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

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

GST Annual Return

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.

GST Annual Return

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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GST Audit Limit Guide for Taxpayers with Turnover Above 2 Crores

GST Audit Limit Guide for Taxpayers with Turnover Above 2 Crores

The due date for filing GSTR-9 and GSTR-9C forms is December 31.

GST Audit

The Finance Act, 2021 brought significant changes to GST audit requirements, particularly impacting businesses with higher turnovers. While previously, taxpayers with an annual turnover of Rs. 2 crores or more had to submit GSTR-9C certified by a Chartered Accountant (CA) or Cost Accountant (CMA), this mandate was lifted, shifting to self-certification for turnovers above Rs. 5 crore, as confirmed by the 43rd GST Council meeting in May 2021. These updates were later notified by CBIC in Notification No. 29/2021 – Central Tax, dated 30th July 2021. Let’s explore the GST audit process and its various types, providing clarity for businesses navigating these regulations.

Understanding GST Audit and Its Importance

A GST audit entails a thorough examination of financial records, returns, and other documentation maintained by a GST-registered taxpayer. The purpose is to verify the accuracy of reported turnover, tax payments, refunds claimed, and input tax credit availed, ensuring compliance with the GST Act. As GST is a self-assessed tax system, a well-structured audit mechanism serves as a crucial check to verify the taxpayer’s self-assessed tax liability.

GST Audit

Types of GST Audit

GST audits fall into three main categories:

  1. Turnover-Based Audit:

    • Conducted by a Chartered Accountant or Cost Accountant appointed by the taxpayer.
    • Required for businesses with an annual turnover exceeding Rs. 2 crore as per Section 35(5) of the CGST Act.
    • Although the audit requirement was relaxed for turnovers above Rs. 5 crore in the Finance Act, 2021, the original threshold of Rs. 2 crore remains applicable for certain audits.

  2. General Audit:

    • Conducted by the Commissioner of CGST/SGST or an officer authorized by them.
    • Initiated by an official order, typically issued with a 15-day prior notice to the taxpayer.

  3. Special Audit:

    • Ordered by the Deputy/Assistant Commissioner with prior approval from the Commissioner.
    • Performed by a Chartered Accountant or Cost Accountant nominated by the Commissioner when a detailed, specialized examination is warranted.

Turnover-Based Audit Details

Under Section 35(5) of the CGST Act, businesses with an annual turnover exceeding Rs. 2 crore must have their accounts audited by a Chartered Accountant or Cost Accountant. This turnover is calculated on a PAN basis, covering the aggregate value of all taxable, exempt, and export supplies, excluding certain elements like reverse charge supplies. For businesses with multiple GST registrations across states, the cumulative turnover across all branches under a single PAN is considered.

Key Elements in Aggregate Turnover Calculation:

  • Includes all taxable supplies, exempt supplies, and exports.
  • Excludes reverse charge inward supplies, GST-related taxes (CGST, SGST, IGST), and certain non-taxable activities under Schedule III of the CGST Act.

GST Audit Eligibility and Auditor Qualifications

Only Chartered Accountants or Cost Accountants are authorized to perform GST audits. Notably, an internal auditor of a company cannot serve as its GST auditor, and GST practitioners are not permitted to conduct GST audits. If an organization operates multiple branches across states, the aggregate turnover across these branches determines GST audit applicability, regardless of individual branch turnover.

Conducting the GST Audit: Essential Documentation and Process

To conduct a comprehensive GST audit, an auditor reviews critical records, including:

  • Sales and stock registers
  • Purchase records and expense ledgers
  • Input tax credit (ITC) records
  • Output tax details
  • e-Way bills and e-Invoices, where applicable

The auditor also verifies communications with the GST department and reconciles the values in GSTR-9 with audited financials.

Annual Return and GSTR-9C Filing

For taxpayers above the specified turnover threshold, GSTR-9C must accompany the annual return (GSTR-9). Although GSTR-9C self-certification is permitted for turnovers above Rs. 5 crore post-2021, it still plays an important role in ensuring compliance.

Filing Requirements:

  • Regular taxpayers: GSTR-9 and GSTR-9C (if turnover exceeds Rs. 2 crore).
  • Composition scheme taxpayers: GSTR-9A.
  • E-commerce operators: GSTR-9B (pending implementation).

