ANNUAL RETURN GSTR-9

[Sudhir Kumar]

Instruction no. 9 of annual return GSTR-9 say that the additional liability should be paid through DRC-03 form by debiting the electroninc cash ledger. My query is that can a taxpayer not use his electronic credit ledger to settle the additional liability which come to notice at the end of the return?

[Raam Srinivasan Swaminathan Kalpathi]

The Annual Return was originally envisaged as a compilation of GSTR-3B Returns for that specific year.  This was later amended to incorporate any corrections in the monthly returns which were filed.  The instruction no. 9 was unfortunately not amended in line with para 4 of the instructions.  This needs to be suitably amended as both Sec. 49, Sec. 73 and Sec. 74r.w.r 86 allows settlement of any tax liability through Electronic Credit Ledger.  Till such time one has to live this perversity.

[Padmanathan KV]

Instruction to the form may be part of rules and hence, subordinate legislation. So, one can explore the possibility of challenging the same as ultra vires the provisions of section 49 of the Act.

Practically, you can pay the additional liability as 'voluntary payment' before filing GSTR-9.   

[Shilpi Jain]

Agree with Mr. Padmanathan. Can be paid through ITC.

AI Summary

Taxpayers Question Use of Electronic Credit Ledger for GSTR-9 Liabilities; Potential Misalignment with Sections 49, 73, 74 A query was raised regarding whether a taxpayer can use their electronic credit ledger to settle additional liabilities identified when filing the GSTR-9 annual return, instead of using the electronic cash ledger as instructed by Instruction No. 9. One response highlighted that the instruction needs amendment to align with Sections 49, 73, and 74, which allow using the Electronic Credit Ledger for tax liabilities. Another suggested challenging the instruction as ultra vires to Section 49, while a third agreed that the liability could be settled through Input Tax Credit (ITC) before filing GSTR-9.