GST Annual Return
There is a need to rectify all inadvertent mistakes committed during filing of periodic GST returns during a financial year. The taxpayers during the year has filed monthly GST 3B and monthly/quarterly GSTR-1 returns for payment of tax liability and reporting transaction of outward supply. Annual return has proved to be a boon for certain transactions which could not be reported in the GST Returns such as goods sent on approval basis or any other transaction which were wrongly reported. The rationale behind filing of the GST Annual Return is to synthesize all the information furnished in the monthly (GSTR-3B) or quarterly (GSTR-1) GST returns during the year and declare the same to the Goods and Services Tax Department. All information must be cross-verified with the books of accounts before filing the annual returns.
The form for annual return in GST is prescribed as GSTR-9, GSTR-9A, GSTR-9B, GSTR-9C, it requires a taxable person to declare sales made during the year, bifurcating the same into occasions attracting tax liability and which do not attract tax, the details of ITC reversal and classify the ITC availed on inward supplies as inputs, input services and capital goods. Any incorrect information can attract tax demands, interest and penalties on the same.
It is to be noticed that ITC cannot be claimed in GSTR-9 annual return. Any additional liability can be deposited with Government using Form DRC-03. Prima facie, it may seems a bit complex and complicated, however we at TaxMuneem helps you to understand the complexities and do with the filings with an ease.
Preparation of Reconciliation Statement with already filed returns
Preparation and filing of GST Annual Return.
Any other service included in the package
Tax and Penalty Amount for non-filing or late filing
Detail of all purchases and outward supplies (Accounting Data)
GSTR 3B and GSTR 1 Return
Filing the Returns have the following purposes:
- It is a mode for transferring the information to the Tax Administrations.
- Compliance verification program of tax administration
- Finalization of the Tax Liabilities of the tax payer within stipulated period of limitation.
- Helps in providing the necessary inputs for decision making.
All Registered persons are required to file an annual return. However, the following persons are not required to file an annual return:
- Casual Taxable Persons
- Non- Resident Taxable Persons
- Input Service Distributors
- Persons required to deduct TDS/TCS under section 51 and 52
This Return is required to be filed by 31st December of the next Financial Year.
Annual Return is required to be filed electronically in Form GSTR-9 through the common portal.
Section 35 of the Act contains the provisions regarding the Accounts and Records. Further, Section 35(5) read along with Section 44(2) and Rule 80 of the CGST Rules provides as follows:
- Every registered person must get his accounts audited by a Chartered Accountant or a Cost Accountant if his turnover during the Financial Year exceeds Rs. 2,00,00,000/-
- Such Registered Person is required to furnish electronically through the common portal along with the annual return, a copy of:
- Audited annual accounts
- A Reconciliation Statement duly certified in the prescribed form.
A Reconciliation Statement will reconcile the value of supplies declared in the return furnished for the financial year with the audited annual financial statements and such other particulars as may be prescribed.
While preparing the Annual Return, the following things should be kept in mind:
- It is important to ensure that the invoices on which the Input Tax Credit has been availed is paid within a period of 180 Days from the date of such invoice. If the payment is not made within the said period, then, the credit taken shall be required to be reversed
- At the time of Reconciliation of the GST paid by electronic cash ledger or credit ledger, the tax payer should also account for GST paid under the Reverse Charge Mechanism on the applicable expenses.
- The tax payer should reconcile the GST returns already filed with the Books of Accounts.
- o The tax payer should ensure that all the invoices of purchases and other service invoices are accounted properly.
- Stock transfer between the branches should be carefully matched with the books of accounts to avoid discrepancy in the stock in hand balance.
- The transactions during the period 1st July 2017 to 31st March 2018 should be properly checked since the turnover for this period has already been taken into account in the annual financial statements for the year 2017-18.
- GSTR-9: The regular taxable persons who are required to file GSTR-1 (monthly or quarterly) and GSTR-3B (monthly) should file GSTR-9.
- GSTR-9A: The persons who are registered under the Composition Scheme and are required to file GSTR-4 (quarterly) should file GSTR-9A.
- GSTR-9B: The e-commerce operators who are required to file GSTR-8 during the financial year should file GSTR-9B.
- GSTR-9C: The taxable persons whose annual turnover exceeds Rs. 2 crores during the financial year should file GSTR-9C. GSTR-9C is a statement of reconciliation between the annual return in GSTR-9 and the figures as per audited annual financial statements of the taxable person and must be certified by Chartered Accountant or Cost Accountant.
Late fee of Rs. 100 under CGST Act and Rs. 100 under SGST Act, totaling to Rs. 200 per day of delay will be levied for late furnishing of Annual Return, not exceeding an amount calculated at 0.25% of turnover of the relevant Financial Year.
In the annual return, HSN wise summary is required but this is restricted only to that HSN which accounts for at least 10% of the total inward supplies.
PART-I: Basic details of the taxpayer
PART-II: Details of outward and inward supplies declared during the financial year.
PART-III: Details of ITC declared in returns filed during the financial year.
PART-IV: Details of tax paid as declared in returns during the financial year.
PART-V: Particulars of the transactions for the previous financial year declared in returns of April to September of current financial year or up to the date of filing of annual returns of previous FY whichever is earlier.
PART-VI: Other information comprising details of GST demands and refunds, HSN wise information, late fee payable and paid, etc.