What is GSTR-9?
Every registered person shall furnish electronically an annual return for every financial year in the prescribed form, except the following:
- Input Service Distributor
- The person paying tax under section 51 or section 52,
- Casual taxable person
- Non-resident taxable person
Such a return needs to be furnished on or before the 31st day of December following the end of such financial year.
To further add to this, Rule 80(1) of the CGST Rules, 2017 states that such registered person shall furnish an annual return electronically in Form GSTR-9.
This return needs to be filed through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
And according to section 35(5),
“Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant. Additionally, he shall submit a copy of the audited annual accounts, the reconciliation statement and such other documents in the prescribed form”.
Now, there are two more legal provisions that further build on the above two sections.
Section 44(2) of the CGST Act states that registered persons getting their accounts audited need to furnish a copy of (i) audited annual accounts and (ii) a reconciliation statement.
The reconciliation statement is a statement that reconciles the value of supplies declared in the annual return with such audited annual financial statements.
Accordingly, Rule 80(3) further requires that registered persons having an aggregate turnover of over Rs 2 Crores during a financial year shall get his accounts audited by a Chartered Accountant or a Cost Accountant.
Such audited annual accounts and reconciliation statement should be filed electronically in Form GSTR-9C. This return needs to be filed through the common portal either directly or through a Facilitation Centre notified by the Commissioner.[/vc_column_text]
GSTR 9: Points to Remember in case of Annual Returns
- Every registered person is required to file an annual return in Form GSTR-9 on or before 31st December of the year succeeding the financial year. For instance, the annual return for FY 2017-18 should be filed on or before 31st December 2018.
- Persons paying taxes under the Composition Scheme are required to file annual return in form GSTR-9A.
- Electronic commerce operators who are required to collect tax at source under section 52 need to furnish annual return in form GSTR – 9B.
- Persons registered under GST but having no transactions during the year are still required to file a Nil Annual Return.
- A person who has got his registration cancelled during the year is also required to file the respective Annual returns.
- Registered persons who have opted in or opted out of composition scheme are required to file both GSTR 9 & GSTR 9A for the relevant periods.
- Following persons registered under GST are not required to file annual return:
- Input Service Distributor (ISD)
- Persons required to deduct TDS
- Casual taxable person
- Non-Resident taxable person
- Normal registered persons having an aggregate turnover of more than Rs. 2 Crore are required to furnish the following documents:
- Annual Return in GSTR-9
- Annual accounts audited by a Chartered Accountant or a Cost Accountant
- Reconciliation statement reconciling annual returns with audited annual accounts in GSTR-9C
GSTR 9: Penalty On Failing To File Annual Return and Not Getting The Accounts Audited
1. Notice to Defaulters
According to section 46 of the CGST Act, if a registered person fails to furnish monthly/quarterly return, annual return or final return, then the tax authorities would issue a notice to him. This notice would require such a person to furnish the said return within 15 days in such form as may be prescribed.
2. Late Fee
In case there is a delay in filing GSTR-9, then a late fee of Rs 100 per day under CGST and Rs 100 SGST would be levied. The combined fee for a day would be Rs 200. This fee cannot exceed 0.25% of the total turnover in State or Union Territory.
3. General Penalty
In case any registered person contravenes any of the provisions of the Act, then a general penalty of upto a maximum of Rs 50,000 (Rs 25,000 under CGST and Rs 25,000 under SGST) would be levied.
You May Also Read
GST Penalty: A Guide To GST Offences, Penalties And Appeals
Elements of Form GSTR-9
GSTR 9 merely summarizes the information for the relevant financial year based on the disclosure made in Form GSTR 1 and Form GSTR 3B. The details to be furnished in the annual return should be done on ‘as is’ basis. This means even if details furnished in the returns filed during the year are incorrect, still same details are to be reported in your annual return. The actual information showcased in the financial statements of your entity should not to be considered for reporting data in annual return.
Therefore, the purpose of filing annual return is not to allow taxable persons to modify the data filed in monthly returns. Instead, the intent of filing such a return is to aggregate the data filed during the financial year.
