What is the GSTR-9 Annual Return?
Goods and Services Tax (GST) has a major significance in India's taxation system. It was implemented on July 1st, 2017 and is a compilation of all other taxation systems. One such crucial part of the GST taxation system is the GSTR-9 annual return. So, here, in this blog, we are going to look at what GSTR-9 is all about and how to file for GSTR-9.
What is GSTR - 9 Annual Return? & Who is Required to File GSTR - 9?
GSTR-9 is an annual return that has to be filled out by all taxpayers registered under GST on a yearly basis. It consists of details regarding inward and outward supplies made or received during the particular financial year under different taxes, like CGST, IGST, SGST, and HSN codes. It is also a consolidation of all the quarterly and monthly returns, including GSTR-1, GSTR-2A, and GSTR-3B, filed every year.
All the GST-registered taxpayers will have to file their GSTR-9 annual return. However, the following categories of people may not file their GSTR-9:
- Taxpayers opting for composition scheme
- Casual Taxable Person
- Input service distributors
- Non-resident taxable persons
- Persons paying TDS under section 51 of the CGST Act
- Persons collecting TCS under section 52 of the CGST Act
Process of Filing GSTR - 9
Login to the GST Portal, navigate to the Returns dashboards and click on Annual Returns. Select the Financial Year on the File Annual Returns page. A message will pop up providing you with the steps to be performed for the Online/Offline filing of GSTR-9. Click on the Prepare Online option.
Now, you would be required to answer a questionnaire where you need to choose between a NIL return or an annual return with data.
Select yes only if the below-mentioned criteria are met:
- No outward supply
- No recipient of goods or services
- No other liability to report
- Not claimed credits
- No refund claimed
- No demand order was received
- No late fees are required to be paid.
If you choose Yes to the NIL return option, Next’ to Compute Liabilities and file a NIL GSTR-9.
In case you choose No to NIL returns, click on Next. You will be redirected to a page called ‘GSTR-9 Annual Return for normal taxpayers’. It will contain various tiles for which you will have to fill in all the necessary details.
- GSTR-9 system computed summary
- GSTR-1 summary
- GSTR-3B summary
- Table-8A document details
The downloaded summaries will provide you with the details to be provided in the different types of GSTR-9.
Next, you are required to give the necessary details in the tables for the financial year.
Title: Details of advances, inward and outward supplies made during the financial year on which tax is payable- Table 4
First, click on the title. The details will easily be auto-populated based on the information provided in GSTR-1 and GSTR-3B.
You can edit the details or enter new text values quickly to accept the necessary details.
Click on Yes to accept the details.
The confirmation will be displayed saying the Save request is accepted successfully.
Now, go back to the GSTR-9 dashboards. The Table 4 tile will be auto-populated. Similarly, fill in the required information for the rest of the tables and save the data automatically.
The tables include:
- Details of outward supplies made during the financial year on which tax is not paid.
- ITC availed details during the financial year.
- Details of ITC reversed and Ineligible ITC for the financial year.
- Other ITC-related information.
- Details of tax paid as declared in returns filed during the financial year.
- Details of the previous financial year's transactions reported in the next financial year.
- Different taxes are paid on account of declaration.
- Particulars of Demands and Refunds.
- Supplies received from composition taxpayers, deemed supplied by job workers, and goods sent on an approval basis.
- HSN-wise summary of outward supplies.
- HSN-wise summary of inward supplies.
Once you have filled in the details, it is time to preview your draft GSTR-9 in PDF or Excel format. The preview options are present in the GSTR-9 dashboards. You can also download a copy of the draft and get it reviewed if required.
Next, you need to compute the liability and late fees. This can be done by clicking on the computer liabilities options. Al the details of liabilities and late fees will be displayed to you.
A confirmation message will also pop up asking you to proceed with the filing. You can make the payment from the funds available in the electronic cash ledger. Additional payments can also be made through net banking.
Once the remaining steps are completed, proceed to file the GSTR-9. Click on the declaration checkbox and select the authorised signatory option.
Click on file GSTR-9.
A page will be displayed for submitting the application fees and making your submission.
Importance of GSTR-9:
- GSTR-9 serves as a consolidated return that contains the details of all GST returns filed by the taxpayer during a particular financial year.
- All taxpayers need to file GSTR-9 so that the government to keep track of the GST compliance of taxpayers.
- Filing GSTR-9 also allows taxpayers to keep accurate records of their GST transactions and remain compliant with the GST laws.
Benefits of Filing GSTR - 9 on Time:
Multiple benefits can be availed with filing your GSTR-9 on time.
- You can easily avoid late fees and penalties. The current late fee is Rs. 100 per day for both CGST and SGST.
- You can easily claim your input tax credit (ITC) without any trouble.
- You can maintain GST compliance and build a really good reputation for yourself.
Frequently committed mistakes in GSTR-9:
Here are some of the common errors in GSTR-9:
- Mismatch in GSTR-1 and GSTR-3B
- Mismatch in turnover figures
- Unreflected Input Tax Credits in GSTR-2A/2B
- Non-disclosure of additional liabilities
- Overlap in Tables 6(B) and 6(H)
- Difficulties in HSN Summary Reporting
Penalty for not filing GSTR-9 and due dates:
- The due date for filing the GSTR-9 annual return form for the financial year 2022-23 is 31 December 2023.
- If the GSTR-9 is not filed on time, the taxpayer will have to pay Rs.50 per day as a penalty (Rs 25 for SGST and Rs.25 for CGST) if the turnover is up to Rs. 5 crores.
- In case the turnover exceeds Rs.5 crore, the penalty would be Rs.100 (Rs. 50 for SGST and Rs.50 for CGST).
In case the taxpayer forgets to pay GST under reverse charge mechanism on said legal fees or import of services, or pay interest on delayed reporting of sales, he can discharge it to avoid penalties.
To know more about GSTR-9, get in touch with BC Shetty & Co, a highly reliable income tax consultancy service provider and avail of their services.