Section 44 of CGST Act 2017 – Annual GST Return

SEC 44 OF CGST ACT 2017 – ANNUAL RETURN – GST SERIES – PART 37

1. The Annual GST Return is a summary of the monthly/quarterly returns filed by a taxable person. It is basically a comprehensive return containing all the transactions that occurred and reported in the periodical returns filed during the financial year.

1.1 Further, the Annual Return also captures the adjustments made to the transactions of the previous year after the end of the year. It is the last option available with the assessee to disclose all transactions pertaining to the period of filing.

1.2 The return is to be filed by a registered person supplying goods or services or both.

2. GSTR 9: STATUTORY PROVISIONS:

Section 44(1)	Every registered person shall furnish an annual return for every financial year electronically on or before the thirty-first day of December following the end of such financial year. The Annual Return is not required to be filed by Input Service Distributor, the person paying TDS under section 51, casual taxable person and a non-resident taxable person. Persons supplying OIDAR services from out of India to a person in India, other than a registered person need not file Annual Returns GSTR-9 and GSTR-9C – Notification No. 30/2019-CT dated 28-6-2019.
first proviso to section 44(1)	The Commissioner of CGST can extend the time limit for filing the annual return –of the CGST Act – inserted vide Finance Act, 2019 with effect from 1-1-2020.
second proviso to section 44(1)	Extension of date by Commissioner of State or Union Territory shall be deemed to be notified by Commissioner of CGST also – inserted vide Finance Act, 2019 with effect from 1-1-2020.
Rule 80(1)	An annual return as specified under section 44(1) of the CGST Act will be filed electronically in form GSTR-9 through the Common Portal, by taxable persons other than those paying GST under the composition scheme.

3. FILING OF RETURN IN FORM GSTR-9 IS OPTIONAL Filing of return in Form GSTR-9 is optional for FYs 2017-18 and 2018-19 & 2019-20 for taxable persons with aggregate turnover less than Rs. 2 crores. If such taxpayer opts not to file an annual return, it shall be deemed to have been furnished on the due date.- Notification No. 47/2019-CT dated 9-10-2019 & Notification No. 77/2020 dated 15.10.2020.

3.1 Since the return is deemed to have been furnished on the due date, the return will not be accepted by the common portal after the due date. If there is a short payment of tax or ineligible availment of ITC, the amount may be paid through form GST DRC-03 – CBI&C circular 124/43/2019-CT dated 18-11-2019.

4. DUE DATE: Due Date of filing Annual Return for FY 2019-20 is 28th Feb 2021.

5. CONTENTS OF GSTR 9

Part 1

Basic Details – Financial Year, GSTIN, Legal Name, and Trade Name (if any).

Part II Details of Outward and inward supplies made during the financial year

(a)	Details of advances, inward and outward supplies made during the financial year on which tax is payable
(b)	Details of Outward supplies made during the financial year on which tax is not payable

Part III – details of ITC availed during the financial year

(a)	Details of ITC availed through form GSTR-3B (auto-populated) during the financial year, its breakup, and the difference
(b)	Transitional Credit through TRAN-1
(c )	Details of ITC Reversed and Ineligible ITC for the financial year
(d)	Other ITC related information

Part IV – Details of tax paid as declared in returns filed during the financial year

This part covers actual tax paid during the financial year. Table 6.1 of GSTR-3B return may be used to fill in these details.

Part V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to date of filing of annual return of previous FY whichever is earlier

This part covers amendments made in returns of April to September of the current year in respect of returns filed for a period up to March of the previous financial year. Examples are supplies/tax declared (net of debit notes) or reduced (net of credit notes) and ITC reversed or availed for the previous financial year

Part VI Other Information

(a)	Particulars of demands and refunds
(b)	Information on supplies received from composition taxpayers deemed supply under section 143, and goods sent on an approval basis
(c )	HSN wise summary of outward supplies, Summary of supplies effected and received against a particular HSN code to be reported only in this table. taxpayers having annual turnover up to Rs. 1.50 Cr – Optional taxpayer having annual turnover 1.5 – 5.0 crores – HSN code at two digits level taxpayer having annual turnover above 5.0 crores – HSN code at four digits level UQC details to be furnished only for the supply of goods. Quantity is to be reported net of returns.
(d)	HSN wise summary of inward supplies. This summary is required only for those inward supplies which in value independently account for 10% or more of the total value of inward supplies
(e)	Late fee payable and paid.

­6. ANNUAL RETURN FOR TAXPAYER UNDER COMPOSITION SCHEME The GSTR-9A return is simpler compared to the GSTR-9 return as details regarding Input Tax Credit are not to be given.

The proviso to Rule 80(1)	A person paying tax under section 10 of CGST Act (composition scheme) shall furnish the annual return in form GSTR-9A
	The requirement to file 9A has been waived for FYs 2017-18 and 2018-19. Filing of this return is optional.

6.1 FORM GSTR-4 ANNUAL RETURN: – With effect from 1st April 2019, all Composition Taxpayers are required to file FORM GSTR -4 Annual Return on annual basis, for each financial year.

