QUESTION

Dear All I request you to guide on the following questions in GST 1) A dealer registered under GST Act -2017 under composition scheme has not filed Annual Return for the period 01-07-02017 to 31-03-2018. The turnover is less than 40 lakhs. It it necessary to file Annul Return for 2017-18 Can he now file Annual Return for 2018-19 and 2019-20 before the due date of 31-08-2020 without filing Annual Return for 2017-18. 2) A dealer registered under GST Act engaged in the business of Exporting goods out of India, purchase locally as well as from out of India for direct dispatch to destination. While filing GSTR-3B for June-2020 NIL Rated or Zoro Rate or Exempted Rated purchases has been wrongly shown as ten times more than actual purchase. This was noticed while filing July -2020 GSTR-3B. The party tried to rectify the mistake but GSTR-3B block for Exempted or Zore rated purchase is not accepting the negative purchase. Kindly advise how to rectify this mistake and when. With Regards Y.P.Shroff

ANSWER

Law applicable:

 Notification No. 47/2019 ' Central Tax


The Central Government, on the recommendations of the Council, hereby notifies those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees and who have not furnished the annual return under sub-section (1) of  section 44 of the said Act read with sub-rule (1) of rule 80 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules) before the due date, as the class of registered persons who shall, in respect of financial years 2017-18 and 2018-19, follow the special procedure such that the said persons shall have the option to furnish the annual return under sub-section (1) of section 44 of the said Act read with sub-rule (1) of rule 80 of the said rules:

Circular No. 124/43/2019 - GST


 As per proviso to sub-rule (1) of rule 80 of the CGST Rules, a person paying tax under section 10 is required to furnish the annual return in FORM GSTR-9A Since the said notification has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees, it is clarified that the tax payers under composition scheme, may, at their own option file FORM GSTR-9A for the said financial years before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9A for the said period.

Interpretation:  As per the above said notification read with Circular it is optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees.

 In your case turnover is  less than 40 lakhs, thus it is optional for you to file GSTR-9A. Further, you can file  Annual Return for 2018-19 and 2019-20 without filing Annual Return for 2017-18.

So far as GSTR-3B is concerned, GSTR-3B once filed cannot be rectified. You have 2 alternatives: Either adjust the amount of zero rated or exempted turnover  in subsequent months GSTR-3B or prepare a reconciliation and report the same while filing GSTR-9/9C.

Conclusion: You can file  Annual Return for 2018-19 and 2019-20 without filing Annual Return for 2017-18 GSTR-3B once filed cannot be rectified. You can adjust the excess amount by following any alternative discussed above.(Reply dt. 03.09.2020)