GST Annual Return – Time has come for First Annual Return

An annual return under GST has to be filed once in a year by the registered taxpayers including those registered under composition levy scheme. All the registered taxable persons under GST must file GSTR-9. However, following persons are not required to file Annual GST Return (GSTR 9)

• Casual Taxable Person
• Input service distributors
• Non-resident taxable persons
• Persons paying TDS under section 51 of CGST Act, 2017.

Different types of return under GSTR-9 (Annual Return) – 

1. GSTR-9 – To be filed by the regular taxpayers filing GSTR 1, GSTR 2, GSTR 3.
2. GSTR-9A – To be filed by the persons registered under composition scheme.
3. GSTR 9B – To be filed by the e-commerce operators who have filed GSTR 8 during the financial year.
4. GSTR 9C – To be filed by the taxpayers whose annual turnover exceeds Rs. 2 Cr. during the financial year.

GSTR-9 due date – Shall be filed on or before 31st December of the subsequent financial year. For instance, for FY 2017-18, the due date for filing GSTR 9 is 31.12.2018.

Penalty for late filing of GSTR-9

Late fees for not filing the GSTR-9 within the due date is Rs. 100 per day per act up to a maximum of an amount calculated at a quarter percent of the taxpayer turnover in the State or Union Territory. Thus it is Rs. 100 under CGST & Rs. 100 under SGST, total penalty is Rs. 200 per day of default. There is no late fee on IGST.

Section 35 (5) of the Central Goods and Service Tax Act, 2017 (CGST Act), every registered person whose turnover exceeds the prescribed limit is required to get his accounts audited. Such registered person is required to submit a copy of audited annual accounts, reconciliation statement and other prescribed documents.

As per the section 44 (2) of the CGST Act, every registered person who is required to get his accounts audited is required to file an annual return and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited financial statement.

Further in terms of the provisions of Rule 80 (3) of the Central Goods and Service Tax Rules, 2017 (CGST Rules), every registered person whose aggregate turnover exceeds Rs. 2 Crs. during the financial year, needs to ensure following –

1. To get his accounts audited as required by section 35 (5) of the CGST Act;
2. To furnish a copy of above audited annual accounts;
3. To file a reconciliation statement in FORM GSTR-9C, electronically.

The CBIC has, vide Notification no. 49/2018–Central Tax; Dated: 13.09.2018, issued the format of such reconciliation statement to be filed in FORM GSTR-9C. FORM GST-9C provides the reconciliation of tax paid, input tax credit availed and the turnover. This has been done by amending CGST Rules whereby in the FORMS to the Central Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the “FORM GSTR-9C has been inserted (See rule 80(3) also).

PART – A – Reconciliation Statement – Part A has following sub-parts as follows:

1. Basic Details
2. Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR-9)
3. Reconciliation of tax paid
4. Reconciliation of ITC declared in Annual Return (GSTR-9) with ITC availed on expenses as per audited Annual Financial Statement or books of account
5. Auditor’s recommendation on additional Liability due to non-reconciliation

Verification – The Auditor has also to verify the details as provided in the Notification as per following:

Verification: I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from.

**(Signature and stamp/Seal of the Auditor)

The Format also require Auditor to indicate Place, Name of the signatory, Membership Number, Date and Full address at the end of verification.

PART – B- Certification – This part has two sub-parts as follows:

1. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit.
2. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts

Format of both the above certificates is provided in the Notification dated 13.09.2018 itself.