What is GSTR-09?
As per section 44 of CGST Act r/w Rule 80(1) of CGST Rules, GSTR 9 is an annual return to be filed by every registered taxpayer other than CTP, ISD, NRTP, and TCS & TDS deductors. The return consists of details such as outward/inward supplies, taxes paid, refund claimed and demands raised.
What is GSTR-9C?
GSTR 9C is a reconciliation statement, which is to be filed annually by taxpayers. However, registered persons whose aggregate turnover is up to Rs. 5 crores (Notification no.30/2021-CT) have the option to file the same. (The said relaxation is available for previous years as well). It is a reconciliation statement between the filed annual return and the audited annual financial statement of the taxpayer.
GSTR 9C is a reconciliation statement, which is to be filed annually by taxpayers. However, registered persons whose aggregate turnover is up to Rs. 5 crores (Notification no.30/2021-CT) have the option to file the same. (The said relaxation is available for previous years as well). It is a reconciliation statement between the filed annual return and the audited annual financial statement of the taxpayer. Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax, and cess.
Who should file an annual return?
As per section 44 of the CGST Act, all taxpayers/taxable persons registered under GST must file their annual return i.e., each GSTIN will have to file a separate annual return in case of multiple registrations under a single PAN. However, the following categories are NOT required to file an annual return:
- Casual Taxable Person
- Input service distributors
- Non-resident taxable persons
- Persons paying tax under section 51 (TDS) or 52 (TCS) of the CGST Act.
- Proviso: Any department of the CG or an SG or a local authority, whose BOAs are subject to audit by the C&AG, or an auditor appointed for auditing the accounts of local authorities under any law.
Provided that the Government, by notification, may exempt any class of registered persons from filing an annual return. Vide notification no 31/2021-CT, Government has exempted the registered person from filing annual return whose aggregate turnover in the FY 2020-21 is up to Rs. 2 crores. However, a registered person can file the same voluntarily even if the turnover is less than the said limit. (The said exemption is available for previous years as well)
Due Date of Filling of Annual Return
The due date for filing an annual return is the 31st of December of the following year
Late Fees for delay return filling
As per section 47(2) of the CGST Act, the late fees for not filing the annual return within the due date is Rs 100 per day, per Act. Thus, the total liability is Rs 200 per day by default to a maximum limit of 0.50% of the taxpayer’s turnover (GSTIN turnover). However, the delay in filing GSTR 9C may attract a general penalty u/s 125 of CGST Act, which may extend up to fifty thousand rupees (CGST+SGST). This view is disputable as the GSTR 9C can be considered to be a part of ‘annual return’ and therefore, where mandatory, late fees may apply on delayed filing of GSTR 9C too.
What are the reconciliation required to be done before going to file Annual Return?
- Turnover Reconciliation: Audited Financial Statements (AFS) Vs GSTR 9C (consider all GSTINs), i.e., firstly we must ensure that the consolidated turnover of all the States is matching with the turnover in AFS.
- Outward Taxes: Liability as per Books Vs Liability as per GSTR 3B + DRC03 (if any) [ensure RCM liability is included]. In simple words, a tax that has been shown as paid in the books should match with the actual tax paid in the GSTR 3B. Any variance in 3B vs books, if the excess tax paid then it will be adjusted in the subsequent year or short paid will be paid in DRC-03.
- GSTR1 vs GSTR3B: This will be available from GSTR summary reports from the GSTN portal. There could be 3 possibilities:
(a) GSTR1 =GSTR3B : No issue
(b) GSTR>GSTR3B and GSTR1 is correct : then tax payable > tax paid in table 9 of GSTR 9 – then additional liability will be paid in DRC-03.
(c ) GSTR1<GSTR3B and GSTR3B is correct : GSTR-9 will be prepared on the basis of GSTR3B
(d) If GSTR1 < 3B, and GSTR1 is correct : then tax payable < tax paid in table 9 of GSTR 9 – then additionally paid tax will be adjusted in the subsequent year/claimed refund.
– Inward taxes – The first question that arises in our mind is that can we claim the missed-out ITC in GSTR 9? Additional/Short liability can be disclosed in GSTR 9 i.e., short payment of tax can be paid & excess payment of tax can be claimed for refund. Additional credit cannot be claimed in GSTR 9, rather be claimed in GSTR-3B (provided time limit has not elapsed). ITC which has been claimed in the books (excluding ineligible ITC) should match with the ITC claimed in the GSTR 3B. In case of variance i.e., if excess claimed in 3B – it should be reversed/paid back through DRC03, or when ITC is short claimed in 3B – such ITC could be availed in upcoming 3B if within time limit.