What is GSTR 9?

GSTR-9 is an annual return that must be filed by every registered taxpayer under the Goods and Services Tax (GST) regime, except certain categories such as composition taxpayers, casual taxable persons, non-resident taxable persons, and input service distributors. This return provides a consolidated summary of all monthly or quarterly GST returns filed during the financial year, including details of outward and inward supplies, taxes paid, input tax credit claimed and reversed, and any demands or refunds. Filing GSTR-9 helps ensure accurate reconciliation and compliance with GST laws.

Applicability of GSTR 9

• GSTR-9 is an annual GST return that must be filed by regular taxpayers.
• It applies to businesses registered under the regular GST scheme.
• Filing GSTR-9 is mandatory if business turnover exceeds ₹2 crore in a financial year.
• Composition scheme taxpayers do not need to file GSTR-9.
• Input Service Distributors (ISD) are not required to file GSTR-9.
• Non-Resident Taxable Persons are exempt from filing GSTR-9.
• TDS deductors under GST don’t have to file GSTR-9.
• E-commerce operators collecting TCS are also not required to file it.

Why Ebizfiling?

EbizFiling.com is a leading business platform providing comprehensive corporate legal services, including company incorporation, compliance, advisory, and management consultancy, both in India and internationally. The platform offers fast, easy, and affordable New GST Registration, GST Returns, and GSTR 9C  . You can contact with compliance manager at 09643203209 or email info@ebizfiling.com.

Who is required to File GSTR 9?

Every registered taxpayer under the Goods and Services Tax (GST) regime in India is required to file GSTR-9, except for the following categories:

• Taxpayers under the Composition Scheme (they file GSTR-9A instead)
• Casual taxable persons
• Non-resident taxable persons
• Input Service Distributors (ISD)
• Persons liable to collect TCS under Section 52
• Persons liable to deduct TDS under Section 51

Key Components of GSTR 9

• Basic Details: This section includes the taxpayer’s GSTIN, legal name, and trade name (if any). It helps in identifying the taxpayer and verifying the basic registration details relevant to the return filing.
• Details of Outward and Inward Supplies: This part captures a summary of all outward supplies (sales) made during the year, including taxable, exempt, and non-GST supplies, as well as inward supplies on which tax is paid under reverse charge. It reflects the consolidated sales and purchase data reported in monthly returns.
• Input Tax Credit (ITC): Here, taxpayers report the total ITC availed, reversed, and ineligible credits for the financial year. It is divided into ITC on inputs, input services, and capital goods, ensuring accurate reconciliation with books of accounts and GSTR-3B.
• Details of Tax Paid: This section requires the taxpayer to declare the total tax paid during the year, including CGST, SGST, IGST, and Cess. It includes payment through cash or utilization of ITC, reflecting the actual tax liability discharged.
• Transaction Reconciliation: This component focuses on reconciling the data reported in the monthly/quarterly returns with the audited financial statements. It ensures there are no mismatches between actual business transactions and GST returns filed.
• Other Information: This includes additional data such as demands and refunds, late fees, interest paid, and other adjustments made during the year. It helps in capturing any corrections or issues settled post return filings.

Consequences of Non-Compliance

Penalty for Late Filing: Failure to file GSTR-9 on time results in a penalty, which is;

Interest on Outstanding Taxes: If GSTR-9 is not filed and taxes remain unpaid, interest is charged on the outstanding amount. This interest is calculated at a rate of 18% per annum, further increasing the tax liability for the taxpayer.

Inability to Claim Refunds: Non-compliance can lead to the inability to claim GST refunds for excess tax paid or input tax credit (ITC). The taxpayer may not be able to offset future tax liabilities with the unclaimed credits.

Legal Consequences: Non-compliance with GSTR-9 can lead to legal actions from tax authorities, including show-cause notices and audits. These actions may escalate to more serious legal proceedings or penalties for persistent non-filers.

Loss of GST Compliance Rating: Failing to file GSTR-9 on time impacts the GST compliance rating, which could negatively affect the business’s reputation. A poor compliance rating can make it difficult to maintain good business relationships with suppliers and customers.

Ineligibility for GST Audit and Scrutiny: A business that consistently fails to file GSTR-9 may face more intense scrutiny from tax authorities. This could lead to frequent audits, increasing the likelihood of penalties and legal issues for the business.