An Overview of GST and its Annual Return

Goods and Services Tax (GST) is an indirect tax system implemented in India since July 2017. It has simplified the complex taxation system by replacing various indirect taxes levied by the central and state governments. GST has brought about a uniform tax structure across the country and has streamlined the tax filing process for businesses. Under GST, businesses have to file regular returns and an annual return, Form GSTR-9, summarising their transactions for the financial year. In this blog, we will discuss the annual return, Form GSTR-9, and its relevance for businesses for the financial year 2022-23.

What is Form GSTR-9?

Form GSTR-9 is the annual return that is required to be filed by every registered taxpayer under GST. It is a summary of all the transactions made during the financial year, including sales, purchases, input tax credit claimed, and tax paid. The annual return provides a comprehensive view of the business's overall GST compliance and financial transactions during the year.

Who is required to file Form GSTR-9?

Every registered taxpayer under GST, except for a few exceptions, is required to file Form GSTR-9. The exceptions include:

1. Taxpayers registered under the Composition Scheme (they have to file GSTR-9A instead of GSTR-9).

2. Input Service Distributors (they have to file GSTR-6 instead of GSTR-9).

3. Casual Taxable Persons

4. Non-Resident Taxable Persons

5. E-commerce operators required to collect tax at source (they have to file GSTR-9B instead of GSTR-9).

When is Form GSTR-9 due?

The due date for filing Form GSTR-9 for the financial year 2022-23 is 31st December 2023. It is important to note that there is no provision for late filing of GSTR-9, and therefore, it is advisable to file the return well before the due date.

What are the details required to file Form GSTR-9?

Form GSTR-9 requires various details, including:

1. Basic details of the taxpayer such as name, address, and GSTIN.

2. Turnover details for the financial year.

3. Details of all supplies made during the financial year, including exports, taxable supplies, and exempt supplies.

4. Details of all purchases made during the financial year, including imports, taxable purchases, and exempt purchases.

5. Details of all input tax credit claimed during the financial year.

6. Details of any amendments made to the returns filed for the financial year.

Why is Form GSTR-9 important?

Form GSTR-9 is an important document for businesses as it provides a comprehensive view of the business's financial transactions for the year. It also helps in ensuring GST compliance by businesses. The annual return helps in reconciling the transactions declared in the regular returns filed during the year. Additionally, it also helps in identifying any discrepancies or errors made in the regular returns and rectifying them.

Penalties for non-filing or late filing of Form GSTR-9:

As per the GST law, non-filing or late filing of Form GSTR-9 can attract penalties. The penalty for non-filing or late filing of GSTR-9 is Rs. 100 per day per Act, i.e. Rs. 100 under CGST Act + Rs. 100 under SGST Act, subject to a maximum of 0.25% of the taxpayer's turnover in the relevant financial year. Therefore, it is advisable for businesses to file the annual return within the due date to avoid any penalties.