The goods and services tax was introduced in India to unify various taxes into one single tax and bring integrity and transparency to the indirect tax system in the country. An important aspect of GST compliance is filing returns. GSTR-9 is one such return that has to be filed by all registered taxpayers within the stipulated due date. It is an annual return and provides a comprehensive summary of the transactions and the GST liability of the taxpayer during the financial year. The taxpayer has to understand the components of GSTR-9 correctly to file the annual return on time. Here we discuss in detail the intricacies involved with GSTR-9 and its filing.
What is annual return GSTR-9?
As per Section 44 of the CGST Act, 2017, GSTR-9 has to be filed by all taxpayers registered under the GST Act in India, except certain specified taxpayers. It is an annual return that contains consolidated information submitted by a taxpayer in monthly or quarterly returns filed during the financial year.
Components of GSTR-9
GSTR-9 is divided into six parts with various tables that include information about all the transactions during the financial year, their GST liability, input tax credit, etc. the specific details to be furnished in GSTR-9 are as follows:
Part I: Basic Details
This part pertains to basic details like GSTIN, financial year, legal name, and trade name of the taxpayer. The details are auto-populated when the taxpayer logs in.
Part II: Details of Outward and Inward Supplies
This part consists of the details of the taxpayer’s outward and inward supplies during the year. The details are auto-populated with summarized values from the monthly and quarterly returns GSTR-1 and GSTR-3B filed during the financial year. It is divided into the following sections:
- Details of outward and inward supplies and advances made during the financial year on which tax is payable
- Details of outward supplies made during the financial year on which tax is not payable
Part III: Details of ITC
This part comprises the details of the ITC for the financial year, as follows: It is auto-filled with the summarized values taken from the GST returns filed during the year. It consists of the following sections:
- Details of ITC as declared in returns filed during the financial year
- Details of ITC availed as declared in returns filed during the financial year
- Details of ITC reversed and ineligible ITC for the financial year
- Other ITC-related information
Part IV: Details of Tax Paid
This part consists of details of tax paid (including interest, late fees, penalties, and others) as declared in returns filed during the financial year.
This part is auto-filled with information provided by the taxpayer in GSTR-3B for the relevant financial year on the GST paid or payable on all inward and outward supplies made during the financial year.
Part V: Details of previous financial year’s transactions reported in next financial year
This part consists of the details of the previous financial year’s transactions that are reported in the next financial year.
- Supplies and tax declared through amendments minus the net of debit notes
- Supplies and taxes reduced through amendments minus the net of credit notes
- Reversal of ITC availed during the previous financial year
- ITC that was availed for the previous financial year.
- Differential tax paid on account of declarations in tables 10 and 11
Part VI: Other ITC-related information
- Details of demand and refunds during the year
- Details of credit reversed or availed
- Details of late fees payable and paid
- Supplies received from composition taxpayers, deemed supplies by job workers, and goods sent on an approval basis
- Supplies received from composition taxpayers, deemed supplies by job workers, and goods sent on an approval basis
- HSN-wise summary of outward and inward supplies
The taxpayer can download the “system computed summary” of GSTR-9, the summary of forms GSTR-1 and GSTR-3B, for verification and reference purposes while preparing the annual return GSTR-9. Any needed changes can be made after reviewing the summary. The summary can be downloaded in Excel or PDF format.
Important aspects of GSTR-9 filing
- GSTR-9 must be filed by all taxpayers registered under the Goods and Services Act. Taxpayers who are registered even for a single day must file the annual return.
- The taxpayers must have a valid GSTIN during the relevant tax period.
- The taxpayers must have filed all applicable monthly and quarterly returns, like GSTR-1 and GSTR-3B, for the relevant financial year before filing the annual return.
- A NIL return has to be filed when the taxpayer has not made any taxable outward supplies, purchased any taxable goods or services, claimed any credit or refund, there is no late fee, or received any other order-creating demand.
- For taxpayers whose turnover in a financial year is more than 2 crore, it is mandatory to file GSTR-9.
- Taxpayers with an annual turnover of more than Rs 5 crore must file the reconciliation statement in Form GSTR-9C, which is certified by a chartered accountant.
- The GSTR-9 annual return can be filed online or offline in the GST portal.
- The due date for filing the GSTR-9 for a particular financial year is December 31st of the subsequent year, or as extended by the government through notification from time to time.
- A late fee of Rs. 200 (CGST-Rs. 100/- and SGST-Rs. 100/-), subject to a quarter percent of the taxpayer’s turnover, is applicable for delayed filing of GSTR-9.
- When the taxpayer has obtained multiple registrations under the same PAN, whether in the same state or different states, he is required to file annual returns for each GST registration separately, even if registered for a single day of the financial year.
- The data auto-populated in GSTR-9 from GSTR-1 and GSTR-3B can be edited except in tables 6A, which is the total amount of input tax credit availed through FORM GSTR-3B, table 8A, which is the ITC as per GSTR-2A, and table no. 9, which is the details of tax paid as declared in returns filed for the financial year, except for the tax payable column.
- The GSTR-9 annual return cannot be revised after it is filed.
- The taxpayer can download document-wise details of Form GATR-2A, which are considered for computing the values of Table 8A as input tax credits.
- Additional liability that was not reported at the time of filing GSTR-3B can be declared in Form GSTR-9 and paid at the time of filing the GSTR-9.
- Additional payment of tax when there is a shortage of tax paid can be made through GST DRC-03 through the utilization of the electronic cash ledger.
Also Read: GSTR-9: Filing Frequency, Penalties And Due Dates
Conclusion
GSTR-9 is a crucial return for a taxpayer as it consolidates the complete financial activities and tax information pertaining to a financial year. Accurate and timely filing of the annual return is necessary to avoid penalties and notices for non-compliance from the tax authorities. While the return can seem complex and filing challenging, properly understanding the crucial aspects can help make the process trouble-free.
Frequently asked questions
-
What are the four types of annual returns under GST law in India?
The four types of annual returns under GST laws are GSTR-9, GSTR-9A, GSTR-9B, and GSTR-9C.
-
Who has to file the four types of annual returns under GST in India?
The four types of annual returns under GST must be filed as follows:
- GSTR-9 must be filed by regular taxpayers registered under GST.
- GSTR-9A must be filed by taxpayers registered under the composite scheme.
- GSTR-9B must be filed by e-commerce operators who collect tax at source.
- GSTR-9C is an audit form that must be filed by taxpayers whose aggregate turnover exceeds two crore rupees in a financial year.
