Every registered Taxpayers needs to file Annual Return in every financial year under GST Regime. GSTR 9, GSTR 9A and GSTR 9B are the annual returns which was introduced by the GST Act, 2017 and GSTR 9C is the form of GST Audit applicable to all registered Taxpayers having turnover of Rs. 5 crores for the FY 2020-21 onwards. Earlier the limit was Rs. 2 Crores for GST Audit for the three financials years i.e., FY 2017-18, FY 2018-19 and FY 2019-20.
“As per the Finance Act, 2021, the requirement of GST audit and submission of GSTR-9C as certified by the CA/CMA was removed. As per the 43rd GST Council meeting that was held on 28th May 2021, the GST Council recommended that GSTR-9C may be still submitted as self-certified by taxpayers with annual aggregate turnover of equal to or more than Rs.5 crore. The CBIC notified this change in Notification No. 29/2021 – Central Tax, dated 30th July 2021.”
Applicability of GSTR 9 and GSTR 9C:
|Form Name||Annual Aggregate Turnover Limit||Applicable To|
|GSTR 9||2 crores||Regular taxpayer filing GSTR 1 and GSTR 3B|
|GSTR 9C||5 crores||All Taxpayers whose Annual Aggregate Turnover exceeds the Limit of Rs. 5 Crores|
Definition of Annual Aggregate Turnover:
The Formula for Annual Aggregate Turnover Limit is as follows:
“Aggregate turnover = Value of all taxable (inter-state and intra-state) supplies + exempt supplies + export supplies of all goods and services”
“Items included while calculating Aggregate Turnover:
- All taxable (inter-state and intra-state) supplies other than supplies on which reverse charge is applicable
- Supplies between separate business verticals.
- Goods supplied to/received from the job worker on a principal to principal basis.
- Value of all export/zero-rated supplies.
- Supplies of agents/job workers on behalf of the principal.
- All exempt supplies. For example, agricultural produce supplied along with branded ready-to-eat food.
- All taxes other than those covered under GST. For example, entertainment tax paid on the sale of movie tickets.
Items excluded while calculating Aggregate turnover:
- Inward supplies on which tax is paid under reverse charge.
- All taxes and cess charged under Goods and service tax like CGST, SGST or IGST, compensation cess.
- Goods supplied to or received back from a job worker.
- Activities which are neither supply of goods nor service under schedule III of CGST Act.”
The calculation of Total Annual Aggregate Turnover should be PAN India Basis. By PAN India Basis the GST Department wants to clarify that if the Aggregate Annual Turnover of exceeds Rs. 5 Crores its mandatory for them to file GSTR 9 for all the registered business entities for that PAN.
Various Forms to be Filed under Annual Return:
|Audit Applicable||Type of Taxpayers||Form to be filed|
|Whether or not applicable to GST Audit||Regular taxpayer filing GSTR 1 and GSTR 3B||GSTR – 9|
|Whether or not applicable to GST Audit||Taxpayer under Composition Scheme||GSTR – 9A|
|Whether or not applicable to GST Audit||E-commerce operator||GSTR – 9B|
(Yet to come into effect)
|Applicable for GST Audit||Taxpayers whose turnover exceeds Rs. 5 crore in FY||GSTR 9C|
Due Date for furnishing GST Annual Returns:
The due date for filling Form GSTR – 9 and Form GSTR – 9C is 31st December of the subsequent year. However, CBIC has been empowered to extend this due date through a notification.
Penalty for not Filing Annual Returns:
For Form GSTR 9, there is no penalty. However, after due date a late fee of Rs. 200/- per day is applicable until the Return is filled. Whereas in case of GSTR 9C, there is no specific penalty given in the Act. Hence, General Penalty of Rs. 25000/- is applicable in case not filled on or before due date.
In order to learn more about the GST Laws, Applicability of the Form, for filling Forms under GST Act, 2017, kindly contact us on +91 76201 44726 or connect us through mail firstname.lastname@example.org. Visit here for more information – CA in Mumbai.