The Goods and Services Tax (GST) regime was implemented in India from 1st July 2017. Under GST laws, barring few exceptions, all registered entities are required to file an Annual Return to summarize their business transactions during a financial year.
Filing GST annual returns is a compliance requirement for all registered businesses in India. The annual return summarizes all transactions undertaken during a financial year and helps consolidate information reported in the monthly/quarterly returns. Understanding the process and nuances of filing accurate annual returns by the due date is vital for GST compliance.
Who Needs to File GST Annual Return?
As per Section 44 of CGST Act 2017, every GST registered person must file annual return except:
– Input Service Distributors
– Persons paying TDS under Section 51
– Persons paying TCS under Section 52
– Casual taxable persons
– Non-resident taxable persons
Types of GST Annual Return Forms
As per Rule 80 of CGST Rules 2017, following are the different annual return forms:
i) GSTR-9: For regular taxpayers filing returns like GSTR-1, GSTR-3B etc.
ii) GSTR-9A: For composition taxpayers filing GSTR-4 earlier. It may be noted that after introduction of GSTR-4, the annual return in Form GSTR-9A is not required to be filed from FY 2019-20.
iii) GSTR-9B: For e-commerce operators collecting TCS under Section 52.
iv) GSTR-9C: For taxpayers with turnover > Rs. 5 crores. A reconciliation statement.
Due Date for Filing GST Annual Returns
As per Rule 80 of CGST Rules 2017, the due date for filing annual return for a financial year is 31st December of next financial year.
For FY 2022-23, the due date is 31st December, 2023.
Late Fee for Delay in Filing
As per Section 47(2) of CGST Act, late fee of Rs. 100 per day is applicable for delay in filing annual return, subject to a maximum of 0.25% of turnover. Total late fee under CGST + SGST is Rs. 200 per day subject to cap of 0.50% of turnover.
For small taxpayers (turnover ≤ Rs 2 crores), the late fee is capped at Rs. 25 per day and 0.02% of turnover.
Annual Return Made Optional for Small Taxpayers
Filing GSTR-9 and GSTR-9A has been made optional by Government for small taxpayers (turnover ≤ Rs 2 crores) for FY 2017-18 onwards.
Also, the threshold limit for filing reconciliation statement GSTR-9C has been increased from Rs 2 crores to Rs 5 crores.
Parts and Tables under GSTR-9
The annual return form GSTR-9 is divided into 6 Parts with 19 Tables to furnish detailed information on:
– Outward and inward taxable supplies
– Input tax credit availed and reversed
– Tax liability and payments
– Demands and refunds
– Supplies from composition dealers
– HSN-wise summary of supplies etc.
Taxpayers need to file their GSTR-1 and GSTR-3B returns before filing the GSTR-9 to report the aggregate annual turnover correctly.
Key Tables under GSTR-9
Some key tables of GSTR-9 are:
i) Table 4: Details of advances, inward and outward taxable supplies made during the year on which tax is payable
ii) Table 5: Details of non-taxable supplies made during the year
iii) Table 6: Details of input tax credit availed during the financial year
iv) Table 9: Details of tax paid as declared in GSTR-3B returns
v) Table 15: Particulars of demands and refunds
vi) Table 16: Details of supplies received from composition dealers
vii) Table 17 & 18: HSN-wise summary of outward and inward supplies
Additional Liability Payment in Annual Return
If any additional tax liability was not reported in GSTR-1 and GSTR-3B earlier, taxpayers can report and pay the extra liability in annual return GSTR-9 using DRC-03 form. However input tax credit cannot be claimed in annual return.
Contents of GSTR-9A and GSTR-9C
The annual return form GSTR-9A for composition dealers is structured into 5 Parts and 17 Tables containing details of outward and inward supplies made, tax payments, demands and refunds etc.
The reconciliation statement GSTR-9C is applicable for taxpayers with turnover exceeding Rs 5 crores. It is divided into 5 Parts with 17 Tables to reconcile the annual turnover and tax liability as per financial statements and as declared in GST returns. Additional tax liability identified is paid using DRC-03 form.
Conclusion
The annual return forms an integral part of the GST compliance framework. Taxpayers must ensure timely filing of accurate annual returns and payment of any additional liability to avoid penalties or other consequences. The annual return also provides an opportunity to reconcile and correct any discrepancies in the details furnished across the financial year. Overall, filing complete and accurate annual returns improves the GST compliance score and credibility of a business.
CBIC Information Brochure on GST Annual Returns Filing Requirement (Nov. 2023)