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:

Part I	Table 1-3:  Basic Information
Part II	Table 4: All Details of outward supplies. Table 5: Details of exempted, nil-rated, and non-GST outward supplies.
Part III	Table 6: ITC availed during the year (from GSTR-3B). Table 7: ITC reversed during the financial year. Table 8: Other ITC details (as per GSTR-2A and actual ITC claimed).
Part IV	Table 9: GST tax paid (CGST, SGST, IGST, and cess).
Part V	Table 10-14: Supplies and tax adjustments for previous financial years.
Part VI	Table 15-19: Refund claims, demands, and Other Info. And HSN summary.

 

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.

The Electronic Way Bill (E-way bill) is a crucial component of the Goods and Services Tax (GST) regime in India. Introduced to facilitate the seamless movement of goods across state borders and to monitor the movement of goods in real-time, the E-way bill system aims to prevent tax evasion and ensure the proper documentation of goods in transit.

Introduction

An E-way bill (Form GST EWB-01) is a digital record essential for the transportation of goods exceeding a designated threshold value (INR 50,000) across state borders. It encompasses information like the nature of the goods, their quantity, value, and the points of origin and destination.

Under Rule 138 of the CGST Rules, 2017, any registered individual initiating the movement of goods, even if not necessarily due to a supply, with a consignment value exceeding Rs. 50,000, must provide the mentioned details in Part A of the e-way bill. 

Note: – However, there is no restriction on the generation of E-Way bills even if the value of the consignment is less than Rs. 50,000.

The E-Way Bill, also known as GST EWB-01, is segmented into two sections: Part A and Part B. Part A comprises details about the products, whereas Part B includes the identification number of the transporting vehicle.

In the E-Way Bill system, Part A and Part B serve distinct purposes and contain different sets of information:

Part A: Product Information

Details Included: Part A of the E-Way Bill contains information about the goods being transported.

Key Elements:
GSTIN of Recipient
Invoice or Challan Number
Invoice or Challan Date
Description of the goods
HSN (Harmonized System of Nomenclature) code of the goods
Declared value of the goods
Reason for Transportation
Place of origin of the goods
Destination of the goods

Usage: Part A is crucial for understanding the nature and specifications of the goods being transported. It is filled out by the person responsible for the movement of goods.

Part B: Vehicle Information

Details Included: Part B contains information related to the vehicle that is transporting the goods.

Key Elements:
Vehicle number (transport vehicle registration number)
Transporter ID (if applicable)

Usage: Part B is particularly relevant for tracking the vehicle and ensuring that the goods are being transported by the authorized transporter. This part is generally filled out by the person responsible for the transportation or the transporter.

In summary, while Part A focuses on the details of the goods, including their description, quantity, and value, Part B is concerned with the identification of the vehicle transporting the goods. Both parts work together to provide a comprehensive overview of the goods in transit, aiding in effective monitoring and regulation.

Common Portal for generating E-Way bill under GST

The common portal for generating E-Way Bills under the Goods and Services Tax (GST) regime is the official GST E-Way Bill portal. This portal serves as a centralized platform for businesses and individuals to create and manage electronic way bills for the movement of goods. Here are key aspects of the common portal:

Top of Form

GST E-Way Bill Portal:

• The official website for generating E-Way Bills is https://ewaybillgst.gov.in/.
• Users need to log in to the portal using their GSTIN (Goods and Services Tax Identification Number).

User Authentication:

• To use the common portal, users must authenticate themselves by providing valid GSTIN credentials.

Dashboard and Navigation:

• The portal provides a user-friendly dashboard with options to create, update, and manage E-Way Bills.
• Navigation menus and links guide users through various functionalities.

Who Should Generate the E-Way Bill

The generation of E-Way Bills is typically the responsibility of the person who is causing the movement of goods. This responsibility can fall on various parties involved in the supply chain, and the obligation to generate an E-Way Bill arises under specific circumstances. Here’s a breakdown of who should generate E-Way Bills:

Supplier/Consignor:

The supplier or consignor of goods is generally responsible for generating the E-Way Bill when the value of the consignment exceeds the prescribed threshold, which may vary across states.

