GST Annual Returns Filing (GSTR-9/9C)

GST Annual Return Filing Overview

The Goods and Services Tax (GST) system in India replaced multiple indirect taxes with a single, unified tax structure. The main of the GST was to simplify the overall taxation process in India. One of the key compliance requirements for businesses registered under GST is the annual return filing, specifically through GSTR-9. This return acts as a detailed declaration of all the supplies made and received by a business over the financial year. It includes detailed information on transactions under various tax categories like CGST, SGST, and IGST, as well as details on turnover, purchases, and other audit-related data.

For taxpayers whose annual turnover exceeds Rs 2 crore, an additional form, GSTR-9C, is required to be filed. GSTR-9C is an audit reconciliation statement that aligns the taxpayer’s audited financial statements with the information filed in GSTR-9 to ensure accuracy and consistency between the books of accounts and the tax filings. Filing GSTR-9 is mandatory for different categories of taxpayers, including everyday taxpayers, SEZ units, developers, and those transitioning from the composition scheme. It plays a crucial role in ensuring transparency, proper tax compliance, and smooth operations within the GST framework.

What is GSTR 9?

GSTR-9 is a yearly report that registered taxpayers need to submit. This report contains everything they bought and sold throughout the year, including different taxes (like CGST, SGST, and IGST). It also covers their total sales and purchases and audit details for the year. In short, GSTR-9 summarizes a whole year’s business transactions and tax details. The GST annual return limit for businesses is Rs. 2 crore, but filing is optional for those with a turnover up to Rs. 2 crore.

GSTR 9 Applicability

The requirement to file Form GSTR-9 extends to various categories of taxpayers based on their registration status, GST annual return limit, and activities during the financial year. The following entities are subject to GSTR 9 Applicability and obligated to submit this annual return:

Normal Taxpayers: Individuals or entities registered as regular taxpayers fall under the purview of Form GSTR 9 filing. This encompasses businesses operating under standard tax provisions.

SEZ Units and SEZ Developers: Special Economic Zone (SEZ) units and SEZ developers must also submit Form GSTR-9. This ensures comprehensive reporting of their financial activities within the fiscal year.

Transition from Composition Scheme: Taxpayers who have transitioned from the composition scheme to normal taxpayer status during the financial year are mandated to file Form GSTR 9. This captures their shift from a simplified tax regime to a regular tax framework.

GST Annual Return Filing Benefits

Filing Annual GST Returns has several benefits, and some of the benefits are mentioned below:

Reclaim Input Tax Credit: Businesses may claim Input Tax Credit, which can be used to lower the tax due on sales, by quickly filing the GST Annual Return (GSTR-9).
Keeping Interest and Penalties at Bay: Prompt filing of the GSTR-9 is essential to avoid fines and interest costs. A late filing might result in a fine of up to Rs. 5,000 and interest at 18% yearly on any unpaid taxes.
Sustaining Accountability and Compliance: On-time filing of the GSTR-9 shows a company’s commitment to tax duty and compliance. This avoids notices from the GST department, cancellation of the GST, and other problems with compliance.
Match Financial Records: Businesses must match their financial records to the GST reports they file all year long using the GSTR-9 form. By showing any anomalies, this process promises correct reporting and cooperation.
Steer Clear of Business Operations Disruptions: Businesses that file the GSTR-9 on time avoid operating interruptions, including the suspension of their GST registration or the inability to claim input tax credit. In this way, business runs quickly and constantly.

Details Need for Filing the GST Annual Return

You will need the following details in order to file your GST Annual Return:

GST Registration Number
Financial Records: For correct reports, detailed records of your business’s income, spending, and deals for the financial year are needed.
GSTR-1, GSTR-2A, and GSTR-3B Filings: In order to properly prepare your GST Annual Return, copies of your monthly or quarterly GST returns are needed.
Invoices and Bills: Attach copies of all invoices and bills.
Reconciliation Statements: Include reconciliation statements to settle any differences between your books of accounts and the GST returns filed.

Filing GSTR 9A: Composition Scheme Participants

GST-registered taxpayers who have chosen to operate under the composition scheme as per the GST Act are obligated to file GSTR-9A. This return encompasses all the taxpayer previously submitted information in their quarterly returns throughout the specific fiscal year.

