Format Of Annual Return Notified, Changes In Form GST ITC-04, Rationalization Of Refund Formula, Key Clarifications On Principal-Agent Relationship And Refund Related Issues

Amendment to CGST Rules

The government vide Notification No. 39/2018 - Central Tax dated 4 September 2018 has made certain key amendments to the CGST Rules as mentioned below:

• The format of GST annual return notified
  
  

  Our key preliminary observations in respect of the annual return are as given below:
  
  

  • Input Tax Credit (ITC) - To be trifurcated into ITC on inputs, capital goods and input services.
  • ITC of IGST availed on imported goods - To be reported along with IGST paid on imports.
  • HSN wise summary of inward supplies - Although GSTR 2 remains suspended, this needs to be disclosed separately in annual return.
  • Adjustments of any errors - Contrary to industry expectations, the annual return does not provide an option to adjust/amend any errors made at the time of filing periodical returns. Hence, it should be ensured that any pending adjustments/amendments on account of such mistakes are made in the return filing for September 2018,