A Comprehensive Guide to file GSTR-9

Posted On December 19, 2024December 20, 2024

1. What is GSTR-9?

GSTR-9 is the annual return under the Goods and Services Tax (GST) system, which every registered taxpayer (except those under the composition scheme, casual taxpayers, or Input Service Distributors) must file. It consolidates details of outward and inward supplies, tax paid, and input tax credit (ITC) for the financial year.

2. Who Should File GSTR-9?

The following categories of taxpayers must file GSTR-9:

• Regular taxpayers filing GSTR-1 and GSTR-3B.
• SEZ units and developers.
• Taxpayers who have transitioned from the VAT system to GST.

Exemptions:

• Composition scheme taxpayers (file GSTR-9A).
• Casual taxable persons.
• Input Service Distributors (ISD).
• Non-resident taxable persons.
• Persons or entities obligated to deduct TDS under Section 51 of the CGST Act.
• Entities responsible for collecting TCS under Section 52 of the CGST Act.

Note: Filing GSTR-9 (Annual Return) is optional for businesses with a turnover of up to ₹2 crore from FY 2017-18 to FY 2023-24.

3. Due Date for Filing GSTR-9

The due date for filing GSTR-9 is 31st December of the subsequent financial year unless extended by the government. For example, the FY 2023-24 deadline would be 31st December 2024.

 4. Late Fees and Penalties

1. Turnover Up to ₹5 Crore
   • Late Fee per Day: ₹50 (₹25 each under CGST and SGST Acts).
   • Maximum Late Fee: 0.02% of turnover in the state/UT for CGST and 0.02% of the turnover for SGST.
2. Turnover Between ₹5 Crore and ₹20 Crore
   • Late Fee per Day: ₹100 (₹50 each under CGST and SGST Acts).
   • Maximum Late Fee: 0.02% of turnover in the state/UT for CGST and 0.02% of the turnover for SGST.
3. Turnover Above ₹20 Crore
   • Late Fee per Day: ₹200 (₹100 each under CGST and SGST Acts).
   • Maximum Late Fee:  0.25% of turnover in the state/UT for CGST and 0.25% of the turnover for SGST.

• Moreover, ₹200 per day (₹100 each under CGST and SGST) is subject to a maximum of 0.25% of the turnover.
• No late fees for IGST.
• Interest is applicable on tax liabilities at 18% per annum.

5. Information Required to File GSTR-9

Before filing GSTR-9, gather the following details:

• Turnover Details: Outward and inward supplies (taxable, exempt, and nil-rated).
• Tax Paid: Summary of GST liability paid during the year.
• Input Tax Credit (ITC): Claimed, availed, or reversed ITC details.
• Adjustments: Corrections or omissions made during GSTR-1 or GSTR-3B filing.
• HSN Summary: Details of goods and services categorized under the HSN code.

6. Steps to File GSTR-9

Step 1: Log into the GST Portal

1. Visit www.gst.gov.in.
2. Use your credentials to log in.

Step 2: Navigate to GSTR-9

1. Go to the ‘Returns Dashboard’.
2. Choose the ‘Financial Year’ for which you wish to file the return.
3. Click on GSTR-9.

Step 3: Download Auto-Populated Details

• The form will automatically populate data from the monthly or quarterly returns (GSTR-1 and GSTR-3B).

• Verify all the sections carefully.

Step 4: Enter or Edit the Details in Sections

GSTR-9 comprises the following sections:

Step 5: Review and Validate the Information

• Double-check all figures, including tax payable, tax paid, and ITC.
• Resolve discrepancies, if any.

Step 6: Preview and Submit

1. Click on ‘Compute Liabilities’ to ensure the data is processed.
2. Review the return using the Preview Draft GSTR-9 option.
3. Once validated, click on ‘Proceed to File’.

Step 7: File the Return

1. Select the declaration checkbox and Authorized Signatory.
2. File the return using either DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).

Step 8: Confirmation

• After successful filing, a confirmation message and an ARN (Acknowledgement Reference Number) will be generated.

7. Key Points to Note While Filing GSTR-9

• Filing is mandatory even if no business transactions occurred during the year.
• Verify the details against GSTR-1, GSTR-3B, and the books of accounts.
• Errors in GSTR-9 cannot be rectified after submission, so verify carefully.
• Reconciliation between GSTR-2A (auto-populated ITC) and claimed ITC is crucial.

 Frequently Asked Questions (FAQs)

1. Can I revise GSTR-9 after filing?
   No, GSTR-9 cannot be revised once filed.
2. Do I need to attach documents while filing GSTR-9?
   No additional documents are required to be attached.
3. Is it mandatory to reconcile GSTR-3B and GSTR-1?
   Yes, reconciliation ensures accuracy in reporting and prevents discrepancies.
4. What happens if I miss filing GSTR-9?
   You will incur late fees and penalties as per GST rules.

Conclusion
Filing GSTR-9 requires accurate data and reconciliation of all reports submitted throughout the financial year. By following the steps and guidelines outlined above, taxpayers can ensure compliance and avoid penalties. Ensure you verify all details before submission and seek professional assistance if needed.