Expert Assistance

In GST, annual return filing is a crucial compliance requirement that consolidates all the monthly or quarterly returns filed during a financial year. This process involves primarily two forms for regular taxpayers: GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement).

 

1. GSTR-9 (Annual Return)

Purpose: GSTR-9 is a comprehensive annual return that consolidates all the information furnished by a taxpayer in their monthly/quarterly returns (GSTR-1 and GSTR-3B) throughout the financial year. It provides a detailed summary of outward supplies, inward supplies, input tax credit (ITC) availed and reversed, and tax paid.

Who Needs to File GSTR-9? Every registered person under GST is generally required to file GSTR-9, with some exceptions:

• Mandatory: Taxpayers with an aggregate annual turnover exceeding INR 2 crore in the preceding financial year.

• Optional: Filing of GSTR-9 is optional for taxpayers with an aggregate annual turnover up to INR 2 crore in the preceding financial year.

• Exemptions:

  • Casual Taxable Persons

  • Non-Resident Taxable Persons

  • Input Service Distributors (ISD)

  • Persons paying tax under Section 51 (TDS) or Section 52 (TCS) of the CGST Act

  • Online Information and Database Access Retrieval (OIDAR) service providers.

  • Composition dealers (they file GSTR-9A instead).

Due Date: The due date for filing GSTR-9 for a financial year is 31st December of the succeeding financial year.

• For FY 2023-24, the due date for GSTR-9 is 31st December 2024.

Contents of GSTR-9: GSTR-9 is divided into six parts with 19 tables, covering:

• Part I: Basic details (FY, GSTIN, Legal Name, Trade Name).

• Part II: Details of outward and inward supplies declared during the financial year.

• Part III: Details of ITC availed and reversed during the financial year.

• Part IV: Details of tax paid as declared in returns filed during the financial year.

• Part V: Particulars of transactions for the previous financial year declared in returns of the next financial year (e.g., amendments, credit/debit notes).

• Part VI: Other information, such as demands and refunds, supplies from composition taxpayers, goods sent on approval basis, HSN-wise summary of outward and inward supplies, and late fees payable/paid.

Documents Required for GSTR-9 Filing

• Consolidated purchase and sales invoices for the entire financial year.

• Copies of all GSTR-1 and GSTR-3B returns filed for the relevant financial year.

• Details of input tax credit availed, reversed, and re-claimed.

• Details of HSN/SAC-wise summary of outward and inward supplies.

• Details of any advances received and adjusted.

• Details of credit notes/debit notes issued.

• Records of tax paid (cash and credit ledger).

 

Process of Filing GSTR-9 (Online)

1. Login to GST Portal: Go to www.gst.gov.in and log in with your credentials.

2. Navigate to Annual Return: Go to Services > Returns > Annual Return.

3. Select Financial Year: Choose the financial year for which you want to file the return.

4. Answer Questionnaire: The system will ask if you want to file a NIL return. Select 'Yes' if you meet the criteria for a NIL return (no outward/inward supplies, no tax liability, no ITC claimed, no refund claimed, etc.). Otherwise, select 'No'.

5. Download Summaries (Optional but Recommended): You can download system-computed summaries of GSTR-1, GSTR-3B, and GSTR-9 (auto-populated) and Table 8A (document details for ITC) to reconcile with your books.

6. Enter Details in Tables: Fill in the required details in various tables. Many fields will be auto-populated from your GSTR-1 and GSTR-3B data. You can edit these auto-populated values where allowed (some fields are non-editable, like Table 6A and Table 9).

   • Table 4: Outward and inward supplies on which tax is payable.

   • Table 5: Outward supplies on which tax is not payable.

   • Table 6: Details of ITC availed.

   • Table 7: Details of ITC reversed and ineligible ITC.

   • Table 8: Other ITC-related information (e.g., ITC as per GSTR-2A, ITC not availed).

   • Table 9: Details of tax paid.

   • Table 10, 11, 12, 13: Details of previous financial year's transactions reported in the next financial year.

   • Table 14: Differential tax paid due to reconciliation.

   • Table 15: Particulars of demands and refunds.

   • Table 16: Information on supplies received from composition taxpayers, deemed supplies, etc.

   • Table 17 & 18: HSN-wise summary of outward and inward supplies.

   • Table 19: Late fee payable and paid.

7. Compute Liabilities and Late Fees: Click "Compute Liabilities" to allow the system to calculate your liabilities and any late fees.