Following are the elements of Form GSTR-9:
Part I – Basic Details
1. Financial Year
3A. Legal Name
3B. Trade Name (if any)
Part II – Details of Outward and Inward Supplies Declared During the Financial Year
4. Details of advances, inward and outward supplies on which tax is payable as declared in returns filed during the financial year
A. Supplies made to un-registered persons (B2C)
B. Supplies made to registered persons (B2B)
C. Zero rated supply (Export) on payment of tax (except supplies to SEZs)
D. Supply to SEZs on payment of tax
E. Deemed Exports
F. Advances on which tax has been paid but invoice has not been issued (not covered under (A) to (E) above)
G. Inward supplies on which tax is to
be paid on reverse charge basis
H. Sub-total (A to G above)
I. Credit Notes issued in respect of transactions specified in (B) to (E) above (-)
J. Debit Notes issued in respect of transactions specified in (B) to (E) above (+)
K. Supplies / tax declared through Amendments (+)
L. Supplies / tax reduced through Amendments (-)
M. Sub-total (I to L above)
N. Supplies and advances on which tax is to be paid (H + M) above
5. Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year
A. Zero rated supply (Export) without payment of tax
B. Supply to SEZs without payment of tax
C. Supplies on which tax is to be paid by the recipient on reverse charge basis
E. Nil Rated
F. Non-GST supply
G. Sub-total (A to F above)
H. Credit Notes issued in respect of transactions specified in A to F above (-)
I. Debit Notes issued in respect of transactions specified in A to F above (+)
J. Supplies declared through Amendments (+)
K. Supplies reduced through Amendments (-)
L. Sub-Total (H to K above)
M. Turnover on which tax is not to be paid (G + L above)
N. Total Turnover (including advances) (4N + 5M – 4G above)
Part III – Details of ITC as declared in returns filed during the financial year
6. Details of ITC availed as declared in returns filed during the financial year
A. Total amount of input tax credit availed through FORM GSTR-3B (sum total of Table 4A of FORM GSTR-3B)
B. Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs)
- Capital Goods
- Input Services
C. Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed
- Capital Goods
- Input Services
D. Inward supplies received from registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed
- Capital Goods
- Input Services
E. Import of goods (including supplies from SEZs)
- Capital Goods
F. Import of services (excluding inward supplies from SEZs)
G. Input Tax credit received from ISD
H. Amount of ITC reclaimed (other than B above) under the provisions of the Act
I. Sub-total (B to H above)
J. Difference (I – A above)
K. Transition Credit through TRAN-I (including revisions if any)
L. Transition Credit through TRAN-II
M. Any other ITC availed but not specified above
N. Sub-total (K to M above)
O. Total ITC availed (I + N above)
7. Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year
A. As per Rule 37
B. As per Rule 39
C. As per Rule 42
D. As per Rule 43
E. As per section 17(5)
F. Reversal of TRAN-I credit
G. Reversal of TRAN-II credit
H. Other reversals (pl. specify)
I. Total ITC Reversed (A to H above)
J. Net ITC Available for Utilization (6O – 7I)
8. Other ITC related information
A. ITC as per GSTR-2A (Table 3 & 5 thereof)
B. ITC as per sum total of 6(B) and 6(H) above
C. ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018
D. Difference [A-(B+C)]
E. ITC available but not availed (out of D)
F. ITC available but ineligible (out of D)
G. IGST paid on import of goods (including supplies from SEZ)
H. IGST credit availed on import of goods (as per 6(E) above)
I. Difference (G-H)
J. ITC available but not availed on import of goods (Equal to I)
K. Total ITC to be lapsed in current financial year (E + F + J)
Part IV – Details of tax paid as declared in returns filed during the financial year
9. Details relate with Tax Payable, Tax Paid Through Cash and Tax Paid Through ITC (Central Tax, State Tax/UT Tax, Integrated Tax and CESS):
(i) Integrated Tax
(ii) Central Tax
(iii) State/UT Tax
(vi) Late fee
Part V – Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier
10. Supplies / tax declared through Amendments (+) (net of debit notes)
11. Supplies / tax reduced through Amendments (-) (net of credit notes)
12. Reversal of ITC availed during previous financial year
13. ITC availed for the previous financial year
14. Differential tax paid on account of declaration in 10 & 11 above
- Integrated Tax
- Central Tax
- State/UT Tax
Part VI – Other Information
15. Particulars of Demands and Refunds
A. Total Refund claimed
B. Total Refund Sanctioned
C. Total Refund Rejected
D. Total Refund Pending
E. Total Demand of Taxes
F. Total Taxes Paid in Respect of E Above
G. Total Demands Pending Out of E Above
16. Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis
A. Supplies received from Composition taxpayers
B. Deemed supply under Section 143
C. Goods sent on approval basis but not returned
17. HSN Wise Summary of outward supplies
18. HSN Wise Summary of Inward supplies
19. Late fee payable and paid
A. Central Tax
B. State Tax
Here is an infographic that explains the GSTR-9 return in a much simpler way.