7. ANNUAL RETURN BY E-COMMERCE OPERATOR:- The GSTR-9B is an annual return to be filed by every E-commerce operator who is required to collect tax at source under Section 52 of CGST Act 2017. It contains the details of outward supplies of goods and services, returns if any, and the amount collected during the financial year. It summarises the details filed in GSTR 8 which is the monthly return to be filed by E-Commerce operators.

7.1 STATUTORY PROVISIONS

Rule 80(2)

Every electronic commerce operator required to collect tax at source under Section 52 shall furnish an annual statement referred to in sub-section (5) of the said section in FORM GSTR-9B.

7.2 GSTR-9B must be filed by the 31 of December following the end of a financial year. E.g., the due date for filing GSTR-9B for the financial year 2019-20 is 31 December 2020.

7.3 The GSTR-9B format is yet to be released by the Central Board of Excise and Customs (CBIC).

8. FORM GSTR 9C Form GSTR-9C (Annual Audit Report ) is a reconciliation statement between the Annual Return and the Audited Annual Financial Statement of the taxable person.

8.1 The reconciliation is required with the Annual Financial Statement of the taxable person.

8.2 The differences can be on many counts, including the following – (a) Annual Return in form GSTR-9 is for the period July 2017 to March 2018 while Annual Financial Statement (Balance Sheet and P&L account) is for the period April 2017 to March 2018 (b) Financial Statement will include income and expenditure other than as shown in Annual Return (c) Provisions made at the end of Financial Year to comply with Accounting Standards.

9. AUDIT REPORT IN FORM GSTR-9C

Statutory Provisions

Section 44(2) & Rule 80(3)	Every registered person other than those referred to in the proviso to section 35(5) whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited and shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR 9C electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner
	CBIC dated 15.06.2019 clarified that turnover of the complete year has to be taken into account for calculating the turnover. For example, if a taxpayer has a turnover of Rs. 3.2 Cr for the period 1st April 2017 to 31st March 2018 and a turnover of Rs. 1.9 Cr for the period 1st July 2017 to 31st March 2018, then the taxpayer is required to file form GSTR-9C.
The proviso to Rule 80(3)	The monetary limit for getting the accounts audited and filing GSTR-9C has been increased to Rs five crores for the financial year 2018-19 & 2019-20 .
The proviso to Sec 35(5)	Any department of the Central Government / State Government/ local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed under any law for the time being in force are not required to furnish GSTR 9C
	Government or a local authority not required to submit audit report, if their account is audited by C&AG- amended by GST (Amendment) Act, 2018 w.e.f. 1-2-2019.
	PSU or Board is not ‘Government’ or ‘local authority’ and this relaxation does not apply to PSU or Board.

9.1 Taxable Persons having aggregate turnover below Rs. two crores are not required to submit an Audit Report. However, it is highly advisable they prepare and keep ready such reconciliation statements ready as these details may be asked during the departmental audit or other audits.

9.2 The Annual Return is to be accompanied by Annual Audit Report in case of taxable persons having aggregate turnover exceeding Rs. two crores in the financial year

9.3 In addition, if Auditor is of the view that some tax, interest, late fee, or any other amount is payable or some amount Input Tax Credit is reversible that has to be disclosed.

9.4 The Annual Audit Report is required to be certified by practicing CA/CMA. The statutory auditor can audit the audit report in form GSTR-9C

10. OTHER RELEVANT FEATURES OF AN ANNUAL RETURN :

10.1 INTERNAL AUDITOR OF ENTITY CANNOT UNDERTAKE GST AUDIT – ICAI has clarified on 28.09.2018 that an Internal Auditor of an entity cannot undertake GST Audit of the same entity. The ICAI Council has decided that based on the conflict in roles as statutory and internal auditor simultaneously, the bar on the internal auditor of an entity to accept tax audit (under Income Tax Act, 1961) will also apply to GST Audit (under the Central Goods and Services Act, 2017).

10.2 GSTIN WISE FILING OF ANNUAL RETURN: If a taxable person with the same Income Tax PAN has multiple GSTIN, a separate annual return in GSTR-9 and separate annual audit report in form GSTR-9C is required for each GSTIN even if the aggregate turnover of such branch/division/factory is less than Rs. two crores per annum.

10.3 INPUT TAX CREDIT (ITC) CANNOT BE AVAILED THRU ANNUAL RETURN The Annual Return is only a summary of turnover, Input Tax Credit (ITC) availed, Tax payable, and tax paid. Annual Return cannot be used to claim ITC.

10.4 LIABILITY IS TO BE PAID THRU DRC-03: If turnover was not disclosed in GSTR-3B and GSTR-1 returns, it can be declared through form DRC-03. This liability is to be paid through an electronic cash ledger only. Electronic Credit Ledger cannot be used for this purpose.

10.5 NO PROVISION TO ADD ANY COMMENT: There is no provision in GSTR-9 or GSTR-9A Annual Return forms to add any comment, explanation, declaration or clarification. Thus, if the taxable person intends to add any comment, explanation, declaration or clarification, the only alternative is to write a separate letter to jurisdictional tax authorities. However, Auditor in his Audit report and reconciliation statement can state his comments and reservations.

11. LATE FEE FOR LATE FILING OF DETAILS AND RETURNS

Section 47(2)

Any registered taxable person who fails to furnish the return required under section 44 (annual return) by the due date shall be liable to a late fee of rupees one hundred for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union Territory

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