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GSTR 9 : Annual Return Filing, Format, Eligibility & Rules

An annual return has to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme.

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*Latest Update as on 8th December 2018: Due date for filing GSTR-9, GSTR-9A and GSTR-9C is extended till 31st March 2019 by CBIC for FY 2017-18

 

1. What is GSTR-9 annual return?

GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGSTand IGST. It consolidates the information furnished in the monthly/quarterly returns during the year.

Watch this video to easily understand about GSTR 9:

2. Who should file GSTR 9 annual return?

All the registered taxable persons under GST must file GSTR 9 form. However, the following persons are not required to file GSTR 9

3. What are different types of return under GSTR-9 form?

There are 4 types of return under GSTR 9 :

    1. GSTR 9: GSTR 9 should be filed by the regular taxpayers filing GSTR 1, GSTR 2, GSTR 3.
    2. GSTR 9A: GSTR 9A should be filed by the persons registered under composition scheme under GST.
    3. GSTR 9B: GSTR 9B should be filed by the e-commerce operators who have filed GSTR 8 during the financial year.
    4. GSTR 9C: GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs  2 crores during the financial year. All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C.

4. What is the due date of GSTR-9?

GSTR-9 due date is on or before 31st December of the subsequent financial year.

For instance, for FY 2017-18, the due date for filing GSTR 9 is 31st December 2018*.

*Latest Update as on 8th December 2018: Due date for filing GSTR-9, GSTR-9A and GSTR-9C is extended till 31st March 2019 by CBIC for FY 2017-18

 

  5. What is the Penalty for the late filing of GSTR-9 form?

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 under CGST & 100 under SGST, the total penalty is Rs 200 per day of default. There is no late fee on IGST.

 

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6. What are the details required in the GSTR-9 form?

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Sl no Parts of the GSTR-9 Information required
1 Part-I Basic details of the taxpayer. This detail will be auto-populated.
2 Part-II Details of Outward and Inward supplies declared during the financial year(FY). This detail must be picked up by consolidating summary from all GST returns filed in previous FY.
3 Part-III Details of ITC declared in returns filed during the FY. This will be summarised values picked up from all the GST returns filed in previous FY.
4 Part-IV Details of tax paid as declared in returns filed during the FY.
5 Part-V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual returns of previous FY whichever is earlier. Usually, the summary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared here.
6 Part-VI Other Information comprising details of:
-GST Demands and refunds,
-HSN wise summary information of the quantity of goods supplied and received with its corresponding Tax details against each HSN code,
-Late fees payable and paid details and
-Segregation of inward supplies received from different categories of taxpayers like Composition dealers, deemed supply and goods supplied on approval basis.

7. GSTR 9 PDF Format

GSTR-9GSTR-9


GSTR-9

GSTR-9

 

GSTR-9

 

GSTR-9


 

8. How to prepare GSTR-9 & a detailed discussion of form

The declaration of the information in the Annual returns has multiple implications. Any incorrect information can attract tax demands, interest and penalties on the same, leave alone the long-term litigations that follow years later.

The principal source for preparing GSTR-9 will be GSTR-1 and GSTR-3B returns. All information must be cross-checked with the books of accounts before declaring in the annual returns.

Broadly, the form entails the declaration of annual sales, bifurcating it between the cases subject to tax and cases not subject to tax. On the purchase side, the annual value of inward supplies and ITC availed thereon, classified as inputs, input services and capital goods and the ITC to be reversed due to ineligibility.

While at it, GSTR-9 is divided into six parts. Here is a comprehensive list of what needs to be declared and from where one can fetch the information.

Ready reckoner for GSTR-9 preparation

 

Important points to note:

Primarily, there are certain transactions that have not been reported in the GST returns but which affect the tax liability at the end of the annual period. Supply without consideration and goods sent on approval basis to name a few. One of the popular ones being the deemed supplies where taxpayers have sent inputs or capital goods to the job workers and have not received them by one or three years respectively.

Although no clarity is obtained regarding the treatment of any additional liability arising due to mismatch or ITC identified as available but not declared in periodic returns, it is advisable that the liability so identified, be paid before filing annual returns. Hence, the annual returns must be prepared as per the GSTR-1 and GSTR-3B on an ‘as is’ basis.

 

9. Drawbacks/ Issues with GSTR 9 form and possible suggestions

Formats of GSTR 9 released early this September had a lot of ambiguities. The issues were mostly based on the fact that the annual return form would not auto-populate the information which was already filed in the periodic returns. In order to make the filing of annual return simple for taxpayers, the GSTN updated the form and resolved most of the issues. These are some of the issues still persisting in the annual return form.

Issues Suggestions/Solutions
1. HSN of inward supplies is required in the annual return GSTR 9 which was not needed while filing monthly GSTR 3B. This requirement of reporting HSN wise inward supplies should be done away with. However, ClearTax GST will fill in table 18 i.e. HSN codes of the inward supplies in the GSTR 9 automatically from the purchase register.
2. The difference in the annual return as per the books of accounts and GST data filed during the financial year. GSTR 9 should provide the means to verify whether the figures from GST data filed for annual return are in line with the books of accounts. ClearTax GST will prepare annual returns in 2 formats; one as per books of accounts and other as per GST data filed. In case of any differences, a reconciliation report will be generated and accordingly, the discrepancies will be sorted.
3. Segregated details of ITC availed are required as Inputs/Input services/ Capital Goods This bifurcation in the ITC availed will lead to reworking on the accounting entries by the assessee, as the same details were not required in the periodic returns. ClearTax GST will help the assessee file GST annual return to report the bifurcation with ease in the annual return.
4. Reporting of the amended transactions relevant to the FY 2017-18 filed in the returns of April to September of current FY or up to the filing of annual return of FY 2017-18 i.e. 31 Dec 2018, whichever is earlier. This reporting will be supported in GSTR 9 on  ClearTax GST. The feature will reconcile the amended transactions of FY 2017-18 filed in current FY and report them accordingly in the annual return.

To know more about the different types of returns, deadlines and the frequency of filing, read our article on GST Returns.

Also read our guides on How to file GSTR 1 on Government Portal and how to file GSTR 1 from Tally ERP 9 Release 6.

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