Annual Return under GST LAWS

Table of Contents

1. Introduction to Annual Return under GST: Comply and Avoid Penalties!
2. What is the Annual Return under GST?
3. Who Should File the Annual Return under GST?
4. Forms and Deadlines for GST Annual Return
5. How to File the Annual Return under GST?
6. Penalties for Non-compliance
7. Tips to Comply and Avoid Penalties
8. Frequently Asked Questions (FAQs)

 

Introduction to Annual Return under GST: Comply and Avoid Penalties!

Greetings, fellow entrepreneurs and business owners! As you might already know, the Goods and Services Tax (GST) has transformed the taxation landscape in India since its introduction in 2017. With the tax regime comes the responsibility to file annual returns. But how do you ensure compliance and avoid penalties? Worry not! This comprehensive guide will walk you through the essential aspects of the annual return under GST, helping you stay on top of your filing obligations. Let’s get started!

What is the Annual Return under GST?

The Annual Return under GST is a comprehensive summary of all the inward and outward supplies, tax liabilities, and input tax credits for a financial year. It consolidates the information furnished in the monthly or quarterly GST returns (GSTR-1, GSTR-2A, and GSTR-3B). The Annual Return must be filed by all registered taxpayers, including regular taxpayers, composition scheme taxpayers, and e-commerce operators.

Who Should File the Annual Return under GST?

Most registered taxpayers under GST are required to file the Annual Return. Here’s a list of taxpayers who need to comply:

• Regular taxpayers (both individual and business entities)
• Composition scheme taxpayers
• E-commerce operators
• Input Service Distributors (ISDs)
• Tax Deductors at Source (TDS)
• Non-resident taxable persons

However, there are a few exceptions. The following taxpayers are exempted from filing the GST Annual Return:

• Taxpayers registered under the casual taxable person category
• Taxpayers registered under the Input Service Distributor (ISD) category
• Taxpayers registered as Non-resident Taxable Persons

 

Forms and Deadlines for GST Annual Return

Depending on the taxpayer category, different forms must be used for filing the Annual Return under GST. Here’s a quick overview of the various forms and their respective deadlines:

Form	Taxpayer Category	Deadline
GSTR-9	Regular taxpayers	31st December following the end of the financial year
GSTR-9A	Composition scheme taxpayers	31st December following the end of the financial year
GSTR-9B	E-commerce operators	31st December following the end of the financial year
GSTR-9C	Regular taxpayers with annual turnover exceeding ₹2 crores	31st December following the end of the financial year

 

How to File the Annual Return under GST?

Filing the Annual Return under GST is a straightforward process. Here’s a step-by-step guide to help you file your return without any hassle:

1. Log in to the GST portal: Visit the official GST portal at https://www.gst.gov.in and log in using your credentials.
2. Select the appropriate form: Based on your taxpayer category, choose the relevant form (GSTR-9, GSTR-9A, GSTR-9B, or GSTR-9C).
3. Enter the required details: Fill in all the necessary information related to your inward and outward supplies, tax liabilities, and input tax credits for the financial year.
4. Review and validate the data: Double-check your entries to ensure accuracy. You can also download the auto-populated data from the portal and cross-verify it with your records.
5. Pay any additional tax liability: If you have any outstanding tax liability, pay it using the electronic cash ledger.
6. Submit the return: Once you’re satisfied with the accuracy of your data, submit the return by clicking on the ‘Submit’ button.
7. File the return: After submitting the return, sign it using your digital signature or Aadhaar-based electronic verification code (EVC) and click on the ‘File’ button.

Penalties for Non-compliance

Failure to file the Annual Return under GST within the specified deadline can attract penalties. The late fee for delayed filing is ₹200 per day (₹100 for CGST and ₹100 for SGST) for regular taxpayers and ₹100 per day (₹50 for CGST and ₹50 for SGST) for composition scheme taxpayers. The maximum late fee cannot exceed 0.25% of the taxpayer’s annual turnover in the respective state/union territory.

Tips to Comply and Avoid Penalties

Here are some helpful tips to ensure compliance with the Annual Return filing requirements and avoid penalties:

1. 1. Keep accurate records: Maintain detailed records of your inward and outward supplies, tax liabilities, and input tax credits throughout the financial year. Accurate records will make it easier for you to file your Annual Return.
   2. Stay informed about deadlines: Keep track of the filing deadlines for your respective taxpayer category to avoid late fees and penalties.
   3. Seek professional help: If you’re unsure about the filing process or need assistance with reconciling your records, consider seeking help from a qualified tax professional or consultant.
   4. Verify the auto-populated data: Cross-check the auto-populated data in the Annual Return form with your records to ensure accuracy and avoid discrepancies.
   5. Address any discrepancies: If you discover any discrepancies or errors in your filed monthly or quarterly returns, rectify them before filing the Annual Return to avoid any potential issues or penalties.
   6. Pay any outstanding tax liabilities: Ensure that you pay any additional tax liabilities before submitting your Annual Return to maintain compliance.

   Frequently Asked Questions (FAQs)

   1. Can I revise my Annual Return after filing?
      No, once you’ve filed your Annual Return, it cannot be revised. Therefore, it’s crucial to verify the accuracy of the data before submitting the return.
   2. Do I need to file the Annual Return even if my business didn’t have any transactions during the financial year?
      Yes, if you’re registered under GST, you must file the Annual Return even if your business didn’t have any transactions during the financial year. You can file a NIL return in such cases.
   3. What if I miss the deadline for filing the Annual Return?
      If you miss the deadline for filing the Annual Return, you will be liable to pay a late fee of ₹200 per day (₹100 for CGST and ₹100 for SGST) for regular taxpayers and ₹100 per day (₹50 for CGST and ₹50 for SGST) for composition scheme taxpayers. The maximum late fee cannot exceed 0.25% of your annual turnover in the respective state/union territory.
   4. Can I file the Annual Return using an offline utility?
      Yes, the GST portal provides an offline utility to help taxpayers prepare their Annual Return without an active internet connection. You can download the utility, enter the required details, and then upload the generated JSON file to the GST portal to file your return.
   5. Do I need to file the Annual Return even if my business didn’t have any transactions during the financial year?
      Yes, if you’re registered under GST, you must file the Annual Return even if your business didn’t have any transactions during the financial year. You can file a NIL return in such cases.
   6. What if I miss the deadline for filing the Annual Return?
      If you miss the deadline for filing the Annual Return, you will be liable to pay a late fee of ₹200 per day (₹100 for CGST and ₹100 for SGST) for regular taxpayers and ₹100 per day (₹50 for CGST and ₹50 for SGST) for composition scheme taxpayers. The maximum late fee cannot exceed 0.25% of your annual turnover in the respective state/union territory.
   7. Can I file the Annual Return using an offline utility?
      Yes, the GST portal provides an offline utility to help taxpayers prepare their Annual Return without an active internet connection. You can download the utility, enter the required details, and then upload the generated JSON file to the GST portal to file your return.

   Conclusion

   Filing the Annual Return under GST is a critical compliance requirement for businesses in India. With the right knowledge, accurate record-keeping, and timely action, you can ensure hassle-free filing and avoid penalties. Remember, maintaining compliance not only saves you from potential fines but also helps build a strong reputation for your business. So, stay informed, stay compliant, and keep your business thriving!