Annual GST Return Filing: What You Need To Know

Annual GST Return Filing

As the financial year ends, businesses in India must start preparing for the Annual GST Return filing. This is a crucial task that requires careful attention to detail and accuracy.

To begin with, businesses must collate all their GST returns filed during the year and ensure that they match their books of accounts. Any discrepancies or errors should be rectified before filing the annual return.

It’s also important to note that the annual return form differs from the regular monthly or quarterly return forms. Businesses need to use Form GSTR-9 to file their annual returns for normal taxpayers, while businesses with an annual turnover of less than Rs. 2 crores can use Form GSTR-9A.

The annual return is a comprehensive document that provides details of all inward and outward supplies made during the financial year, along with tax collected and paid. Businesses must also provide information about any input tax credit (ITC) claimed during the year.

Filing the annual GST return on time is crucial to avoid penalties and legal consequences. The due date for filing the annual return is December 31st of each year, so businesses should start preparing well in advance to ensure a smooth filing process.

In addition to the annual return, businesses must file a reconciliation statement in Form GSTR-9C if their turnover exceeds Rs. 2 crores. This statement provides a detailed reconciliation of the GST returns filed with the business’s audited financial statements.

It’s important for businesses to take this process seriously and allocate sufficient time and resources to ensure that their annual return filing is accurate and on time. They can also seek the assistance of professional tax consultants or use online tools provided by the government to simplify this process.

Businesses can maintain transparency and avoid legal complications by filing their annual GST returns on time and accurately. It also helps build a good reputation in the market, as it shows that the business complies with all applicable regulations. So, businesses should file their annual GST return within the due date and provide accurate information for a hassle-free experience.

Annual GST Return Filing – Procedure

Annual GST Return Filing can seem like a daunting task, but it’s crucial to stay compliant with the law. The procedure for filing is relatively straightforward and can be done online through the GST portal.

First, regular taxpayers must collect and reconcile all their monthly or quarterly GST returns filed in that financial year. This step is essential to ensure accurate reporting of the details in the annual return. Taxpayers should also ensure they have handy all relevant documents, such as purchase invoices, sales invoices, credit notes, and debit notes.

Next, log in to the GST portal using your credentials and select the option for filing Annual Returns. You will be prompted to fill in details such as turnover, outward supplies, inward supplies, and tax paid. Ensure all fields are accurately filled in, and all relevant information is provided.

After filling in the necessary details, carefully review the form before submitting it. Any errors or discrepancies can lead to fines and penalties later on. Once you are satisfied with the accuracy of the return, submit it on the portal.

GST Audit Report – Procedure

The GST Audit report is crucial to reconciling your GST returns with your financial statements. The audit needs to be completed by a certified GST practitioner and submitted along with the annual return.

To start the audit, taxpayers must provide their financial statements, including Profit & Loss account, Balance Sheet, and Cash Flow statement. The auditor will then verify the details provided in your monthly or quarterly GST returns with the financial statements.

The auditor will also check for discrepancies or errors and make necessary adjustments. They may also request additional documents, such as bank statements and invoices, for verification.

Once the audit is complete, the auditor will issue a GST Audit Report, which needs to be submitted along with the annual return on the GST portal. Ensuring that all the details in the GST Audit Report match the information filed in the annual return is important. Any disparities or mismatches can result in penalties and extra tax liability.

In conclusion, filing the annual GST return and completing the GST audit report are critical aspects of compliance for businesses registered under GST. Ensure you keep all relevant documents handy, provide accurate information, and review all forms before submitting them on the portal. Following these guidelines can avoid unnecessary fines and penalties and stay on top of your GST compliance obligations.

How to File GSTR-9?

The GSTR-9 form is an annual return to be filed once a year by the registered taxpayers under GST. It consists of details regarding the supplies made and received during the year under different tax heads, i.e. CGST, SGST and IGST. It consolidates the information in the monthly or quarterly returns during the year.

