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Latest Tips - A Complete Guide on the GSTR-9 Annual Returns - Latest Tips

Latest Tips – A Complete Guide on the GSTR-9 Annual Returns

The Goods and Services Tax (GST) is a tax that is levied on goods and services sold domestically for consumption purposes. The fee paid at the point of consumption which is included in the final price is the GST.

The advantages of GST are immense as it is globally recognized and regulated in different countries as a single rate across the nation. The business adds a Goods and Service Tax to the final price of the product and then the customer pays the sale price plus the cost of GST.

What are the Main Advantages of GST?

The Indian economy has largely benefited from the implementation of GST, listed below are some of the main advantages of GST.

For the Government

  • GST helps to create a unified common national market for India and adds a boost to foreign investments.
  • The usage of IT infrastructure will reduce human errors between the taxpayer and the tax administration which in turn, marginalizes corruption.
  • Another advantage of GST is that it helps to eradicate poverty by generating more employment opportunities with more financial resources.

For Trade and Industry

  • There is an increased rate of doing business.
  • The tax burden on the supply of goods and services is expected to reduce which will lead to more consumption. As a result, production increases, helping the growth of manufacturing industries.
  • GST will reduce the cascading effect of Input Tax Credit (ITC) as goods and services are available at every stage of supply.

For Consumers

  • Another advantage of GST is that the final price of goods is expected to be clear due to the seamless flow of Input Tax Credit between the line of traders, i.e. the manufacturer, retailer and service supplier.
  • Price reduction in various commodities in the long run.
  • More employment opportunities by gaining trade of financial resources.

For the States

  • GST marks the destination based consumption tax that favors the consuming states.
  • It practically improves the investment climate in the country which benefits the development in the states.
  • It boosts the revenue by providing access to the fastest-growing sector of the economy.

GSTR-9A

What is the GSTR-9 Annual Returns?

GSTR-9 is a return form that is to be filed annually by the taxpayers who are registered under GST. GSTR-9 consists of the compliance with the outward and inward supplies that are made or received during the relevant previous year under the tax heads such as Central GST, State GST, Integrated GST and Harmonized System of Nomenclature (HSN) codes.

It is a statement that consolidates all the monthly and quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) that need to be filed for that year. It helps in the reconciliation of data for 100% transparent disclosures.

Who are the People Not Required to File GSTR-9?

GSTR-9 is to be filed by all taxpayers registered under the GST. However, the following are exempted from filing Form GSTR 9:

  • Taxpayers who are opting for the Composition Scheme (They should fill GSTR-9A).
  • A casual taxable person.
  • Non-resident taxable persons.
  • Input service distributors.
  • Persons paying TDS under Section 51 of the CGST Act.

The Regulations When Submitting GSTR-9

GSTR-9 is a document that enables taxpayers to pay and file their tax returns once a year. The government has introduced an audit form called GSTR-9C. This audit form needs to be filed annually by those taxpayers who have a turnover of more than Rs. 2 crore. It is a reconciliation statement between annual returns that are filed in GSTR-9 and the audited annual report of the taxpayer.

If GSTR 9 is not filed within the due date, then per the Act, a late fee of Rs.100 will be applied each day. However, for IGST there are no late fees at this time.

The Main Details Required in Form of GSTR-9

GSTR 9 is categorized into 6 parts and 19 sections. In a broader sense, this form requires taxpayer information such as disclosure of annual sales and dividing it between the products that are subject to tax.

On the purchase front, the annual amount of inward supplies and ITC availed is to be mentioned. Moreover, these purchases have to be divided as inputs, input services and capital goods.

The Different Types of GSTR-9 Forms

  • GSTR-9

For taxpayers who file GSTR-1 and GSTR-3B.

  • GSTR-9A

For taxpayers who choose the GST Composition Scheme.

  • GSTR-9B

For e-commerce businesses who file GSTR-8.

  • GSTR-9C

For taxpayers who have a turnover of Rs. 2 crores and above.

The Important Terms and Conditions on GSTR-9

  • If any records are processed with errors, the taxpayer will receive a warning message which can be resolved by re-visiting the form page and making necessary corrections that conflicts with the information.
  • The taxpayer can make additional payments through Form DRC-03. After successfully filing the annual returns, a link will be displayed for DRC-03.
  • The Application Reference Number (ARN) is generated and the taxpayer receives confirmation via SMS or through email.
  • Form GSTR-9 cannot be revised once filed. However, any genuine errors can be rectified with due notice.
  • The annual returns should state the last returns of the year and is to be checked by stakeholders such as auditors, government officials, etc.

All information submitted on Form GSTR-9 is to be accurate. The annual returns will require the calculation of Input Tax Credit, invoices, credit notes and GST audits.