GST: why business must prepare GSTR-9 without any delay

What is GSTR-9

GSTR 9 is the annual return whichcompiles all business transactions done for the particular Financial Year. GSTR-9 consists of details about the supplies made and received during the year under different tax heads i.e., CGST, SGST, and IGST. It consolidates the information furnished in the monthly/quarterly returns during the particular year, which are mandatory to filed too!

What is the format of GSTR-9

GSTR-9 consists of six parts with details detailed below:

Part-I     Details of the taxpayer are required. This detail will be auto-populated

Part-II   Outward and Inward supplies details declared during the FY. This detail must be picked up by consolidating summary from all GST returns filed in previous Financial Year.

Part-III  Details of the ITC declared in returns filed during the FY. The summarized values will be picked up from all the returns of GST filed in the previous FY.

Part-IV  Information of tax paid as declared in the returns filed during the FY.

Part-V   Particulars of the transactions for the previous FY declared in returns of Apr to Sept of current FY or up to the date of filing of GSTR-9 of previous FY whichever is earlier. So, the summary of amendment or omission entries belonging to previous Financial Year but reported in Current Financial Year would be segregated and declared in this part.

Part-VI  Demands and refunds of GST,

HSN wise summary information of the no of goods supplied and received with its corresponding Tax details against each HSN code

Late fees to be paid and paid details

Segregation of inward supplies received from different types of taxpayers like Composition dealers, deemed supply and goods supplied on approval.

Who all cannot file GSTR-9

         1.Composition Dealers – a composition dealer is the one who has to pay tax on reverse charge                       mechanism wherever applicable. They cannot issue a tax invoice, but have to issue a bill of                         supply. They pay tax from their own pocket as they also cannot charge tax from customers.

2. Input Service Distributors -An Input service distributor (ISD) is a business which receives invoices for services used by its branches. It distributes the tax paid, to such branches on a proportional basis by issuing an ISDinvoice.
3. Tax Deductor- A deductor is the person/entity who deducts the tax at source on specified payment made. The tax deducted by the deductor using such TDS mechanism has to be deposited with the Income Tax Department within a prescribed time limit.
4. Tax Collector - A tax collector or a taxman is a person who collects unpaid taxes from other people or corporations. 
5. Casual taxable person - Casual taxable personmeans a person who occasionally undertakes transactions involving supply of goods or services or both in the course of furtherance of business, whether as principal, agent or in any other capacity and where he has no fixed place of business
6. Non-resident taxable person - Non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India

What is a NIL return              

Nil return can be filed for the financial year if you have not: –

• made any outward supply (commonly known as a sale)
• Received any goods / services (also commonly known as a purchase)
• Have no other liability to report
• Claimed any creditor any refund
• Received any order creating demand

AND yes, it is mandatory to file NIL Return.

Can you file GSTR-9, if you have not filed GSTR-1 & GSTR-3B

GSTR-9 cannot be filed unless GSTR-3B and GSTR-1 are filed

Incorrect information can attract tax demands, interest and penalties on the same and the long-term litigations that follow years later.

ITC which is not claimed in GSTR-3B cannot be claimed in GSTR-9. Also, the same needs to be claimed in GSTR-3B up to the extended timeline for claiming input credit.