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Know Your GSTR-9 – A Complete Guide

  • 3 September, 2024
  • 10 Mins

Highlights

  • GSTR-9 is a mandatory annual GST return due by December 31st, summarizing the financial activities of the year.
  • Late filing penalty for GSTR-9 includes a fee of ₹200 per day (₹100 each under CGST and SGST), and it cannot be more than 0.50% of the turnover.
  • Revisions of GSTR-9 are not allowed after submission, so taxpayers must ensure all details are accurate before filing.

GSTR-9 represents the annual return for Goods and Services Tax (GST) that must be submitted by taxpayers by December 31st each year. This return serves as a comprehensive summary of the financial activities for the year, allowing taxpayers to reconcile their purchase and sales records while ensuring that their GSTR-9 and GSTR-9C align with GSTR-1 and GSTR-3B.

By completing this process, taxpayers can avoid incurring penalties and interest, as well as accurately claim the Input Tax Credit for the fiscal year. Consequently, the filing of GSTR-9A, GSTR-9C, and GSTR-9 is crucial for any organization or business entity.

This article will provide an in-depth examination of all aspects related to GSTR-9, the annual GST return filing.

Who is Exempt from GSTR-9 Filing?

As previously noted, GSTR-9 must be filed by registered taxpayers for their annual return, with certain exceptions. Regular taxpayers, including SEZ developers and SEZ units shall submit GSTR-9 for each financial year.

Details Included in GSTR-9 Filing

When filing the return, taxpayers must provide comprehensive information on their Input Tax Credit claims, purchases, sales, refunds requested, taxes paid, and other essential data specified in the GSTR-9 form. This information pertains to a defined period.

For instance, when filing the annual return GSTR-9 for the financial year 2022-23, the relevant details will cover the period from April 2022 to March 2023.

The return compiles a summary of all business transactions that took place during the specified financial year, including details of supplies received and made under various tax categories such as SGST, IGST, and CGST. Annually, this information comes from monthly or quarterly returns.

Types of GST Annual Returns

There are three categories of annual GST returns. They are as follows:

GSTR-9: Taxpayers who file GSTR-3B and GSTR-1 are required to submit GSTR-9.

GSTR-9A: Taxpayers registered under the composition scheme of GST must file GSTR-9A.

GSTR-9C: GSTR-9C serves as a reconciliation statement.

Types of GST Annual Returns

The Due Date for GSTR 9 Submission

The deadline for filing and submitting the details of GSTR-9, GSTR-9A, and GSTR-9C is December 31st each year. Failure to meet the GSTR 9 due date will result in late fees, which occurs quite frequently error while filing the return filing.

Strategies to Prevent GSTR 9 Late Fees

To avoid incurring late fees associated with GSTR-9 filing and to ensure compliance with the GSTR 9 due date, it is essential to prepare thoroughly by gathering all necessary documents and transaction details for the financial year well ahead of time. Additionally, it is advisable to identify and rectify any discrepancies in the reconciliation of your financial records with the relevant transactions prior to submission.

GSTR 9 Late Fees for Annual Return

Taxpayers whose Annual Aggregate Turnover exceeds ₹20 Crores are subject to a penalty of ₹ 200 per day for the late submission of the GSTR-9 annual return. This penalty comprises ₹ 100 for SGST and ₹ 100 for CGST. It is important to note that the total penalty cannot surpass 0.50% of the turnover to which the penalty applies. Conversely, there is no late fee for IGST. For taxpayers with a turnover exceeding 5 crores but less than 20 crores, the late fee is ₹ 100 (₹ 50 each under CGST and SGST Act).

Is Revision of GSTR-9 Permitted After Filing?

Once you submit the GSTR-9 annual return, you cannot revise or modify the return. Taxpayers should meticulously review and verify all details, including auto-populated values from their financial records, inward and outward supply details, claimed ITC amounts, and any refunds received, before entering this information into the GSTR-9. Careful adherence to the comprehensive GSTR-9 filing guidelines is crucial, as system do not allow alterations to the GSTR-9 post-submission.