The E-Way Bill includes details about the goods, such as their description, quantity, value, and place of origin.

Recipient/Consignee:

In cases where the supplier doesn’t generate the E-Way Bill, the recipient or consignee may be required to do so. This often occurs when the movement of goods is due to reasons other than a supply transaction, such as for a sales return or transfer between branches of the same business.

Transporter:

If the supplier or recipient does not generate the E-Way Bill, the transporter can take on the responsibility. Transporters are required to carry a copy of the E-Way Bill or the E-Way Bill number while transporting goods and can update vehicle details in Part B of the E-Way Bill.

Note: – Moreover, when the transportation of goods occurs within the State or Union territory and covers a distance of up to 50 kilometres from the consignor’s business location to the transporter’s business location for subsequent transportation, the supplier, recipient, or transporter, as applicable, may not be required to provide conveyance details in Part-B of FORM GST EWB-01.

Furthermore, if handicraft goods are being transported from one state to another by an individual exempted from the obligation of obtaining registration, the person in question must generate the e-way bill, regardless of the consignment’s value.

Validity of E-Way Bill

The validity of the e-way bill commences upon the initial entry recorded in Part-B, which is the first instance of vehicle entry for road transportation or the first transport document number entry for rail/air/ship transportation, whichever occurs first.

The validity of the E-Way Bill depends on the Type of Transport Distance:

• Over Dimensional Cargo* One day for distances up to 20 kilometres, and subsequently, an extra day for every 20 kilometres or a fraction thereof.

• Other than Over Dimensional Cargo One day for distances up to 200 kilometres, and thereafter, an additional day for every 200 kilometres or part thereof.

*Over Dimensional Cargo refers to goods or a consignment that exceeds the standard dimensions or weight limits set for transportation as per the Centre Motor Vehicle Rules, 1989. This type of cargo is larger or heavier than the typical goods transported on the roads, and it may require special arrangements, permits, or precautions during transit.

Within the framework of a Goods and Services Tax (GST) system, Input Tax Credit (ITC) serves as a mechanism enabling businesses to offset the taxes paid on their inputs (purchases) against the taxes they accrue from their outputs (sales). However, there are certain situations in which GST input tax credit cannot be claimed for goods or services falling within the purview of Section 17(5) of the Central Goods and Services Tax Act, 2017.

Credits that are restricted or ineligible under Section 17(5):

Section 17(5) of the Central Goods and Services Tax (CGST) Act specifies certain inputs and input services on which ITC cannot be claimed. This provision outlines 11 clauses for which the claiming of Input Tax Credit (ITC) is not available.

Clause (a) of section 17(5) Conveyance & Transportation

ITC cannot be availed on vehicles acquired for the transportation of persons, including:

• Four-wheeler motorcars
• Three-wheelers or auto rickshaws
• Two-wheeler motorbikes or cycles
• Tempo Travellers (TT) or buses with a seating capacity of 13 or fewer, including the driver.
• Any other road-used vehicle.

Sub-clause (aa) of Section 17(5) specifies that input tax credit cannot be availed for the acquisition of vessels and aircraft.

However, there are exceptions to these restrictions in certain circumstances, hence in the following cases, ITC can be claimed when used for specific taxable supplies or transportation of goods such as:

• Further supply of such vehicles
• Transportation of passengers
• Imparting training on driving, flying, and navigating such vehicles.

ITC cannot be claimed in case of purchase of ships, vessels or aircraft. However, an exception is given if the buyer is involved in the business of reselling the ships, vessels or aircraft.

Sub-clause (ab) of Section 17(5) specifies the Services related to general insurance, as well as the servicing, repair, and maintenance of motor vehicles, vessels, or aircraft mentioned in clause (a) or clause (aa), are included by this provision.

