GST Annual Compliances for Financial Year 2021-22

Once a trader is registered with GST, they are required to fulfil monthly/quarterly and annual compliances depending upon the sort of business activities they are entered into. GST returns must be submitted electronically using the GST portal or via GST software.

Here, we bring out the yearly compliances which a registered tax payer has to file:

GSTR-9: GST Annual Return for Normal Taxpayers

GSTR-9A: GST Annual Return for Composition Taxpayers (Disabled from GSTN portal)

GSTR-9B: Annual Statement by ecommerce operator

GSTR-9C: Self-Certified Reconciliation Statement

In this article, we shall talk about GSTR-9 and GSTR-9C and the mandatory requirements while filing the returns.

Who has to furnish Annual Return (GSTR-9)

Every registered person other than

• Input Service Distributor,
• Tax Deductor, Tax Collector,
• Casual Taxable Person,
• Non-Resident Taxable Person

shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.

Due Date to furnish Annual Return

31^st December following the end of relevant Financial Year

Eligibility for filing of Annual Return

Contents of Form GSTR-9

Part-I: Basic Details stating the GSTIN, FY, Legal Name and Trade Name

Part-II: Details of Outward Supplies i.e B2B/B2C Supplies/ Exports/ Supply to SEZ on which tax is payable and tax is not payable and Inward Supplies on which RCM is payable

Part-III: Details of ITC availed during the year

Part-IV: Details of Tax Paid as declared in return filed during the Financial Year

Part-V: Details of Transactions for FY 2021-22 but declared in Apr,22 to Sep,22 (30^th Nov)

Part-VI: Other Information such as Refunds, Demands, Deemed Supply, Supplies received from composition taxpayers

Key Observations while furnishing Annual Return in Form GSTR-9

1. It is mandatory to file all GSTR-1 & GSTR-3B for FY 2021-22 before filing Annual Return.

2. Any outward tax liability not declared in GSTR-1 or GSTR-3B can be declared in the annual return. If any additional liability is paid through Form GSTR-9, recipient cannot claim input tax credit unclaimed during FY 2021-22 through this return.

3. Any unclaimed ITC of FY 2021-22 cannot be claimed through Annual Return.

4. Exempt, Nil Rated and Non-GST inward supply details are not required.

5. Instructions to Form GSTR-9 providing that additional liability can be paid by way of utilising the balance lying in electronic cash ledger only is subject to challenge.

Mandatory Requirements w.e.f FY 2021-22 Annual Returns

1. HSN wise summary of outward supplies are required to be reported in Table 17 for FY 2021-22. It will be mandatory to report HSN Code at four digits level having annual turnover upto 5 Cr and at Six digits level for taxpayers having annual turnover above 5 Cr.

2. Details pertaining to RCM ITC for unregistered/ registered needs to reported separately in Table 6C & 6D

3. Non-GST supplies are to be reported separately in Table 5F of Form GSTR-9

4. Table 9 regarding ‘Tax Payable’ and ‘Tax Paid’ shall be adequately filled

5. Credit Notes/Debit Notes/ Adjustments (if any) in respect of B2B Supplies and Export/Supply to SEZ with payment of taxes shall be reported separately. However, in case of B2C Supplies, net of Debit/Credit Notes shall be reported.

Consequences of Delay in Filing of Annual Return

• Late Fees Rs. 200 per day (Rs. 100 CGST & Rs. 100 SGST)
• Maximum 0.5% of Turnover (0.25% CGST & 0.25% SGST)

Self-Certified Annual Reconciliation Statement (GSTR-9C)

Statutory Provisions

Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year electronically, within such time and in such form and in such manner as may be prescribed.

GSTR-9C must be prepared and self-certified by the taxpayer. It must be filed on the GST portal or through a facilitation centre by the taxpayer, along with other documents such as the copy of the Audited Accounts and Annual Return in form GSTR-9. This statement is applicable to all those taxpayers who must get their Annual Accounts audited under the GST laws. Audit under GST applies to those registered persons whose Annual aggregate turnover exceeds rupees five crores in that FY. Further, as per CBIC’s CGST notification number 30/2021 dated 30th July 2021, all foreign companies which are in the airline business and compliant with the relevant provisions and rules of the Companies Act, 2013 are exempted from the GSTR-9C requirement.

Moreover, persons who are non-residents and are providing OIDAR service in India to unregistered persons have been exempted from submitting GSTR-9 and GSTR-9C.

Importance of GSTR-9C

The statements act as a base for GST Authorities to verify the correctness of the GST Returns filed by the taxpayers when compared with the audited accounts. Any differences arising among the two, must be reported along with the reason for the same.

Contents of Form GSTR-9C

Part A: Reconciliation Statement

Part-I: Basic Details containing FY, GSTIN, Legal Name and Trade Name

Part-II:  Reconciliation of turnover declared in the Audited Annual Financial Statement with turnover declared in Annual Return (GSTR-9): The Turnover reporting shall be at PAN Level.

Part-III: Reconciliation of tax paid: Reporting Rate Wise Tax Liability

Part-IV: Reconciliation of Input Tax Credit (ITC) with the audited financial statement

Part B: Self-Certification by taxpayer 

Note:

• GSTR-9C can only be filed once GSTR-9 is filed.
• Those taxpayers who have not yet paid the tax liability or have unclaimed ITC pertaining for the FY 2021-22, they still have the option to correct/amend their supplies and claim ITC by 30^th November, 2022. (Notification No.18/2022-Central Tax dated 28.09.2022)

For any further information/clarification, the author can be reached at cashubhikhandelwal@gmail.com