GST returns consist of two kinds of return - periodic and annual returns. Periodic returns
are monthly or quarterly returns for describing transactions throughout the month or quarter, whereas
annual return is for describing the concise of the periodic returns filed throughout a financial year.
Since the annual return is last return of the year, so, it has a special importance.
As per Section 44/Rule 80, Annual Return is to be filed in Form GSTR-9 upto 31st December of subsequent
year. Composition Dealers shall file annual return in GSTR-9A.
Generally, all taxpayers need to file the return with certain exclusions such as taxpayers who have
obtained registration as: Casual Taxable Persons or Non-Resident Taxable Persons like exhibitors and
Input service distributors to distribute the input tax credit of services that are invoiced in one
location, however, are to be used in different States, also person liable for deduction of tax at source
or collection of tax at source. A businessman has to file the GST Annual Return if they meet the
following terms & conditions: they have registered themselves as a taxpayer under GST, and they also
have the 15 digit GSTIN or they are a non-resident taxpayer. Businessman who has a Unique Identification
Number (UIN) need not file this return, their business turnover is more than Rs 20 lakhs and they must
ensure that they have precisely captured all the relevant points pertaining to the transactions they
have carried out throughout the year, at the invoice level.
When one files the GST annual return, they have to provide a range of information – about their inward &
outward supplies, Input Tax Credit (ITC), tax paid and all those factors which have an effect on their
tax liability for the entire year. The form contains 6 parts.
In this part, one has to enter the basic information, like the financial year under consideration, their
GSTIN, legal name, and trade name if they have any.
In this part, one has to provide details pertaining to the inward and outward supplies that they have
declared, during the entire financial year. This part has two sections, named 4 and 5.
In section 4, they have to fill up details of both B2B and B2C supplies, which draw tax liability,
supply to Special Economic Zones (SEZ) on tax payment, inward supplies which draw reverse charge tax,
deemed exports, debit or credit notes given for above-mentioned transactions.
In section 5, they need to provide details of exempted sales supplies, non-GST supplies, and supply to
SEZ without payment of tax, outward supplies that attract reverse charge tax, debit or credit notes
given for the mentioned transactions.
This part of the form has 3 sections- 6, 7, 8.
In 6th section, they have to give the details of ITC that they have availed in the financial year on
ingoing supplies, like B2B, B2C, imports, etc.
In 7th section, one has to give details of reversed ITC, for reasons like making excused supplies,
non-business use, etc.
And in Section 8, other information related to ITC is to be provided. They also need to give information
about ITC available but not used, total invalid ITC value for the financial year, etc.
In this part, one has to enter the details of the tax that they have paid and declared in the returns
that they have filed in the financial year. They need to furnish break-up of payable taxes, the tax they
have paid in cash and through ITC.
Here, they need to provide details of those transactions which pertain to the previous financial year but
which they have declared in the April-September returns of the present financial year.
In this part, one has to furnish information not provided till now, like refund details which include
refunds claimed, sanctioned, rejected and pending. They have to give similar details for demands also.
The GST Council of India has decided that the last date to file this statement is December 31 of the
following year. So, if one is filling this for 2020, then they have to do it by December 31, 2021.
If someone fails to file the GST Annual Return within the specified time, then they have to pay a penalty
of Rs 100/day under CGST & Rs 100/day under SGST. The higher limit for penalty is Rs 5000. They also
have to pay 18% interest on outstanding tax payments. The annual return once filed cannot be revised as
there is no specific facility in GST law to revise the annual return under the current version of the
The GST Annual Return is a transparent method to keep financial transactions accountable. And as it can
be done online, it gives the advantage of the ease of access and flexibility.
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