GST Annual Return
GST Annual Return
Launched in India with effect from 1 July 2017. More than 1.23 Crore businesses in India are registered and issued with GST registration under the new GST regime. Businesses registered under the GST must file annual returns in accordance with the GST return date.
Completing the annual GST refund is mandatory for all businesses with a profit of more than two crores required for GST registration, regardless of business activity or sales or profit at the time of refund. Therefore, even an inactive business that receives GST registration must file GST returns.
What is GSTR 9: Completing the Annual Return?
GSTR 9 is an annual refund that must be paid annually by taxpayers registered under GST.
GSTR 9 must be submitted annually by taxpayers registered under GST. Contains details of the external and internal assets made during the relevant financial year.
Prior to installing GSTR 9, the taxpayer must complete all GSTR-1, GSTR-3B, or GSTR 4 refunds. In the event of further costs, the GSTR registration holder will not be allowed to complete the GST annual refund.
GSTR 9 contains information relating to external and internal assets generated or acquired during the relevant financial year under CGST, SGST, and IGST. It is a compilation of all the monthly/quarterly returns paid for that year.
Who should file GSTR 9?
All taxpayers / taxpayers registered under the GST must submit their GSTR 9. However, the following do NOT need to complete GSTR 9:
- Taxpayer selection process (Must have GSTR-9A)
- A Tax-Free Person
- Input service distributors
- Non-citizen taxpayers
- Persons who pay for TDS under section 51 of the CGST Act.
What details are required to complete GSTR-9?
GSTR-9 is broadly divided into six sections and 19 sections. Each section requests information that is readily available on previously returned returns and account books.
This form requests disclosure of annual sales, doubling between taxable and non-taxable cases.
The annual value of the internal assets and the ITC found in it will be disclosed.
In addition, these purchases should be categorized as inputs, inputs, and capital goods. Details of ITCs that need to be postponed due to non-compliance should be included.
GST Annual Return Types
Completion of the annual GST return can be divided into three categories based on the form to be completed as follows:
Step: 1 GSTR 9 data – Businesses exceeding 2 Crore profits are required to complete an annual GST return on the GSTR-9 form.
Step: 2 GSTR-9A – Registered taxpayers who have opted for the GST Composition system are required to complete GSTR-9A.
Step: 3 GSTR-9C – Form GSTR-9C is intended to include a taxpayer reconciliation statement for a particular financial year. This form is a statement of reconciliation between the Annual Refunds on GSTR-9 and the figures stated in the audited financial statements of the taxpayers.
GSTR 9C applies to taxpayers who need to receive an annual audit of their accounts. GSTR 9C must be prepared and certified by a CA or Cost accountant. The GST test applies to a person with a GST registration with a combined annual benefit of more than two thousand for a particular financial year.
Who should file GSTR-9A?
A registered GST taxpayer who has chosen a design scheme under the GST Act is required to complete GSTR-9A. GSTR-9A covers all taxpayer information, provided in a quarterly review for a particular financial year.
Every taxpayer registered under the GST design scheme must comply with GSTR-9A. However, the following people are not required to complete GSTR-9A:
- Input Service Distributor
- Non-resident taxpayers
- Persons who pay source tax (TDS) under Section 51 of the Income Tax Act.
- Tax-Free Persons
- E-commerce operators pay source Taxes (TCS) under Section 52 of the Income Tax Act.
Who should file GSTR-9C?
Form GSTR 9C is designed to complete a tax reconciliation statement for a particular financial year. This form is a reconciliation statement between the Annual Reimbursements in GSTR-9 and the figures stated in the Taxpayer Audited Financial Statements. Considering that, this CA-certified form must be completed at the time of submission of the Annual Refunds to GSTR-9 and Audited Financial Statements. The obligation can be filled through the GST website or through the Administrative Center. This article discusses the use and need of the form.
GSTR 9C applies to taxpayers who need to receive an annual GST audit of their accounts. It must be prepared and certified by a Chartered Accountant or Cost Accountant.
Frequently Asked Questions
There are four stages under GSTR-9. Namely, GSTR-9, GSTR-9A, GSTR-9B, GSTR-9C.
In terms of Section 47 (2) of the Property Rates Act (2017), a person will be fined INR 100 per day (CGST) + INR 100 per day (SGST), amounting to INR 200 in total. Day if he fails to install GSTR-9 before the deadline. However, the maximum amount a person can be fined is 0.25% of the total income.
According to a recent update, the deadline is being extended by CBIC with GST notice 04/2021 | CBIC extends GSTR 9 & 9C deadline for FY 2020-21 to 28th February 2022
Every taxpayer who has opted out of the construction program for this financial year is required to give GSTR 9 a permanent taxpayer.
No, from now on, annual returns in the form of GSTR 9 can only be submitted online. However, the government will soon roll off the GSTR 9 offline system.