Eligibility Criteria for Filing GSTR 9

All registered individuals under GST have to compulsorily file the GSTR 9 form, with the exception of the following categories:

– Casual taxable persons
– Non-resident taxable persons
– Individuals opting for the Composition scheme and filing GSTR 9A
– Individuals covered under section 51 of the Goods and Services Tax Act

Information Given in GSTR 9 Form

The GSTR 9 form consists of six sections and 19 tables, each necessitating the entry of specific information as outlined in the respective columns. For example, Part I requires the submission of fundamental details such as the taxpayer’s name and the financial year. In Part II, information regarding outward and inward supplies must be provided, among other requirements.

Each section is straightforward and user-friendly, minimizing the likelihood of errors during the GSTR 9 filing process. Adhering to the following GSTR 9 filing guidelines will facilitate accurate completion.

Updates and Modifications to GSTR 9

The introduction of the GST amnesty scheme represents the latest updates and modifications to GSTR 9.

The CBIC issued a notification (07/2023) on 31st March 2023, announcing a waiver of late fees exceeding ₹ 20,000 (i.e., ₹ 10,000 each under the CGST and SGST Acts) for the late submission of GSTR-9 for the financial years 2017-18 to 2021-22, provided that the forms are filed between 1st April 2023 and 30th June 2023.

Update and Modification to GSTR 9

Comprehensive Overview of GSTR-9 Annual Return

Summary of GSTR 9 filing Details

To successfully file the GSTR-9, which is the GST annual return, a taxpayer needs to complete six parts and nineteen tables.

Below we mention detailed information of each of the six parts and nineteen tables:

Part I: Fundamental Information

1. The financial year for which the taxpayer submits return.

Note: The financial year 2023-24 encompasses the period from April 2023 to March 2024.

2. The taxpayer’s GST Identification Number (GSTIN).

3. 3A The legal name of the registered individual and 3B The trade name of the registered business (if applicable).

Part II

Part 2 of GSTR-9 necessitates precise information regarding both inward and outward supplies conducted during the designated financial year. In this section, the taxpayer must provide crucial details, including GSTR-9 information for export and import transactions, as well as other significant taxes paid. This section is essential as it consolidates data from all returns submitted throughout the financial year, thereby assisting the taxpayer in reconciling their GSTR-9 with other GST forms.

Let us explore the sub-sections further.

4. Inward Supplies (4A to 4N): –

– 4A: Supplies made to unregistered individuals (B2C)

– 4B: Supplies made to registered individuals (B2B), encompassing e-commerce transactions

– 4C: Zero-rated supply (Exports) subject to tax payment

– 4D: Supply to Special Economic Zones (SEZs) subject to tax payment

– 4E: Deemed Exports

– 4F: Advances for which tax has been paid but invoices have not been issued

– 4G: Inward supplies subject to reverse charge tax payment

– 4H: Sub-total of (A to G)

– 4I: Credit Notes related to transactions in (B to E)

– 4J: Debit Notes related to transactions in (B to E)

– 4K: Supplies/tax reported through Amendments

– 4L: Supplies/tax decreased through Amendments

– 4M: Sub-total of (I to L)

– 4N: Advances and Supplies on which tax is to be settled (4H + 4M)

5. Outward Supplies (5A to 5N):

– 5A: Zero-rated supply (Exports) without tax payment

– 5B: Supply to SEZs without tax payment

– 5C: Supplies with reverse charge tax payment by the recipient

– 5D to 5F: (Exempted)/(Nil Rated)/(Non-GST) supplies

– 5G: Sub-total of (A to F)

– 5H: Credit Notes for transactions in (A to F)

– 5I: Debit Notes for transactions in (A to F)

– 5J and 5K: Supplies reported/reduced through Amendments

– 5L: Sub-total of (H to K)

– 5M: Turnover exempt from tax payment (G + L)

– 5N: Total Turnover inclusive of advances (4N + 5M – 4G)

Part III: Input Tax Credit (ITC) Details

Part III of GSTR-9 focuses on the detailed reporting of Input Tax Credit (ITC), which is recorded in returns submitted throughout the financial year. The sections are as follows:

1. Details of ITC Utilized

– 6A: The total ITC utilized as reported in FORM GSTR-3B, which is auto-populated from Table 4A of the same form.

