Annual Return under GST How to Comply and avoid Penalties!10 min read

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Annual Return under GST
Annual Return under GST

Annual Return under GST

Annual Return under GST was notified vide Notification No 39/2018 Central Tax dated 4.9.2018, 

All Registered persons including Composition dealer, other than an Input Service Distributor (ISD), a Person paying tax under Tax deduction at source and Collection of tax at source, a Casual taxable person and a Non-resident taxable person, shall furnish an Annual Return under GST for every financial year electronically in FORM GSTR 9 on or before the thirty-first day of December following the end of such financial year. GSTR 9 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 furnished in the monthly/quarterly returns during the year.

Types of GSTR 9 (Annual Return under GST)

  1. GSTR 9: For Regular Taxpayers
  2. GSTR 9A: It should be filed by the Persons Registered under Composition scheme under
  3. GSTR 9B: For  e-commerce operators who have filed GSTR 8 during the financial year
  4. GSTR 9C: It should be filed by the taxpayers whose annual turnover exceeds Rs. 2 Crores during the financial All such taxpayers are also required to get their books of accounts audited and file a copy of audited annual accounts and reconciliation statement of taxes paid and payable as per audited accounts.

The Annual return in FORM GSTR 9 is divided into six parts with 19 tables which includes detailed information related to outward supplies, inward supplies, ITC availed, ITC Reversed, Ineligible ITC, Particulars of Demand and Refund, HSN summary of outward supplies and HSN Summary of Inward supplies of the transactions declared in returns filed during the financial year. The following are the parts given in the annual return FORM GSTR 9

  1. Part-I: Basic details of the
  2. Part-II: Details of Outward and Inward supplies declared during the financial
  3. Part-III: Details of ITC declared in returns filed during the
  4. Part-IV: Details of tax paid as declared in returns filed during the Financials
  5. Part-V: Particulars of the transactions for the previous Financial Year declared in returns of April to September of current Financial Year or up to the date of filing of annual return of previous Financial Year whichever is earlier
  6. Part-VI: Other Information comprising details of:
    • GST Demands and refunds,
    • HSN wise summary information of the quantity of goods supplied and received with its corresponding Tax details against each HSN code,
    • Late fees payable and paid details and
    • Segregation of inward supplies received from different categories of taxpayers like Composition dealers, deemed supply and goods supplied on approval

The following are required details has to furnish in different parts while filing the Annual Return in FORM GSTR 9 Part-I: Basic details of the taxpayer:

This part of the Annual return contains the basic information of the registered person like name and GST number and the financial year for which the return is filing.

Part-II: Details of Outward and Inward supplies declared during the financial year:

This part contains the details related to the GST payable. The GST is payable on the outward supply and the inward supplies on which the GST is payable under reverse charge basis. This part has divided the outward supply into two parts i.e. taxable supply and non-taxable supply. Further supplies have been divided into the following category

The Outward taxable supplies and inward supplies on which tax is payable on reverse charge basis:

  • Supplies made to un-registered persons (B2C)
  • Supplies made to registered persons (B2B)
  • Zero-rated supply (Export) on payment of tax (except supplies to SEZs)
  • Supply to SEZs on payment of tax
  • Deemed Exports
  • Advances on which tax has been paid but invoice has not been issued
  • Inward supplies on which tax is to be paid on the reverse charge basis
  • Credit Notes issued
  • Debit Notes issued
    • Supplies / tax declared through Amendments
    • Supplies / tax reduced through Amendments
  • Non-taxable supply is divided into the following category:
    • Zero-rated supply (Export) without payment of tax
    • Supply to SEZs without payment of tax
    • Supplies on which tax is to be paid by the recipient on reverse charge basis
    • Exempted
    • Nil Rated
    • Non-GST supply
    • Credit Notes issued
    • Debit Notes issued
    • Supplies declared through Amendments
    • Supplies reduced through Amendments

    Part-III: Details of ITC declared in Returns filed during the Financial Year

    This part requires the information related to the most important details i.e. the Input Tax Credit and its reconciliation: The Input Tax Credit claimed in the FORM GSTR 3B shall be divided into the following categories:

    • Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs)
    • Inward supplies received from unregistered persons liable to reverse charge on which tax is paid & ITC availed
    • Inward supplies received from registered persons liable to reverse charge on which tax is paid and ITC availed
    • Import of goods (including supplies from SEZs)
    • Import of services (excluding inward supplies from SEZs)
    • Input Tax credit received from ISD
    • Amount of ITC reclaimed under the provisions of the Act
    • Transition Credit through TRAN-I (including revisions if any)
    • Transition Credit through TRAN-II
    • Any other ITC availed

    The Input Tax credit details should have to give separately with respect to Inputs, Capital Goods and Input Services.

