Key Changes in GST Annual Return for FY 2023-24: A Guide to Filing Without Errors

Key Changes in GST Annual Return for FY 2023-24: A Guide to Filing Without Errors

The GST Annual Return filing season is here, and it’s crucial for registered taxpayers to ensure accuracy to avoid potential mismatches, particularly with Input Tax Credit (ITC). The GST annual return for FY 2023-24 must be filed on or before December 31, 2024. However, there are several changes in the process that taxpayers need to understand to ensure smooth compliance.

Who Needs to File the GST Annual Return?

GST-registered taxpayers, except those in specific categories, must file the annual return in Form GSTR-9. Exceptions include:

  • Input Service Distributors
  • Persons paying tax under TDS/TCS
  • Casual taxable persons
  • Non-resident taxable persons

For taxpayers with a turnover of up to ₹2 crores, filing the GST annual return is not mandatory for FY 2023-24.

For businesses with turnovers exceeding ₹2 crores, the following rules apply:

  • Turnover ₹2-5 crores: Filing GSTR-9C (reconciliation statement) is optional.
  • Turnover above ₹5 crores: Filing GSTR-9C is mandatory.

Changes in GSTR-9 for FY 2023-24

The most notable update in the GSTR-9 relates to the sourcing of ITC details in Table 8A. Previously, ITC details in Table 8A were auto-populated using data from GSTR-2A, a statement of inward supplies. Starting from FY 2023-24, Table 8A will now derive its data from GSTR-2B.

What is GSTR-2B?

GSTR-2B is an auto-drafted statement reflecting ITC based on invoices uploaded by suppliers in their respective GSTR-1 returns. This change is expected to:

  • Simplify the reconciliation process.
  • Minimize manual efforts by taxpayers.

Implications of the Change

Switching from GSTR-2A to GSTR-2B emphasizes the need for taxpayers to ensure their suppliers upload invoices promptly. Any delays or errors in supplier filings can lead to discrepancies, requiring additional effort to reconcile ITC claims.

  • Table 8A: Now populated based on GSTR-2B, reflecting eligible ITC.
  • Table 8D: Highlights discrepancies between ITC claimed and ITC auto-populated for reconciliation purposes.

Additionally, Table 6 of GSTR-9 will report ITC based on actual utilization for the financial year as per returns filed.

Key Steps for Accurate Filing

To avoid mismatches and ensure compliance:

  1. File Monthly/Quarterly Returns First: Ensure all monthly or quarterly returns (under the QRMP scheme) are filed before starting the annual return. GSTR-9 data is auto-populated from these returns.
  2. Monitor GSTR-2B Closely: Regularly check GSTR-2B to ensure all eligible ITC is captured.
  3. Reconcile ITC Claims: Compare ITC in GSTR-3B with GSTR-2B data to avoid mismatches.

Read More: GST Amnesty 2024: Waiver of Interest and Penalties Under Section 128A

The new approach of using GSTR-2B for auto-populating ITC in GSTR-9 aims to improve accuracy and reduce errors. However, it places greater responsibility on taxpayers to maintain data accuracy and coordinate with suppliers. Proactive monitoring and timely action will help ensure smooth filing for FY 2023-24.

For further assistance with GST compliance, consider reaching out to experts to navigate the complexities of annual return filing and reconciliation.

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Key Relaxations and Optional Tables in GSTR-9 and GSTR-9C for FY 2023-24

Key Relaxations and Optional Tables in GSTR-9 and GSTR-9C for FY 2023-24

With the approaching deadline for filing GSTR-9 and GSTR-9C for FY 2023-24, the Central Board of Indirect Taxes and Customs (CBIC) has implemented several relaxations to ease the compliance process. These updates, outlined in the CGST (Amendment) Rules, 2024, aim to reduce the reporting burden on taxpayers while making the filing process more efficient and straightforward.

Below is a comprehensive summary of the key relaxations and optional reporting tables introduced in GSTR-9 and GSTR-9C for FY 2023-24:

1. Simplifications in GSTR-9

A. Outward Supplies and Adjustments (Table 5)

  • Exempted and Nil-Rated Supplies (5D & 5E):
    Taxpayers can report the consolidated value of both exempted supplies and nil-rated supplies in Table 5D.
  • Credit and Debit Notes (5H & 5I):
    The value of credit and debit notes can be reported on a net basis against the original supplies (Tables 5A-5F).
  • Amendments to Supplies (5J & 5K):
    Similarly, amendments to supplies can also be reported on a net basis for Tables 5A-5F.

B. Input Tax Credit (ITC) Details (Table 6)

  • Inward Supplies (6B, 6C & 6D):
    Taxpayers now have the option to report ITC on inputs and input services in a single consolidated column under “Inputs.”
  • Imports (6E):
    ITC on imported goods and services can also be consolidated under the “Inputs” column.

C. Reversal of ITC (Table 7)

  • Reversal of ITC (7A to 7E):
    Instead of filling multiple sub-tables, taxpayers can report all reversals in a consolidated manner under Table 7H, labeled as “Other Reversals.”

D. Tax Paid (Table 9)

Taxpayers are required to provide an annual summary of GST payments, as reflected in their GSTR-3B returns, ensuring alignment between returns and payments.