– 6B: Inward supplies, excluding imports and reverse charge transactions, which encompass services from Special Economic Zones (SEZs).

– 6C: Inward supplies from unregistered entities that are subject to reverse charge, for which tax has been remitted and ITC has been claimed.

– 6D: Inward supplies from registered entities that are subject to reverse charge. It is essential to ensure that tax is remitted and ITC is claimed on these transactions.

– 6E: Importation of goods, including those sourced from SEZs.

– 6F: Importation of services, excluding inward supplies from SEZs.

– 6G: ITC received from the Input Service Distributor (ISD).

– 6H: The amount of ITC reclaimed in accordance with the provisions of the Act.

– 6I: Subtotal of items B through H.

– 6J: The difference calculated as (I – A).

– 6K: Transition Credit claimed through TRAN-I, inclusive of any revisions.

– 6L: Transition Credit claimed through TRAN-II.

– 6M: Any additional ITC claimed that is not detailed above.

– 6N: Subtotal of items K through M.

– 6O: Total ITC utilized, calculated as (I + N).

2. ITC Reversals and Ineligible ITC Information:

– 7A to 7H: Various categories of ITC that have been reversed in accordance with established regulations.

– 7I: Total ITC Reversed, encompassing items A through H.

– 7J: Net ITC Available for Utilization, calculated as (6O – 7I).

3. Additional ITC-related Information:

– Auto-populated ITC data as per GSTR-2B (Table 3 thereof) (As notified by CBIC Notification No. 20/2024).

– 8B: ITC calculated based on the sum of 6(B) and 6(H) as mentioned above.

– 8C: ITC on inward supplies received during the fiscal year 2022-23 but claimed from April to November 2023.

– 8D: The difference calculated as [A – (B + C)].

– 8E and 8F: Eligible ITC amount but not availed or ineligible (out of D).

– 8G: IGST paid on import of goods that includes supplies from SEZ.

– 8H: IGST credit that’s taken on the import of goods (as per 6(E) above).

– 8I: Difference of 8G-8H.

– 8J: ITC that can be taken but not availed on the import of goods.

– 8K: Current financial year’s total ITC that will lapse (E + F + J).

Part IV

Taxes that have been paid as reported in the returns submitted during the financial year

Part V: Details of Transactions for the Previous Financial Year

In this part, it is crucial to provide detailed accounts of transactions related to the previous financial year that have been reported in the returns of the subsequent financial year, up to the designated period, whichever comes first.

10. Supplies/Tax Reported through Amendments (+) and

11. Supplies/Tax Decreased through Amendments (-):

12. Reversal of ITC Utilized During the Previous Financial Year:

The total amount of Input Tax Credit (ITC) utilized in the previous financial year but subsequently reversed in returns filed for that year, while also being utilized in the following financial year up to the specified period, should be reported here. Please refer to Table 4(B) of FORM GSTR-3B for accurate reporting.

13. ITC Utilized from the Previous Financial Year:

This part should include details of the ITC from the previous financial year for goods or services received during that year but utilized in the next financial year up to the specified period. For precise information, refer to Table 4(A) of FORM GSTR-3B.

14. Differential Tax Paid as Reported in Points 10 & 11 Above:

Report the differential tax amount paid based on the declarations made in parts 10 and 11.

