GST Annual Return Filing

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Filing the GST Annual Return:

GST annual return filing is obligatory for all entities with a turnover exceeding two crores who are required to have GST registration, regardless of their business activity or the level of sales or profitability during the return filing period. This means that even dormant businesses with GST registration are required to file their GST annual returns.

What is GSTR 9: Annual Return Filing?

GSTR 9 is the annual return that taxpayers registered under the Goods and Services Tax (GST) system are required to file on an annual basis. This return contains comprehensive details about the outward and inward supplies made or received during the relevant financial year. Before filing GSTR 9, taxpayers must ensure that all their GSTR-1, GSTR-3B, or GSTR-4 returns for that year have been filed and settled. Failure to do so can result in the denial of the opportunity to file the annual GST return.

GSTR 9 essentially consolidates all the monthly or quarterly returns filed over the course of the year, encompassing details related to outward and inward supplies made or received under the Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). It serves as a comprehensive summary of a taxpayer’s transactions for the financial year.

Who Should Submit GSTR 9?

All individuals and entities registered under the Goods and Services Tax (GST) system are obligated to file their GSTR 9. However, the following categories of individuals and entities are exempt from filing GSTR 9:

  • Taxpayers who have opted for the composition scheme (they must file GSTR-9A).
  • Casual Taxable Persons.
  • Input Service Distributors.
  • Non-resident taxable persons.
  • Persons who are paying Tax Deducted at Source (TDS) under Section 51 of the CGST Act.

GST Annual Return Deadline:

The deadline for submitting Form GSTR-9 (Annual Return) and Form GSTR-9C (Reconciliation Statement) for the financial year 2020-2021 is on or before December 31, 2021.

Information Required for GSTR-9 Filing:

GSTR-9 is structured into six parts and 19 sections, each of which solicits information that can typically be sourced from previously submitted returns and accounting records.

The form entails the disclosure of annual sales, categorizing them into taxable and non-taxable cases.

Additionally, it necessitates the disclosure of the annual value of inward supplies and the Input Tax Credit (ITC) availed on those supplies.

These purchases must be further categorized as inputs, input services, and capital goods. Furthermore, details regarding the reversal of ITC due to ineligibility must be provided.

When is GST Registration Compulsory?

GST registration becomes mandatory for businesses engaged in the sale of goods when their total turnover exceeds Rs. 40 lakhs (or Rs. 20 lakhs if the business is located in North Eastern states and Uttarakhand). For service providers, mandatory registration applies when their turnover exceeds Rs. 20 lakhs (or Rs. 10 lakhs if the business is in North Eastern states and Uttarakhand).
There are specific categories of businesses for which GST registration is mandatory, regardless of their turnover:
Casual Taxable Person.
Input Service Distributor.
Non-Resident Taxable Person.
Suppliers of goods and services across state borders.
Entities liable to pay tax under the reverse charge mechanism.
Suppliers selling goods through an e-commerce portal.
TDS/TCS deductors.
Online data access or retrieval service providers.

Is Voluntary GST Registration Permitted?

Indeed, an individual has the option to voluntarily register for GST. Upon registration, all the provisions of the Goods and Services Tax Act will apply to this individual, just as they do for a registered taxable person.

What is the Validity of GST Certificate?

Once a GST certificate is issued, it remains valid for a lifetime, unless certain conditions are met, such as surrendering the certificate, cancellation by authorities, suspension, or revocation.

Can an Unregistered Person Collect Tax and Claim Input Tax Credit?

No, an unregistered person is not allowed to collect Goods and Services Tax (GST) from their customers, nor can they claim any input tax credit for GST payments made by them.

Do I Have to File Monthly GST Returns Even When There’s No Business Activity?

Upon registering for GST, individuals must file monthly returns, even when there are no transactions during a specific month. In cases of no business activity, a Nil return should be submitted. Failure to file returns on time or not filing them at all can result in significant penalties.

What Are the GST Rates in India?

In India, the GST rates for different goods and services are categorized into four slabs: 5% GST, 12% GST, 18% GST, and 28% GST.