GST Annual Return: An Overview

Introduction to GST Annual Return:

Government has announced for annual return to be filed under Goods & Service tax Act. The form of annual GST  return is to be filed by every GST registered person including composition taxable person except provided. Annual GST  return contains consolidated details of the outward & inward supplies (i.e. purchases and sales) made and the tax paid by a registered taxpayer during that year. However, annual GST return is not to be filed by the following persons:

• Non-resident taxable persons
• Casual (occasional) taxable persons
• Input service distributors
• Persons paying Tax (TDS) under Section 51 (Tax deducted at Source).

About GST Annual Returns

Annual return consolidates the information furnished in the monthly/quarterly returns during the financial year. Four types of annual returns has been notified under GST namely- GSTR-9, GSTR-9A, GSTR-9B and GSTR-9C.

A simplified annual return format has been notified for composite taxable persons in the form of GSTR ­9A whereas a complex annual return format has been notified for regular taxpayers in the form of GSTR-9. Persons filing GSTR- 9C are also liable to have their accounts audited. A copy of the accounts audited along with a reconciliation statement of the tax paid and tax due is needed to be submitted with this return.

Due date of GST Annual Returns and defaults

Annual GST return is required to be furnished on or before the due data which is 31st December of subsequent financial year. For Financial year 2017-18, due date of annual return is 31^st December 2018. This return can only be filed once for a financial year. There is no option to revise this return.

If the GSTR 9 is not filed on or before due date then penalty will be applicable in the form of Late fees. Late filing fees is Rs 100 per day for Central and State/Union Territory both for each day of default in filing annual return. However, this fees cannot be more than 0.25% of total turnover in the respective state/union territory. For example. If there is a delay of one day in filling annual return then late fees payable is Rs 100 under CGST and Rs 100 under SGST/UTGST. There is no late fees under IGST. Further, interest could also be payable for on outstanding tax amount, if any.

Quick view on GST Annual Returns formats

GSTR-9 : The GST annual return form- GSTR 9 for normal taxpayers is divided into 6 parts with 19 tables which include basic details, details of outward and inward supplies,  Details of ITC such as ITC availed, ITC reversed, Ineligible ITC, Details of tax paid and rather information about particulars of demands and refunds etc.

GSTR-9A: A simplified format for annual return to be filed by composition taxpayers has been notified as Form GSTR-9A as per rule 80. This form is divided into 5 parts with 17 tables which include basic details, details of outward and inward supplies declared, Details of tax paid and other information about particulars of demands and refunds etc.

GSTR-9C: A format for reconciliation statement to be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year, has been notified as Form GSTR-9C as per rule 80(3) vide notification no. 49/2018 dated 13 September 2018. This form is basically an audit report under GST. GSTR-9C is a statement of reconciliation between the annual return- GSTR 9 and audited annual financial statements of registered taxable person. This form is to be prepared and audited by a chartered accountant or cost accountant. This statement is to be filled for every GSTIN separately and therefore there-can be several reports of GSTR-9C for same PAN.

This form is divided into mainly 2 parts- Part-A: Reconciliation statement and Part-B: Certification. Part-A is further divided into 4 parts and 16 tables while Part-B only have one table related to Auditor’s recommendation on additional Liability due to non-reconciliation. Any differences between the details reported in all the GST returns and the Audited Accounts must be reported by the CA therein with the reasons for the differences.

Conclusion:

Lot of difficulties are being faced by taxpayers and professionals while filing GST returns due to technical glitches and ambiguous law. After filing monthly returns, a regular person has to even file an Annual Return which is quite detailed. Reconciliation of all expenses, details of tax free and exempt supplies, details of ITC availed against Inputs/Input services/Capital goods in GST returns are needed to be made separately. HSN of inward supplies is required in the annual return GSTR 9 which was not needed while filing monthly GSTR 3B.