GST Annual Return

Introduction

Under the Goods and Services Tax (GST) framework, over 1.32 crore businesses in India have been issued GST registrations. With few exceptions, all registered entities are obligated to file an annual return, regardless of their business activity, sales volume, or profitability during the filing period. Any entity that held GST registration at any point during a financial year must submit an annual return for that year.

The annual return, known as GSTR-9, serves as a comprehensive report consolidating all business transactions for the financial year. It combines information from monthly or quarterly returns filed throughout the year, including details on outward and inward supplies under Central GST (CGST), State GST (SGST), and Integrated GST (IGST) regulations.

Form GSTR-9

GSTR-9 is an annual report that registered taxpayers are required to file. This comprehensive document encompasses details of all purchases and sales made during the year, covering various tax categories such as CGST, SGST, and IGST. It also includes a summary of total sales, purchases, and audit information for the fiscal year. It is mandatory to file GSTR-9 if the business was registered for any part of the financial year. Essentially, GSTR-9 provides an overview of a year’s worth of business transactions and tax details.

The GSTR-9 annual return consolidates all monthly and quarterly returns filed during the year, including GSTR-1, GSTR-2A, and GSTR-3B. This return, though complex, facilitates thorough reconciliation and ensures transparency in reporting.

Due Date

The due date for filing GSTR-9 is December 31 of the year following the relevant financial year. For instance, businesses must file the GSTR-9 for the financial year 2023-24 by December 31, 2024.  

Components of FORM GSTR-9

Form GSTR-9 is structured into six parts and 19 sections, requesting information that can be sourced from previously filed returns and accounting records. Key details to be included are:

• Basic details
• Annual Sales: Report total annual sales, distinguishing between taxable and non-taxable transactions.
• Purchases: Provide the annual value of inward supplies and the Input Tax Credit (ITC) claimed. These purchases should be categorized as inputs, input services, and capital goods.
• ITC Reversals: Enter details of any ITC reversals due to ineligibility.

Types of GST Annual Returns

Under Rule 80 of the CGST Rules, 2017, the following types of annual returns are prescribed:

1. FORM GSTR-9: This return is mandatory for all regular taxpayers who submit periodic returns using FORM GSTR-3B, GSTR-1, etc.
2. FORM GSTR-9A: Previously required for taxpayers under Section 10, i.e., those filing FORM GSTR-4 (composition scheme taxpayers). However, starting from the financial year 2019-20, FORM GSTR-9A is no longer required due to the introduction of Annual FORM GSTR-4.
3. FORM GSTR-9B: Applicable to e-commerce operators who must collect tax at source under Section 52, typically those filing FORM GSTR-8.
4. FORM GSTR-9C: Required for registered taxpayers with an aggregate annual turnover exceeding Rs. 5 crore. This form serves as a reconciliation statement, aligning the annual returns in GSTR-9 with audited financial statements. It must be self-certified by the registered taxpayer and is essential for entities undergoing an annual audit. It applies to taxpayers with an annual turnover above Rs. 2 crore, necessitating an annual audit of their accounts. The preparation and certification of FORM GSTR-9C are to be carried out by Chartered Accountants or Cost Accountants.

Applicability of GST Annual Return Filing

Under Section 44 of the CGST and SGST Acts, all registered persons, except those specifically exempted, are required to file the GST Annual Return using Form GSTR-9. This obligation applies to different categories of taxpayers based on their registration status and activities during the financial year. The following entities must file Form GSTR-9:

• Regular Taxpayers: Entities or individuals registered as regular taxpayers, operating under standard tax provisions, must file Form GSTR-9.
• SEZ Units and SEZ Developers: These entities are also required to submit Form GSTR-9 to ensure thorough reporting of their financial activities for the year.
• Taxpayers Transitioning from Composition Scheme: Those who have moved from the composition scheme to regular taxpayer status during the financial year must file Form GSTR-9 to reflect this change in their tax status.