    In addition to the above Input Tax Credit details the reversal and the ineligible credit shall be bifurcated into the following:

    • As per Rule 37- Reversal of input tax credit in the case of non-payment of consideration
    • As per Rule 39- Procedure for distribution of input tax credit by Input Service Distributor
    • As per Rule 42- Manner of determination of input tax credit in respect of inputs or input services and reversal thereof
    • As per Rule 43- Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases
    • As per section 17(5)- Credit which is cannot avail
    • Reversal of TRAN-I credit
    • Reversal of TRAN-II credit
    • Other reversals (if any) – if the reversal and ineligible input does not fall into the

    The credit reflecting in FORM GSTR 2A shall be bifurcated and treated in the following manner:

    Input tax credit on Inward  supplies (other than imports  and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September 2018

    The difference of the amount available in FORM GSTR 2A as reduced by the amount determined in part II on Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZ’s), amount of Input Tax Credit reclaimed under the provisions of the act and Previous year Input Tax Credit availed during April and September 2018.

    Out of the difference amount derived above, it should be bifurcated into

    • ITC available but not availed
      • ITC available but ineligible
      • IGST paid on import of goods (including supplies from SEZ)
      • IGST credit availed on the import of goods
      • ITC available but not availed on the import of goods
    • Part-IV: Details of taxes paid as declared in returns filed during the Financial Year:This part contains the details related to the taxes and other sums payable and paid in cash or through the utilization of Input Tax Credit namely:
      • Integrated Tax payable and paid in cash or through the utilization of
      • Central Tax payable and paid in cash or through the utilization of
      • State Tax payable and paid in cash or through the utilization of
      • Interest, Late fee, Penalty and other sums payable and paid in cash

      Part-V: Particulars of the transactions for the previous Financial Year declared in returns of April to September of current Financial Year or up to the date of filing of Annual return of previous Financial Year whichever is earlier:

      This part contains the details of the transactions from the previous tax period i.e. from July-2017 to March-2018 incorporates into the tax return for the period April-2018 to March-2019 up to the date of filing of the annual return relating to

      • Supplies / tax declared through Amendments (net of debit notes)
      • Supplies / tax reduced through Amendments (net of credit notes)
      • Reversal of ITC availed during the previous financial year
      • ITC availed for the previous financial year
      • Differences of Tax paid and payable Part-VI: Other Information:

      This part requires the details in respect of demand and refund, inward supplies, HSN wise summary and the late fee paid and payable.

      The details in respect of refund and demand shall be bifurcated in the following manner and each tax component- wise namely IGST, CGST, SGST and the Cess:

      • Total Refund Claimed
      • Total Refund Sanctioned
      • Total Refund Rejected
      • Total Refund Pending
      • Total demand for Taxes including the cess including interest, penalty, late fee and other Amounts
      • Total taxes paid in respect of demands including interest, penalty, late fee and other Amounts
      • Total demands pending in respect of taxes including the Cess including interest, penalty, late fee and other amounts.

      Additional information in respect of the supplies received in respect of the following:

      • Supplies Received from Composition taxpayers
      • Deemed Supply under Section 143 related to Job work
      • Goods sent on Approval basis but not Returned

      HSN Wise Summary of inward/outward supplies shall be provided in the following manner:

      • HSN Code
      • UQC
      • Total Quantity
      • Taxable Value
      • Rate of Tax
      • Central Tax
      • State Tax / UT Tax
      • Integrated Tax; and
      • Cess

      This part also contains the details related to the late fee paid and payable.

Important Points to Remember

  • The Annual Return has to be filed separately for each registration number by the Registered
  • Annual Return is mandatory irrespective of turnover of Registered Person
  • The Taxable Turnover/Tax Payable missed in GSTRB/ GSTR1 cannot be added in Annual Return but if any exempted supply or Non GST Supply is missed it can be added in Annual Returns
  • There is no provision for revision of Annual Return.
  • The Credit Note issued Under Section 34 should be accounted and not other Credit Notes in Annual Return. B2B Credit Note has to be disclosed in Annual Return and B2C should be reduced from the
  • B2C Supplies made to Unregistered person (More than 2.5 lakhs and other Supplies) should be clubbed and disclosed in Annual Return
  • No Provision for availment of credit in the Annual Return. The Input tax credit availed wrongly should be amended in GSTR
  • No requirement for reversal of credit on account of invoices not reported in GSTR- It is like C Form under the CST law where the benefits of concessional rate is taken and then follow up with recipient for
  • Disclosure of HSN wise details of inward supplies
  • The Credit availed under section 9(4) till notified date should be reported
  • The IGST credit availed on import of goods should be separately reported by the registered person 

    Penalty for Non Compliance

    As per section 47(2) of the CGST Act states that “Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the state or union Territory”. Therefore in case if the Annual Return is not filed then penalty is Rs.100 per day subject to maximum of 0.25% of Turnover in the state.

    Conclusion :

    The Annual return under GST , is an informative return in which only information has to furnish for the whole financial year. If there is any differences and the resultant is GST payable which cannot be paid through annual return. Therefore every registered person has to reconcile the books of accounts with the returns filed monthly or quarterly during the financial year and has to pay the difference amount in the regular return. If there is any Input Tax Credit is missed out to avail during the financial year and it should be avail before due date of 30th September return of the following financial year, File GST Returns on time to avoid penalties.

    In case of any help or assistance in filing your Annual Filing under GST, contact Virtual auditor support team on 9962 260 333/044- 48560333 /mail us [email protected], our team will guide through the entire process and help you comply

Summary
Annual Return under GST
Article Name
Annual Return under GST
Description
Annual Return under GST
Author
Viswanathan
Publisher Name
virtual auditor
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