling the value of supplies declared in return with audited annual financial statements)

 

  • Government vide Notification No. 49/2218 inserted a form GSTR-9C in the form of reconciliation statement under Rule 80(3) which shall be accompany with Audit report under GSTR-9.

 

Some of the key highlights of the Form GSTR-9C are as under –

 

  1. The GSTR-9C is made for reconciliation between various aspects of books of accounts and GST return. One such aspect is sales turnover. In form GSTR-9C, reconciliation of turnover reported in audited annual financial statements and turnover reported in Form GSTR-9 shall be made.

 

  1. Further, form requires every registered person to insert GSTIN(not PAN) which makes it imperative to filed the Form GSTR-9C separately for separate registrations irrespective of same PAN.

 

  1. In cases where there are multiple GSTIN’s are hold by person, then they will have to internally derive their GSTIn wiuse turnover from audited financial statements and declare the same in this form.

 

  1. Also Part-B of form is relating to certification by an independent auditor. But Part-B consist of 2 parts, first relating to certification by a person who had conducted the audit, second relating to certification by a person who had not conducted the audit. This makes it clear that the GSTR-9C can be filed by anyone and it is not required to be filed by statutory auditor or tax auditor.

 

  1. Part V consists of the auditor’s recommendation on the additional liability that is to be discharged by the tax payer due to non-reconciliation of Input Tax Credit. The Auditor shall also recommend if there is any amount to be paid for the supplies not included in the annual return. Any refund which has been erroneously taken and shall be paid back to the government shall also be declared in the table. Lastly any other outstanding demands which is recommended to be settled by the auditor shall be declared in this table.

 

  1. Towards, the end of Reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor.

 

  1. As per point 5 of the said form shall include Reconciliation of Turnover declared in the audited financial statements with the turnover declared in the annual return (GSTR-9)
  • Deduction of Turnover from April 2017 to June 2017 – Since No GST is applicable for the said period.
  • Deduction of Unbilled Revenue at the end of Financial year – Since Unbilled Revenue was recorded in the books of accounts on the basis of accrual system of accounting but the same has not been considered in the GST return.
  • Adjustments in Turnover due to foreign exchange fluctuation – These are not considered in determining Taxable turnover for the purpose of GST.
  • Deduction for the Turnover in Composition scheme – As separate Form 9A is to prepared by Taxpayers under Composition Scheme.

 

 

  • Based on the Analysis of Point A & B, Correct Answer to MCQ 22.1: D) Both A and B
  • Based on the Analysis of Point A, B & C ,Correct Answer to MCQ 2: A) Separately for different registrations.
  • Based on the Analysis of Point D, Correct Answer to MCQ 22.3: C) Any Chartered accountant or Cost Accountant
  • Based on the Analysis of Point E & F, Correct Answer to MCQ 22.4: B) Taxpayers shall be given an option to pay their taxes recommended by auditor.
  • Based on the Analysis of Point G, Correct Answer to MCQ 22.5: D) All of the above.

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

 

CA Sanjay Kumar Agrawal

Mobile: 9810116321

 

To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal

 

For All MCQ post please click on:

Webpage: http://www.casanjay.me/

Facebook: https://www.facebook.com/CA.Sanjay.K.Agrawal/

Linkedin: https://www.linkedin.com/in/ca-sanjay-kumar-agrawal/

 

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