Exclusions from Form GSTR-9 Filing

Certain categories of taxpayers are exempt from filing Form GSTR-9:

• Composition Taxpayers: Those under the composition scheme must file Form GSTR-9A, tailored to their specific needs, and are not required to submit Form GSTR-9.
• Casual Taxpayers: Taxpayers engaged in occasional business activities are exempt from filing Form GSTR-9.
• Non-Resident Taxpayers: Non-resident entities conducting taxable transactions in India are not obligated to file Form GSTR-9.
• Input Service Distributors (ISD) and OIDAR Service Providers: Entities operating as Input Service Distributors or providing Online Information and Database Access or Retrieval services are excluded from filing Form GSTR-9.
• Entities Deducting TDS or Collecting TCS (for FY 2017-18): Those involved in Tax Deducted at Source or Tax Collected at Source provisions were not required to file Form GSTR-9 for the financial year 2017-18.

While the GST law does not impose a turnover limit for filing Form GSTR-9, to reduce compliance burdens for smaller businesses, filing has been made optional for entities with a turnover up to Rs. 2 crore from the financial year 2017-18 onwards.

Late Fee and Penalty for Non-Filing or Late Filing of GSTR-9

Non-Filing Penalties:

• Notice for Immediate Filing: Under Section 46, the authorities may issue a notice requiring the immediate filing of GSTR-9 within 15 days.
• General Penalty: As per Section 125 of the CGST Act 2017, a penalty of up to Rs 25,000 may be imposed.

Late or Belated Filing Penalties:

According to Section 47(2) of the CGST Act 2017, the late fee for delayed filing is the lower of the following:

• Rs 100 per day
• 0.25% of turnover in the state or union territory

Additionally, a general penalty of up to Rs 25,000 as per Section 125 of the CGST Act 2017 may apply. For interstate supplies, penalties will be applicable under both CGST and SGST Acts, effectively doubling the potential late fee.

Turnover-Based Late Fees (from FY 2022-23 onwards):

1. Turnover up to Rs 5 crore: Rs 50 per day (Rs 25 each under CGST and SGST), with a maximum of 0.04% of turnover (0.02% each under CGST and SGST).
2. Turnover between Rs 5 crore and Rs 20 crore: Rs 100 per day (Rs 50 each under CGST and SGST), with a maximum of 0.04% of turnover (0.02% each under CGST and SGST).
3. Turnover above Rs 20 crore: Rs 200 per day (Rs 100 each under CGST and SGST), with a maximum of 0.50% of turnover (0.25% each under CGST and SGST).

For financial years up to 2021-22, the late fee was Rs 100 per day for each act (CGST and SGST), totalling Rs 200 per day. The maximum penalty was capped at 0.25% of the turnover in the relevant state or union territory per act. It is noteworthy that no late fee applies to IGST for the time being.

GSTR-9 Format Explained

The structure of FORM GSTR-9 is divided into six comprehensive parts, covering all necessary details of supplies made or received from July 2017 to March 2018. The information required in each part is consolidated to ensure thorough reporting.

Part I: Basic Registration Details This section collects fundamental registration information such as the fiscal year, GSTIN, legal name, and trade name. These details are pre-filled when accessing GSTR-9 on the GST portal.

• Table 1: Financial Year
• Table 2: GSTIN
• Table 3A: Legal Name
• Table 3B: Trade Name (if any)
• Table 4: Details of advances, inward and outward supplies on which tax is payable
• Table 5: Details of advances, inward and outward supplies on which tax is not payable

Part II: Details of Outward Supplies This part consolidates details of outward supplies as declared in your returns for the financial year. It is divided into two sections:

• Tables 4A to 4L: Supplies on which tax is payable, including taxable supplies, exports, supplies to SEZ, reverse charge, and advances received.
• Tables 5A to 5K: Supplies on which tax is not payable, covering exports, exempt supplies, nil-rated supplies, and non-GST supplies.

Part III: Input Tax Credit (ITC) This section consists of three subsections:

• Tables 6A to 6O: ITC availed as declared in returns, detailing ITC availed on various inward supplies.
• Tables 7A to 7H: ITC reversed and ineligible ITC.
• Tables 8A to 8J: Other ITC-related information, including ITC as per GSTR-2A and reclaimed ITC.

Part IV: Tax Paid Here, you’ll provide details of tax paid as declared in the previous year’s returns, including a breakup of tax payable, paid in cash, and paid through ITC.

