GST Annual Return FY 2022-23 is a mandatory filing by eligible registered individuals, excluding specific categories. GST Annual Return FY 2022-23 consolidates all transactions reported in periodic returns throughout the year. It encompasses adjustments made to previous year transactions after year-end, serving as the final opportunity for the assesse to disclose all relevant filing period transactions.
The GSTR-1 and GSTR-3B filed during the year form the basis for GST Annual Return FY 2022-23 preparation. While some fields auto-populate from the common portal based on periodic returns, most details are provided by the registered person at the time of GST Annual Return FY 2022-23 filing.
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Applicability for Filing Annual Return of GST
Depending on their registration status and activity throughout the financial year, various groups of taxpayers are subject to the necessity to complete GSTR 9 form to file Annual Return of GST. The following organizations must submit this GST Annual Return for FY 2022-23:
- Regular Taxpayers: The submission of Annual Return of GST in GSTR 9 Form is required by any entity that is registered as a regular taxpayer and having turnover above 2 Cr. This includes companies that operate under common tax laws.
- Special Economic Zone (SEZ) Units and SEZ Developers: SEZ units and developers are required to file GST Annual Return for FY 2022-23 in GSTR 9 Form. By doing this, complete reporting of their financial actions during the financial year is ensured.
- Transition from Composition Scheme: GST Yearly Return in GSTR 9 Form must be filed by taxpayers who change from the composition scheme to regular taxable status throughout the financial year. This encapsulates their transition from a streamlined tax system to a standard tax system.
Exemption for GST Annual Return Filing:
- Composition Taxpayers: Annual Return for Composition Dealer is filed in Form GSR-4, which is tailored to meet their unique requirements. As a result, they are exempt from submitting GSTR 9 Form.
- Casual Taxpayers: Regular taxpayers who only occasionally or sporadically do business are exempt from completing Annual Return of GST in GSTR 9 Form.
- Non-Resident Taxpayers: Non-resident taxpayers who conduct taxable business in India are exempt from filing Annual Return of GST in GSTR 9 Form.
- Entities that perform the functions of input service distributors (ISD) and service providers of online information and database access and retrieval (OIDAR) are likewise exempt from Filing of Annual Return under GST in GSTR 9 Form.
Different Types of Annual Return of GST
- GSTR-9 – Tax entities are required to submit GSTR 9 Form, the Annual Return of GST, if their annual revenue exceeds 2 Crores. This GST Annual Return Filing gathers complete financial data.
- GSR-4 – GSR-4 is the Annual Return for Composition Dealer and must be submitted by registered taxpayers who chose the GST Composition plan. The needs of participants in the composition scheme are specifically addressed by this customized refund.
- GSTR-9B – Any e-commerce business that submitted a GSTR 8 during the financial year must submit a GSTR 9B as their GST Yearly Return.
GST Audit Applicability in form GSTR-9C
Form GSTR-9C performs reconciliation between the annual returns filed by the taxpayer in GSTR-9 and the numbers in their audited financial statements for the relevant financial year. For organizations that must conduct an annual account audit, this reconciliation statement is crucial. GST Audit Mandatory when turnover exceeds 5 Cr.
Types of GST Audit
The audit beneath the GST consists of the investigation of the records, returns, and audit for all the additional documents that are maintained through the enrolled individual beneath GST. The audit checks the correctness of the mentioned turnover, taxes which are furnished if the refund is availed and if there is any ITC claimed and validates the additional things that are essentially required to get investigated through the expert authority.
There are mainly three types of Audit under GST –
- Turnover-Based GST Audit – CA or the cost accountant used to implement it and the CA is arranged by the assesse they shall execute the audit if the turnover of the assesse is more than Rs 5 Cr under the CGST act, then he shall need to get his accounts audited through the same people.
- Assessment and Audit under GST – It gets executed through the commissioner of the CGST/SGST or any Officer who has been permitted by the commissioner. Assessment and Audit under GSTs in these types of cases will get executed by giving 15 days’ notice before the commissioner.
- Special Audit under GST – The audit beneath this shall be taken by the CA or the cost accountant who gets appointed through the commissioner is called Special Audit under GST. To execute Special Audit under GST the professional needs to get the order of the Deputy or Assistant Commissioner and indeed the permission of the commissioner.
GSTR9 and 9C Filing Requirements:
- Reconcile the financial books with the bills for the inbound and outbound supplies
- Make that all input tax credits (ITC) are properly claimed and reversed.
- Check the return to ensure that all taxes paid have been accurately stated.
- Verify whether the auto-populated data and the actual data agree.
- Verify that the return accurately reflects any changes made throughout the year.
- Consolidate the annual return with any monthly or quarterly returns that were submitted throughout the year.
- Make sure that the return includes information on all advances that were received and adjusted during the year.
- Check to make sure all HSN (Harmonized System of Nomenclature) and SAC (Services Accounting Code) codes are reported accurately.
- Make sure the GSTR 9 turnovers recorded corresponds to the financial accounts for the year.
- Check the return to ensure that all information about supplies made to or from another GSTIN (Goods and Services Tax Identification Number) has been accurately submitted.
- Before filing, ensure the return is accurate by checking it for mistakes.
Note – It is possible to make revisions or amendments to Annual Return of GST and GST Audit that have already been filed in form GSTR9 and GSTR9C respectively. Section 44 and Rule 80 do not include the provision for amending Annual Returns. Consequently, it seems that once the annual return is submitted, it will be deemed final, and any subsequent amendments would not be permissible.
Due date for filing GSTR9 and GSTR9C?
According to Section 44 of the CGST Act, Annual Return of GST and GST Audit in form GSTR9 and GSTR9C respectively are required to be submitted by all categories of taxable persons on or before the 31st day of December following the conclusion of the financial year being reported.
Penalties for Late Filing of GSTR9 and GSTR9C:
For Annual Return of GST and GST Audit in form GSTR9 and GSTR9C respectively from the financial year 2022-23, a reduced late fee is applicable for certain categories of registered taxpayers in case of delayed filing.
If the turnover is up to Rs. 5 crore, GSTR 9 and 9C is filed after the due date, a late fee of Rs. 50 per day (i.e., Rs. 25 each under CGST and SGST Act) is imposed, capped at 0.04% (i.e., 0.02% each under CGST and SGST Act) of the turnover in the state/UT.
For turnovers over Rs. 5 crore to 20 crore, filing GSTR 9 and 9C after the due date incurs a late fee of Rs. 100 per day (i.e., Rs. 50 each under CGST and SGST Act), subject to a maximum cap of 0.04% (i.e., 0.02% each under CGST and SGST Act) of turnover in the state/UT.