A Comprehensive Guide to File GSTR-9

Filing GSTR-9 is an essential annual obligation for all individuals and businesses registered under the GST system. GSTR-9 comprises comprehensive details of outward and inward supplies, encompassing transactions conducted or received throughout the fiscal year. The return consolidates all the monthly or quarterly returns filed during the respective year into a single, unified record. This article will explore the step-by-step procedure for filing GSTR-9 for the financial year 2022-2023. Time is running out! File your GSTR-9 by December 31st with IndiaFilings' expert guidance - Act now to avoid penalties! [shortcode_49]

What is GSTR -9?

Form GSTR-9 is an annual return that businesses registered under the Goods and Services Tax (GST) in India must file. It consolidates the information from monthly GST returns filed throughout the financial year (April to March). GSTR-9 provides a comprehensive summary of all the GST transactions conducted by the taxpayer during that year. The turnover limit for GSTR 9 for mandatory filing exceeding Rs. 2 crore.

GSTR 9 Turnover limit	GSTR-9 (Annual Return)	GSTR-9C (Reconciliation Statement)
Up to 2 Crore (Rs. 2 Cr)	Optional	N/A
More than 2 Cr - 5 Cr	Mandatory	Optional (Benefit Given)
More than 5 Cr	Mandatory	Mandatory

There are several types of annual GST returns in India, each for different situations:

GSTR-9: For regular taxpayers who file GSTR-1 and GSTR-3B.
GSTR-9A: For those on the composition scheme.
GSTR-9B: Specifically for e-commerce operators who file GSTR-8.
GSTR-9C: Required when annual turnover exceeds Rs. 5 crores. It involves auditing accounts and reconciling tax payments.

What is a GSTR 9 Turnover limit?

GSTR-9, the Annual Return, is a mandatory filing for all registered regular taxpayers whose annual turnover exceeds INR 2 crores. This GSTR 9 turnover limit or threshold ensures that businesses with significant economic activity contribute to the accurate reporting of their transactions and tax liabilities.

Law Governs GSTR-9

The regulations about GSTR-9 are overseen by Section 44 of the Central Goods and Services Tax (CGST) Rules, 2017, in conjunction with Rule 80 of the CGST Rules, 2017.

Who Should File GSTR-9 - Applicability of GSTR-9

The requirement to file GSTR-9, or the annual return for a financial year, applies to the following cases:

Average Taxpayer: This includes regular taxpayers, Special Economic Zone (SEZ) units and SEZ developers.
Composition Taxpayer: A composition taxpayer who opted out of the composition scheme during the year and continues to be registered under GST.

However, the following individuals or entities are not required to file GSTR-9:

Composition Taxpayers
Casual Taxpayer
Input Service Distributor
Non-Resident Taxpayer
Person Deducting TDS under Section 51
Person Collecting TCS under Section 52

GSTR 9 Due Date

The GSTR 9 due date for submitting Form GSTR-9 for a specific financial year is typically set for December 31st of the following fiscal year. However, it's important to note that the government may occasionally grant GSTR 6 due date extensions through official notifications. Therefore, staying updated with the latest announcements is advisable to ensure timely compliance with the GSTR-9 filing requirements.

Extended Deadline for GSTR-9 Filing in Flood-Affected Tamil Nadu Districts

In response to the recent floods in specific districts of Tamil Nadu, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 02/2024 – Central Tax, dated January 05, 2024. This notification extends the filing deadline for GSTR-9 and GSTR-9C for the financial year 2022-23. The original due date of December 31, 2023, has been pushed to January 10, 2024, for registered businesses based in flood-affected districts such as Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi, and Virudhunagar. This extension, introduced through the Central Goods and Services Tax (Amendment) Rules, 2024, provides these businesses extra time to prepare and submit their annual return (GSTR-9) and self-certified reconciliation statement (GSTR-9C), effective from December 31, 2023.

Penalty for Late Filing

The penalty norms for missing the due date of GSTR-9 filing are as follows: For Financial Year 2021-22 and Prior:

Penalty: Rs. 200 per day (Rs. 100 for SGST and Rs. 100 for CGST).
The penalty cannot exceed 0.25% of the total turnover on which the penalty is levied.

From Financial Year 2022-23 Onwards:

Turnover Up to Rs. 5 Crores: Penalty: Rs. 50 per day (Rs. 25 for SGST and Rs. 25 for CGST).
Turnover Exceeding Rs. 5 Crores: Penalty: Rs. 100 per day (Rs. 50 for SGST and Rs. 50 for CGST).

Information to be Provided in GSTR-9

When filing GSTR-9, taxpayers must provide various information across six parts and 19 sections. Here is an overview of the information that needs to be furnished in the GSTR-9 return:

Part I: Basic Details
- Financial Year
- GSTIN
- Legal Name
Part II: Outward and Inward Supplies
- Details of Outward Supplies (Intra-State)
- Details of Outward Supplies (Exports)
- Details of Other Supplies on which GST is not paid
- Details of Inward Supplies (Imports)
- Details of Inward Supplies on which ITC availed (Inter-State)
- Details of Inward Supplies on which ITC availed (Intra-State)
- Details of Inward Supplies on which ITC availed (Imports)
- Details of Inward Supplies on which no ITC availed
Part III: ITC (Input Tax Credit)
- Details of ITC as per GSTR-2A
- Details of ITC as per GSTR-2B
- Details of ITC available and ineligible ITC
Part IV: Additional ITC Reconciliation
- Details of ITC reclaimed and reversed
Part V: Other Information
- Details of tax paid as declared in returns filed during the financial year
- Details of the difference between the net GST liability and the tax paid
Part VI: Verification 19. Certification of the reconciliation statement
- The taxpayer must provide accurate details based on their previously filed returns and books of accounts for the relevant financial year.

