GST Annual Return

GST returns consist of two kinds of return - periodic and annual returns. Periodic returns are monthly or quarterly returns for describing transactions throughout the month or quarter, whereas annual return is for describing the concise of the periodic returns filed throughout a financial year. Since the annual return is last return of the year, so, it has a special importance.

As per Section 44/Rule 80, Annual Return is to be filed in Form GSTR-9 upto 31st December of subsequent year. Composition Dealers shall file annual return in GSTR-9A.

Who should file an annual return?

Generally, all taxpayers need to file the return with certain exclusions such as taxpayers who have obtained registration as: Casual Taxable Persons or Non-Resident Taxable Persons like exhibitors and Input service distributors to distribute the input tax credit of services that are invoiced in one location, however, are to be used in different States, also person liable for deduction of tax at source or collection of tax at source. A businessman has to file the GST Annual Return if they meet the following terms & conditions: they have registered themselves as a taxpayer under GST, and they also have the 15 digit GSTIN or they are a non-resident taxpayer. Businessman who has a Unique Identification Number (UIN) need not file this return, their business turnover is more than Rs 20 lakhs and they must ensure that they have precisely captured all the relevant points pertaining to the transactions they have carried out throughout the year, at the invoice level.

How to file an annual return?

When one files the GST annual return, they have to provide a range of information – about their inward & outward supplies, Input Tax Credit (ITC), tax paid and all those factors which have an effect on their tax liability for the entire year. The form contains 6 parts.

Part 1

In this part, one has to enter the basic information, like the financial year under consideration, their GSTIN, legal name, and trade name if they have any.

Part 2

In this part, one has to provide details pertaining to the inward and outward supplies that they have declared, during the entire financial year. This part has two sections, named 4 and 5.

In section 4, they have to fill up details of both B2B and B2C supplies, which draw tax liability, supply to Special Economic Zones (SEZ) on tax payment, inward supplies which draw reverse charge tax, deemed exports, debit or credit notes given for above-mentioned transactions.

In section 5, they need to provide details of exempted sales supplies, non-GST supplies, and supply to SEZ without payment of tax, outward supplies that attract reverse charge tax, debit or credit notes given for the mentioned transactions.

Part 3

This part of the form has 3 sections- 6, 7, 8.

In 6th section, they have to give the details of ITC that they have availed in the financial year on ingoing supplies, like B2B, B2C, imports, etc.

In 7th section, one has to give details of reversed ITC, for reasons like making excused supplies, non-business use, etc.

And in Section 8, other information related to ITC is to be provided. They also need to give information about ITC available but not used, total invalid ITC value for the financial year, etc.

Part 4

In this part, one has to enter the details of the tax that they have paid and declared in the returns that they have filed in the financial year. They need to furnish break-up of payable taxes, the tax they have paid in cash and through ITC.

Part 5

Here, they need to provide details of those transactions which pertain to the previous financial year but which they have declared in the April-September returns of the present financial year.

Part 6

In this part, one has to furnish information not provided till now, like refund details which include refunds claimed, sanctioned, rejected and pending. They have to give similar details for demands also.

Last date for filing the return

The GST Council of India has decided that the last date to file this statement is December 31 of the following year. So, if one is filling this for 2020, then they have to do it by December 31, 2021.

What is the penalty for not filing the return?

If someone fails to file the GST Annual Return within the specified time, then they have to pay a penalty of Rs 100/day under CGST & Rs 100/day under SGST. The higher limit for penalty is Rs 5000. They also have to pay 18% interest on outstanding tax payments. The annual return once filed cannot be revised as there is no specific facility in GST law to revise the annual return under the current version of the law.

The GST Annual Return is a transparent method to keep financial transactions accountable. And as it can be done online, it gives the advantage of the ease of access and flexibility.