Subject to the condition that input tax credit for such services will be accessible-

1. In cases where the motor vehicles, vessels, or aircraft mentioned in clause (a) or clause (aa) are employed for the designated purposes as outlined therein;
2. Where acquired by a taxable entity involved- (I) in the production of said motor vehicles, vessels, or aircraft; or (II) in providing general insurance services for such motor vehicles, vessels or aircrafts insured by him.

Clause (b) of section 17(5) Acquisition of food, catering, vehicle rental, club services, and travel

You are not eligible to avail of Input Tax Credit (ITC) on the procurement of the following:

• Expenditure incurred for outdoor catering, food, or beverages.
• Payments for health services, beauty treatment, plastic surgery, and cosmetic surgery.
• Providing vessels, aircraft, or motor vehicles for rent, lease, or hire. However, ITC claims may be permitted for exceptional cases as specified in clauses (a) and (aa) above.
• Expenditure on life insurance and health insurance.
• Costs related to obtaining club memberships or expenses for health and fitness centres.
• Expenses associated with leave, home travel concession, or travel benefits for employees on vacation.

You remain eligible to avail of Input Tax Credit (ITC) on expenses related to food, health services, renting of conveyances, and insurance if:

1. The goods or services are used by a registered person for making an outward taxable supply of the same category of goods or services or both (termed as reselling of the goods or services), or as an element of a taxable composite or mixed supply.
2. Employer is providing the facility of Membership of a club, or health and fitness centre to its employees,

• Travel benefits are extended to employees on vacation, including leave or home travel concession.

In the case of (ii) and (iii), The input tax credit for such goods or services, or both, is accessible when an employer is obligated to provide its employees under any prevailing law.

Clause (c) and (d) – Construction of Immovable Property (Other than Plant & Machinery)

A GST-registered individual is ineligible to assert Input Tax Credit (ITC) for GST paid on building construction or job work expenses, whether the buildings are intended for commercial or residential use. This restriction also encompasses any GST paid on construction materials.

ITC cannot be claimed for renovation or repair expenses related to buildings, provided they are capitalized in the accounts.

Nevertheless, construction companies, builders, and promoters engaged in the resale of such constructed buildings are permitted to claim ITC on the mentioned expenses. Additionally, ITC remains applicable for the purchase or construction of plants or machinery.

Clause (e) – Composition Scheme

Businesses registered under the composition scheme are not eligible to claim ITC. Section 10 requires that a composition taxpayer is not eligible to avail of Input Tax Credit (ITC) on GST paid for purchases since they are taxed based on their quarterly turnover. Correspondingly, Section 17(5) of the CGST Act specifies that ITC is not accessible for composition-taxable individuals, irrespective of whether they supply goods or services.

Clause (f) – Non-Resident Taxable Person

A non-resident taxable person is required to prepay taxes. They have the option to seek Input Tax Credit (ITC) for Integrated Goods and Services Tax (IGST) paid on imported goods but are ineligible to claim ITC for any other domestic purchases.

Clause (g) – Personal Use

Claiming Input Tax Credit (ITC) is not permitted for purchases intended for personal use instead of business purposes. In instances where purchases are utilized both for business and personal purposes, the Input Tax Credit will only be granted for the portion used in business, employing the common credit formula

Clause (h) – Free Samples or Gifts

Input Tax Credit (ITC) cannot be claimed if acquired goods are lost, stolen, damaged, written off, or provided as free samples or gifts.

Clause (i) – Fraudulent case of Input Tax Credit

Input Tax Credit (ITC) cannot be asserted for taxes paid in the following circumstances:

• Previous instances of non-payment or underpayment of tax,
• Overpayment of tax leading to excess refunds,
• Fraudulent utilization or availing of excess ITC,
• Wilful misstatements or suppression of facts,
• Confiscation of goods and seizure.

Businesses must have robust systems and processes in place to ensure accurate and compliant claiming of Input Tax Credit. Regular internal audits, adherence to tax regulations, and staying informed about changes in tax laws can help mitigate the risks associated with ineligible ITC claims. Our tax professionals help you to ensure compliance with tax laws and regulations and mitigate the risks associated with non-compliance.

