All You Want to Know About Filing GST Annual Returns
Introduction to GST Annual Returns:
Goods and Services Tax (GST) has made the taxation process easier in India, but filing GST Annual Returns can still appear to be a complex process for most business owners. Whether you are a startup, a small enterprise, or a big corporation, it is important to know the ins and outs of filing these returns. Startup Portal Business Services is here to assist you in navigating the process of GST annual return filing so your business continues to be compliant and efficient. In this blog, we will simplify everything you must know about GST Annual Returns—from the forms you will need to file to avoiding errors and being on time.
What is a GST Annual Return?
A GST Annual Return is a consolidation of all the transactions that a business has done over a financial year. It is a detailed breakdown of GST paid, input tax credit availed, sales, and purchases. In effect, it is a document reflecting the GST liability of a business. Filing GST Annual Returns keeps businesses transparent and in line with the tax authorities. It also enables companies to match their tax claims and payments made for the year.
Who needs to file GST Annual Returns?
Any company enrolled under GST needs to file GST Annual Returns. This encompasses private limited companies, LLPs, partnerships, and sole proprietors. Even small businesses with turnover less than the stipulated threshold need to do so. Nonetheless, some small businesses might not need to file based on turnover or type of registration.
Business owners must understand whether they need to file based on their turnover and GST registration type. Non-compliance with GST filing can lead to penalties and legal consequences. Therefore, timely filing is essential for staying on the right side of the law.
Types of GST Annual Return Forms:
Under GST, there are different forms to file depending on the type of taxpayer. The main forms are:
- GSTR-9: This is the default form filled by regular taxpayers. If you are a regular taxpayer who is registered under GST and has been filing regular returns throughout the year, this is the form for you.
- GSTR-9A: This is the form specifically for those taxpayers who fall under the composition scheme. The composition scheme keeps GST simple for small businesses that have a lesser turnover.
- GSTR-9C: This is a reconciliation statement used by businesses with a turnover that surpasses the specified amount. It reconciles the financial statements and the GST returns filed throughout the year. It also comprises a certificate from a chartered accountant.
Each of these forms is used for a particular purpose, and it is essential to choose the right one when filing your GST Annual Return. Filing the incorrect form may result in unnecessary complexities.
Due Dates for Filing GST Annual Returns:
It is important to file GST Annual Returns on time to avoid penalties. The filing due date is generally December 31st of the next year. For example, the filing due date for the financial year 2023-24 will be December 31, 2024. However, the government can extend the due date from time to time.
In order not to miss the deadline, it is advisable to keep oneself updated with official notifications. Missing the due date attracts penalties and interest charges on late filings. Hence, it is advisable to file well before the due date.
Information Needed for Filing Annual Returns:
Before you start the filing process, make sure you have all the information ready. This includes:
- GST Invoices: Collect all purchase and sales invoices generated during the year.
- GST Payments: Have all GST payments for the year in hand, such as tax paid on imports and interstate supplies.
- Input Tax Credit (ITC): List all input tax credit claims since they are of major importance to save the tax outgo.
- Financial Statements: Your business accounts should be reconciled with your GST returns. This cross-checks whether the values that have been reported match the accounts of your business.
- Export Details: If your company exports products or services have export documents prepared to file.
- Other Transactions: Bring to report exempt supplies, interstate sales, or adjustments to previous returns that may be required.
It’s always better to work with a professional so that all the data is properly collected. Filing errors can lead to fines and complications.
Common Errors to Avoid While Filing GST Annual Returns
GST Annual Returns filing can be complicated, and even small errors can result in penalties. To have a smooth filing, here are some common errors to avoid:
- Incorrect Reporting of GST Paid: Make sure all GST payments are reported correctly. Overlooked payments or misstated amounts may result in errors in the returns.
- Mismatched Invoices: Double-check that the information on the invoices aligns with your annual return. Incongruent information on purchases and sales can trigger alerts.
- Filing After the Deadline: Late filing is among the most frequent mistakes businesses commit. Late filing incurs fines and interest charges.
- Missing Vital Information: Make sure that all the required information, including financial reports and export invoices, is included in the return.
- Not Reconciling GSTR-3B and GSTR-9: The GSTR-3B, which is submitted monthly or quarterly, needs to reconcile the information submitted in the GST Annual Return (GSTR-9). Not doing so can lead to inconsistencies and fines.
Steering clear of these basic errors will guarantee that your GST Annual Return is properly submitted and within the deadline.
Penalties for Late Filing of GST Annual Returns:
Late filing of GST Annual Returns is costly. The penalty for late filing is Rs. 200 per day—Rs. 100 for CGST (Central Goods and Services Tax) and Rs. 100 for SGST (State Goods and Services Tax). This penalty accrues daily until the return is filed. In addition to the daily penalty, you may be required to pay interest on any unpaid taxes.
In some cases, GST authorities may even initiate legal proceedings against businesses that repeatedly fail to file on time. Therefore, it is crucial to file your GST Annual Return within the prescribed time to avoid these penalties.
Role of Professional Support in GST Filing:
Preparation of GST Annual Returns is time-consuming and complicated. The process may prove to be overwhelming for many businesses, particularly small and medium businesses. Professional help is needed here.
Having your GST filing done by an expert will minimize the chances of errors and ensure that it is done within time. Startup Portal has a team of experts who specialize in GST compliance. With experience spanning years, we guide companies through the intricate process of GST filing. Our services enable your annual returns to be submitted correctly, avoiding incurring costly penalties and delays.
If you require assistance in filing GST annual returns, choosing the appropriate GST annual return form, or getting to know the GST annual return due date, our professionals will assist you every step of the way. Our company also provides GST registration in Pune, with the aim that your business becomes registered and is prepared for compliance.
Conclusion: Why Timely and Accurate GST Filing is Essential?
Filing GST Annual Returns isn’t merely a matter of legality; it’s also ensuring the transparency and correctness of your business accounts. A properly filed return keeps your business away from penalties and on the correct side of the taxman. Be you uncertain regarding GST annual return filing, looking to take advice to select the best GST annual return form, or desiring confirmation that you should not miss GST annual return deadlines, professional support is the need of the hour.
On-time and precise GST filing keeps your business up to date with the law, avoiding unnecessary fines and legal problems. Leave your GST filing in safe hands with Startup Portal and focus on driving your business successfully. If you have any concerns or want professional help, Contact Us now. We are there to assist you in every step of the process, making sure that your returns are filed precisely and within the deadline.