GST Annual Return

As per Section 44(1) of CGST Act 2017, GST registered persons are required to furnish Annual Returns for every financial year electronically.

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Table Of Contents

An Overview

GST returns include two types of returns: periodic returns and annual returns. Annual returns must be filed by all taxpayers registered under GST unless exempted. This is an annual compilation of external, internal tax liabilities and input tax deductions that are available during the fiscal year.

What are the different types of Annual Returns ?

Form GSTR-9

What is GSTR-9?

GSTR-9 is a statement that has to be filed for every financial year by a registered taxpayer. This statement contains the details of all sales and purchases made under various tax heads (CGST, SGST and IGST) during the entire year.

GSTR 9 has to be compulsorily filed by :-
Details to be submitted
Pre-conditions for filing GSTR-9
Other Important Points
Due Date

GSTR-9 is to be filed by 31st December from the end of the financial year.

Penalty for missing the GSTR-9 due date

Taxpayers would be penalised with a late fee of Rs. 200 (CGST – Rs. 100 and SGST – Rs. 100) for each day of default. However, the maximum amount of late filing fee for GSTR 9 cannot be more than 0.25% of the turnover.

Form GSTR-9A

What is GSTR-9A?

GSTR-9A is an annual statement that has to be compulsorily filed every year by persons who have registered themselves as composite tax payers. In this return, the taxpayer needs to submit all the information which it has furnished in his quarterly returns during the relevant financial year.

Details to be provided in GSTR-9A
Due Date for GSTR-9A

GSTR-9A needs to be filed on or before 31st December following the end of the financial year. For example, for FY 2017-18, the taxpayer should file it on or before 31st December 2018.

Penalty for missing the GSTR-9A due date

Taxpayers would be penalised with a late fee of Rs. 200 (CGST – Rs. 100 and SGST – Rs. 100) for each day of default. However, the maximum amount of late filing fee for GSTR-9A cannot be more than 0.25% of the turnover.

Other Important Points

Form GSTR-9B

This form is to be compulsorily filed by all E-Commerce Operators who are required to collect
tax at source.

Who is an E-Commerce Operator?

Electronic commerce operators are people who own, operate, or manage electronic platforms that facilitate direct or indirect distribution of goods or services. e.g. Amazon, Flipkart etc.

Due Date for GSTR-9B

GSTR-9B needs to be filed on or before 31st December following the end of the financial year. For example, for FY 2017-18, the taxpayer should file it, on or before 31st December 2018.

Penalty for missing the GSTR-9B due date

Taxpayers would be penalised with a late fee of Rs. 200 (CGST – Rs. 100 and SGST – Rs. 100) for each day of default. However, the maximum amount of late filing fee for GSTR-9B cannot be more than 0.25% of the turnover.

Form GSTR-9C

What is GSTR-9C ?

GSTR-9C is an annual audit form which is to be filed by all persons registered under GST having an aggregate turnover exceeding Rs. 2 crores* during the financial year. Taxpayers are required to have their annual account audited and provide a copy of the audited annual account and a properly certified reconciliation invoice, in FORM GSTR-9C.

*The limit for FY 2018-19 has been increased to Rs. 5 crore as per the CBIC notification dated 23rd March 2020.

What is GST Audit?

GST Audit is similar to that of a tax audit report which is prepared under the Income-tax act. In GST Audit, gross and taxable turnover as per our books are reconciled with the respective GST returns filed for a F.Y. Any differences arising will be reported in Form GSTR-9C along with the reasons for the same.
GSTR-9C has to be separately prepared for every GSTN of a company, and therefore, for a single PAN registration there can be multiple GSTR-9C form filed.

Details to be submitted
Other Points
Due Date
Penalty for missing the GSTR-9C due date

Taxpayers would be penalised with a late fee of Rs. 200 (CGST – Rs. 100 and SGST – Rs. 100) for each day of default. However, the maximum amount of late filing fee for GSTR-9C cannot be more than 0.25% of the turnover.

How will ICI help you ?

Filing of GST annual returns is a tedious process and requires expert guidance. At ICI, our GST experts can help you file your returns with ease. The process is as follows:-

FAQs

a. Can we claim ITC in annual returns?

You cannot claim additional ITC in your annual returns which has not been claimed in your GSTR-3B.

b. If the taxpayer switches to a configured system within the normal system framework, or vice versa, which annual filing must be filed?

In such a case, the taxpayer needs to segregate the sales and purchases in the following manner:
In GSTR-9, report the turnover till the date he was under the regular scheme, and the remaining turnover will be reported in GSTR-9A. Purchases made while the taxpayer is registered as a regular taxpayer will be reported under GSTR-9 to claim the ITC. However, assessee will not be allowed to claim ITC on purchases made during the period where he was registered under the Composition Scheme.

c. Am I required to file annual returns if my GST registration is cancelled?

All registrants must submit an annual tax return, even if the status of the taxpayer is unregistered as on the date of the filing return but was registered anytime during the financial year.

d. What are the similarities between GSTR-9A & GSTR-9C?

GSTR-9A is an annual return form to be filed by persons registered as composition dealers, whereas GSTR-9C is to be filed by normal GST taxpayers in which a reconciliation statement between GSTR-9 and the annual audited financial statements is to be prepared.

e. A taxpayer has 17 branches all over India – should GSTR-9C be filed for all the branches?

If the aggregate turnover at the PAN level exceeds Rs. 2 crore, then the taxpayer needs to file GSTIN-wise annual returns. So if 17 branches have different GST numbers then, each branch has to file GSTR-9C.

f. Is it mandatory to provide the HSN code with total sales of less than Rs. 1.5 Crore?

No, it is not mandatory to provide the HSN code for total sales below Rs. 1.5 Crore.

g. What is the turnover considered when determining the applicability of GSTR-9C?

GSTR-9C revenue is the revenue recorded in the company's audited financial statements compared to the revenue reported for GSTR-9.

h. Who can perform a GST Audit?

GST audits can only be performed by auditors or cost auditors. You cannot appoint your internal auditor to do your GST Audit. Also, the Act does not allow a GST practitioner to perform the audit.

i. Which items are not included in the calculation of aggregate turnover?
  • Arrivals for which taxes are paid.
  • All taxes and cess charged under Goods and Service Tax like CGST, SGST or IGST, Compensation Cess etc.
  • Goods supplied or received back from a Job Worker.
  • Activities that are neither considered as goods nor services under schedule III of the CGST Act.
j. “Aggregate Turnover is calculated on an All India Pan Level” what do you mean by this?

Suppose, you own a company having 5 branches in 5 different states. There is a single PAN for a company, and hence all its branches have the same PAN. Each branch has its own sales and purchases. So while calculating the aggregate turnover threshold of Rs. 2 crore, you will add up the sales from each of your branches.

k. Still Confused?

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