1-What is GSTR-9?
GSTR-9 is an annual return form needs to be filed once in a year by all the registered taxpayers under GST including those registered under composition levy scheme. The only category of GST registered entities not required to file GSTR-9 filing are Input service distributors, Causal taxable person, TDS/TCS taxpayer and non –resident taxable persons. This document will contain the details of all supplies made and received under various tax heads (CGST, SGST, and IGST) during the entire year along with turnover, audit and auditor details, details of taxes paid along with interest and penalty etc.
2–Who should file GSTR-9?
All the registered taxable persons under GST is required to file the GSTR -9. However, the following persons are not required to file GSTR – 9
Input service distributors (ISD)
Casual Taxable persons
Non-resident Taxable persons
Persons paying TDS / TCS under the section of the GST Act.
3-Types of GSTR-9
There are four types of return under GSTR -9 which are as follows
GSTR – 9: It should be filed by the regular taxpayers who are filling GSTR 1, 2 and 3.
GSTR – 9A: It should be filed by the persons registered under composition scheme.
GSTR – 9B: It should be filed by the e-commerce operators who have filed GSTR -8 during the financial year.
GSTR – 9C: It should be filed by the person whose aggregate turnover during an FY exceeds Rs. 2 crores. Such registered person is required to get his accounts audited by a Chartered Accountant or a Cost Accountant and also require to furnish electronically through the common portal along with annual return a copy of audited financial accounts and a reconciliation statement, duly certified.
Reconciliation statement will reconcile the value of supplies declared in the return furnished for the financial year with the audited annual financial statement and such other particulars, as may be prescribed.
4-When is GSTR-9 due?
The due date of filing GSTR-9 is on or before 31st December of the subsequent fiscal year. If an audit is a must for GST file, then audit details must file before 31st December in GSTR-9C. For instance, the due date for filing GSTR-9 is 31st December 2018 for the fiscal year 2017-18.
5-Penalty for Delay filing of GSTR-9 Return
Any registered person who fails to furnish the annual return by the due date shall be liable to pay a late fee of Rs. 100 per act for every day during which such failure continues or 0.25% of the turnover of the registered person in the State / UT whichever is lower. Thus it is Rs. 100 under CGST and Rs. 100 under SGST, the total penalty is Rs. 200 per day of default. There are no late fees on IGST.
6. What are the details required in the GSTR-9 form?
f any additional liability arising due to mismatch or ITC identified as available but not declared in periodic returns, it is advisable that the liability so identified, be paid before filing annual returns. Hence, the annual returns must be prepared as per the GSTR-1 and GSTR-3B on an ‘as is’ basis.
|SI no||Part of the GSTR-9||Required information|
|1||Part I||Basic details of the taxpayer. This detail will be auto-populated.|
|2||Part II||Details relating to inward and outward supplies reported during the financial year(FY). This detail should be picked up by combining summary from all GST returns filed in a previous Financial year.|
|3||Part III||All the Details of ITC reported in returns are filed during the FY. This needs to be summarised values taken from all the GST returns filed in previous FY.|
|4||Part IV||Features of tax paid as stated in returns filed during the FY|
|5||Part V||Details of the transactions for the previous FY listed in returns of April to September of current FY or till the date of filing of annual returns of previous FY whichever is earlier. Usually, the summary of an omission or amendment entries belonging to previous FY but reported in Current FY would be separated and declared here.|
|6||Part VI||Other Information containing details of:|
|GST refunds and Demands|
|HSN wise summary information of the number of goods supplied and accepted with its corresponding Tax aspects against each HSN code,|
|-Late fees owed and paid details and|
-Separation of inward supplies collected from different categories of taxpayers such as composition dealers as deemed supply and goods supplied on approval basis.
7.GST Annual Return Procedure
8. How to prepare GSTR-9 & a detailed discussion of form
The declaration of the information in the Annual returns has multiple implications. Any incorrect information can attract tax demands, interest and penalties on the same, leave alone the long-term litigations that follow years later.
The principal source for preparing GSTR-9 will be GSTR-1 and GSTR-3B returns. All information must be cross-checked with the books of accounts before declaring in the annual returns.
Broadly, the form entails the declaration of annual sales, bifurcating it between the cases subject to tax and cases not subject to tax. On the purchase side, the annual value of inward supplies and ITC availed thereon, classified as inputs, input services and capital goods and the ITC to be reversed due to ineligibility.
While at it, GSTR-9 is divided into six parts. Here is a comprehensive list of what needs to be declared and from where one can fetch the information.
The important points to remember
Primarily, there are certain transactions that have not been reported in the GST returns but which affect the tax liability at the end of the annual period. Supply without consideration and goods sent on approval basis to name a few. One of the popular ones being the deemed supplies where taxpayers have sent inputs or capital goods to the job workers and have not received them by one or three years respectively.
Although no clarity is obtained regarding the treatment of any additional liability arising due to mismatch or ITC identified as available but not declared in periodic returns, it is advisable that the liability so identified, be paid before filing annual returns. Hence, the annual returns must be prepared as per the GSTR-1 and GSTR-3B on an ‘as is’ basis
9. Drawbacks/ Issues with GSTR 9 form and possible suggestions
Formats of GSTR 9 which was released early this September had a lot of uncertainties. The issues were mainly related to the fact that the annual return form would not auto-populate the data which was already filed in the periodic returns. For making the filing of annual return simple for taxpayers, the GSTN updated the form and resolved most of the issues. Some of the concerns still continuing in the annual return form are.
|Issues||Solutions and Suggestions|
|1. HSN of inward supplies is required in the annual return GSTR 9 which was not needed while filing monthly GSTR 3B.||This need for reporting HSN wise inward supplies should be completed. However, ClearTax GST will fill in which is HSN codes of the inward supplies in the GSTR 9 itself from the purchase register.|
|2. The variation in the annual return as per the books of accounts and GST data filed during the financial year.||GSTR 9 should provide the means to verify whether the figures from GST data filed for annual return are in line with the books of accounts. ClearTax GST will plan an annual returns in two of the formats; one according to books of accounts and other according to GST data filed. In case of variation, a reconciliation report can be generated and accordingly, the differences will be sorted.|
|3. Separation details of ITC availed are needed as Inputs/Input services or Capital Goods||This deviation in the ITC availed results in the reworking on the accounting entries made by the assessee, as similar details were not required in the periodic returns. ClearTax GST will help in filing the GST annual return by the assessee for reporting the bifurcation with an easy annual return.|
|4. Reporting of the amended transactions applicable to the FY 2017-18 filed in the returns of April to September of current FY or up to the filing of annual return of FY 2017-18 i.e. 31 Dec 2018, whichever occurs earlier.||This reporting will be established in GSTR 9 on ClearTax GST. The feature will regulate the amended transactions of FY 2017-18 filed in current FY and report them respectively to the annual return.|
For knowing more about the different sorts of returns, deadlines and the frequency of filing, read our article on GST Returns at unfoldingtax.com
You can also go through our guides on How to file GSTR 1 on Government Portal and how to file GSTR 1 from Tally ERP 9 Release 6.