GSTR-9 is an annual return form that is required to be filed by regular taxpayers registered under the Goods and Services Tax (GST) regime in India. This return provides a comprehensive summary of all the monthly or quarterly returns filed during the entire financial year.

There are different forms of GSTR-9 based on the type of taxpayer. The main form is GSTR-9, but there are also other variations like GSTR-9A for composition scheme dealers and GSTR-9C for taxpayers whose annual turnover exceeds a specified limit, requiring them to get their accounts audited.

GSTR-9 requires reconciliation with the audited annual financial statements of the taxpayer. This ensures consistency between the financial records and the GST returns filed.

Criteria for filing GSTR-9 forms

GSTR-9: – Every person registered under the regular GST scheme is required to file GSTR-9 if  their turnover exceeds INR 2 Crores.

GSTR-9A: – Every person registered under the composition scheme is required to file form GSTR-9A for each financial year.

GSTR-9C: – Every GST registered person whose turnover exceeds INR 5 crores in a particular financial year.

The due date for filing the GSTR-9 forms: – 31st December of the succeeding financial year or as extended by government notification from time to time.

Filing of Nil GSTR-9: – A person is required to file NIL GSTR-9, If

• Not made any outward supply of goods/services.
• Not received any supply of goods/services.
• Not claiming any credit.
• Not claiming any refund.
• No other liability is pending.
• No pending litigation.

Exemption for filing GSTR-9 form: The following are the persons exempted from filing GSTR-9 and  GSTR-9C respectively

• Taxpayers having turnover up to INR 2 Crores for a particular financial year are exempt from GSTR-9.
• Taxpayers having turnover up to INR 5 Crores for a particular financial year are exempt from GSTR-9C.
• Casual Taxable Person
• Input Service Distributor
• Non-Resident Taxpayers.
• OIDAR Services Providers.

Where to file GSTR-9: – Log in to the portal at https://www.gst.gov.in/ (Go to Services> Returns>Annual Return)

Late Fee and Penalties for delayed/non-filing of GSTR-9

• Late fee for filing of GSTR-9 after due date: – 200 per day (CGST Rs 100/- and SGST Rs 100/-) Maximum Rs. 5000 OR One-Fourth of the  Total Turnover, whichever is less.

• Late fee for delayed filing of GSTR-9 on interstate supplies: – 200 per day.

• Late fee for delayed filing of Nil GSTR-9: – 100 per day (CGST Rs. 50/- and SGST Rs. 50/-)

• Late fee for Non-filing of GSTR-9: – 200 per day (CGST Rs 100/- and SGST Rs 100/-) Maximum ½ of the taxpayer’s turnover in the state or union territory

It’s important to note that GST regulations are subject to changes, and there might be updates to forms and procedures. Our tax experts assist you in staying informed about the most recent guidelines and notifications issued by the Goods and Services Tax Network (GSTN).

Goods and Service Tax Registration

The Goods and Services Tax (GST) is a tax imposed in India on goods and services or both, and it went into force on July 1, 2017. The tax was created to replace major existing indirect taxes with a single comprehensive tax.

In essence, GST has consolidated several indirect taxes into a single tax, making tax compliance management effective for service and commodity businesses. Various indirect taxes, such as the central excise tax, service tax, VAT, entertainment tax, etc. were rolled into the GST. This huge development has made it easier to file tax returns without the challenges that were faced in the past.

What is GST and how does it work?

GST is a destination-based tax applicable on all transactions involving the supply of goods and services or both for consideration subject to exceptions thereof. The Goods and Service Tax is a tax paid on the manufacturing and sale of goods and services throughout the nation.

GST registration is a process through which individuals or businesses obtain a unique number, from the tax authorities, known as Goods and Service Tax Identification Number.

