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7 major Provocations While Filing GSTR-9: Know the Whole Process Here

GSTR-9 signifies Goods and Services Tax Return filing that a registered taxpayer has to submit every year, irrespective of their annual turnover.

It primarily consists of information on taxes paid; Input Tax Credit earned and availed, details of inward and outward supplies, claimed refunds and demands as per the GSTR 9 format.

GST Returns – 9 carries all the income and expenditure details for that particular financial year, combining returns like GSTR-3B, GSTR-1, and GSTR-2A.

Unfortunately, despite being a mandate under the new GST regime, a significant number of business owners often face challenges regarding how to file GSTR-9.

Such situations can result in tax violations. It is thus necessary for every business person to understand the process of GSTR 9 annual return filing and other essential details regarding this taxation method.

Let’s take a look at some of the most common challenges faced by taxpayers while understanding the format and how to file GSTR 9.

1. Exemptions –

A few categories of taxpayers are exempted from filing GST Return – 9. They are the following –

  • Input Service Distributors.
  • TDS (Tax Deductible at Source) and TCS (Tax Collected at Source) collectors (sanctioned under Section 51 and Section 52 of the Income Tax Act of 1961).
  • Casual taxpayers.
  • Non-resident taxpayers.

Other than that, e-commerce owners and composition taxpayers also enjoy exemption from following GSTR 9 format. Instead, they need to file GSTR 9A (for composition taxpayers) and GSTR 9B (for e-commerce owners).

2. Correction of sales figure –

Any correction of sales figure (for example, B2C sales corrected as B2B sales) can be undertaken through the same application form. Table 4 of the return form is available for both B2B and B2C supplies. Any mismatch in the same will be categorised as an incorrect report, but correct classification.

3. Incorrect reporting of returns –

It is necessary to ensure that all monthly and quarterly reports match with the annual returns. Mismatch of any information will result in a show-cause notice from the GST Council.

Taxpayers can calculate their tax liability with the help of an online GST calculator for wholesalers and retailers. Any additional tax liability can be paid by filling up Form DRC-03 (provided you disclose it in the return as per the pre-defined GSTR 9 format).

4. Failing to file the same within GSTR 9 due date –

You are required to file GST Returns – 9 before the 31st of December of a forthcoming financial year. There have been instances of GSTR 9 due to date extension by the Government of India, especially during the first few years when the regulation was first introduced.

However, the Government of India has announced that there will be no extension of GSTR 9 last date, as the tax has been introduced for some time now.

5. Failing to file NIL return –

One of the critical impacts of GST on small and medium scale businesses was the regulation to file NIL return. Every registered taxpayer will have to file GSTR-1, GSTR-3B (monthly) and GSTR-9 (annually) mandatorily even in case of NIL return.

6. Filing multiple returns –

Taxpayers who opted for the GST composition scheme will have both GSTR 9 and GSTR-9A for a financial period.

In this case, they will have to report the incident to the respective authorities, with details of both the return forms. From then on, they will be liable to pay only as per the requisite tax slab every year.

7. Separation of Input Tax Credit –

Input Tax Credit (ITC) needs to be claimed separately as input or input services while reporting I-T Return. It helps separate the ITC from the primary tax return. Taxpayers will also have to report ITC claimed in GST Return – 9.

With a relaxed norm for filing annual returns, GSTR-9 has proved beneficial for businesses across the nation as a simple method of declaring their income annually.

It helps them keep track of their revenue as well as financial liabilities, and determine whether they require financial assistance, like business loans, for extending the reach of their organisation.

Currently, there is no provision to revise GST Returns – 9. However, remembering the above-mentioned aspects while filing the same will help a taxpayer calculate, file, and complete the procedure as per the GSTR 9 format.

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