GST Annual Return Analysis
BACKGROUND:GST is a major tax reform in India which has removed the barriers in inter-state trade. The implementation of the Goods and Services Tax (GST) in India was a historical move, as it marked a significant indirect tax reform in the country. The amalgamation of a large number of taxes (levied at a central and state level) into a single tax is expected to have big advantages. The initiative is now paving the way for a common national market.
Indian goods are also expected to be more competitive in international and domestic markets post GSTimplementation.India has adopted dual model of GST in India. Now days, GST Annual Return is the hot topic. Hence we have tried to cover some guidance on filing of annual returns.
Following are the Section that covered some of the basic applicability condition of GST Annual Return. Section 44, 35(5), 46, 47 and 52(5) of CGST Act 2017and Rule No. 80 of CGST Rules.
- Who is required to file annual return?
- As per section 44(1), every registered person is required to file annual return except:
Input Service Distributors,
Person paying tax u/s 51 (TDS) and u/s 52(TCS),
Casual Taxable person, and
Non Resident taxable person
On or before thirty-first day December following the end of the financial year.(However for the year 17-18, it has been extended to 30thjune 2019)
- Registered person does not include person holding Unique Identity Number (U.I.N.), hence not required to file annual return.
- U.I.N. holders are person who are registered under section 25(9). (They are registered only to take ITC on inward supplies but definition of registered persons excludes them).
- Since composition suppliers are also registered person, hence required to file annual return.
- If registration is cancelled, still person is required to file annual return for the period during which registration was effective.
- Under section 44(2), any person whose accounts are required to get audited under section 35(5) are required to furnish annual return along with annual audited accounts and reconciliation statement.
- It is to be noted that however section 44 says that persons collecting tax under section 52 are not required to file annual return but section 52(5) has mandated for them for filing of annual return, hence they are required to file.
- Who is required to get its account audited under section 35 (5)?
- Registered Person whose turnover exceeds Rs. 2 Croreduring Financial Year must get theiraccounts audited by CA/ CMA.
However, for the purpose of calculation of Turnover 12 month period should be considered i.e. April to March.
OVERALL ANALYSIS OF ABOVE, FORMS & DUE DATE:
Normal tax payer other than ISD, casual taxpayer, Non Resident Taxable Person is required to file GSTR 9.
Composition Taxpayer is required to file Annual Return under form GSTR 9A.
GSTR 9B is an Annual Statement of TCS need to filed by E-Commerce Operator.
GSTR 9C is an reconciliation Statement which need to filed by Annual return along with the copy of audited annual accounts.
Normal taxpayer having turnover more than 2 crorei.e>2 Crore is required to get their account audited.
DUE DATE FOR FILLING OF ANNUAL RETURN:
The Due Date for filing the Annual Returnis 31st Dec following the end of Financial Year (However, for the Financial Year 2017-18 the due date is 30thjune 2019)
CONSEQUENCES OF NON FILLING OF ANNUAL RETURN
- Notice under section 46 can be issued.
- Late fee under section 47 may be levied at the rate of Rs 100 per day or .25% of turnover whichever is lower.
CAN ANNUAL RETURN BE REVISED?
The form GSTR 9 once filed cannot be revised. Any mistake in the return can only be revised in the next month’s return when the error / omission is identified