Filing GSTR-9 involves a few simple steps. Firstly, log in to the GST portal with your credentials and select the Annual Return tab. Next, select the financial year you want to file the return.

Fill in all the relevant details, including turnover, supplies made and received, input tax credit availed, and taxes paid. Ensure all information is accurate and matches the details mentioned in your GST returns throughout the year.

After reviewing and verifying all details, submit the return on the portal. Once submitted, you can download a copy of the filed return for your records.

It is important to note that businesses with an annual turnover of less than Rs. 2 crores can opt for the GSTR-9 Simplified Return instead of the regular GSTR-9 form. This simplified return has fewer details and is easier to file.

Additionally, businesses must file GSTR-9C and GSTR-9 if their annual turnover exceeds Rs. 2 crores. This involves conducting a GST audit and submitting an audit report on the portal.

Overall, filing the annual GST return requires attention to detail and accuracy. Businesses can easily comply with their GST obligations by following the correct steps and ensuring accurate information. Filing the return before the due date is essential to avoid any penalties and maintain a good compliance record. Filing GSTR-9 can be a smooth and hassle-free business experience with the right preparation and understanding of the process.

Types of GSTR-9

1. GSTR 9A:  This form is specifically for businesses registered under the composition scheme of GST. It includes annual turnover, taxes paid, and supplies made and received.

2. GSTR-9B: This form is for e-commerce operators who have filed GSTR-8 throughout the year. It includes details of supplies made and received, input tax credits, and taxes paid.

3. GSTR-9C: This form is for businesses with an annual turnover exceeding Rs. 2 crores. It involves a GST audit and the submission of an audit report along with GSTR-9.

It is important for businesses to determine which type of GSTR-9 they need to file based on their registration and turnover. Choosing the right form will ensure a smooth and timely filing process.

Furthermore, businesses must ensure that all necessary documents and records are in order before filing to avoid delays or errors. Filing the annual GST return can be tedious, but with the right guidance and preparation, it can be completed efficiently. It is crucial for businesses to comply with their GST obligations to maintain a good compliance record and avoid any penalties.

GSTR-9 Invoice Format

The GSTR-9 invoice format includes details such as the name and address of the supplier and recipient, GSTIN numbers, invoice number and date, HSN code, description of goods or services supplied, taxable value, rate of tax, and amount of tax paid. It is essential for businesses to maintain accurate and complete records of their invoices to ensure a smooth filing process for the annual GST return. Proper invoicing practices can help businesses avoid errors and penalties while maintaining compliance with GST regulations. As the financial year draws to a close, businesses must gear up for the annual GST return filing. The process involves submitting the GSTR-9 form that includes details of all supplies made and received throughout the year. However, businesses need to be mindful of the different types of GSTR-9 forms that they are required to file based on their registration and turnover. These include GSTR-9A, GSTR-9B, and GSTR-9C.

For e-commerce operators who have filed GSTR-8 throughout the year, GSTR-9B is mandatory. It requires them to provide details of all taxable supplies made through their platform and the amount of tax collected. On the other hand, businesses with a turnover of up to 2 crores can file GSTR-9A, while those with a turnover exceeding two crores must file GSTR-9C, which requires an audit report from a GST auditor.

To ensure a smooth and timely filing process, businesses must begin preparing for the annual return well in advance. They should reconcile their accounts and record all financial transactions accurately. Any discrepancies or errors must be rectified promptly to avoid delays in filing and potential penalties. Businesses should also seek the assistance of a qualified GST professional who can guide them through the filing process and ensure compliance with GST regulations.

In conclusion, annual GST return filing is a critical process for businesses in India. It requires accurate record-keeping, proper invoicing practices, and timely preparation to avoid errors and penalties. By following these best practices and seeking professional assistance where necessary, businesses can ensure a smooth and successful filing process while maintaining compliance with GST regulations.

