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Published on:
February 20, 2023
By
Paramita

Annual Return for Composition Scheme: GSTR 9A – A Complete Guide

The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that was introduced in India on 1st July 2017, to replace the existing indirect taxes in the country. With the implementation of GST, the Central and State Governments have been able to streamline the taxation process and make it more transparent, efficient, and uniform across the country.

The GST regime has various provisions for different types of taxpayers, depending on their annual turnover and nature of business. One such provision is the Composition Scheme, which is applicable to small and medium-sized businesses, making it easier for them to comply with the GST regulations.

In this article, we will discuss the Annual Return for Composition Scheme, also known as GSTR 9A, which is a mandatory compliance requirement for businesses registered under the Composition Scheme.

What is the Composition Scheme?

The Composition Scheme is a special scheme introduced under GST for small and medium-sized businesses. Under this scheme, taxpayers are required to pay a fixed percentage of their turnover as GST, instead of the regular GST rate, which is higher. The scheme is applicable only to businesses with an annual turnover of up to Rs. 1.5 crore.

The Composition Scheme offers various benefits to small businesses, such as:

1. Lower tax liability

2. Reduced compliance burden

3. Simplified tax returns

4. Increased liquidity

5. Minimal record-keeping requirements

What is GSTR 9A?

GSTR 9A is the Annual Return that needs to be filed by all businesses registered under the Composition Scheme. It is a consolidation of all the monthly or quarterly returns filed during the financial year. GSTR 9A needs to be filed by 31st December of the subsequent financial year.

The Annual Return contains details of all the inward and outward supplies made during the financial year, along with the tax paid and payable. It also includes details of any input tax credit claimed during the year.

Who is required to file GSTR 9A?

All businesses registered under the Composition Scheme are required to file GSTR 9A, irrespective of their turnover. This includes businesses that have opted for the Composition Scheme during the financial year, as well as those that have opted out of the scheme during the year.

What are the details required for filing GSTR 9A?

The following are the details required for filing GSTR 9A:

1. GSTIN

2. Financial year for which the return is being filed

3. Taxpayer's name and address

4. Details of outward supplies made during the financial year, including the value of supplies and tax paid

5. Details of inward supplies received during the financial year, including the value of supplies and tax paid

6. Details of any amendments made to the monthly or quarterly returns filed during the year

7. Details of any input tax credit claimed during the year

8. Other additional information, such as HSN codes, late fees paid, etc.

What is the penalty for non-filing of GSTR 9A?

If a business registered under the Composition Scheme fails to file GSTR 9A by the due date, a late fee of Rs. 200 per day of delay will be charged, subject to a maximum of 0.25% of the turnover of the business in the relevant financial year. However, if there is no tax liability, the late fee is capped at Rs. 5000.

Conclusion

GSTR 9A is a mandatory compliance requirement for businesses registered under the Composition Scheme. It is a consolidation of all the monthly or quarterly returns filed during the year and contains details of all the inward and outward supplies made during the year, along with the tax paid and payable. Small and medium-sized businesses can benefit from the Composition Scheme as it reduces their tax liability and compliance burden. However, it is important to ensure timely and accurate filing of GSTR 9A to avoid any penalties or legal hassles.

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Updated on:
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