GST returns comprises of two types of return – periodic and annual returns. Periodic returns are monthly or quarterly returns for reporting transactions during the month or quarter, while annual return is for reporting the summary of the periodic returns filed during a financial year. As the annual return is last return of the year thus, it assumes special significance.
Who is required to file an annual return?
Generally, all taxpayers are required to file the return with certain exceptions such as taxpayers who have obtained registration as:
‘Casual Taxable Persons’ or ‘Non-resident taxable persons’ like exhibitors
‘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 (for instance- distribution of input tax credit pertaining to advertisement services invoiced in one State, however, is used in other States)
Person liable for deduction of tax at source. The Government has not implemented the deduction of tax at source related provisions.
What is the format of the return ?
As per the GST Rules, various forms have been prescribed for the purpose of return, depending upon the categories of the tax payers, which are as follows
The Government had to suspend filings such as GSTR 2 and GSTR 3 and come up with a simplified summary return GSTR 3B. Efforts are underway to finalize the contents of the annual return with the dual purpose of achieving simplicity and comprehensiveness. The return format was supposed to be taken up during the last Council meeting on 31 July, however, no decision was taken. Once the Council approves the format, it may be placed for the stakeholder consultation.
GSTR-9 will contain the details of all supplies made and received during the year under different tax heads i.e. CGST, SGST and IGST. It basically consolidates the information furnished in the monthly / quarterly returns during the entire financial year.
What details are expected to be part of GSTR- 9?
Following are the details to be provided in the GSTR-9 form, spread across 9 tables:
1. GSTIN: Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). The GSTIN of the taxpayer will be auto-populated at the time of return filing.
2. Legal name of the registered person: The name of the taxpayer will be auto-populated at the time of logging into the GST Portal. Table 2 has a sub-section called 2C, which states whether the registered person is liable to do statutory audit. It is to be noted, that statutory audit is compulsory in case of companies and in the case of Individual / HUF, if the turnover exceeds INR 1 Crore.
3. Date of Statutory Audit: Date of the statutory audit, needs to be mentioned in this section.
4. Auditors: The name of the auditors of the entity who have audited the accounts of the entity, need to be mentioned here.
5. Details of Expenditure: Details of goods and services purchased during the financial year must be provided in this section. Such information needs to be provided along with the HSN / SAC codes applicable and the taxable value of such goods and services, which shall be obtained from Form GSTR-2. This information is divided into the following heads:
a. Total value of purchases on which ITC is availed (Inter-State)
b. Total value of purchases on which ITC is availed (Intra-State)
c. Total value of purchases on which ITC is availed (Imports)
d. Other Purchases on which no ITC is availed
e. Sales Returns
f. Other Expenditure (Expenditure other than purchases)
6. Details of Income: Details of all supplies and sales made during the year needs to be provided in this section. Such details are also mentioned in Form GSTR-1 . This information is divided into the following heads:
a. Total value of supplies on which GST is paid (Inter-State Supplies): It includes the supplies made in other states on which IGST is paid
b. Total value of supplies on which GST is paid (Intra-State Supplies): It includes the supplies within the state on which SGST and CGST is paid
c. Total value of supplies on which GST is paid (Exports): It includes the export of goods and services made during the year on which IGST is paid
d. Total value of supplies on which no GST is paid (Exports): It includes the export of goods and services made during the year on which no IGST is paid
e. Value of other supplies on which no GST is paid: It includes the supply of goods and services made during the year without any GST paid on it i.e. CGST and SGST in case of intra-state supply and IGST in case of inter-state supply
f. Purchase Returns: It includes the purchase returns made during the year
g. Other Income (Income other than from supplies): Any other income earned during the year other than supplies mentioned in the above points, should be mentioned in this section.
7. Return Reconciliation Statement: After furnishing all the information, the system will auto-reconcile the transactions and will determine the tax liability payable against the tax actually paid. The system will also populate the amount of tax difference, interest and penalty, if any.
8. Other: If there is any other payable, the same will be auto-populated in this section. It may include arrears or any liability because of the assessment.
9. Profit as per the Profit and Loss Statement: In this section, one needs to mention the break-up of gross-profit, profit after tax and net profit.
What is the deadline for filing the return?
Annual return is required to be filed on or before December 31, 2018. For instance for the financial year 2017-18 (transactions undertaken during July 17 to Mach 18), the last date for filing is December 31, 2018.
What if GSTR-9 filing is done late?
If the GSTR-9 return is not filed on time, then a penalty of INR 100 per day under CGST & INR 100 per day under SGST shall be levied i.e. a total of INR 200 per day. However, the maximum of such a penalty will be an amount calculated at a quarter percent of the total taxpayer turnover in the respective State or Union Territory. There is no late fees however on IGST.
Along with late fees, an interest has to be paid at the rate of 18% per annum, and will be calculated by the taxpayer on amount of outstanding tax to be paid.
What are immediate deadlines in the run upto the return?
While the deadline for filing the annual return is a few months away, even taking into account the possibility of extension of deadline for filing, there are few important compliances that needs to be planned.
Input tax credit pertaining to invoices issued by the suppliers during 1 July 2017 to 31 March 2018 needs to be accounted by 20 October 2018 in the GSTR 3B. As per the GST law, after 20 October 2018�credits pertaining to the said financial year cannot be taken.
For instance, if an invoice is issued by supplier on 30 March 2018 however, the same is not claimed in any GSTR 3B by 20 October 2018, then credit pertaining to such invoice cannot be taken.
This would also mean that reconciliation exercise should be undertaken, well before finally ascertaining credits, to ensure that the supplier has also correctly uploaded the details and it appears in GSTR 2A.
Further, credit notes for sales made during the last financial year should be accounted by 30 September 2018.
Before filing the annual return, for taxpayers with more than INR 2 Crore turnover, GST audit would also need to be completed. Along with the audit report, copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts needs to be submitted.
Whether the annual return can be revised
As there is no specific provision in GST law to revise the annual return hence, based upon the current version of the law, it appears that once filed the same cannot be revised.