Annual Return under GST: Businesses registered under GST, whether registered at any point within a specific financial year, maintained their registration throughout or for a part of a financial year, must submit an annual return for that fiscal year. This annual return serves as a comprehensive compilation, encompassing all business transactions pertaining to that particular financial year. It effectively consolidates the information provided by a taxpayer in their monthly or quarterly returns filed during the same financial year.
Persons liable to file Annual Return in GST
Persons obligated to submit the Annual Return are quite inclusive, and they encompass nearly all registered persons. Nevertheless, a few exceptions do apply. The following categories are exempt from this requirement:
(a) Input Service Distributors.
(b) Individuals paying taxes under Section 51, commonly known as TDS deductors.
(c) Individuals paying taxes under Section 52, recognized as TCS collectors.
(d) Casual Taxable Persons.
(e) Non-Residential Taxable Persons.
Types of Annual Return in GST
(a) FORM GSTR-9: This must be filed by all regular taxpayers, i.e., those who regularly file returns such as GSTR-3B, GSTR-1, and so on.
(b) FORM GSTR-9A: Specifically designed for taxpayers who pay tax under Section 10, which are the composition taxpayers.
(c) FORM GSTR-9B: This annual return is meant for E-commerce operators (ECOs) obligated to collect tax at source under Section 52. These are typically taxpayers who file regular returns in FORM GSTR-8.
(d) FORM GSTR-9C: Reserved for registered taxpayers whose Aggregate Annual Turnover during a financial year exceeds Rs. 5 Crores. This is essentially a reconciliation statement, and it’s now the responsibility of the registered person to self-certify it.
Due date of filing Annual Return
According to Rule 80 of the CGST Rules, 2017, every registered individual who is obligated to file an Annual Return for a particular financial year must complete this process by the 31st of December of the following financial year. For example, the last date for filing the Annual Return for the fiscal year 2022-23 is set for the 31st of December, 2023.
Levy of Late fee for delayed filing
As per Section 47(2) of the CGST Act, 2017, if a registered person fails to submit their Annual Return by the due date, he becomes liable to pay a late fee. This late fee amounts to Rs. 100 per day, with a maximum of 0.25% of their turnover in the respective State or Union Territory. Similar provisions exist in the State GST (SGST) Acts as well.
Therefore, in practice, the late fee for a delay in filing the Annual Return by the due date can be as high as Rs. 200 per day, capped at an amount calculated at 0.50% of their turnover in the State or Union Territory. It’s important to note that Form GSTR-9 cannot be filed without settling the late fee if it is filed after the due date.
In a recent development, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification 07/2023, which aligns with the GST Council’s recommendation for a revised late fee structure for delayed filing of Form GSTR-9, starting from the fiscal year 2022-23. This new structure offers a concessionary late fee for specific categories of registered taxpayers:
(i) For businesses with a turnover up to Rs. 5 crore, filing GSTR-9 after the due date incurs a late fee of Rs. 25 per day, with a maximum cap set at 0.02% of their turnover.
(ii) Businesses with a turnover between Rs. 5 crore and 20 crore will face a late fee of Rs. 50 per day for filing GSTR-9 after the due date, also capped at 0.02% of their turnover.
Filing of Form GSTR-9
Filing Form GSTR-9 is a structured process in GST compliance, and there are specific prerequisites that taxpayers need to meet. Here are the key points to keep in mind:
- Mandatory Filing Sequence: Before submitting a GSTR-9 return, it’s essential to ensure that Form GSTR-1 and Form GSTR-3B have been filed for all applicable periods within the relevant financial year. These are interlinked and provide a comprehensive overview of your GST transactions.
- Eligibility Conditions: To be eligible to file a GSTR-9 return, a taxpayer must meet two critical conditions:
(i) Maintain an active GSTIN (Goods and Services Tax Identification Number) during the relevant financial year as a regular taxpayer, even if it’s just for a single day.
(ii) File all applicable returns, such as Form GSTR-1/IFF and Form GSTR-3B, for the relevant financial year before proceeding with the Annual Return.
- Multiple Registrations: If a taxpayer holds multiple GST registrations under the same PAN, whether within the same state or across different states, they are obligated to file an annual return separately for each registration. This holds true regardless of whether the GSTIN was registered as a regular taxpayer for a portion or the entirety of the financial year.
- Filing Methods: Form GSTR-9 can be submitted using either a Digital Signature Certificate (DSC) or the Electronic Verification Code (EVC) for authentication. However, it’s crucial to ensure accuracy in the submission, as GSTR-9 cannot be revised after filing.
Filing Nil GSTR-9 Return
Filing a Nil Form GSTR-9 for a financial year is a straightforward process, provided you meet the following conditions:
You haven’t engaged in any outward supplies (sales).
You haven’t received any goods or services (purchases).
There are no other liabilities to report.
You haven’t claimed any credit.
You haven’t requested any refunds.
You haven’t received any demand orders.
There are no outstanding late fees or penalties to be paid, among other factors.
Payment of Tax Dues while filing GSTR-9
When you’ve successfully filed your Form GSTR-9, you’ll receive a link to access Form GST DRC-03, which is the platform for making any necessary tax payments. If you have any additional tax liabilities, these can only be settled through the utilization of funds from your Electronic Cash Ledger. If you happen to have any tax liabilities that were not reported when filing Form GSTR-3B, you can declare them within Form GSTR-9.
The process is as follows:
Any additional tax liabilities declared in Form GSTR-3B must be paid through Form GST DRC-03. In case the available cash balance in your Electronic Cash Ledger falls short of the amount required to offset these liabilities, you will see the deficit in the “Additional Cash Required” column. To address this, you can conveniently generate a challan for the additional cash by clicking on the “Create Challan” button.
Steps to file Form GSTR-9A return
- Login and Navigate to Form GSTR-9A – Annual Return for Composition Taxpayer page
- Download Form GSTR-9A and Form GSTR-4 Summary
- Enter details in various tiles
- Preview Draft Form GSTR-9A
- Compute Liabilities and Pay Late Fees (if any)
- Preview Draft Form GSTR-9A
- File Form GSTR-9A with DSC/ EVC
Filing of Form GSTR-9C
For normal taxpayers, including SEZ units and developers, whose aggregate turnover exceeds a specific threshold (Rs. 5 Crore), an essential step in GST compliance involves auditing their accounts. This audit is conducted by a Chartered Accountant or Cost Accountant, and it occurs after they have filed their annual return using Form GSTR-9. Subsequently, they are required to file Form GSTR-9C, which involves submitting a copy of their audited annual accounts and a duly certified reconciliation statement.
It’s important to note that this requirement does not apply to entities such as the Central Government, State Government, or local authorities, as their books of accounts are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing local authorities’ accounts under applicable laws.
Form GSTR-9C can only be filed after the completion of the annual return filing using Form GSTR-9.
Pre-conditions for filing Form GSTR-9C
Before you can file Form GSTR-9C, certain preconditions must be met. Here’s a simplified overview:
Active GSTIN: You should be a registered entity with a valid GSTIN.
Login Credentials: Ensure you have valid login credentials, including a User ID and password.
Filed Form GSTR-9: Your Form GSTR-9 for the relevant financial year should have been successfully filed.
Threshold Turnover: Your aggregate turnover during the financial year must surpass the threshold determined by the Government.
Audited Accounts: You should have your accounts audited in accordance with the prescribed guidelines.
To Read the User Manual on filing of GSTR-9C CLICK HERE
To Read the GSTN Advisory 611/4.11.23 CLICK HERE
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