Eligibility Criteria Every taxpayer registered under the composition levy scheme in GST must fulfill the GSTR-9A filing requirement. However, the subsequent individuals are exempt from filing GSTR-9A:

Input Service Distributors
Non-resident taxable individuals
Individuals are subject to Tax Deducted at Source under Section 51 of the Income Tax Act.
E-commerce operators are subject to Tax Collected at Source under Section 52 of the Income Tax Act.
Casual Taxable Individuals

Filing GSTR 9C: Reconciliation Statement

Role and Requirement of GSTR-9C Form GSTR-9C serves the purpose of filing the reconciliation statement by taxpayers for a specific financial year. This form constitutes a reconciliation between the Annual Returns submitted in GSTR-9 and the figures outlined in the taxpayer’s Audited Financial Statements. The submission of this Chartered Accountant-certified form aligns with the filing of both the Annual Returns in GSTR-9 and the Audited Financial Statements. Taxpayers can fulfil this obligation through the GST portal or a designated Facilitation Centre.

Eligibility Criteria

GSTR-9C applies to taxpayers who are mandated to undergo an annual GST audit of their accounts. The form must be meticulously prepared and certified by a qualified Chartered or Cost Accountant.

What is the GSTR 9 Turnover Limit?

GSTR-9, the Annual Return, is a mandatory filing requirement for all registered regular taxpayers whose annual turnover exceeds INR 2 crores. This GSTR 9 turnover limit or threshold ensures that businesses with significant economic activity accurately report their transactions and tax liabilities. For businesses with a turnover up to Rs. 2 crore, filing GSTR 9 is optional. Each year, the GST department notifies the threshold turnover limit above which GSTR-9 must be filed.

GSTR 9 Due Date for Filing

The GSTR 9 due date for a particular financial year is 31st December of the subsequent financial year or as extended by the Government through notification from time to time.

GSTR 9 Format – Comprehensive Structure

The GSTR 9 format is divided into six parts, each capturing vital details of supplies made or received from July ’17 to March ’18. The key aspect to remember is that the information required in all six parts is consolidated.

Part-1: Basic Registration Details

Here, you’ll provide basic registration information. This includes the fiscal year, GSTIN, legal name, and trade name. These details will be automatically filled out when GSTR-9 is available on the GST portal.

Part 2: Details of Outward Supplies

In this part, you’ll consolidate details of outward supplies declared in your returns for the financial year. It’s further split into two sections:

Supplies on which tax is payable (4A to 4L): This covers taxable supplies, exports, supplies to SEZ, reverse charge, and advances received.
Supplies on which tax is not payable (5A to 5K): This includes exports, exempt supplies, nil-rated supplies, and non-GST supplies.

Part 3: Input Tax Credit (ITC)

This part has three sections:

ITC availed as declared in returns filed (6A to 6O): Breakdown of ITC availed on various inward supplies.
ITC reversed and ineligible ITC (7A to 7H): Details of ITC reversed and ineligible ITC.
Other ITC-related information (8A to 8J): Information related to ITC as per GSTR-2A, reclaimed ITC, and more.

Part-4: Tax Paid

Here, you’ll capture the tax paid as declared in the previous year’s returns. Breakup of tax payable, paid in cash, and paid through ITC is required.

Part-5: Transactions of Previous Financial Year

This part covers transactions from the previous financial year but is declared in the returns of April to September of the current financial year.

Part-6: Miscellaneous Details

In this part, you’ll provide details about demands, refunds, supplies from composition dealers, an HSN-wise summary of supplies, and late fee information.

Understanding and correctly filling these parts is crucial for accurate GSTR-9 filing. If this seems overwhelming, don’t worry! At Audit Needs, we’re here to simplify the process and guide you step by step. With our support, you can confidently navigate the GSTR-9 form and ensure accurate compliance with GST regulations.

Documents Required to File GSTR-9

To file Form GSTR-9, you will typically need the following documents:

Monthly GST Returns (GSTR-1, GSTR-2A, GSTR-3B): These documents show your monthly sales, purchases, and tax calculations. They are essential to compile accurate data for the annual return filing.

Annual Financial Statements: Your yearly profit and loss statement and balance sheet provide an overview of your financial health and are required to match your GST returns.

