GST Annual Return:
As you all of aware that, now we are filing GST monthly returns such as GSTR-1, GSTR3B etc. In the GST law annual return is also prescribed (as per section 44 of CGST Act, 2017) GSTR 9, it is an annual return to be filed once in a year by the registered taxpayers including those registered under composition levy scheme. It comprises of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGST and IGST. It merges the information furnished in the monthly/quarterly returns during the year
Assesses required to file GST Annual Return: Annual Return is applicable to all registered person in GST Except –
a. Casual Taxable person
b. Input Service Distributor
c. Nonresident Taxable Person
d. Person paying TDS U/s 51.
Prescribed format for GST annual return:
Due date for filing Annual GST Return:
GSTR 9 shall be filed on or before 31st December of the subsequent financial year.
Implementation of Annual GST return:
Firstly, the normal taxpayer has to filed GSTR 1 & GSTR 2 and GSTR 3 will be auto populated with summary of above return in addition with some information i.e. payment info. Then GSTR 9 is required to file at the 31st December of subsequent financial year. In GSTR 9, we have to submit return reconciliation statement .At that time, there are differences arises which on account of GST Audit and GST Assessment order. On such difference amount, we have to paid interest and Penalty.
Late fee for delay in filing annual GST return:
Any Registered person who fails to furnish the annual return by the due date shall be liable to pay a late fee as prescribed in section 47 of CGST Act,2017.
Quantum of late fee: –
Rs. 200 for every day during which failure continues in each CGST and SGST and not in IGST, or 0.25% of the turnover of registered person in state
Steps to be taken before filing Annual Return:
a) Missed Input Tax credits: the input tax credit for the period July-2017 to March-2018 requires to be accounted by 20th October 2018 in the GSTR3B, since as per the GST provision the credit for the said period will lapse. Also taxpayers need to verify GSTR2A for the last year to ensure the suppliers have filed correct returns wherein they have provided correct GST input credit.
b) Credit Notes: further credit notes pertaining to last year shall be accounted by end of September-2018
c) Other aspects: Taxpayers require to reconcile GST returns with their books, further the taxpayers whose turnover is more than 2 crore in the financial year require to get GST audit done by CA/CWA before filing of Annual return.
GST Audit has been defined in section 2(13) of the CGST Act, 2017 and it means the examination of records, returns and other documents maintained or furnished by the registered person under the GST Acts or the rules made there under or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of the GST Acts or the rules made thereunder.
Types of GST Audits:
a) GST Audit by Tax Authorities (u/s. 65 of CGST Act,2017)
b) Special GST Audit by Chartered Accountant or Cost Accountant (u/s. 66 of CGST Act,2017)
c) Annual GST Audit (u/s. 35 of CGST Act,2017)
We are providing brief about Annual GST audit: According to Section 35(5) of the CGST Act:
Every registered person whose turnover during a financial year exceeds the prescribed limit (presently two crore rupees) shall get his accounts audited by
a Chartered Accountant or
a Cost Accountant
and shall submit a copy of the audited annual accounts along with a reconciliation statement (reconciling the value of supplies declared in return with audited annual financial statements)
Contents of the audit report and other particulars to be prescribed
Audited Report and Audited Annual Accounts to be submitted along with annual return on or before 31st December following the end of financial year.
Threshold limit for GST Audit: Every registered person whose aggregate turnover * during a financial year exceeds INR 2 crore shall get his accounts audited.
*Aggregate turnover includes value of all exempt supplies and exports under the same PAN, on all India basis.
Documents required for GST audit
Annual return in Form GSTR-9
All GST 1 & 3B reconciliations
Reconciliation statement, reconciling the value of supplies declared in the return furnished for the year with the audited annual financial statement in Form GSTR-9C.
Annual return & GST Annual audit is final submission to the Tax Department by the taxpayers and this will be considered as a final representation of the financials and it will be considered for any GST audits/ queries/assessments in the future, hence taxpayers are advised to ensure correctness of data with proper reconciliations between GST returns with financials.