Home GST An Overview of the GST Annual Return

An Overview of the GST Annual Return

by Abhimanyu Dhamija

What is GST

Good and Services Tax (GST) is the tax introduced by the Government of India from 1 July 2017. It subsumes various indirect taxes such as Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax Entertainment Tax, Central Excise and Value Added Tax etc. As a result, only value addition shall be taxed and the burden of the tax will be borne by the final consumer.

What are GST Returns

GST returns are the tax return forms which are to be filed by the taxpayers registered under the GST furnishing the details of the sales and purchases made during the period along with the tax collected and paid. There are two categories of GST Returns- Periodic Returns (filed for the month or the quarter) and Annual Returns (summary of periodic returns filed).

Types of GST Returns

Return Due Date Persons Required to File
GSTR-1 10th of every month All Registered Persons 
GSTR-2 15th of every month All Registered Persons
GSTR-3 20th of every month All Registered Persons
GSTR-4 18th of April, July October and January Persons registered under composition scheme
GSTR-5 20th of every month and within seven  days after expiry of the registration Non-Resident Taxable persons
GSTR-6 13th of every month Input Service Distributors
GSTR-7 10th of every month Authorities Deducting Tax at source
GSTR-8 10th of every month E-Commerce Operators
GSTR-9 31st December of Next Financial Year Registered Persons
GSTR-10

 

Within 3 months of cancellation of GST Registration Registered Persons with surrendered or cancelled GST registration
  • GSTR-2 and GSTR-3 were suspended by the Central Board of Indirect Taxes & Customs and a simplified summary return GSTR-3B was introduced.

What is GSTR-9 Annual Return

  • As seen above, it is an annual return to be filed by all registered persons by 31st December of the year following the particular financial year, i.e. for transactions undertaken during April 2018 to March 2019 the last date for filing return is 31 December 2019.
  • Kinds of GSTR-9 Annual Returns
Return Persons Required to File
GSTR-9  To be filed by regular taxpayers who have filed GSTR-1 and GSTR-3B during the financial year.
GSTR-9A Composition Taxpayers who have filed GSTR-4 during the year
GSTR-9B E-Commerce Operators who have filed GSTR-8 during the year
GSTR-9C Reconciliation statement to be filed by taxpayers whose annual turnover exceeds Rs. 2 crores during the financial year
  • However, as per the 37th GST Council Meeting Composition, dealers are not required to file annual returns in GSTR-9A for the financial years 2017-18 and 2018-19.
  • GSTR-9 and 9C date for FY 2017-18
  • 5th Feb 2020 for the States/Union Territories of Chandigarh, Delhi, Gujarat, Haryana, Jammu and Kashmir, Rajasthan, Tamil Nadu, Uttarakhand, Ladakh, Punjab
  • 7th Feb 2020 for the States/ Union Territories of Andaman and Nicobar Islands, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Goa, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Lakshadweep, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Telangana, Tripura, West Bengal, Uttar Pradesh and Others

The consequence of not filing the return within the prescribed date

  • A penalty of rupees one hundred per day of delay per act subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory is levied on the registered taxable person who files the GST Annual return after the prescribed due date.
  • This means late fees of Rs 100 under CGST, and Rs 100 under SGST will be applicable in case of delay. However, no late fee on IGST is prescribed by the Act.

Who can file GST Annual Return

Although all the registered taxpayers are required to file the return, it is not compulsory for them to file the return by themselves. They can get their return filed through a Tax Return Preparer, duly approved by the Central or the State tax administration.

However, the following are NOT required to file GST Annual Return:

  • Casual Taxable Person: A person who supplies taxable goods or services occasionally in a taxable territory where he does not have a fixed place of business.
  • Input service distributors
  • Non-resident taxable persons
  • Persons paying TDS under section 51 of the CGST Act

Details to be filled in the GSTR-9 Annual Return:

GSTR-9 is divided into 6 parts and 19 sections. A brief summary of the information to filled under each of these sections:

Part I: Basic Details:

Details of the Financial Year, GST Identification Number, Legal Name and Trade Name (if applicable) are to be mentioned in section number 1-3B under this part I

Part II: Details of outward and inward supplies declared during the financial year:

These details are to be filed under sections 4 and 5 of the return. Under Section 4 details regarding supplies made to Unregistered Persons (B2B), Registered Persons (B2C), SEZ has to be declared. Along with these details regarding the deemed exports, credit or debit notes issued in respect of the abovementioned transactions and any supplies/ taxes that are either reduced or declared through the amendments are also to be disclosed under section number 4 of Part II.

Whereas Section 5 asks for details of sales supplies for which tax is not payable, as declared in the returns filed during the financial year.

Part III: Details of Input Tax Credit (ITC) availed as declared in returns filed during the financial year:

This part is split into three sections viz section number 6 (Details of ITC availed), section 7 (Details of ITC reversed and ineligible) and section 8 (other ITC related information).

