Since July 1, 2017, India's GST (Goods and Services Tax) has replaced several indirect taxes imposed by the state and federal governments. Every financial year, registered taxpayers must submit a complete GST annual return.
According to the Goods and Services Tax Act, a yearly return must be filed with the government. GST-registered people, including composition-taxable individuals, must submit a yearly GST return.
The following individuals are exempt from submitting a yearly GST return:
- Input service providers,
- Casual (occasional) Taxable Persons,
- Persons Paying Tax (TDS), and
- Non-resident taxable persons.
Did You Know? The yearly GST return contains consolidated information on transactions, purchases made during the year, and taxes paid by registered taxpayers.
GST Annual Return
Businesses registered for GST must submit the GST annual return to reconcile the specifics of their purchases and transactions made throughout the fiscal year. The annual return for fiscal year 2022–23, from April 1 to March 31, 2023, is usually due before December 31, 2023.
The GST yearly return includes details like inward and outward supplies, input tax credits used, taxes paid, and refund claims. Businesses must ensure that all the information given is accurate and complete when filing the return online via the GST portal. Businesses must submit the standard GST annual return if their revenue exceeds ₹5 crores.
Also Read: GST Rates in 2022 – List of GST Rates, Slab and Revision
Types of GST Annual Returns
Based on their annual revenue and business activities, businesses can submit one of three kinds of GST returns - GSTR-9, GSTR-9A, or GSTR-9C.
1. GSTR-9
Businesses with a yearly revenue of more than ₹5 crores must submit GSTR-9, the annual return form.
2. GSTR-9A
Businesses that selected the GST composition scheme during the financial year must use the GSTR-9A form.
3. GSTR-9C
Businesses with a turnover of more than ₹5 crores must submit the GSTR-9C reconciliation statement with their yearly return. The audited yearly financial statements and certification from a chartered accountant or cost accountant are included in the reconciliation statement.
How to File GST Annual Return?
To file the GST annual return, follow the steps below:
Step 1: Log in to the GST portal using your registered credentials.
Step 2: Go to the 'Services' section and click 'Returns Dashboard.'
Step 3: Select the financial year for which you want to file the annual return and click on 'Annual Return.'
Step 4: GST annual returns have two components - GSTR-9 and GSTR-9C. Select the appropriate option based on your eligibility and click 'Prepare Online.'
Step 5: Fill in the required details in the respective sections of the form. The details include the taxpayer's turnover, outward and inward supplies, input tax credit, tax liability, and tax paid during the financial year.
Step 6: Review the details entered and make any necessary corrections or modifications.
Step 7: Once satisfied with the details entered, click 'Preview' to view the annual return summary.
Step 8: If the summary is accurate, click 'File GSTR-9' or 'File GSTR-9C' and select the appropriate verification option.
Step 9: Finally, sign the return using a digital signature or an Electronic Verification Code (EVC) and submit it.
Also Read: GSTR 9: Annual Return Filing, Format, Eligibility and Rules
Late Fee on GST Return (Deadline)
It's important to note that the GST annual return must be filed within the due date to avoid penalties. Additionally, if you need assistance filing the GST annual return, you can engage the services of a tax professional or a GST practitioner.
A late filing fee will be charged to taxpayers who fail to submit their GST annual return (GSTR-9) by the deadline. The GSTR-9 late filing charge is ₹200 per day after the due date, up to a maximum of 0.25% of the taxpayer's revenue for the applicable financial year.
For instance, if a taxpayer submitted their return on January 15th, but the GSTR-9 due date is December 31st, they would have filed their return 15 days later. The late filing charge in this situation would be ₹3,000. (15 days x Rs. 200 per day).
The utmost late filing fine that may be assessed is 0.25% of the taxpayer's turnover, which should be noted. For instance, the maximum late filing fee a taxpayer would be required to pay would be ₹12,500 (0.25% of ₹50 lakhs) if their turnover for the applicable financial year is ₹50 lakhs.
