GSTR 9: Your Annual GST Return Simplified

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Sharanya Radhakrishnan Nair

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The Goods and Services Tax (GST) has become an essential component of the Indian business environment. As an Indian business owner, you must follow several regulations, including filing the annual return, GSTR-9. This lengthy form can be intimidating, but understanding its key components and following the proper procedures can ensure a smooth filing experience. This comprehensive form necessitates data consolidation from multiple sources, making the process prone to errors and delays.

What is GSTR-9?

Form GSTR-9, the annual return for Goods and Services Tax (GST), holds immense significance for registered businesses operating within India. This comprehensive document requires regular taxpayers, including Special Economic Zone (SEZ) units and developers, to provide a detailed overview of their financial activities for a given financial year. It serves as the cornerstone for reconciling and solidifying the information submitted through their monthly or quarterly GSTR-1, 2, and 3B returns.

Who Needs to File GSTR-9?

For the financial year 2022-23, Taxpayers with an aggregate turnover up to Rs. 2 crores are exempt from filing GSTR-9. This exemption aims to ease the compliance burden for small businesses.

 

All other taxpayers with an aggregate turnover exceeding Rs. 2 crores are obligated to file GSTR-9. This comprehensive annual return consolidates all GST details and ensures transparency in your tax reporting.

 

However, there are some exemptions to it. Following groups of taxpayers are exempted from filing their GSTR- 9 return:

  • Casual Taxable Person
  • Non-resident Taxable person
  • Person deducting tax at source (Tax Deduction at Source – TDS)
  • An E-com aggregator or website collecting tax at source (Tax Collection at Source – TCS)
  • A person providing eligible Input Tax Credit

What Information is Included in GSTR-9?

GSTR-9 captures a detailed picture of your business’s GST activities for the entire financial year. Here’s a breakdown of the key information included in the form:

 

Details of outward and inward supplies: This includes information about all goods and services you have sold and purchased, along with their respective HSN codes and taxable values.

 

Tax liability: GSTR-9 requires you to calculate and report your tax liability under Central GST (CGST), State GST (SGST), Integrated GST (IGST), and cess.

 

Input tax credit (ITC): The form also requires you to report the amount of ITC availed during the financial year.

 

Reconciliation statements: GSTR-9 includes reconciliation statements that compare data with previously filed GSTR-1, 2, and 3B returns. This helps ensure consistency and accuracy in your GST reporting.

When is GSTR-9 Due?

The due date for filing GSTR-9 is 31st December of the year following the financial year. For instance, if your financial year ends on March 31st, 2023, the GSTR-9 for that year must be filed by December 31st, 2023.

Penalty and late fee for failing to file GSTR-9

For imposing late fees for late filing of GSTR-9, the department classified taxpayers based on turnover. It also stated that the following late fees will be charged beginning in the financial year 2022-23:

Turnover limit

Up to Rs 5 crore

Exceeding Rs 5 crore and less than Rs 20 crore

Exceeding Rs 20 crore

Late fee per day

Rs 50 (Rs 25 each under CGST and SGST Act)

Rs 100 (Rs 50 each under CGST and SGST Act)

Rs 200 (Rs 100 each under CGST and SGST Act)

Maximum late fee

0.04% of turnover in state/UT (0.02% each under CGST and SGST Act)

0.04% of turnover in state/UT (0.02% each under CGST and SGST Act)

0.50% of turnover in state/UT (0.25% each under CGST and SGST Act)

Failure to file GSTR-9 may also lead to other consequences, such as:

  • Denial of input tax credit

  • Delay in processing refunds

  • Legal action

Conclusion :

In summary, GSTR-9 plays an important role in the landscape of Goods and Services Tax (GST) compliance, affecting businesses of all sizes. It is more than a regulatory requirement; it is a strategic tool for businesses seeking to run smoothly.  Smaller businesses benefit from the exemption, which simplifies their compliance journey. Others see GSTR-9 as a critical tool for maintaining transparency, ensuring accuracy, and adhering to GST regulations. It provides a consolidated view of all inward and outward supplies, ITC availed and utilized, and taxes paid. Return filing can be a complicated process.

FAQs on GSTR-9

Form GSTR-9 returns must be filed at the GSTIN level, that is, for each registration. If a taxpayer obtains multiple GST registrations under the same PAN, whether in the same or different states, he or she must file an annual return for each registration separately, regardless of whether the GSTIN was registered as a normal taxpayer for some time during the financial year or for the entire financial year.

Yes, additional liability that was not previously reported on Form GSTR-3B can be declared on Form GSTR-9. The additional liability declared in Form GSTR-3B must be paid using Form GST DRC-03.

Yes, before filing GSTR-9, you must reconcile GSTR-2A data with the input tax credit recorded in your books of accounts.

Yes, even if you were only registered as a taxpayer for one day, you must file an annual return. As a result, even if your registration has been canceled, you must file the GSTR-9.

GSTR-9 is an annual GST return that must be filed once a year by registered GST taxpayers under the Regular Scheme (Monthly/Quarterly). GSTR-9C is a statement that reconciles GSTR-9 and the audited books of accounts. 

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GSTR 9: Your Annual GST Return Simplified

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