As the time limit for filing the GST annual return for the year 2023-24 draws near, businesses need to ensure that they complete the process by 31st December 2024. This is an important procedure that every business needs to carry out in order to comply with the Goods and Services Tax (GST) laws, avoid any fines, and run smoothly for the better part of the year. Nonetheless, not every business is obligated to file the annual return, and it is important to know who is pegged on the filing to the extent provided by law.
GST annual return is an extensive report which provides a summary of the financial transactions and activities of a business for a given financial year. Such activities include sales, purchases, input tax credit claims, output tax liabilities as well as others. This return acts as a summary of the figures reported in the monthly or quarterly dues of GST that is submitted to the concerned authorities within the year. It assists the authority in determining the rightful tax to be paid by the corporation as well as in administering the proper tax system.
What Is the GST Annual Return?
The GST annual return comprises all monthly or quarterly returns of a business for a specific financial year. It discloses information concerning the sales made and purchases made, tax remitted, and tax incurred for transacting business. Hence, filing this return protects the company from any risk of non-compliance with the provisions of the GST law and allows tax authorities to check and assess the accuracy of the tax remitted. In India, all entities registered under Goods and Services Tax (GST) are required to submit GST annual returns for every year and the deadline for filing is set on 31st December of the following year. The return is required to be submitted electronically using the GST web portal.
Who Needs to File GST Annual Return?
Тhe annual GST return is obligatory for some types of taxpayers and understanding whether you have to submit it or not can help you to avoid fines. Here are the types of businesses that have to submit the annual return.
1.Regular Taxpayers
Any business which is registered under GST and is regularly submitting GST returns will have to submit the annual return. This comprises every single taxpayer who is in this system of GST compliance, be it a small business or a giant one, and so the filing of annual return remains applicable.
2.Composition Scheme Taxpayers
Businesses that elected the Composition Scheme under GST, wherein tax is charged at a certain percent of turnover alone, are also required to file GST annual returns. Even if they file their GST returns every three months they must still submit an annual return in order to comply with every statute.
3.Exporters and Importers
Exporters and importers under the GST registered platform are also liable for annual return submission. This is necessary in order, for their purpose transactions which relate to exports, input tax credit availed for goods imported and so on.
4.Businesses with Multiple GST Registrations
In the event that a business is operational in more than one state and has several GST registrations, each annual return has to be submitted for every individual GSTIN.
5.Businesses Having a Turnover Above the Threshold Limit
Complying with the GST regulations is mandatory for such businesses with an annual turnover higher than a certain limit, this limit varies depending on the business nature and the country. Such businesses have to accordingly file the GST annual returns.
6.E-commerce Sellers and Aggregators
E-commerce businesses that have obtained GST registration must comply with the filing of annual returns in respect of their GSTR 1 which incorporates sales, tax liabilities and other important registrations conducted on their platform.
What Happens if You Don’t File the GST Annual Return?
Failure to submit a GST annual return within the permissible time frame may lead to penalties, and fines may be levied in specific cases. The government may impose a daily fine for every day the return is delayed, and in extreme circumstances, failure to comply may lead to the cancellation of the GST registration. Accordingly, it is essential that all businesses comply with the requirements for filing the annual return in the specified period.
How to File the GST Annual Return?
Filing the GST annual return is not an easy task and has a few steps that should be followed carefully without missing out any single step.
1.Gather Financial Data
Before proceeding to file, one has to make sure that all the financial papers such as sales and purchase invoices, input tax credit as well as tax payment are ready.
2.Reconcile GST Returns
In case of any omissions consisting of transactions or corrections reconciled in the current financial year, submit the annual return and yet there will be differences. Please explain the data contained in the annual GST return with reference to data contained in the monthly or quarterly returns filed during the year.
3.Fill in the Annual Return Form
The GST annual return form (GSTR-9 in case of regular taxpayer and GSTR-9A in case of composition taxpayer) is to be filled in on the GST portal. Provide correct information for all the sections.