Penalty for GSTR-9

Failing to file GSTR-9 before the due date can result in penalties and interest. The penalty for late filing is Rs. 200 per day of delay, subject to a maximum of 0.25% of the taxpayer’s turnover. This means the penalty amount cannot exceed 0.25% of the taxpayer’s yearly turnover. It is important for businesses to file their annual GST return on time to avoid any penalties and maintain a good compliance record with GST authorities. As the financial year ends, businesses must gear up for the annual GST return filing. The GST regime has made it mandatory for registered businesses in India to file their annual return in the form of GSTR-9, GSTR-9A, GSTR-9B or GSTR-9C, depending on their turnover and registration type.

For GSTR-9, businesses opting for the GST composition scheme must furnish details relating to their annual turnover, taxes paid and supplies made and received.

On the other hand, e-commerce operators who have filed GSTR-8 during the year will need to file GSTR-9A. Similarly, businesses with a turnover of over Rs. 2 crores in a financial year must file GSTR-9. In comparison, those with a turnover of over Rs. 5 crores will need to file GSTR-9C, which requires certification by a chartered accountant or cost accountant.

It is important for businesses to carefully choose the right form and ensure all necessary documents are in order before filing their annual GST return. This will help avoid delays or errors and maintain a good compliance record with the GST authorities.

Businesses must also ensure that all their transactions are correctly reflected in the annual return. Any discrepancies or missing details may lead to scrutiny by the GST authorities, resulting in penalties and fines.

Apart from filing the annual return, businesses must also complete any pending actions, such as filing GST returns for previous months, paying taxes, and rectifying any errors or mismatches.

What is GSTR-9C?

GSTR-9C is an annual return form that businesses must file with a turnover of over Rs. 5 crores in a financial year under the GST regime. This form requires certification by a chartered accountant or cost accountant to ensure the accuracy and completeness of the information provided. It includes income, expenditure, tax paid, input tax credit claimed and any other relevant information related to the business’s tax liability. Filing GSTR-9C is important for maintaining a good compliance record with the GST authorities and avoiding penalties or fines. As the financial year draws to a close, businesses must pay close attention to their annual GST return filing. It is essential to accurately assess their turnover and determine which form they must file – GSTR-9 or GSTR-9C. While smaller businesses may only need to file GSTR-9, those with a higher turnover must obtain certification from a chartered or cost accountant for GSTR-9C.

Filing the annual return and completing any pending actions promptly will help businesses stay on top of their compliance obligations. It is crucial to ensure all transactions are correctly reflected in return. Any discrepancies or missing details may lead to scrutiny by the GST authorities and result in penalties and fines. Therefore, businesses should take extra care while filing their annual GST return and seek professional help to ensure accuracy and avoid future complications. By staying compliant with the GST rules and regulations, businesses can avoid unnecessary legal hassles and focus on growing their operations unhindered.

Following are the key details that need to be furnished in a GSTR–9A form

1) Basic Details such as GSTIN, Legal Name, and Trade Name of the taxpayer.

2) Details of outward and inward supplies declared in GSTR-4 filed during the financial year. This input consists of a summary of all quarterly returns filed during the FY.

3) Tax payment details as declared in returns filed during the financial year. Tax paid under different heads, such as IGST, CGST, SGST etc., comes here.

4) Particulars of the transactions for the previous Financial Year declared in returns of April to September of the current FY or up to date of filing of annual return, whichever is earlier.

5) Particulars of Demands and Refunds, Details of credit reversed or availed, and Late fees payable and paid.

Please remember that all information disclosed in GSTR – 9 must be cross-checked with the books of accounts and Form GSTR – 4 filed for the period.

Conclusion

In conclusion, businesses must ensure accurate filing of their annual GST return to avoid penalties and scrutiny by the authorities. The GSTR-9A form requires the furnishing of basic details, tax payment details, and particulars of transactions for the previous financial year. It is crucial to cross-check all information with books of accounts and previous returns filed to ensure accuracy. Seeking professional help can also be beneficial in avoiding future complications and staying compliant with GST rules and regulations. By prioritising compliance obligations, businesses can focus on growing their operations without unnecessary legal hassles.