• Table 9: Details of tax paid as declared in returns filed during the financial year

Part V: Transactions of Previous Financial Year This part captures transactions from the previous financial year but declared in the returns of April to September of the current financial year.

• Table 10: Supplies/tax declared through amendments (+) (net of debit notes)
• Table 11: Supplies/tax reduced through amendments (-) (net of credit notes)

Part VI: Miscellaneous Details This section includes details about demands, refunds, supplies from composition dealers, an HSN-wise summary of supplies, and late fee information.

• Table 12: Reversal of ITC availed during the previous financial year
• Table 13: ITC availed for the previous financial year
• Table 14: Differential tax paid on account of declaration in Table 10 and 11
• Table 15: Particulars of demands and refunds
• Table 16: Information on supplies received from composition taxpayers, deemed supply under Section 143, and goods sent on approval basis
• Table 17: HSN-wise summary of outward supplies
• Table 18: HSN-wise summary of inward supplies
• Table 19: Late fee payable and paid

At the end of the return, taxpayers have the option to pay any additional liability declared in this form through FORM DRC-03 by selecting “Annual Return” in the dropdown provided.

Conclusion

Filing GSTR-9 is essential for businesses to stay compliant with GST rules. The form’s detailed structure, broken into six parts, helps capture all critical information about a company’s transactions and tax details throughout the year. Meeting the deadlines and providing accurate data helps businesses avoid penalties and ensures they remain in good standing with tax authorities. By completing GSTR-9 correctly, businesses not only comply with regulations but also contribute to a transparent and efficient tax system.

Frequently Asked Questions (FAQs)

What are the consequences of not filing GSTR-9 by the due date?

If GSTR-9 is not filed by the due date, a late fee and penalties can be imposed. The authorities may also issue a notice under Section 46 requiring immediate filing.

Can GSTR-9 be revised after filing?

No, once GSTR-9 is filed, it cannot be revised. Ensure all information is accurate before submission.

Is it mandatory for all businesses to file GSTR-9?

No, filing GSTR-9 is not mandatory for businesses with a turnover up to Rs 2 crore for the relevant financial year.

What should I do if there are discrepancies between my GSTR-9 and GSTR-1, GSTR-3B?

Discrepancies should be reconciled, and necessary adjustments should be made in the annual return to ensure accurate reporting.

How is the late fee for delayed filing of GSTR-9 calculated?

The late fee is calculated as Rs 200 per day (Rs 100 each under CGST and SGST) or 0.25% of the turnover in the state/UT, whichever is lower.

Are there any exemptions for filing GSTR-9?

Yes, casual taxpayers, non-resident taxpayers, input service distributors, and taxpayers under the composition scheme are exempt from filing GSTR-9.

What information is pre-filled in GSTR-9?

Basic registration details like GSTIN, legal name, and trade name are pre-filled based on the GST portal records.

How do I report ITC reversals in GSTR-9?

ITC reversals should be reported in Table 7 of GSTR-9, detailing the ITC reversed and any ineligible ITC.

What is the significance of Table 8 in GSTR-9?

Table 8 provides details of ITC as per GSTR-2A, ITC claimed in the annual return, and any discrepancies between the two.

Can a taxpayer pay additional liability while filing GSTR-9?

Yes, any additional liability can be paid through FORM DRC-03 by selecting “Annual Return” in the dropdown.

How are transactions of the previous financial year reported in GSTR-9?

Transactions of the previous financial year, declared in returns from April to September of the current financial year, are reported in Part V.

What are the common errors to avoid while filing GSTR-9?

Common errors include incorrect ITC claims, mismatches between GSTR-1 and GSTR-3B, and failure to reconcile outward and inward supplies.

How should I report amendments in GSTR-9?

Amendments are reported in Table 10 and Table 11, detailing supplies/tax declared or reduced through amendments.

Is an HSN-wise summary mandatory in GSTR-9?

Yes, an HSN-wise summary of outward and inward supplies must be provided in Tables 17 and 18.

What should I do if I miss reporting a transaction in GSTR-9?

If a transaction is missed, it should be reported in the annual return for the next financial year. However, it cannot be added once GSTR-9 is filed for the current year.