Implemented in India from 1st July 2017, the Goods and Services Tax (GST) is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services throughout India. Over 1.3 crore businesses in India have been registered and issued GST registration under the new GST regime. The entities registered under GST must file annual returns as per the scheduled GST return due date. GST annual return filing is mandatory for all entities with a turnover of more than two crores required to obtain GST registration, irrespective of the business activity or sales or profitability during the return filing period. Hence, even a dormant business that gets GST registration must file GST returns.
Incorporation
GSTR 9 is the annual return that is to be filed yearly by the taxpayers registered under GST. GSTR 9 consists of details regarding the outward and the inward supplies made or received during the relevant financial year under CGST, SGST, and IGST. It is a consolidation of all the monthly/quarterly returns filed in that year.
Process
The due date for filing Form GSTR-9 (Annual Return) and Form GSTR-9C (Reconciliation Statement) for financial year 2019-2020 has been extended up to 31st March 2021 based on the pandemic situation. The Government has also decided to simplify these forms by making various fields of these forms optional.
Before filing GSTR 9, the taxpayer must file all GSTR-1, GSTR-3B, or GSTR 4 returns. In case of over dues, the GSTR registration holder will not be allowed to file an annual GST annual return.
GSTR-9 is broadly divided into six parts and 19 sections. Each part asks for the details that are readily available from previously filed returns and books of accounts. This form asks for disclosure of annual sales, bifurcating between the cases subjected to tax and those not subjected to Tax. The annual value of the inward supplies and ITC availed thereon is to be revealed. Further, these purchases have to be classified as inputs, input services, and capital goods. Details of ITC that need to be reversed due to ineligibility are to be entered.
GST annual return filing can be divided into three types based on the form to be filed as under:
- GSTR 9: The entities exceeding a turnover of 2 crores are required to file GST annual return in form GSTR-9.
- GSTR-9A: Registered taxpayers who have opted for the GST Composition scheme are required to file GSTR-9A.
- GSTR-9C: Form GSTR-9C is meant to file the taxpayers’ reconciliation statement about a particular financial year. This form is a statement of reconciliation between the Annual returns in GSTR-9 and the figures mentioned in the taxpayers’ Audited financial statements.
Documentation
The following documents are required for GST annual return filing:
GST registration certificate
GST returns filed during the financial year for which annual return is being filed
Audited financial statements
Details of outward supplies and inward supplies
Details of Input Tax Credit (ITC) availed and reversed
Other Considerations
All taxpayers/taxable persons registered under GST must file their GSTR 9. However, taxpayers opting for the composition scheme, casual taxable person, input service distributors, non-resident taxable persons, and persons paying TDS under section 51 of CGST Act are not required to file GSTR 9.
Once GST annual return is filed, the person or entity must pay any overdue GST liabilities. Furthermore, the taxpayer must remit the input tax in the stock of inputs, semi-finished goods, finished goods, and capital goods, or the output tax liability of such goods, whichever is larger. GST electronic credit or cash ledger can be used to make the final GST payment.
If the concerned Officer decides to reject the application, they will provide an intimation in writing to the applicant regarding the discrepancy’s nature. The applicant must respond to the same within seven days of the date of receipt of the letter. If the applicant fails to do the same, he may reject the application after providing him/her with an opportunity to be heard.
Revocation of GST cancellation means that the cancellation decision has been overturned, and the registration remains valid. This only applies when a tax officer cancels a taxable person’s registration on his initiative. A taxpayer can apply within thirty days of receiving the cancellation order for revocation of the order.
Conclusion
GST annual return filing is mandatory for all entities with a turnover of more than two crores required to obtain GST registration, irrespective of the business activity or sales or profitability during the return filing period. Taxpayers registered under GST must file their GSTR 9 yearly, which consists of details regarding the outward and the inward supplies made or received during the relevant financial year under CGST, SGST, and IGST. With the right documentation and adherence to the process, GST annual return filing can be made easy and hassle-free.
Documents Required:
- GSTIN
- Invoice