GST Annual Return Filing

For businesses registered under India's Goods and Services Tax (GST) regime, GSTR-9 is a critical filing requirement. As the fiscal year ends, GSTR-9 consolidates your GST activities, ensuring transparency and accuracy in your financial records. Whether you're a regular taxpayer or a business owner, understanding the intricacies of this annual return is vital to avoid penalties and maintain compliance.

Here is a comprehensive guide for GST annual returns, focusing on essential details for filing.

What is GSTR-9 or GST annual return filing?

GSTR-9 is an annual return form that businesses registered under GST must file to provide a summary of their outward and inward supplies, tax paid, input tax credit claimed, and refunds or demand details. It consolidates all the monthly or quarterly GST returns (GSTR-1, GSTR-3B) filed during the financial year.

Who Needs to File GSTR-9?

The following businesses are required to file GSTR-9:

1. Regular taxpayers who are registered under the GST regime.
2. Taxpayers who have filed GSTR-1, GSTR-3B during the financial year.
3. Entities with an aggregate annual turnover of more than ₹2 crore.
4. Taxpayers opting for the composition scheme must file GSTR-9A, a simplified return for composition dealers.

The government has periodically exempted or relaxed the filing of GSTR-9 for smaller taxpayers (those with turnover below ₹2 crore) for certain financial years, but it is still mandatory for taxpayers with larger turnovers and specific categories like SEZ units.

What are the preconditions for Filing GSTR-9?

1. Active GST registration: The taxpayer must be registered under GST for the entire financial year.

2. GSTR-1 and GSTR-3B filing:The monthly or quarterly returns must have been filed for all periods of the financial year.

3. Reconciliation of input and output tax:Businesses must ensure that their records match the returns filed to avoid discrepancies.

4. Complete documentation:All invoices, bills, debit notes, and credit notes must be in place for accurate reporting.

Who is Exempt from Filing GSTR-9?

Certain categories of taxpayers are exempt from filing the GSTR-9 annual return under the GST regime. These include:

1. Input Service Distributors (ISD): Entities distributing input tax credit (ITC) to their branches or units are not required to file GSTR-9.
2. Casual Taxable Persons: Individuals or businesses occasionally supplying goods or services in areas where they don't have a fixed place of business.
3. Non-Resident Taxable Persons: Foreign entities or individuals supplying goods or services in India but without a fixed place of business here.
4. Persons paying tax under Section 51 (Tax Deductor at Source) or Section 52 (Tax Collector at Source): TDS and TCS entities are also exempt from filing GSTR-9.

What are the Types of GSTR-9 and Who has to file them?

Those who are exempted from filing GSTR-9 have to file for special categories of GSTR-9 depending upon the registration type of GST and nature of their business. The main types include:

GSTR-9A: This is a simplified annual return for businesses that have opted for the composition scheme under GST. These taxpayers file quarterly returns (GSTR-4) and are required to file GSTR-9A to provide an annual summary of their transactions. However, for certain financial years, the government has waived the filing of GSTR-9A for composition taxpayers.

Who Should File:

1. Composition scheme taxpayers.

GSTR-9B: E-commerce platforms that facilitate supplies of goods and services and collect TCS need to file GSTR-9B annually. This form provides a summary of all the transactions carried out via the platform and the tax collected during the financial year.

Who Should File:

1. E-commerce operators who are required to collect tax at source (TCS) under Section 52 of the GST Act.

GSTR-9C: It is a reconciliation statement, and it needs to be filed by taxpayers whose turnover exceeds ₹5 crore. It serves as an audit report that reconciles the information in GSTR-9 with the taxpayer’s audited financial statements. This return must be certified by a Chartered Accountant (CA) or a Cost Accountant.

Who Should File:

1. Taxpayers with an annual turnover exceeding ₹5 crore.
2. Any taxpayer required to undergo a GST audit.

What is the impact of shifting from regular scheme to composition scheme or vice-versa on GST-9 Filling?

If a business shifts from the regular GST scheme to the composition scheme or vice-versa in the same financial year, it has specific implications for filing GST returns.

From Regular to Composition: File GSTR-1, GSTR-3B, and GSTR-9 for the regular period; GSTR-4 and GSTR-9A for the composition period.

From Composition to Regular: File GSTR-4 and GSTR-9A for the composition period; GSTR-1, GSTR-3B, and GSTR-9 for the regular period.

What are the Basic Registration Details Needed for GSTR-9?

Before starting the GSTR-9 filing process, ensure you have the following details at hand:

1. Details of outward supplies: Information related to sales, exports, exempted supplies, and reverse charge transactions.
2. Input Tax Credit (ITC) details: Claims for ITC availed during the financial year.
3. Tax paid: As declared in the previous year's returns. It includes tax payable, tax paid in cash and tax paid through ITC.
4. Transactions of Previous Financial Year: Transactions that occurred in the previous financial year but declared in the returns filed between April to September of the current financial year.

What is the Due date of filing GSTR-9?

The due date for filing GSTR-9 is December 31 of the subsequent financial year.

What are the Penalties of filing GSTR-9 late?

If GSTR-9 is filed after the due date, a late fee of ₹200 per day (₹100 each under CGST and SGST) is applicable, subject to a maximum of 0.25% of the taxpayer’s turnover.

Why choose JKstartup360?

At JKStartup360, we go beyond just providing information. Our dedicated experts assist you at every stage of the filing process—from preparing and reconciling your financial data to ensuring timely submission and full compliance with the latest GST regulations. Let us handle the technicalities while you focus on growing your business.