GST Registration
GST Return
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GST is a destination-based consumption tax that has been implemented in India w.e.f. 1.7.2017. The law is designed and implemented in India with an objective to automate the processes to avoid leakage of revenue, reducing the requirement of interaction between taxpayer and administration, and higher responsibility of reporting of the transaction in a very detailed manner.
Apart from monthly and quarterly returns, GST-registered taxpayers are also required to file annual returns in form GSTR-9. This article is a comprehensive guide about GST annual return filing and all you need to know about it.
GSTR-9 is an annual report that registered taxpayers must file. It summarizes all their yearly purchases and sales, along with details of taxes like CGST, SGST, and IGST. The report also includes total sales, purchases, and audit information for the year, providing a complete overview of the business’s transactions and tax data. Businesses with a turnover of up to Rs. 2 crore are not required to file GSTR-9, but they may do so voluntarily.
The requirement to file Form GSTR-9 applies to different taxpayer categories based on their registration type, GST annual return limit, and financial year activities. The following entities are required to file this annual return:
Form GSTR-9 filing is required for specific taxpayer categories, depending on their registration type, GST annual return limit, and activities within the financial year. The entities required to file this annual return include:
For this purpose government, in its original framework, required the filing of three returns monthly – GSTR 1, GSTR 2, and GSTR 3 by each registered taxable person through the GST common portal. GST entities having a turnover of 2 crores are mandatorily required to file GSTR-9.
However, because of technical glitches and under-preparedness of the IT infrastructure, it could not be possible to put in place filing of all these Returns. This was also owing to the fact that there were hue and cry in the initial phase of GST implementation where taxpayers were also grappling with the challenges of the understanding the substantial provisions of the law + making continuous compliance of the law.
HSN wise details of input tax credits availed for inputs, services and capital goods is required to be disclosed based upon these criterias
Rule 80 of the CGST Rules lays down the manner in which Annual Return is required to be filed by the registered persons.
As per section 44 of CGST Act, Annual returns must be filed on or before the 31st day of December following the end of the financial year, for which the return is being filed for all category of taxable person.
All taxpayers must file the GSTR-9 form by the GST annual return due date. Missing this deadline results in a penalty of 200 INR per day, split as 100 INR for CGST and 100 INR for SGST, with no late fee for IGST. However, the total penalty will not exceed the taxpayer's quarterly turnover.
The Option of amendment of Annual Returns has not been provided under section 44 or rule 80. Thus, it appears that once the annual returns are filed, it would be considered as final and no further amendment would be possible.
Before filing GSTR-9, taxpayers must complete all other required GST filings, such as GSTR-1, GSTR-3B, or GSTR-4, based on their classification. Any outstanding dues should be settled, as unpaid amounts can prevent the taxpayer from submitting their annual GST return.
The requirement to submit documents does not depend upon the filing of Annual Returns. Rather, it is linked to the applicability of getting your accounts audited. In GST liability for audit is governed by section 35(5) of the CGST Act 2017. As per the section, every registered person whose turnover during the financial year exceeds Rs 2 crore shall get his books of accounts audited.
Further, as per Section 44 (2) of the Act, every person who is required to get his accounts audited shall furnish the Annual Return along with the following documents-
All registered person except mentioned in section 44(1) of the CGST act are required to file annual returns. A person having multiple GSTINs shall be considered a distinct person for each GSTIN. Which means, he needs to file Annual Returns separately for each GSTIN. For Example, A company having 25 registrations across different states in India, would be required to file 25 Annual Returns for the Financial Year 2017-18.
The GSTR-9 form is organized into six parts, each capturing key details of supplies made or received from July 2017 to March 2018. The information across all six parts is consolidated, providing a comprehensive view of the financial year’s transactions.
Part-1: Basic Registration Details
This section includes basic registration information, such as the fiscal year, GSTIN, legal name, and trade name, which are auto-filled on the GST portal when GSTR-9 is accessed.
Part-2: Details of Outward Supplies
Here, you’ll consolidate details of outward supplies reported in your returns:
Part-3: Input Tax Credit (ITC)
This part is divided into three sections:
Part-4: Tax Paid
Summarizes tax paid as reported in the previous year’s returns, including a breakdown of tax payable, payments made in cash, and payments made through ITC.
Part-5: Transactions from the Previous Financial Year
This section covers previous financial year transactions that were reported in returns from April to September of the current financial year.
Part-6: Miscellaneous Details
Provides information on demands, refunds, supplies from composition dealers, an HSN-wise summary of supplies, and any applicable late fees.
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Under Section 47(2) of the Central Goods and Services Tax Act (2017), individuals who fail to file GSTR-9 by the due date will face a penalty of INR 100 per day for CGST and INR 100 per day for SGST, totaling INR 200 per day. However, the maximum penalty imposed cannot exceed 0.25% of the total turnover.
Every taxpayer who has opted out of the composition scheme during the financial year must file GSTR-9 for the period they were a regular taxpayer.
All registered GST taxpayers must file GSTR-9 once a year. Recently, intrastate suppliers, businesses in the services sector with an annual turnover of Rs. 20 lakh, and businesses in the goods sector with an annual turnover of Rs. 40 lakh are also required to file GST annual returns.
The GSTR annual return must be filed by every GST-registered taxpayer, regardless of turnover. GSTR 9C, on the other hand, is a reconciliation statement that needs to be submitted by GST-registered taxpayers for whom an audit is mandatory.
