ICAI has released revised 2022 edition of the “Handbook on Annual Return under GST” incorporating all the amendments notified by the CBIC upto October1, 2022, which is applicable for FY 2021-22 and onwards.
All periodic GST returns (monthly/quarterly) are consolidated as the Annual GST return in this exercise. Annual GST returns, as the name implies, must be submitted on a yearly basis in prescribed Form GSTR-9 by all taxpayers, excluding small taxpayers with a turnover of up to Rs. 2 crores, for whom filing of annual GST returns has been exempted for FY 2021-22 & 2022-23.
This Guide/Handbook of ICAI explains various provisions relating to the Annual GST Return (Forms GSTR-9 and 9A) comprehensively in an easy-to-understand manner, like who is required to file annual return, what are the mandatory fields, what are the optional fields and from where details may be captured to fill a particular field, etc. issues have been explained at length.
ICAI’s Handbook/ Guide on GST Annual Return in Form GSTR 9/ 9A (October 2022 Edition)
|Topic-wise index of Content of ICAI’s Guide to Annual GST Return|
|1. Introduction to Annual GST Return|
|2. Primary Source requiring filing of Annual Return under GST|
|3. Records to be maintained under GST:
Reverse Charge Register
|4. Introduction to the Annual Return|
|5. Analysis of GSTR-9 consisting of six Parts and 19 Tables:
Part I Basic Information: Table No. 1 to 3B
Part II Details of Outward and inward supplies: Table No. 4 (Computing Gross Pay-Out)
Part II Details of Outward and inward supplies: Table No. 4 (Computing Net Pay-Out)
Part II Details of Outward and inward supplies: Table No. 5 (No Payout Transaction)
Part III Details of ITC: Table No. 6 (Gross ITC Taken)
Part III Details of ITC: Table No. 7 (Reversals and Ineligible ITC)
Part III: Table No. 8 (Comparation with Form GSTR-2A)
Part IV Details of tax paid as per returns: Table No. 9 (Pay-Out Particulars)
Part V Details of Transactions: Current Year’s Transaction Reported in Next Financial Year
Part VI: Other Information – (Table No. 15)
Part VI: Other Information – (Table No. 16)
Part VI: Other Information – (Table No. 17, 18 and 19)
|6. List of Optional Entries in the Form GSTR-9 for FY 2021-22|
|7. Annual Return [Form GSTR-9A] for Composition Taxpayers|
Points to be noted while filing the GST Annual Returns
1. A person with multiple GSTINs and an aggregate turnover of more than Rs 2 crore in the fiscal year 2021-22 must file an annual GST return for each GSTIN with no turnover. Also, a person whose registration has been cancelled during the financial year 2021–22 must file the annual GST return unless the final return has been filed and the cancellation has been completed before March 31, 2022.
2. A person who has opted in or out of composition must file both GSTR 9 and GSTR 9A for the appropriate time periods.
3. GSTR-9 does not allow for any revisions after filing.
4. Periodic returns in Forms GSTR-1 and GSTR-3B for FY 2021–22 must have been filed in due course before filing the annual GST return.
5. The following types of registered people don’t have to file an annual GST return:
i) Input Service Distributors (ISDs);
ii) Tax deductors u/s 51;
iii) Tax collectors u/s 52;
iv) Casual Taxable Person;
v) Non-Resident Taxable Person.
6. The declaration of the information in the annual returns has multiple implications. Any incorrect information can result in tax demands, interest, and penalties, not to mention long-term litigation that can last years.
7. GST Form DRC-03 can be used to pay the government any debts that are found when filing an annual GST return.
Consequences of defaults in the filing of the annual GST return (GSTR 9/9A)
(a) Issuance of GST Notices to Defaulter Taxpayers: In accordance with the provisions of Section 46 of the CGST Act, in the event that a registered person fails to provide a return as required by Section 39, Section 44, or Section 45, a notice by GST Authorities shall be issued requiring him to provide such a return within fifteen days in such a form and manner as may be prescribed.
(b) Late Fee for Delayed Filing of Annual GST Return under CGST/ SGST/ UTGST laws: Section 47(2) of the CGST Act provides for a late fee of Rs 100 per day for failure to file an annual return in Form GSTR-9, up to a maximum of a quarter percent (0.25%) of the state or union territory’s turnover. The SGST and UTGST Acts contain similar provisions for the imposition of a late fee.
According to a combined reading of Section 47(2) and Section 44(1) of the CGST Act and the State and Union Territory GST Acts of 2017, a late fee of Rs 200 per day could be levied (Rs 100 under the CGST law and Rs 100 under the state and union territory GST laws). This amount would be capped at a maximum amount of half a percent (0.25% under the CGST law and 0.25% under the SGST or UTGST law) of turnover in the state or or union territory.
(c) General Penalty for contravention of any Provisions under GST laws: Any person who violates any provision of the CGST Act/ Rules for which a specific penalty is not provided for shall be subject to a fine of up to Rs 25,000 per violation, as stated in Section 125 of the CGST Act 2017. A similar fine could be imposed under the SGST/UTGST Act. In conclusion, a fine of up to Rs 50,000 may be imposed per violation.
It is essential to take note of the fact that in order to levy a penalty under section 125 of up to Rs 25,000, the elements necessary to do so, such as willful default, etc., must first be established through an adjudication process that gives the taxable person a reasonable opportunity and is not imposed on a regular basis.