The GST annual return is a mandatory filing for taxpayers registered under the Goods and Services Tax (GST) in India. This return consolidates all the monthly or quarterly returns filed by the taxpayer during the financial year. Here are the main points of the GST Annual return:

Types of Annual Returns

GSTR-9: This is the annual return for normal GST-registered taxpayers. It comprises information on outbound and inbound supplies made or received during the fiscal year under several tax headings (CGST, SGST, and IGST).

GSTR-9A: This applies to taxpayers who chose the GST composition plan. It has been suspended for the financial year 2019-20 onwards.

GSTR-9C: This is a reconciliation statement that must be provided by taxpayers whose annual revenue exceeds Rs. 2 crores throughout the fiscal year. It provides a reconciliation between the audited annual financial statement and the annual return (GSTR-9).

Key Components

Basic Details: Information such as the taxpayer's GSTIN, legal name, and trade name.

Details of Outward and Inward Supplies: Includes details of all purchases and sales transactions, along with the tax paid.

Input Tax Credit (ITC): Information on ITC availed and reversed during the financial year.

Tax Paid: Details of the taxes paid under various heads, such as CGST, SGST, IGST, and Cess.

Refunds and Demands: Information on any refunds claimed or demands raised during the year.

HSN Summary: A summary of the HSN-wise outward and inward supplies.

Filing Process

1. Preparation: Gather all necessary documents, including invoices, purchase and sale records, ITC details, etc.
2. Login to GST Portal: Use your credentials to access the GST portal.
3. Navigate to Annual Return: Select the relevant financial year and the type of annual return (GSTR-9 or GSTR-9C).
4. Fill in Details: Complete the form with the correct details of your transactions.
5. Submit and File: Once the form is filled and reviewed, submit it and proceed to file with the required digital signature.

Due Date

The due date for filing the GST annual return is usually December 31 following the end of the financial year. However, this date can be extended by the government.

Penalties

• Late Fees: If the return is not filed by the due date, a late fine of Rs. 200 per day (Rs. 100 each for CGST and SGST) will apply, up to a maximum of 0.25% of the taxpayer's turnover in the important state or union territory.
• Non-Filing Consequences: Continuous non-filing can lead to cancellation of GST registration.

Exemptions

• Taxpayers having an annual revenue of up to Rs. 2 crore are exempt from filing the GSTR-9 for fiscal years 2017-18, 2018-19, and 2019-20.

Importance of Filing GST Annual Return

The GST annual return is an important compliance document as it serves as a final reconciliation between the monthly/quarterly returns filed during the financial year. It ensures that all outside and inward supply information, input tax credits, and tax payments are appropriately documented and reported. This return also allows taxpayers to correct any errors or omissions made throughout the fiscal year.

Moreover, the GSTR-9C, which applies to large taxpayers, acts as an audit mechanism to verify the correctness of the information reported in the annual return with the taxpayer’s financial statements. This certification by a CA or Cost Accountant lends credibility to the data and ensures that the government collects the correct amount of tax.