GST-Annual Return

GST-Annual Return

GST is a trust based regime wherein registered dealer is required to self assess his return and determine tax liability. GST returns comprises of two type of returns - periodic and annual return. Periodic return are monthly or quarterly returns for reporting transaction during the month or quarter, while annual return is for reporting summary of periodic returns filed during a financial year.

As per Section 44, all registered persons are required to file the annual return with certain exceptions such as taxpayers who have obtained registration as:

Input Service Distributor
Casual Taxable person
Non-resident Taxable Person
Persons liable to deduct tax at source (Section 51 of CGST Act)
Persons liable to collect tax at source (Section 52 of CGST Act)

All persons liable to furnish annual return shall furnish an annual return on or before 31^stDecember of following year.

Annual Return as specified under section 44(1) of CGST Act will be filed electronically in form GSTR-9 through common portal, by taxable persons other than those paying GST under composition scheme. A person paying tax under section 10 of CGST Act (Composition scheme) shall furnish annual return in form GSTR 9A.

If a taxable person with same Income Tax PAN having multiple GSTIN, shall furnish separate Annual return in GSTR 9 or GSTR 9A. Thus, the Annual Financial Statement of a taxable person will be split into separate financial statement for each GSTIN.

The Annual Return contains summary of turnover, Input Tax Credit (ITC) availed, tax payable and tax paid. Many of the columns in GSTR-9 and GSTR-9A are parallel to GSTR-3B, GSTR-1 and GSTR-4 returns filed during the period July 2017 to March 2018. The Annual Return is summary of these monthly/quarterly returns. In addition, amendments made during the period April 2018 to September 2018 in respect of prior period of July 2017 to March 2018 (Section 39(9)) are required to be incorporated. The annual return also contains details of input tax credit availed, details of ITC reversed under various provisions of Act and Rules.

We need to take into consideration following points before finalizing annual return

Reconciliation of GST Returns.
Amendments made in GST Returns u/s 39(9).
Rectification of GST Return as explained vide circular no. 26/26/2017.
Reconciliation of GST returns with books of accounts.

Late fees for not filing the GSTR 9 within the due date is Rs. 100 per day per act up to a maximum of an amount calculated at a quarter percent of the taxpayer turnover in the state or union territory. Thus it is Rs 100 per day under CGST & Rs 100 per day under SGST, total penalty is Rs 200 per day of default. There is no late fee on IGST.