GST Annual Return

What is GSTR-9 Annual Return?

GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGSTand IGST. It consolidates the information furnished in the monthly/quarterly returns during the year.

  1. Reconciliation of the books of accounts and tax invoices are issued during the period is of utmost importance; this should match the turnover declared in the audited financial statements.

  2. It is important for the figures in the books of accounts and the invoices to match or else the GST paid will be incorrect. Along with the invoices, debit and credit notes shall also be in agreement with books of accounts.

  3. Stock transfer between the units/branches of the company should be matched with the books of accounts to avoid any discrepancy in the stock-in-hand balance of the books and that of the GST data.

  4. Matching of e-way bill data with the tax invoices issued during the period is also very necessary. The e-way bill data state-wise should be carefully mapped with the invoices to keep track of the goods transported and GST paid thereon.

  5. Taxpayers should ensure that all the purchase & other service invoices are accounted for in the books of accounts and input tax credit has been duly availed. Any disparity between the input tax credit claimed and tax paid on purchase . will result in an incorrect claim of ITC in GST returns.

  6. Once the purchase invoices are in agreement with the books of accounts, the taxpayers should ensure that the purchase data is duly uploaded by the suppliers; this data will be reflected in the GSTR-2A form.

  7. Before going forward with filing the annual returns, the taxpayers should reconcile all the monthly or quarterly GST returns with the books of accounts. The taxable, exempted and non-GST turnover should be carefully matched. Any difference should be immediately corrected.

  8. Ensure that the invoices on which input tax credit has been claimed should be paid within 180 days to the suppliers. If not, the credit availed on the same will be reversed and the taxpayers will be liable to pay such amount along with the interest and penalty if any.

  9. While reconciliation the GST paid by electronic cash or credit ledger, the taxpayers should also account for GST paid under Reverse Charge Mechanism (RCM) on the applicable expenses.

  10. The rationale behind the filing of the annual return is to consolidate and declare all the information furnished in the monthly or quarterly GST returns during the year.

What are Different Sorts of Annual GST Returns?

  1. GSTR 9 for regular taxpayer filing GSTR-1, GSTR-2, and GSTR-3
  2. GSTR 9A for composition scheme taxpayers
  3. GSTR 9B for e-commerce businesses who have filed GSTR 8
  4. GSTR 9C for those having annual turnover cross Rs. 2 crores must have to GST Audit Report

GSTR 9 Form Filing Due Date

  1. 31st December of next financial year

How to File GSTR 9

  1. GSTIN:Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). The GSTIN of the taxpayer will be auto-populated at the time of return filing.

  2. Legal name of the registered person: The name of the taxpayer will be auto-populated at the time of logging into the GST Portal. Table 2 has a sub-section called 2C, which states whether the registered person is liable to do statutory audit. It is to be noted, that statutory audit is compulsory in case of companies and in the case of Individual / HUF, if the turnover exceeds INR 2 Crore.

  3. Date of Statutory Audit: Date of the statutory audit, needs to be mentioned in this section.

  4. Auditors: The name of the auditors of the entity who have audited the accounts of the entity, need to be mentioned here.

  5. Details of Expenditure: Details of goods and services purchased during the financial year must be provided in this section. Such information needs to be provided along with the HSN/SAC codes applicable and the taxable value of such goods and services, which shall be obtained from Form GSTR-2. This information is divided into the following heads

  6. Details of Income: Details of all supplies and sales made during the year needs to be provided in this section. Such details are also mentioned in Form GSTR-1 . This information is divided into the following heads:

  7. Return Reconciliation Statement: After furnishing all the information, the system will auto-reconcile the transactions and will determine the tax liability payable against the tax actually paid. The system will also populate the amount of tax difference, interest and penalty, if any.

  8. Other: If there is any other payable, the same will be auto-populated in this section. It may include arrears or any liability because of the assessment.

  9. Profit as per the Profit and Loss Statement: In this section, one needs to mention the break-up of gross-profit, profit after tax and net profit.

Late Fees if Annual Return not filed on time

If the GSTR-9 return is not filed on time, then a penalty of INR 100 per day under CGST & INR 100 per day under SGST shall be levied i.e. a total of INR 200 per day. However, the maximum of such a penalty will be an amount calculated at a quarter percent of the total taxpayer turnover in the respective State or Union Territory. There is no late fees however on IGST.
Along with late fees, an interest has to be paid at the rate of 18% per annum, and will be calculated by the taxpayer on amount of outstanding tax to be paid.