8. Preview Draft: Preview your draft GSTR-9 in PDF or Excel format to review all entries carefully.

9. Proceed to File: Once satisfied, click "Proceed to File."

10. File GSTR-9: File the return using your Digital Signature Certificate (DSC) (mandatory for companies and LLPs) or Electronic Verification Code (EVC) (for other taxpayers).

11. ARN Generation: Upon successful filing, an Acknowledgement Reference Number (ARN) will be generated.

Late Fees for GSTR-9: The late fee for GSTR-9 varies based on the turnover:

• Turnover up to INR 5 crore: INR 50 per day (INR 25 CGST + INR 25 SGST), subject to a maximum of 0.04% of turnover (0.02% CGST + 0.02% SGST) in the state/UT.

• Turnover more than INR 5 crore and less than INR 20 crore: INR 100 per day (INR 50 CGST + INR 50 SGST), subject to a maximum of 0.04% of turnover (0.02% CGST + 0.02% SGST) in the state/UT.

• Turnover exceeding INR 20 crore: INR 200 per day (INR 100 CGST + INR 100 SGST), subject to a maximum of 0.50% of turnover (0.25% CGST + 0.25% SGST) in the state/UT.

Note: These late fee provisions are for FY 2022-23 onwards. Always refer to the latest notifications from the GST Council for exact figures.

 

2. GSTR-9C (Reconciliation Statement)

Purpose: GSTR-9C is a reconciliation statement that reconciles the annual return (GSTR-9) with the taxpayer's audited annual financial statements. It highlights any differences in turnover, taxes paid, and ITC between the GST returns and the audited books of accounts, along with reasons for such differences. It is now self-certified by the taxpayer (earlier, it required certification by a CA/CMA).

Who Needs to File GSTR-9C? Every registered person whose aggregate annual turnover exceeds INR 5 crore in a financial year is required to file GSTR-9C along with a copy of their audited annual accounts.

Due Date: The due date for filing GSTR-9C for a financial year is the same as GSTR-9: 31st December of the succeeding financial year.

• For FY 2023-24, the due date for GSTR-9C is 31st December 2024.

• GSTR-9C can only be filed after GSTR-9 has been filed.

Contents of GSTR-9C: GSTR-9C consists of two main parts:

• Part A: Reconciliation Statement:

  • Part I: Basic details (FY, GSTIN, legal name, trade name, and whether the taxpayer is liable for audit under any other Act).

  • Part II: Reconciliation of turnover declared in audited annual financial statements with turnover declared in GSTR-9.

  • Part III: Reconciliation of tax paid.

  • Part IV: Reconciliation of Input Tax Credit (ITC) as per books of account and as declared in GSTR-9.

  • Part V: Auditor's recommendation on additional liability due to non-reconciliation.

• Part B: Certification: Self-certification by the taxpayer (earlier by CA/CMA).

Documents Required for GSTR-9C Filing:

• Audited Annual Financial Statements (Balance Sheet, Profit & Loss Account, Cash Flow Statement, etc.) for the relevant financial year.

• Copy of the GSTR-9 filed for the financial year.

• Reconciliation workings between GSTR-9 and audited financials for turnover, ITC, and tax paid.

• Any other records or documents relied upon for reconciliation.

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Process of Filing GSTR-9C (Online)

1. Login to GST Portal: Log in to www.gst.gov.in.

2. Navigate to Annual Return: Go to Services > Returns > Annual Return.

3. Select Financial Year: Choose the financial year.

4. Initiate GSTR-9C: Select the "Prepare Online" option for GSTR-9C.

5. Upload JSON File (if prepared offline): GSTR-9C can be prepared using an offline utility. The generated JSON file is then uploaded to the portal.

6. Fill Details: Enter the required details in various tables, reconciling figures from your audited financials with those in your GSTR-9. Provide reasons for any differences.

7. Additional Liability (if any): If any additional tax liability is identified during reconciliation, it must be declared in GSTR-9C and paid using FORM DRC-03.

8. Self-Certification: The taxpayer needs to self-certify the statement.

9. Upload Audited Financials: Attach a copy of the audited annual financial statements.

10. File GSTR-9C: File the reconciliation statement using DSC or EVC.

Penalty for Late Filing of GSTR-9C: There is no specific penalty prescribed for late filing of GSTR-9C. However, it is subject to a general penalty of INR 25,000 (INR 12,500 CGST + INR 12,500 SGST) under Section 125 of the CGST Act for any contravention of the Act for which no specific penalty is provided.

It's crucial for businesses to ensure accurate and timely filing of both GSTR-9 and GSTR-9C to maintain compliance and avoid penalties under GST law.