GST Annual Return, Fear of Excitement?

GST is a growth booster both for business and Government. It has brought unprecedented transparency and combat tax evasion. Government exchequer is flooded with revenue. For the month of April 2019, there was a total collection of Rs.1.13 Lakh Crore.  There is sheer scope to follow systematic and targeted approach to spend and disburse revenue in the right direction and at the right time. It is noteworthy that GST is not only Tax reform but a big Business Reform as well. After the advent of GST, businesses have revamped their work culture, informal sectors who were not having the culture of issuing Invoices; too have changed their Business style. They recognised the importance and benefits of issuing Invoices. They are becoming organised and getting an entry in the Formal Sector. System of Payments has been streamlied and improving. MSME Sector has been flourishing due to advent of GST and lucrative provisions of MSME Act has also given protection to MSME. Both big and small segment of Ecosystem has been driving benefits out of GST.

NOW, the time has come to file First Annual Return under GST regime. Annual Return is a consolidation of transactions reported under GSTR 1 and GSTR 3B. GST Annual Return is most important Return under GST as it has leveraged data to take informed decisions for businesses, Government, banks and other stakeholders. It will give leeway to banks to release fund and loans to Businesses. Thus Annual Return filing is not a burden, infact it will consolidate valuable data lying at the disposal of businesses and will provide Business insight.

Let’s understand and know more about GST Annual return

Who is liable to file Annual Return?

Every Registered person except mentioned below:

  • Input service Provider
  • Person paying tax under section 51 or section 52
  • Casual Taxable person
  • Non resident taxable Person

Relevant Forms for Filing Annual Return

Due Date to File Annual Return

On or before the thirty-first day of December following the end of such financial year. On or before the thirty-first day of December following the end of such financial year.

Due date to file Annual Return for Financial Year 2017-18 has been extended to 30th June 2019 as per Order No.03/2018-Central Tax dated 31st December 2018

GST Annual Return Structure

Consequences of not filing Annual Return by due date

Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent. of his turnover in the State or Union territory

Key points to remember

  • Details for Period between July 2017 to March 2018 are to be provided in annual return for this time ie Financial Year 2017-18
  • It is mandatory to file all GSTR-1 and GSTR-3B for the FY 2017-18 before filing Annual Return
  • Regular taxpayer for part period and composition taxpayer for part period during the financial year 2017-18 Will file both GSTR 9 and GSTR 9A accordingly
  • In case Nil monthly/quarterly returns are filed during FY 2017-18, it is mandatory to file Nil Annual Return
  • Pay additional liability for FY 2017-18, not declared in monthly returns, through Form DRC 03, to be paid only through Cash ledger
  • Unclaimed Input Tax credit cannot be claimed through Annual Return
  • Annual return once filed can’t be revised.

Don’t wait and delay, without any fear and with full excitement rush now to file GST Annual Return! Feel proud to be GST Registered person!

Contributed by CS Payal Kataria

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.
Readers are advised to consult the professional for understanding applicability of this writeup in the respective scenarios. While due care has been taken in preparing this writeup, the existence of mistakes and omissions herein is not ruled out. No part of this writeup should be distributed or copied (except for personal, non-commercial use) without our written permission.

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