GST Vidhi | GST Articles

Persons required to furnish annual return: -As per section 44 of the CGST Act, an annual return is required to be furnished by every registered person, other than an input service distributor, a person required to deduct or collect tax at source, a casual taxable person and a non- resident taxable personfor every financial year. After coming into force of the amendment made by the Finance Act, 2021, w.e.f. 1-1-2022, the annual return would also include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year electronically, within such time and in such form and in such manner as may be prescribed.

The periodicity of annual return is one financial year.As per sub-section (5) of section 52, every e-commerce operator is also required to furnish an annual statement of tax collected at source. Since the provisions of section 52 regarding collection of tax at source by an electronic commerce operator, have come into force from 1-10-2018. Hence, for the financial year 2017-18, an e-commerce operator was not required to file annual return in FormGSTR-9B.

Optional filing of annual return for certain taxpayers: -By virtue of Notification No. 47/2019-Central Tax, dt. 9-10-2019, in respect of the registered persons whose aggregate turnover in a financial year did not exceed two crore rupees and who have not furnished the annual return before the due date, it was optional not to furnish annual return for the financial years 2017-18 and 2018-19. The said return would be deemed to be furnished on the due date if it has not been furnished before the due date. Such persons could, however, furnish the annual return before the expiry of the due date of furnishing of the same.

Persons not required to furnish annual return:-The following persons are not required to furnish annual return, namely;

(a) An Input Service Distributor, a person required to deduct tax at source under section 51, a person required to collect tax at source under section 52, a casual taxable person and a non-resident taxable person [Section 44);

(b) any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.

(c) the persons supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person, are not be required to furnish annual return [Notification No. 30/2019-Central Tax, dt. 28-6-2019

Due date of furnishing annual return:-A regular taxable person is required to furnish annual return on or before the 31st day of December following the end of such financial year. An e-commerce operator is also required to furnish the annual statement by 31st December of the next following a year.

From of annual return:-The forms of  Annual Return for different types of taxpayers are as under:

Annual return by a composition dealer switched as regular taxpayer:-Where a taxpayer was earlier registered as composition taxpayer but later he switched over from composition scheme to regular taxpayer, he shall be required to file GSTR-9A (now, GSTR-4) for the period he was registered as composition taxpayer and for the remaining financial year, he shall be required to file GSTR-9. Hence, he shall be required to file both the Annual Return GSTR- 9A (now, GSTR-4) and GSTR-9 for a financial year.

Requirement of filing annual return in case of cancellation of registration:-As per FAQs on Form GSTR-9 issued by ICAI, as per legal provision of section 44(1) of the CGST Act, every registered person shall be required to file GSTR-9. Hence, even if the status of taxpayer is not registered as on 31st March, 2018 but he was registered between July-17 to March-18, he shall be required to file GSTR-9 providing details for the period during which he was registered. Similarly, if a taxpayer had applied for cancellation of registration but the application was pending as on 31st March, 2018, he shall be required to file GSTR-9.

Filing of Nil annual return is mandatory:-Every registered person is required to file GSTR-9 irrespective of his turnover. Hence, where no inward or outward supply was effected by a registered taxable person during any financial year, Nil annual return is required to be filed.

Annual return to be filed GSTIN wise:-As per section 44(1) of the CGST Act, every registered person is required to file annual return. This provision implies that annual return is not required to be furnished entity wise but it is required to be furnished GSTIN-wise. Thus, in respect of each GSTIN, separate annual return is required to furnished.

Furnishing of Form GSTR-1 and Form GSTR-3B is mandatory beforefurnishing Annual Return:- It is mandatory to file all Form GSTR-1 and Form GSTR-3B for a financial year before filing the annual return.

Additional liability can be declared but input tax credit cannot be claimed: - Additional liability for any financial year not declared in FORM GSTR-1 and FORM GSTR-3B may be declared in the Annual Return. However, a taxpayer cannot claim input tax credit unclaimed during any financial year through the Annual Return.Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select "Annual Return" in the drop down provided in FORM DRC-03.

Additional liability can be paid only through electronic cash ledger:- As per para 9 of Instructions appended to FORM GSTR-9, the additional tax liability can be paid through electronic cash ledger only. However, input tax credit wrongly availed can be reversed by debiting the electronic credit ledger.

Difference between an Annual Return and a Final Return:-Annual Return has to be filed by every registered person paying tax as a normal taxpayer. Final Return has to be filed only by those registered persons who have applied for cancellation of registration. The final return is required to be filed within three months of the date of cancellation or the date of cancellation order.

Levy of late fee for failure to furnish annual return:-As per sub-section (2) of section 47, any registered person who fails to furnish Annual return by the due date shall be liable to pay a late fee of 200 for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent. (i.e., 0.5%) of his turnover in the State or Union territory.

Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.