Related Services

• GST Return Filing Online
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• Trademark Registration Online

FAQs

1) What is the Annual GST Return Filing?

The Annual GST Return Filing is a mandatory requirement for registered GST taxpayers in India. It involves furnishing details of all transactions made during the financial year, including information about tax payments, inward and outward supplies, the credit availed or reversed, demands and refunds, and late fees payable and paid. This return must be filed using Form GSTR-9A.

2) Is the new GST return filing system really simple?

The new GST return filing system aims to simplify the process and reduce compliance burdens for taxpayers. It will replace the current multiple-form filing system with a single monthly return. However, it is still in the trial phase, and its effectiveness will depend on how well it is implemented and adopted by taxpayers. In the meantime, businesses must ensure accurate filing of their annual GST return using Form GSTR-9A to avoid penalties and scrutiny by the authorities.

3) Who is eligible to file GST annual returns?

All registered GST taxpayers in India must file their annual returns using Form GSTR-9A. This includes businesses, traders, manufacturers, service providers, and anyone who has registered for GST. It is important to note that even if a business had no transactions during the financial year, they still need to file a Nil return for compliance purposes.

4) Who needs to file Annual Return in Form GSTR-9?

All taxpayers registered under GST and with an annual turnover of more than Rs. 2 crores during the financial year need to file their Annual Return in Form GSTR-9. This return includes details about their purchases, sales, input tax credit availed, tax paid, and other relevant information about their business operations. It is important for businesses to ensure the accurate filing of this return to avoid any penalties or legal repercussions.

5) Is it compulsory to file an annual GST return?

Yes, it is compulsory for all registered GST taxpayers to file their annual returns using Form GSTR-9A. Failure to do so can result in penalties and scrutiny by the authorities. Even businesses with no transactions during the financial year must file a Nil return for compliance purposes. It is important for businesses to take this filing requirement seriously and ensure accurate filing to avoid any legal complications in the future.

6) How many GST returns have to be filed annually?

Registered GST taxpayers in India need to file three types of returns monthly and/or quarterly, depending on their turnover: GSTR-1, GSTR-2A/2B, and GSTR-3B. Additionally, they need to file an annual return using Form GSTR-9A. This means that businesses need to file a total of 13 returns annually if they are registered under GST. It is important for businesses to keep track of the due dates for these returns and ensure timely and accurate filing to avoid any penalties or legal complications.

7) How do submit a Gst Annual Return?

To submit a GST annual return, businesses need to log in to the GST portal and select the ‘Annual Return’ tab. They will then be required to select the relevant financial year and download the GSTR-9 form. After filling in all the necessary details regarding their purchases, sales, input tax credit availed, and tax paid, they can verify and file the return using their digital signature or electronic verification code (EVC). Businesses must ensure the accurate filing of this return to avoid any legal complications in the future.

8) What is GSTR 9?

GSTR-9 is a type of annual return that businesses registered under GST in India must file annually. This form summarizes the details of all sales, purchases, input tax credits availed, and taxes paid during the financial year. It includes information from monthly and quarterly returns filed throughout the year. Businesses must ensure accurate filing of this return using Form GSTR-9A to comply with GST regulations and avoid any legal complications in the future.

9) What are the new changes in annual GST return filing?

The government has significantly changed the annual GST return filing process to simplify it for businesses. From 2020-21, businesses with turnover up to Rs 5 crore can file their annual returns using GSTR-9C, which was previously applicable only to larger businesses. This change will reduce the compliance burden on smaller businesses and make the process more efficient. Additionally, the government has introduced a new QR code on GSTR-1 forms, which will help verify the authenticity of invoices and prevent fraud. These changes are expected to improve compliance and reduce errors in GST filing, making the process simpler and more transparent for businesses. It is important for all businesses registered under GST to stay updated on these changes and ensure accurate filing of their annual returns to avoid any legal complications in the future. With these changes, businesses can expect a more streamlined and efficient annual GST return filing process.