Reconciliation Statement (GSTR-9C): This document helps reconcile your financial data with your GST returns, ensuring accuracy and compliance.

Prerequisites for Filing GSTR-9

Taxpayer Registration: The taxpayer must be registered as a regular GST taxpayer for at least one day during the financial year in question.

Filing of GSTR-1 and GSTR-3B: Before filing the annual return (GSTR-9), the taxpayer must have filed GSTR-1 and GSTR-3B for the entire financial year. These returns provide the data required to complete GSTR-9.

Auto-Filled Tables: Some tables in GSTR 9 are auto-filled with data based on information provided in GSTR-3B and GSTR-2A:

Table 6A is auto-filled with data from GSTR-3B and is not editable.
Table 8A is auto-filled based on details from GSTR-2A and is also not editable.
Table 9, which contains details of tax paid as declared in returns filed during the financial year, will be auto-filled based on the information provided by the taxpayer in Form GSTR 3B for the relevant fiscal year.

How to File GSTR 9?

Here is the step-by-step procedure on how to file GSTR-9,

Step 1: Login and Navigate to GSTR-9

Access the official GST website and log in using your credentials.
Go to the ‘Returns Dashboard’ and click on the ‘Annual Return’ option.

Step 2: Select the Financial Year

Choose the relevant financial year (2023-2024) from the ‘File Annual Returns’ page.
Click ‘Prepare Online’ after a message appears with instructions for filing GSTR 9 either online or offline.

Step 3: Nil Return

Decide whether you want to file a Nil return by selecting ‘Yes’ or ‘No.’
If you select ‘Yes,’ ensure all specific criteria are met (no outward supply, no receipt of goods or services, no credit claimed, no refund claimed, no other liability, no demand order, and no late fees required).
If these conditions are met, proceed to calculate liabilities and file a Nil GSTR-9.
If you select ‘No’ for a Nil return, move on to the next step.

Step 4: Filling in Details

On the ‘GSTR-9 Annual Return for normal taxpayers’ page, various sections will appear requiring specific information.

Click on all three tabs to download summary details that will assist in completing different parts of GSTR-9:

GSTR-9 System Computed Summary
GSTR-1 Summary
GSTR-3B Summary

Enter the necessary details in the respective tables. The system will auto-populate data based on GSTR-1 and GSTR-3B information. If there is a +/- 20% variance in the auto-populated details, the cells will be highlighted, and a confirmation message will prompt further processing. Click ‘Yes’ to accept the details.

Step 5: Save the Data

Go back to the ‘GSTR-9 Dashboard’ and fill in all required information.
Save the data

Step 6: Preview the Draft GSTR 9

Preview the form in PDF or Excel format by clicking ‘Preview GSTR-9 (PDF)’ on the GSTR-9 dashboard.

Step 7: Computation of Liabilities and GSTR 9 Late Fees

Click ‘Compute Liabilities,’ and the GST portal will process the details provided in various tables, including calculating any GSTR 9 late fees if applicable.

Make the payment from the electronic cash ledger. If there are insufficient funds, an additional payment can be made via net banking, over the counter, or through NEFT/RTGS by creating an additional payment challan.

Step 8: Final Submission

Select the declaration check box.
Choose the authorized signatory.
A page will display two options for filing:

File with DSC: Browse and select the digital signature certificate, sign, and submit.

File with EVC: An OTP will be sent to the registered email and mobile number. Upon successful validation of the OTP, the return status changes to ‘Filed.’

Need Help Simplifying This Process? Audit Needs Can Help!

Filing GSTR-9 can be complex, but with Audit Needs, you can streamline the entire process. Our experts are here to assist you every step of the way, ensuring accuracy and compliance. Connect with us today to simplify GSTR-9 filing for your business!

GSTR 9 Penalty for Late Filing

Every taxpayer needs to submit the GSTR 9 form within the GST annual return due date. If this GSTR 9 due date is missed, there’s a significant penalty to be aware of. The fine amounts to 200 INR per day. This GSTR 9 late fee is divided into 100 INR for CGST and 100 INR for SGST, with no late fee applicable for IGST. Significantly, the penalty amount will not exceed the taxpayer’s quarterly turnover.

It’s crucial to meet the GSTR 9 due date to avoid these penalties and ensure smooth compliance with tax regulations. Call us now!