Annual GST Returns India began implementing GST on July 1st, 2017. More than R 1.32 Cr. worth of enterprises in India have been registered and given GST registrations under the new GST system. Without a few exclusions, regardless of company activity, sales, or profitability during the return filing period, all organizations with GST registration are required to file GST yearly returns. GST registrants are required to submit an annual return for each financial year in which they gained or maintained their registration.
The annual return is a compilation return that contains details of all company dealings that took place within a specific fiscal year. It combines the data that a taxpayer-provided in monthly or quarterly returns submitted during a specific fiscal year.
Persons liable for filing Annual Return:
As per Section 44 of CGST Act 2017, every registered person is required to file an Annual Return except the following:
(a) An Input Service Distributor;
b) A person paying tax under Section 51 (i.e. TDS deductor);
(c) A person paying tax under Section 52 (i.e. TCS collector);
(d) A Casual Taxable Person;
e) A Non Residential Taxable Person.
Types of Annual Return:
As per Rule 80 of CGST Rules, 2017 following types of Annual Returns have been prescribed:
(a) FORM GSTR-9: Every ordinary taxpayer must submit this yearly return (i.e. taxpayers who file regular returns in FORM GSTR-3B, GSTR-1, etc.).
(b) FORM GSTR-9A: All taxpayers who pay tax under Section 10 are required to submit this annual return (i.e. taxpayers who file returns in FORM GSTR-4). In other words, all composition taxpayers are required to file an annual return using the FORM GSTR-9A. Because the Annual Form GSTR4 was introduced at the start of the 2019–20 fiscal year, FORM GSTR 9A is no longer necessary.
(c) FORM GSTR-9B: All online merchants required to comply with Section 52’s requirement to collect tax at source must submit this annual return (i.e. taxpayers who file regular returns in FORM GSTR-8).
(d) FORM GSTR-9C: Every registered taxpayer whose aggregate annual turnover exceeds R 5 Cr must submit this yearly return. The registered person is now required to self-certify this reconciliation declaration.
Last date of filing Annual Return:
Every registered person who is required to file an annual return for each fiscal year must do so on or before December 31 of the following fiscal year, according to Rule 80 of the CGST Rules, 2017. As a result, the deadline to file an annual return for the fiscal year 2021–2022 is December 31, 2022. It should be noted that the deadline for submitting an annual report for the fiscal year 2017–18 has been extended through February 5–7, 2020; through December 31, 2020; through March 31, 2021; and through February 28, 2022, for the fiscal years 2018–19, 2019–20, and 2020–21.
Levy of late fee:
Any registered person who fails to submit their annual return by the deadline is subject to a late fine of R 100 per day, up to a maximum of 0.25% of their state or union territory revenue, according to Section 47(2) of the CGST Act, 2017. Similar provisions can also be found in the relevant SGST Acts. As a result, the late fine for failing to submit an annual return by the deadline is effectively Rs. 200 per day, up to a maximum of 0.50% of his revenue in the State or Union Territory.
Annual Returns made optional for small taxpayers:
(a) For taxpayers with an aggregate annual turnover of less than Rs. 2 Cr. for the fiscal years 2017–18, 2018–19, 2019–20, 2020–21, and 2021–22, making an annual return in Form GSTR-9 has been made optional;
Read More: CBIC Publishes New Guidelines For Form GSTR 9 Submission.
(b) Composition dealers no longer have to file an annual report in Form GSTR-9A for the fiscal years 2017–18, 2018–19, 2019–20, 2020–21, and 2021–22;
(c) From Rs. 2 Cr. to Rs. 5 Cr., the threshold for filing a reconciliation statement in Form GSTR-9C for the fiscal year has been raised.