Annual Return under GST law

The format of Annual Return as announced on the GSTR-9 form is an in-depth document wherein transactions associated with previous years should be reported. article discusses the annual return under GST Law.

What is the annual return for GSTR-9?

GSTR 9 is an annual refund that will be submitted annually by taxpayers registered under GST. Points to consider:

• Contains information on external and internal assets generated/acquired during the relevant financial year under the various tax headings namely CGST, SGST & IGST, and HSN codes.
• It is an accumulation of all monthly/quarterly annual returns (GSTR-1, GSTR-2A, and GSTR-3B) filed for that year. Although complex, this reimbursement contributes to a comprehensive 100% transparent data recovery.

Who should file GSTR-9, annual return?

All taxpayers registered under the GST must submit their GSTR 9. However, the following do NOT need to complete GSTR 9:

• Taxpayer selection composition scheme (Must file GSTR-9A)
• A Taxable Person
• Input service distributors
• Non-resident taxpayers
• Persons who pay for TDS under section 51 of the CGST Act.

What details are required to complete GSTR-9?

GSTR-9 form is bifurcated into 6 parts and 19 parts. Each section requests information that is readily available on your pre-installed returns and account books.

• Generally, this form requests disclosure of annual sales, distinguishing between tax-free and non-tax-free debt.
• On the purchase side, the annual value of the internal assets and the ITC available there will be presented.
• In addition, these purchases should be categorized as inputs, input services, and financial assets. Details of ITCs that need to be postponed due to non-compliance will be included

Annual Return under GST Lawif late-filed:

Return filing is mandatory under GST. Even if no transaction is done, you should file the return. Keep in note the following points-

You cannot claim a refund if you did not file a previous/quarterly return.

• Therefore, late filing of GST refund will have a negative impact leading to severe fines and penalties.
• The late payment fee for GSTR-1 is included in the GSTR-3B completed as soon as possible after such delay.

Interest and Payments as a late fee

Interest is 18% per annum. It must be calculated by the taxpayer in the amount of the remaining tax due. It will be calculated on the residual tax debt identified in the book at the time of payment. The time will range from the next due date to the actual payment date.

Under the Act of CGST, late payments are Rs.100 per day per Act. So it is Rs.100 under CGST and Rs.100 under SGST. The amount will be Rs.200/day. However, there is a high tax of Rs. 5,000. No late payments are set separately under the IGST Act. Also, for GSTR-1 and GSTR-3B, the amount of late payment is reduced to Rs. 50/day (Rs.20/day of Nil completion).

Annual Return under GST Law types

Filling of the annual GST return can be divided into three categories based on the form to be filed as:

• GSTR 9 Form: Businesses exceeding 2 crore profits are required to complete an annual GST return on the GSTR-9 form
• GSTR-9A Form: Registered taxpayers who have opted for the GST Composition system are required to complete GSTR-9A.
• GSTR-9C Form: Form GSTR-9C is intended to file 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.

What is the deadline for filing GSTR9?

According to the 37th GST Council Meeting, GSTR-9 for the 2018-2019 financial year, must be filed by November 30, 2019. The deadline for submission of this refund is no later than 31 December of the following year. (Example: If you filing GSTR-9 for 2019, you must file it by 31 December 2020).

Legal provision for filling GST Annual Return

Legal provisions relating to filing the annual return called GSTR-9 are modulated by section 35 (5) and section 44 (1) of the CGST Act. Section 44 (1) of the CGST Act read with Rule 80 (1) of the CGST Rules requires that everyone be registered otherwise

• Input service distributor,
• a taxpayer under section 51 (TDS) or section 52 (TCS),
• a free taxpayer and
• a non-resident taxpayer,

You will submit the annual return for each financial year electronically through Form GSTR9 through the regular portal (www.gst.gov.in) directly or the facilitation center on or before the 31st of December after the end of that financial year.

As per section 35 (5) of the CGST Act, every registered person account in the financial year whose turnover is beyond the prescribed limit (Rs 2 cr) get audited by a chartered or cost accountant and then must submit a copy of the audited annual accounts, a reconciliation statement (GSTR-9C) under subsection (2) of section 44 and other documents thereof the form and manner in which it may be determined. Reconciliation Statement – GSTR-9C is data reconciliation such as account books and data as reported in GSTR-9.

Final words

GSTR 9C applies to taxpayers who need to receive an annual GST audit of their accounts. It must be made and confirmed by a Chartered or Cost Accountant.

Taxpayers with a profit of more than ₹ 5 crores must submit a reconciliation statement in the form of GSTR-9C. This statement needed to be confirmed after an audit by a chartered accountant.

By notice, the Central Board of Indirect Taxes and Customs (CBIC) amended the GST rules and provided that taxpayers with full profit during the financial year over ₹ 5 crores would provide a self-certifying reconciliation statement and annual return, in place of tax instead of Certified statement of CA.