Part IV: Details of tax paid as declared in returns filed during the financial year:

Under the section 9 of part IV of the annual return, the taxpayer is required to provide information regarding the various Central, State/UT, Integrated Tax along with cess, interest, late fee and penalty paid through cash or through ITC during the financial year.

Part V: Particulars of the transactions for the last FY declared in returns of April to September of current FY or up to date of filing of annual return of previous FY, whichever is earlier:

Sections 10 – 14 requires the details to be filled regarding the various Central, State/UT, Integrated Tax on account of any supplies/ taxes that are either reduced or declared through the amendments.

Part VI: Other Information: Particulars of Demands and Refunds:

Under section 15 of part VI, you are required to fill information about demands and refunds by filling in the central and state tax, integrated tax, cess value, interest, penalty, and any late fee applicable for the total refund claimed, sanctioned, rejected, pending and paid.

Whereas under section 16, you provide information on supplies received from composition taxpayers, deemed supplies under section 143 and goods sent on approval basis.

Under sections 16 and 17, you need to provide the HSN wise summary of outward supplies and inward supplies, respectively. Section 19 applies to those taxpayers who are liable to pay late fees under central and state tax separately.

Last but not least, before filing the GSTR-9 return, the taxpayer is required to sign and authenticate the return either through a Digital Signature Certificate (DSC) or by using an Aadhar-based signature verification mechanism.

Details to be filled in the GSTR-9A Annual Return:

GSTR-9A is divided into 5 parts and 17 sections. A brief summary of the information to filled under each of these sections:

Part I: Basic Details:

Details of the Financial Year, GST Identification Number, Legal Name and Trade Name (if applicable) are to be mentioned in section number 1-3B under this part I. The duration of the composition scheme availed during the year and aggregate turnover of the last financial year is also to be provided. It is the sum total of turnover of all taxpayers registered on the same PAN.

Part II: Details of outward and inward supplies declared in returns filed during the financial year:

Section 6 requires under this part required details to be entered regarding the outward supplies on which tax is payable as per the returns filed. Whereas sections 7 and 8 require details of inward supplies on which tax is payable on reverse charge basis (net of debit/credit notes) and details of other inward supplies respectively.

Part III: Details of tax paid as declared in returns filed during the financial year:

Under the section 9 of part III of the annual return, the taxpayer is required to provide information regarding the various Central, State/UT, Integrated Tax along with cess, interest, late fee and penalty paid and payable during the financial year.

Part IV: Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to date of filing of annual return of last FY, whichever is earlier:

Sections 10 – 14 requires the details to be filled regarding the various Central, State/UT, Integrated Tax paid and payable on account of difference arising out of any supplies/ taxes that are either reduced or declared through the amendments as well as Inward supplies liable to reverse charge.

Part V: Other Information:

Under section 15 of part V, you are required to fill information about demands and refunds by filling in the central and state tax, integrated tax, cess value, interest, penalty, and any late fee applicable for the total refund claimed, sanctioned, rejected, pending and paid.

Section 16 requires the details to be entered regarding the Credit reversed on opting in the composition scheme, and Credit availed on opting out of the composition scheme. Section 17 applies to those taxpayers who are liable to pay late fees under central and state tax separately.

Last but not least, before filing the GSTR-9A return, the taxpayer is required to sign and authenticate the return either through a Digital Signature Certificate (DSC) or by using an Aadhar-based signature verification mechanism.

Details to be filled in the GSTR-9C Annual Return:

GSTR 9C is a reconciliation statement between GSTR 9 and the audited financial statement of the taxpayer for a financial year. It must be filed annually by taxpayers having a turnover exceeding Rs. 2 crores and the return must be certified by a Chartered Accountant.

GSTR-9A is divided into 5 parts, as follows:

Part I: Basic Details:

Details of the Financial Year, GST Identification Number, Legal Name and Trade Name (if applicable) are to be mentioned in section number 1-3B under this part I. The taxpayer is also required to specify if they are liable to audit under any act.

Part II: Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9):

Sections 5 and section 7 requires the details for reconciliation of Gross Turnover and Taxable Turnover respectively whereas sections 6 and 8 require recording of the reasons their unreconciled difference.

Part III: Reconciliation of tax paid:

Under this head, the reconciliation of rate wise liability (viz 5%, 8%, 12%, 18%, 28%, 3%, 0.25%, 0.10%)and amount paid thereon and reasons for un-reconciled payment of amount along with additional payment to be made is recorded.

Part IV: Reconciliation of Input Tax Credit (ITC):

Under this head, the reconciliation of ITC is done, and reasons for the unreconciled difference is noted. Also, Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of account is recorded under section 14 of Part IV.

Part V: Auditor’s recommendation on additional Liability due to non-reconciliation:

This amount to be paid in cash is mentioned rate wise.

Last but not least, before filing the GSTR-9C return, the taxpayer is required to sign and authenticate the return either through a Digital Signature Certificate (DSC) or by using an Aadhar-based signature verification mechanism.

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