Submitting the GST annual return by the deadline is always wise to avoid late filing fees and other penalties.
Due Date for Filing a Return
Depending on the financial year the return is being submitted, different dates apply for filing the GST annual return (GSTR-9) in India. The deadline for submitting the GST yearly return for the fiscal year 2021–2022 is December 31, 2023.
Submitting the GST annual return by the deadline is always wise to avoid late filing fees and other penalties. Furthermore, you can hire a tax expert or a GST practitioner if you require assistance submitting the GST yearly return.
Parts of GSTR-9
A taxpayer's outward supplies, inward supplies, input tax credit, and tax obligation for a given financial year are all summarised on the GSTR-9, a thorough return form. GSTR-9 has the following significant components:
Part-I
This part gives the taxpayer's basic information, including name, address, and GSTIN for the fiscal year being reported.
Part II
This part includes information on the taxpayer's outward supplies during the fiscal year, including credit/debit notes, B2B invoices, and advances received.
Part III
This part contains information about the inward supplies that the taxpayer got during the fiscal year. This includes B2B invoices, credit/debit notes, and paid advances.
Part IV
This part includes information about input tax credits (ITCs) claimed throughout the fiscal year, including reversed ITCs and ITCs claimed on purchases.
Part-V
It includes information about the taxpayer's tax obligations for the fiscal year. This includes taxes due on outward supplies and taxes owed after ITC adjustments.
Part VI
This section contains information about ITCs taxpayers got during the fiscal year but later claimed.
Part VII
This part includes information about the taxpayer's demands and refunds throughout the fiscal year. This includes refunds sanctioned, rejected, and claimed.
Part-VIII
The information in this part summarises the taxpayer's HSN-wise outward and inward supplies for the fiscal year.
Part-IX
This part contains information about the differential tax that the taxpayer paid as a result of corrections made to GSTR-1 or GSTR-3B returns submitted for the prior fiscal year.
Part-X
The information in this part pertains to the taxpayer's annual turnover for the fiscal year as stated in the GSTR-1 or GSTR-3B returns submitted for the fiscal year.
It is significant to note that to prevent penalties or other legal repercussions, taxpayers must provide accurate and comprehensive information in all sections of GSTR-9.
Also Read: All About GST Audit For Taxpayers With Annual Turnover Above Rs. 2 Crores
Changes in GST Rates with Effect from 1st March 2023
On February 28, 2023, the central board of indirect taxes and customs (CBIC) published two notices regarding central food tax (Rate) notices and one regarding compensation cess (Rate). These are the adjustments to the GST rate previously revealed at the 49th GST Council meeting on February 18, 2023. These GST rate changes will take effect on March 1, 2023.
Following notification No. 04/2023-Central Tax (Rate), rab, also known as liquid jaggery, is exempt when distributed loose or without packing. With this modification, the GST rate on rab/liquid jaggery has been reduced from 18% to nil for freely marketed rab. Furthermore, the GST rate on rab supplied pre-packaged and labelled has been reduced from 18% to 5% by notification No. 03/2023-Central tax (rate).
On February 28, 2023, the government revised notification no. 01/2023-central tax (rate), extending GST exemption to another service. The national testing agency (NTA), which administers entrance exams for admission to educational institutions and any other Board, authority, or agency established by the central or state governments, will be regarded as an educational establishment. The exemption will only be considered for the specific purpose of offering these services and no other.
Conclusion
When submitting GST returns, both taxpayers and professionals encounter numerous challenges. Technical problems and ambiguous regulations are to blame for this.
An annual return, which is more thorough than monthly returns, must be filed by a regular individual. It is necessary to reconcile all expenditures separately and provide information on tax-free and exempt supplies and ITCs used to offset inputs, input services, and capital goods.
HSN for inward supplies must be included in the annual report GSTR 9; the monthly GSTR 3B does not need to include this information.
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