Part VI: Additional Information

15. Details of Demands and Refunds:

– 15A to 15D: Total value of refunds that have been claimed, approved, denied, and those pending processing.

– 15E to 15G: Total value of tax demands, taxes that have been paid, and demands that are still pending recovery.

16. Information Regarding Supplies Acquired by Composition Taxpayers:

Include details of deemed supplies under Section 143 and goods sent on an approval basis:

– 16A: Supplies received from Composition taxpayers.

– 16B: Total value of deemed supplies under Section 143.

– 16C: shows the total value of deemed supplies for goods sent on approval that have not been returned.

17. HSN Wise Summary of Outward Supplies

18. HSN Wise Summary of Inward Supplies:

– Provide a summary of supplies made and received corresponding to a specific HSN code.

The Procedure for Submitting GSTR-9

We have here a comprehensive guide on how to submit GSTR-9 online:

Be aware that you can file GSTR-9, the annual GST return, both online and offline.

Steps of GSTR-9 Filling Process

1. Log in to the GST portal using your credentials.

2. Go to Services > Returns > Annual Return.

3. Select the Financial Year 2022-23 and click on the Search button.

4. Scroll down to find two tabs displayed on the page. Click on “Prepare online” under the GSTR-9 Annual Return tab.

5. Select “No” and then click the Next button.

6. Complete the details for all tables in GSTR-9 as specified in Step 3.

7. Save each table by clicking the save button located within the respective sections.

8. Note that Form GSTR-9 serves as a summary, and Input Tax Credit (ITC) cannot be claimed through this form.

9. Report any additional liabilities not disclosed during the filing of Form GSTR-3B.

10. The system will automatically calculate any late fees associated with GSTR-9 during the liability computation. Click on “Compute Liabilities.”

11. If late fees are applicable, the “Proceed to File” button will become active. Click on “Proceed to File” to settle liabilities and submit the return.

12. Review the information by clicking the ‘Preview Draft GSTR-9 PDF’ button.

13. Confirm your declaration by checking the appropriate box and selecting the authorized signatory details from the drop-down menu.

14. You may include additional information even after starting the liability computation but before filing GSTR-9..

15. Choose to submit Form GSTR-9 using either the Digital Signature Certificate (DSC) or the Electronic Verification Code (EVC) of the Authorized Signatory.

16. Upon successfully submitting, the system generates an acknowledgment Reference Number (ARN).

17. You can view and download the submitted GSTR-9 form in both PDF and Excel formats.

Significance of GSTR 9 Filing Software

The GSTR-9 filing software has become an essential resource for businesses managing the intricacies of Goods and Services Tax (GST) compliance. Specialized GST software solutions, such as GSTrobo®, facilitate the GSTR-9 filing process, which is mandatory under the GST framework. Featuring an intuitive design, the GSTR-9 filing software, GSTrobo®, provides a user-friendly experience that assists users in navigating each section of the return, ensuring precise and efficient completion.

This tool includes data validation mechanisms to reduce errors and inconsistencies. The advanced capabilities of GSTrobo encompass automated calculations, real-time updates reflecting regulatory changes, and seamless integration with various financial systems and ERPs. Businesses utilizing GSTrobo experience significant time savings and improved accuracy, enabling them to concentrate on their primary operations while ensuring adherence to GST regulations. Whether for small businesses or large enterprises, the implementation of GSTrobo for effective GSTR-9 filing is crucial for achieving a streamlined and trouble-free GST annual return submission process.

Important Advisory

Exercise caution when submitting the GST annual return, ensuring that all entries are accurate. Any inaccuracies may lead to penalties and interest, potentially resulting in prolonged legal disputes.

This concludes our discussion on GSTR 9, the GST annual return. We trust that you have carefully reviewed all relevant details and gained a clear understanding of its provisions. However, if you remain uncertain and wish to clarify any questions, please feel free to share your concerns in the comments section below. Thank you for your visit!


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