Eligibility criteria to obtain GSTIN based on the following factors: –

• Turnover Threshold for GST Registration
  –  If the turnover exceeds INR 40 lakhs or higher in case of the sale of goods. However, in the case of a special category state, the limit is INR 10 lakhs or higher.
  –  If the turnover exceeds INR 20 lakhs or higher in the case of service providers. However, in the case of special category states the limit is INR 10 Lakhs.
  Special category states include Assam, Uttarakhand, Mizoram, Telangana, Sikkim, Arunachal Pradesh, Tripura, Himachal Pradesh, Manipur, Meghalaya, and Nagaland.
• Mandatory Registration
  Some businesses are required to register under GST regardless of the turnover limit. This includes:
  – Interstate supply of Goods and Services.
  – Casual Taxable Person
  – TDS or TCS Deductors
  – E-Commerce Operators
  – Input Service Distributor
  – Person subject to reverse charge mechanism.
  – Engaged in the business of import-export.
  – Non-Resident Casual Taxable Person
  – Persons previously registered under VAT, Excise, and Service tax.
• Voluntary Registration
  A person can go for voluntary GST registration even in the case of not meeting the above criteria. Voluntary registration gives the advantage of taking input tax credits and expanding their operations.
• Documents Required to Obtain GSTIN
  – Permanent Account Number
  – Identity Proof (Aadhaar Card/Voter-ID/Passport or any other government-issued ID proof).
  – Address Proof (Aadhaar Card/Voter-ID/Passport/ Driving License or utility bills of the business premises)
  – Passport size photo (Director/Partner/Proprietor)
  – Business Registration Documents (Partnership deed in case of Partnership firm/ Certificate of Incorporation in case of Private Limited/LLP/Public Limited/ Ownership deed or any other document in case of Proprietorship).
  – Bank Account Details (Statement/Cancelled Cheque)
  – Digital Signature Certificate
• GST Registration Process
  – Visit the GST official site – (gst.gov.in)
  – Fill out the forms as required.
  – Verification of the uploaded information and documents.
  – Application Reference Number (ARN) is generated
  – Usually it takes 3-6 working days to generate GSTIN.
• Key Forms that are required to fill in the GST registration Process
  – GST REG-01: – This is the application form for GST registrations. It consists of two parts, Part A and Part B. Part A includes all the personal details of the applicant such as the Name of the applicant, email address, mobile number, etc. Part A shall be filled in the form GST-REG-01. After submitting part, A, a Temporary Reference Number (TRN) shall be generated. Part B shall be filled by using the TRN.
  – GST REG-02: – This form is used to complete Part B of the GST Registration process. Part B includes the detail of the business such as legal name, trade name, date of commencement of business, Principal place of business, Authorized signatory, bank account details, etc.
  – GST REG-03: – This form is issued if GST authorities required any additional information or clarification. This form requests you to provide the requested information within the specified timeframe.
  – GST REG-04: – This form allows you to make necessary changes or amendments if you have provided incorrect or incomplete information in the GST registration application. GST authorities may issue this form to fill in the correct information and resubmit the form.
  – GST REG-06: – This form is used by the GST Authorities to inform the status of your GST application. Application is accepted or rejected shall be intimated by the issuing of this form. If the application is accepted, this form will be issued to notify your GSTN and the effective date of registration.
• Komplytek Consulting provides the following GST Services
  – GSTIN Application filing
  – Follow up with the GST Authorities.
  – GST Consultancy
  – GST Return Filing
  – All supporting formalities associated with GST Registration Process and Return Filing.

Registrations are important for a business under various laws and regulations. As a part of legal formality, Registrations ensure that your business operates in a legal framework and complies with applicable laws and regulations. Timely registrations and meeting the legal formalities help you to avoid legal penalties and fines.

Komplytek helps you to get familiar with the requirement of registrations under various laws and regulations. Registration under various tax authorities ensures that your business meets its tax obligations on a timely basis. Specific registration requirements and implications may vary depending on the nature of the business. Our team of legal experts helps you to ensure compliance with relevant laws and regulations applicable to your business.