Penalty for late filing of GSTR-9

The penalty for late filing of GSTR-9 is as follows:

Late Fee: A registered person who fails to submit the GSTR-9 return by the due date will incur a late fee of Rs. 200 for each day the failure continues.
Maximum Late Fee: The late fee is subject to a maximum limit, calculated at half a per cent (0.5%) of the individual's turnover in the respective State or Union Territory.

Taxpayers must file their GSTR-9 returns within the prescribed due date to avoid these late filing penalties. Regular taxpayers with an annual aggregate turnover exceeding Rs. 5 crore and registered under the GST regime must file GSTR-9 returns. To undergo an audit of the GSTR-9 return, taxpayers have the option to seek the assistance of a Chartered Accountant or Cost Accountant.

Documents Required for GSTR-9

To file Form GSTR-9, you'll typically need:

Monthly GST Returns (GSTR-1, GSTR-2A, GSTR-3B): These show your monthly sales, purchases, and tax calculations.
Annual Financial Statements: Your yearly profit and loss statement and balance sheet.
Reconciliation Statement (GSTR-9C): This helps match your financial data with your GST returns.
Prerequisites for filing the annual return (GSTR-9)
The prerequisites for filing the annual return (GSTR-9) are as follows:
Taxpayer Registration: The taxpayer must be registered as normal under the Goods and Services Tax (GST) for at least one day during the financial year in question.
Filing of GSTR-1 and GSTR-3B: Before filing the annual return (GSTR-9), the taxpayer must have filed GSTR-1 and GSTR-3B for the entire financial year. This is because GSTR-9 compiles data from these two returns.
Auto-Filled Tables: Some tables in GSTR-9 are auto-filled with data based on the information provided in GSTR-3B and GSTR-2A:
Table 6A is auto-filled with information from GSTR-3B and is not editable.
Table 8A is auto-filled based on details from GSTR-2A and is also not editable.
Table 9, which contains details of tax paid as declared in returns filed during the financial year, will be auto-filled based on the information provided by the taxpayer in Form GSTR 3B for the relevant fiscal year.

These prerequisites ensure that the annual return (GSTR-9) accurately reflects the taxpayer's GST-related transactions and tax payments for the financial year.

Procedure to File GSTR 9

The procedure for filing GSTR-9 on the GST Portal for the financial year 2019-2020 is as follows:

Log in and Navigate to GSTR-9:
Access the official GST website and log in using your username and password.
Go to the 'Returns Dashboard' and click the 'Annual Return' option.

Select Financial Year:

Choose the relevant financial year on the 'File Annual Returns' page (in this case, 2023-2024).
A message will appear with steps for online or offline filing of GSTR-9. Click 'Prepare Online.'

Nil Return:

Choose whether you want to file a Nil return by clicking 'Yes' or 'No.'
If you select 'Yes,' ensure that specific criteria are met (no outward supply, no receipt of goods or services, no credit claimed, no refund claimed, no other liability, no demand order, no late fees required). If these criteria are met, proceed to compute liabilities and file a Nil GSTR-9.
If you select 'No' for Nil returns, proceed to the next step.

Filling in Details:

On the 'GSTR-9 Annual Return for normal taxpayers page, various tiles will be displayed, each requiring specific details.
Click on all three tabs to download summary details that will assist in completing various sections of GSTR-9:
- GSTR-9 System Computed Summary
- GSTR-1 Summary
- GSTR-3B Summary

Provide requisite details in the respective tables, and the system will auto-populate data based on GSTR-1 and GSTR-3B information. If there is a +/- 20% variance in the auto-populated details, the cells will be highlighted, and a confirmation message will prompt further processing. Click 'Yes' to accept the details. Saving Data:

- Return to the 'GSTR-9 Dashboard' and provide all the required information.
- Save the data.

Preview Draft GSTR-9:

Preview the form in PDF or Excel format by clicking 'Preview GSTR-9 (PDF)' on the GSTR-9 dashboard.

Computation of Liabilities and Late Fees:

- Click 'Compute Liabilities,' and the GST portal will process the details provided in various tables, including calculating late fees if applicable.
- Make the payment from the electronic cash ledger. If funds are insufficient, an additional payment can be made via net banking, over the counter, or through NEFT/RTGS by creating an additional payment challan.

Final Submission:

Select the declaration check box.
Choose the authorized signatory.

A page will be displayed with two options for filing:

File with DSC: Browse and select the digital signature certificate. Sign and submit.
File with EVC: An OTP will be sent to the registered mail ID and mobile number. Upon successful validation of OTP, the return status changes to 'Filed.'

Ensure all steps are completed accurately and the GSTR-9 return is submitted within the specified deadlines to avoid penalties and compliance issues. Also read: GSTR-9 and 9C Changes for the FY 2023-24