10) What is GSTN in India?

GSTN stands for Goods and Services Tax Network, a non-profit organization responsible for providing IT infrastructure to manage the implementation of GST in India. It is a secure platform that facilitates registration, payment, return filing, and other compliance-related activities under GST. GSTN also provides various tools and resources to taxpayers and tax authorities to help them comply with GST regulations. The government owns 24.5% of GSTN, while private financial institutions control 75.5%. GSTN plays a crucial role in the successful implementation of GST in India. All businesses registered under GST must work closely with GSTN to ensure compliance and efficient management of their GST-related activities. This includes timely filing of returns, payment of taxes, and regular updates of relevant information on the GSTN platform. By working with GSTN, businesses can ensure they are fully compliant with all relevant laws and regulations and avoid any legal or financial penalties resulting from non-compliance. As such, it is important for businesses to stay informed about the latest developments in GSTN and take advantage of the resources it provides to stay on top of their GST-related activities.

11) Is GST registration mandatory for e-commerce?

Yes, GST registration is mandatory for e-commerce operators and suppliers. As per the GST laws, e-commerce operators must obtain registration regardless of their turnover. E-commerce suppliers selling goods or services through an e-commerce platform must register under GST if their aggregate turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs in special category states) in a financial year. Failure to comply with these regulations can lead to legal and financial penalties for businesses. Therefore, it is important for e-commerce businesses to ensure that they fully comply with all relevant GST regulations and guidelines.

12) What is GSTR-5?

GSTR-5 is a return filing form that must be filed by non-resident taxable persons registered under GST. Non-resident taxable persons are individuals or companies who conduct business in India but do not have a fixed place of business here. The GSTR-5 form contains details on the business activities conducted by the non-resident taxable person during the relevant tax period, including information on sales, purchases, and tax payments. It is important for non-resident taxable persons to file their GSTR-5 returns on time to avoid penalties and maintain compliance with GST regulations.

13) Difference Between GST and Income Tax

GST and Income Tax are two different types of taxes levied in India. GST is a consumption-based tax levied on the supply of goods and services, while Income Tax is a direct tax on income earned by individuals and businesses. GST applies to all supply chain stages, from the manufacturer to the end consumer. At the same time, Income Tax only applies to individuals and businesses earning taxable income above a certain threshold. Furthermore, GST rates are standardized nationwide, while Income Tax rates vary depending on an individual’s income level.

14) How can I get my GST UIN number?

To obtain a GST UIN (Unique Identity Number) number, businesses must first register for GST through the official GST portal. During registration, they must provide details such as their PAN number, business address, bank account information and proof of business ownership. Once the registration process is complete, a unique 15-digit GST identification number will be provided to the business. It is important for businesses to keep this number safe and use it in all their GST-related transactions.

15) How do I file a final return under GST?

To file a final return under GST, businesses must first ensure that all their previous returns are filed, and their liabilities have been paid. Once this is done, they can proceed to file the final return using Form GSTR-10 on the official GST portal. The form requires businesses to provide details such as their UIN number, the date of cancellation of registration, and details of closing stock held on the date of cancellation. Once the form is submitted, any remaining input tax credit will be refunded, and the business’s GST registration will be cancelled. It is important for businesses to file their final return within the prescribed timeline to avoid any penalties or legal issues.

Additionally, businesses must ensure that all their financial records and documents are maintained accurately and up-to-date to facilitate a smooth transition during the final return filing process. Seeking professional assistance from a qualified GST expert can also be helpful in ensuring compliance with all relevant regulations and guidelines. With proper guidance and adherence to regulations, businesses can successfully file their final return under GST and complete the process of cancellation of registration.