Read More: New Form 12BAA Issued by CBDT to Report Non-Salary Taxes Paid by Employees

Timeline for Submission

The GSTR-9 and GSTR-9C forms are generally due by 31st December of the subsequent financial year. However, this deadline may be extended by CBIC notification as needed.

Navigating GST audit requirements, especially for businesses with turnovers exceeding Rs. 2 crore, requires understanding the latest regulations and staying compliant with statutory obligations. By familiarizing yourself with the GST audit process and compliance requirements, businesses can avoid penalties and ensure accuracy in their GST filings.

For more detailed guidance, consult Certicom Group’s expert team, experienced in helping businesses manage GST audits and related financial requirements efficiently

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New GST Rules: Key Self-Invoicing Updates for RCM – Effective Nov 1, 2024

New GST Rules: Key Self-Invoicing Updates for RCM – Effective Nov 1, 2024

The Central Board of Indirect Taxes and Customs (CBIC) recently issued Notification No. 20/2024 – Central Tax on October 8, 2024, which introduces significant amendments to the Central Goods and Services Tax (CGST) Rules, 2017. Taking effect from November 1, 2024, these changes aim to streamline the invoicing process, particularly for transactions under the Reverse Charge Mechanism (RCM).

Below, we break down these regulatory updates, their implications, and how businesses can maintain compliance.

Key Changes in Self-Invoicing Rules Under RCM

Introduction of Rule 47A: Timely Issuance of Self-Invoices

Rule 47A is a new addition mandating that self-invoices must be generated within 30 days from the date of receipt of goods or services when dealing with unregistered suppliers. This change ensures that businesses comply with the GST framework promptly and reinforces timely tax documentation.

Amendments to Rule 46

The CBIC has made two amendments to Rule 46 to simplify invoicing procedures:

  • Omission of the Second Proviso: The second proviso following clause (s) of Rule 46 has been removed to simplify compliance requirements.
  • Modification to the Third Proviso: The wording in the third proviso has been updated, changing “Provided also that in the case of” to “Provided further that in the case of” to clarify the phrasing of invoicing requirements.

Revised Time of Supply for Services (Finance Act No. 2, 2024)

Amendments to Section 13(3) establish clear guidelines for the time of supply in services. Under reverse charge, the time of supply will now be determined based on specific dates, depending on whether the supplier is registered or unregistered:

  • For Services from Unregistered Suppliers: The time of supply will be the earlier of (a) the date of payment as recorded in the recipient’s books or bank account, or (c) the date the recipient issues the self-invoice.
  • For Services from Registered Suppliers: The time of supply will be the earlier of (a) the date of payment recorded by the recipient or debited from their bank account, or (b) 60 days after the supplier’s invoice date.

What is Self-Invoicing?

Self-invoicing is required when a business purchases goods or services from an unregistered supplier and the transaction falls under reverse charge. Since unregistered suppliers cannot issue GST-compliant invoices, the purchaser becomes responsible for generating the invoice and paying the tax. The introduction of Rule 47A now mandates that this self-invoice must be generated within 30 days of receiving the goods or services, streamlining the process and encouraging timely tax compliance.

Summary of the Regulatory Updates

  • Introduction of Rule 47A: Self-invoices must be issued within 30 days of receiving goods or services from an unregistered supplier.
  • Changes to Rule 46: The second proviso is omitted, and adjustments to the third proviso clarify invoicing obligations.
  • Revised Time of Supply for Services: The time of supply is determined based on the type of supplier (registered or unregistered) and relevant payment or invoice issuance dates.

How Businesses Can Ensure Compliance

Implement Prompt Invoicing Systems: Ensuring self-invoices are generated within the new 30-day deadline for RCM transactions.

    • Monitor Payment Dates: For services, accurately tracking payment or invoice issuance dates is crucial for determining the correct time of supply.
    • Stay Informed on Updates: Keeping up-to-date with future regulatory changes will help businesses stay compliant with evolving tax laws.

      To avoid penalties and maintain compliance, businesses should:

Read More: GST on Renting: Understanding the Distinctions Between Residential and Commercial Properties

These updates, effective from November 1, 2024, represent a step towards simplifying GST compliance, particularly for self-invoicing under the Reverse Charge Mechanism. By embracing these regulatory changes, businesses can improve operational efficiency, enhance their compliance framework, and foster a positive relationship with tax authorities.

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