4.Review and Submit
So, after filling in all the needed details, make sure you check the form for errors and missing information, and then proceed to file the return before the expiry date.
Exemptions from GST Annual Return Filing
Despite the fact that most taxpayers are obligated to file returns, there are some who are not subject to the annual return filing requirements.
The following are the exempt categories:
- Input Service Distributors (ISD)
- Tariff Casual Taxable Persons and Non-Resident Taxable Persons.
- Taxpayers with an annual turnover of less than ₹2 crores for the Financial Year 2023-24 (filing is voluntary).
- Such taxpayers should ensure that they do not face any penalties or compliance measures due to their exemption status being presumed incorrectly.
Important Details for Annual Return Filers
Audit Requirement for Turnover Exceeding ₹5 Crore:
Goods and services taxpayers whose turnover exceeds ₹5 crores are subjected to a GST audit and are required to submit a reconciliation statement in GSTR-9C along with the annual return. This is vital to ensure that there is consistency between the financial statements and the GST returns.
Voluntary Filing for Below-Threshold Taxpayers:
Taxpayers with turnovers of less than ₹2 crore may opt to file their return even though this is not compulsory, in order to keep clear records and resolve any differences as early as possible.
Amendments and Corrections:
The annual return also serves as a window for businesses to rectify any errors or omissions introduced in the previous month or quarter returns (GSTR-1, GSTR-3B) for that financial year.
Penalties for Missing the GST Annual Return Deadline
December 31, 2024, is a deadline that holds significant importance. In case of its transgression, the following may occur:
1.Penalty Charges:
₹200 for every day (₹100 shall be CGST and ₹100 SGST) subject to a ceiling of 0.25% of the total turnover of the taxpayer.
2.Further Investigation of Returns:
Late submission of returns may attract further investigation or audits from the GST officials.
3.Limitations on Claiming Input Tax Credits:
If a return is not filed on time, a taxpayer may lose the chance of getting input tax credits for that specific year, thus affecting cash flow. The filing of the GST annual return is one of the important duties of the registered taxpayers; to provide transparency and adherence to the Indian laws on tax. It will be helpful for taxpayers to understand the requirements and prepare for the filing of returns in advance so as to avoid late fine charges, penalties, and also any audits that may be firmed up. Taxpayers whether ordinary, composition, or e-commerce operators should always go through the filings and ensure that they send in the returns by December 31, 2024, to avoid any financial repercussions, unnecessary or otherwise.
Steps for Filing GST Annual Return by December 31, 2024
Step 1: Collect the Necessary Papers
Before submitting the yearly GST return, all the involved parties have to assemble all the paperwork that concerns their sales, purchases, and tax obligations.
Such paperwork consists of the following:
- Sales Receipts
- Buying Receipts
- input Tax Credit information
- Proof of payments made to vendors
- GSTR-1, GSTR-3B and other monthly/quarterly returns
Step 2: Verify Data
Make sure that accuracy is kept to a maximum when filing the GST annual return. Check the entries for any overdrafts and mistakes in order to prevent incurring fines or discrepancies during the verification stage.
Step 3: Access the GST Website
Access the GST portal and login into your account. This will be the section for filing in the returns, and here you will be able to see where the annual return is filed.
Step 4: Complete the Form for GST Annual Return
Upon accessing the portal, you shall be prompted to complete the suitable form for your category of business:
- Regular taxpayer is to submit GSTR-9
- GSTR-9A is to be submitted by composition scheme taxpayers
- GSTR-9C is for those businesses which have to submit audit report
- Be cautious to present correct information regarding sales, procurements, ITC and any other information required in the form.
Step 5: Confirm and Send the Form
After the form is accomplished, make sure that all the information is correct, and that the return filling has no mistakes. After that, submit the form.
