In an attempt to simplify the filing of indirect taxes, and mitigate its cascading effect, the Indian Government introduced GST. GST collections were earmarked at Rs.91,916 crore for September 2019.
Considering the importance of this tax regime, endeavours were made to ensure that filing the same via the GST portal was a convenient affair.
As an essential part of this GST compliance, individuals need to have a thorough idea about the annual filing on the terms of GSTR-9.
This compilation return is inclusive of all business transactions done across the financial year in discussion – consolidating all information furnished in quarterly or monthly returns during the specific year.
It comprises details about –
- Supplies made.
- Supplies received.
Across the year under various types of GST in India – IGST, CGST, and SGST. Considering that the tax form files all annual business transactions, the complexity of the same is evident.
Subsequently, two aspects need special attention in this regard – procedure to register it via the GST portal, and its crucial guidelines.
The procedure of GSTR 9 filing
Considering that numerous taxpayers need to file GSTR 9 annual returns, here is a comprehensive step by step explanation –
Step 1: Login and navigate to the GSTR-9 portal.
Step 2: Answer a questionnaire that helps you choose between – nil or annual return with data.
Step 3: Provide requisite details for the financial years in various tables.
Step 4: Preview the draft of GSTR-9 in PDF format or excel sheet.
Step 5: Calculate the liabilities and late fees.
Step 6: File GSTR-9.
Considering that you are now familiar with the steps to file your GST return online, here are a few more highlighted guidelines that you need to be acquainted with.
Guidelines for GSTR 9
Format or details
While filing for GSTR-9 returns is a convenient matter, one needs to know all about its particulars and details. With prior knowledge of this, applicants can start their filing, keeping the following documents handy –
- Part 1: The necessary information.
- Part 2: Inward and outward supplies.
- Part 3: Input tax credit.
- Part 4: Details of tax paid.
- Part 5: Transactions of the previous financial year.
- Part 6: Other information.
Owing to the layered complications in GSTR-9, despite a delay of 20 months from the original due date, only 20% of the traders have been able to file this form. While this reflects the hurdles that applicants are facing, the GSTR 9 due date has been further postponed from 31st August 2019 to 30th November 2019.
Catering to the categories of business turnover, there are multiple types of GSTR-9 –
- GSTR-9 – For registered individuals categorised under the regular scheme.
- GSTR-9A – For registered individuals under the Composition scheme.
- GSTR-9B – For e-commerce operators who filed their GSTR-8 for the current financial year.
- GSTR-9C – Reconciliation form that needs to be certified by CA/CMA for registered individuals with an annual turnover of above Rs.2 crore.
All registered individuals u/s 44 of SGST and CGST Act are required to file GSTR-9 via the GST portal except –
- Individual deducting TDS.
- Individuals collecting TCS.
- Casual Taxable person.
- Input service distributor.
Penalties due to delayed or missed filing
While owing to the complexities in the GSTR-9, the GSTR 9 due date has been postponed; the fines are substantiated –
- In case of delayed filing –
For CGST Act 2017 Section 47(2)
- A general penalty of up to Rs.25,000 as mentioned under Section 125 of CGST Act 2017.
- Rs.100 per day.
- O.25% of business turnover.
Or, in case it attracts both CGST and SGST Act
- O.25% of business turnover.
- Rs.200 per day.
- In case of not filing –
- A general penalty of up to Rs.25,000 (Section 125 of CGST Act 2017.)
- Notice under section 46 for immediate filing.
Furthermore, the filed returns can be used as documentation to avail finances from reputed financers like Bajaj Finserv.
With business loans, entrepreneurs can substantially –
- Boost their working capital.
- Purchase state-of-the-art equipment.
- Hire skilled employees, etc.
While multiple alterations continue to be introduced to the GSTR-9 form, individuals need to follow up on the same.
While the document acts as a substantial proof to avail financial assistance, entrepreneurs can also have paperwork that consolidates all of their business transactions across the fiscal year.