E. Optional Reporting for Certain Tables

  • Sales Adjustments for Future Periods (Tables 10 & 11):
    Reporting of sales adjustments made in FY 2024-25 for transactions of FY 2023-24 is optional.
  • ITC Adjustments (Tables 12 & 13):
    Tables related to ITC reversals and availment for transactions spanning FY 2023-24 and FY 2024-25 are optional.
  • Demand and Refund (Table 15):
    Details of demands raised and refunds claimed during the year are not mandatory to report.
  • Composition and Job Work Supplies (Table 16):
    Reporting supplies from composition taxpayers, deemed supplies by job workers, and goods sent on approval can be skipped.
  • HSN Codes for Supplies (Tables 17 & 18):
    Simplified HSN/SAC reporting:
    • For businesses with a turnover > ₹5 Crores, report 6-digit HSN codes.
    • Others can report 4-digit HSN codes for B2B transactions.

2. Relaxations in GSTR-9C

A. Optional Table

  • Table 14 (Differential Tax):
    Reporting of differential tax paid on adjustments made in Tables 10 and 11 is optional.

B. Mandatory Tables

All other tables in GSTR-9C remain mandatory for taxpayers.

3. Simplified Reporting for Small Businesses

For businesses with a turnover of less than ₹5 Crores, simplified compliance includes:

  • Optional HSN reporting at the 4-digit level.
  • Consolidation of multiple ITC categories and reversals, reducing the complexity of reporting.

Read More: GST Amnesty 2024: Waiver of Interest and Penalties Under Section 128A

These relaxations for FY 2023-24 aim to provide greater flexibility to taxpayers, reducing compliance time and effort. By allowing consolidated reporting and optional tables, the CBIC continues to streamline GST compliance processes.

Taxpayers are encouraged to review these changes carefully and consult professionals for efficient filing to avoid penalties or errors.

Stay updated with Certicom Consulting for expert GST advisory and compliance assistance.

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Filing GST Annual Returns by December 31, 2024: What You Need to Know

GST Annual Return

Filing GST Annual Returns by December 31, 2024: What You Need to Know

The deadline for submitting the GST annual return for the financial year 2023-24 is December 31, 2024. Taxpayers can use Form GSTR-9 or GSTR-9A, depending on their registration type. Importantly, annual returns can only be filed if the GST Identification Number (GSTIN) was active for the entire relevant financial year.

Before filing the annual return, all applicable periodic returns, such as Form GSTR-1/IFF and Form GSTR-3B, for the financial year must be submitted.

Who Must File GST Annual Returns by December 31, 2024?

The following categories of GST-registered taxpayers are required to file an annual GST return:

  1. Regular GST Taxpayers:
    Taxpayers registered under the regular GST scheme and holding a GST registration at any point during the financial year must file Form GSTR-9.

  2. Composition Scheme Taxpayers:
    Taxpayers registered under the composition scheme must file their annual return using Form GSTR-9A.

Exemptions from Filing GST Annual Returns

Certain categories of taxpayers are exempt from filing annual GST returns. These include:

  • Input Service Distributors (ISD)
  • TDS Deductors (taxpayers liable to deduct tax under Section 51)
  • TCS Collectors (taxpayers liable to collect tax under Section 52)
  • Casual Taxable Persons
  • Non-Resident Taxable Persons

Additionally, for taxpayers with an aggregate annual turnover of less than ₹2 crore, filing Form GSTR-9 is optional for the financial years 2017-18 through 2023-24.

Filing Time Barred Annual Returns

It is crucial to file the GST annual return within the prescribed timeline, as it cannot be submitted if three years have passed from its due date. Once time-barred, filing becomes invalid.

Filing Nil GST Annual Returns

A nil GST annual return (Form GSTR-9) can be filed if the taxpayer meets all the following conditions:

  • No outward supplies (sales) were made.
  • No goods or services (purchases) were received.
  • No tax liability existed.
  • No input tax credit (ITC) was claimed.
  • No refund applications were made.
  • No orders creating a demand were issued.
  • No late fees were pending for payment.

Read More: Simplifying India’s Tax Landscape: Key Changes Proposed in the Direct Tax Code 2025

Penalty for Late Filing of GST Annual Returns

Late filing of the GST annual return attracts a penalty in the form of a late fee, which varies based on the taxpayer’s turnover:

Turnover RangeLate Fee per DayMaximum Late Fee
Up to ₹5 crore₹50 (₹25 CGST + ₹25 SGST)0.04% of turnover in the state/UT (0.02% CGST + 0.02% SGST)
More than ₹5 crore and up to ₹20 crore₹100 (₹50 CGST + ₹50 SGST)0.04% of turnover in the state/UT (0.02% CGST + 0.02% SGST)
More than ₹20 crore₹200 (₹100 CGST + ₹100 SGST)0.50% of turnover in the state/UT (0.25% CGST + 0.25% SGST)

 

Filing the GST annual return on time is essential to avoid penalties and ensure compliance. Taxpayers should verify that all relevant monthly or quarterly returns are filed before attempting to submit their annual return. For those eligible for exemptions or nil returns, the process is simplified, but it still requires timely action. By adhering to these guidelines, taxpayers can meet their obligations without complications.

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