Step 6: Clear Any Outstanding GST Debts
In case your GST annual return indicates that there is a tax due, make sure that this amount is settled on or before the deadline for filing on December 31, 2024. Non-compliance of this provision may attract fines and interest.
Consequences of Failing to File GST Annual Return
The businesses which don’t file their GST annual return on the given period are liable to certain consequences which include:
Late Fees and Penalties:
In the event of failure to file the form within the stipulated time, late fees may apply. The late fees may increase particularly depending on the period of the delay.
Interest on Unpaid Tax:
There shall be no charging of interest if there are no tax liabilities that have been left unpaid unless there is tax liability pending.
Loss of Input Tax Credit:
Input tax credit for the period will not be available to the businesses in case the return is not filled which will ensure that such business suffers loss in cash flow.
Scrutiny and Audits:
When assessments are done, there are cases of scrutiny and audits done when returns are not done properly and on time which result in more challenges and penalties.
Cancellation of GST Registration:
Persistent failure to return taxes may result in withdrawal of registration making it almost impossible for the business to operate.
| Key Point | Details |
| Filing Deadline | December 31, 2024 |
| Who Must File | Regular GST Registrants, Composition Scheme Dealers, Input Service Distributors, Non-Resident Taxpayers, E-commerce Operators |
| Threshold Limits | Based on annual turnover as specified by GST regulations |
| Documents Required | Previous year’s GST returns Annual financial statements (Balance Sheet, P&L) Invoices and related records |
| Late Filing Penalties | Late fees for overdue submissions Potential blocking of IGST refunds or GST registration cancellation |
| Professional Assistance | Recommended to consult tax professionals or use government helplines |
| Importance of Filing | Ensures compliance with GST laws Avoids penalties and legal issues Facilitates accurate tax assessment |
Conclusion
As this article discusses the importance of the GST annual returns, it is notable that the deadline for the filing of the said return is December 31, 2024, which is significant for several categories of taxpayers including regular GST registered persons, composition scheme taxpayers, input service distributors, non-residents, and e-commerce business operators. Timely compliance is very important in every aspect especially in the filing of the annual return in order to respect the provision of GST laws and rules which in turn helps in avoiding any form of infringements against the law and all its forms, civil or legal.
FAQ
What is the GST Annual Return?
The GST Annual Return is a comprehensive report that summarizes a taxpayer’s sales, purchases, and tax liabilities for a financial year. It is mandated for certain GST-registered businesses.
Who is required to file the GST Annual Return?
Regular GST registrants, composition scheme dealers, input service distributors, non-resident taxpayers, and e-commerce operators must file the GST Annual Return if their turnover exceeds specified thresholds.
What is the deadline for filing the GST Annual Return?
The deadline for filing the GST Annual Return for the financial year 2023-2024 is December 31, 2024.
What documents are needed for filing the GST Annual Return?
Required documents generally include previous GST returns, annual financial statements (Balance Sheet and Profit & Loss Account), and relevant invoices and records.
What happens if I miss the filing deadline?
Late filing may incur penalties, including late fees and potential disruptions like blocking of GST refunds or the cancellation of GST registration.
Can I revise my Annual Return after filing?
Once filed, the GST Annual Return cannot be revised. However, corrections can be made in the subsequent month’s returns if discrepancies arise.
Is there a fee for filing the GST Annual Return?
Typically, there is no government filing fee for submitting the annual return, but late fees may apply if filed after the deadline.
Where can I file the GST Annual Return?
The GST Annual Return can be filed electronically through the GST portal, which is the official platform for managing GST-related transactions.
Should I hire a professional to help with filing?
While it’s not mandatory, hiring a tax professional can help ensure compliance, accuracy, and simplify the filing process, especially for businesses with complex transactions.
What are the consequences of non-compliance with GST filing?
Non-compliance can lead to penalties, interest on unpaid dues, legal action, and issues with future registrations or approvals related to GST.
These FAQs aim to provide clear and concise information on critical aspects of the GST Annual Return process and its associated deadlines.
