Home GST A Guide to Filing GST Annual Returns (GSTR-9)

A Guide to Filing GST Annual Returns (GSTR-9)

by Abhimanyu Dhamija

What is GSTR 9?

The GSTR 9 is a statement that a registered taxpayer needs to file once every year. This statement mentions the details of all supplies that the concerned businessperson has received and made throughout the year under the multiple tax heads (CGST, SGST and IGST). It also contains details of the turnover and the audits for the same.

The government has introduced a GSTR 9C audit form. Taxpayers, who have a turnover of more than Rs 2 crores, need to file this GST Annual Return. This is a statement of reconciliation between the annual returns which the taxpayer has filed in GSTR 9 and his/her audited annual financial statements.

The GST Council held its 37th meeting in Goa, India on September 20, 2019, under the chairpersonship of Ms. Nirmala Sitharaman, Minister of Finance, Govt. of India. In this meeting, the Council proposed that businesses with a turnover of up to Rs 2 crores (for Financial years 2017-18 & 2018-19) can choose not to file GSTR 9. The Central Board of Indirect taxes and Customs (CBIC) will issue a notification regarding the date from when they can stop filing this GST Annual Return.

The Council also decided that the last day to file this statement is December 31 of the following year. So, if you are filing this for 2019, then you have to do it by December 31, 2020.

If you fail to file the GST Annual Return within the stipulated time, then you have to pay a penalty – Rs 100/day under CGST & Rs 100/day under SGST. The upper limit for penalty is Rs 5000. You also have to pay 18% interest on outstanding tax payments.

Who needs to file GSTR 9?

 

As a businessperson, you would need to file the GSTR 9, if you meet the following terms & conditions:

  • You have registered yourself as a taxpayer under GST, and you also have the 15 digit GSTIN or you are a non-resident taxpayer. Businesspersons who have a Unique Identification Number (UIN) need not file this return.
  • Your business turnover is more than Rs 20 lakhs.
  • You must ensure that you have precisely captured all the relevant points pertaining to the transactions you have carried out throughout the year, at the invoice level. Intra-state, inter-state, B2B, B2C – all these transactions come under its purview. If you have transferred stock between your multiple business locations across different states or your transactions relate to exempted items, then you need to capture their details too.

Types Of GSTR 9 Forms

Form number To be filled by
GSTR 9 Taxpayers who file GSTR-1 & GSTR-3B
GSTR-9A Taxpayers who chose GST Composition Scheme
GSTR-9B E-commerce businesses who file GSTR 8
GSTR-9C Taxpayers who have a turnover of Rs 2 crores +

How To File GSTR 9

When you file the GSTR 9, you have to provide a range of information – about your inward & outward supplies, Input Tax Credit (ITC), tax paid and all those factors which have an effect on your tax liability for the entire year.

 

There are six parts to the form. We will now take a look at what details you need to fill in which part.

Part 1

In this part, you have to enter the basic information – like the financial year under consideration, your GSTIN, legal name, and trade name (if you have any).

Part 2

Here, you have to provide details pertaining to the inward and outward supplies that you have declared, during the entire financial year. This part has two sections – 4 and 5.

In Section 4, you have to enter details of both B2B and B2C supplies, which attract tax liability, supply to Special Economic Zones (SEZ) on payment of tax, inward supplies which attract reverse charge tax, deemed exports, debit or credit notes issued for above-mentioned transactions.

In Section 5, you need to provide details of exempted sales supplies, non-GST supplies, supply to SEZ without payment of tax, outward supplies that attract reverse charge tax, debit or credit notes issued for the above-mentioned transactions.

Part 3

In this part, you need to furnish the ITC details that you have declared during the financial year. This part has three sections – 6, 7 and 8.

In Section 6, you have to provide the details of ITC that you have availed in the financial year on inward supplies, like B2B, B2C, imports, etc. You have to provide the breakup of inputs, input services, and capital goods.

In Section 7, you have to provide details of reversed ITC, for reasons like making exempt supplies, non-business use, etc. You also need to provide details of ITC which is ineligible.

In Section 8, you have to provide other information related to ITC. The ITC as per the GSTR-2A is auto-populated. You have to furnish details pertaining to ITC you have availed on B2B inward supplies and reclaimed ITC. You would also need to provide information about ITC available but not availed, total invalid ITC value for the financial year under consideration, etc.

Part 4

In this part, you have to enter the details of the tax that you have paid and declared in the returns that you have filed in the financial year. You need to furnish break-up of payable taxes, the tax you have paid in cash and through ITC.

Part 5

In this part, you need to provide details of those transactions which pertain to the previous financial year but which you have declared in the April-September returns of the current financial year, or the previous financial year’s GST annual return filing date – whichever is earlier.

Part 6

In the last part of GSTR 9, you have to furnish information not provided till now – like refund details (including refunds claimed, sanctioned, rejected and pending). You have to provide similar details for demands as well. You also need to enter details of HSN-wise (Harmonized System of Nomenclature) inward & outward supplies, and late fees (if any).

To file GST online, visit https://www.gst.gov.in/ and select Annual Returns. Download forms GSTR-1, GSTR-3B & GSTR 9. Then, enter the relevant tax details. Do a preview of the Draft Form GSTR-9, calculate the liabilities and pay late fees, if applicable.

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