In the GST regime, the Annual Return is Called GSTR-9, and submitting this Annual Return for each Financial Year on or before the prescribed Day is required. For the Financial Year 2017 -18, the Govt. Has expanded the deadline for submitting GSTR-9 up to 31st August 20-19.
But being fully truly a fresh term, citizens find some problems while submitting it. And about the other hand, the Govt. Is going to be extra cautious to flag defaulters. Notably, there is no method to amend GSTR-9 return once registered, taxpayers must become more cautious to stay away from creating any mistakes.
Henceforth, let’s Understand That the most important 8 things That Need to Be Considered While filing Annual Returns i.e. GSTR-9:
1. Not filing GSTR-9 on time – Since the full time has been already, the Govt. Has explained the expected date for submitting GSTR-9 won’t be prolonged. So, as a way to avoid unwanted penalties and attention citizens will want to do each of their liabilities precisely just ahead of the expected date. Non-filers could possibly be issued a requirement notice immediately by your GST department.
2. Incorrect Reporting – GST was released in India in July 2017, so that first year of submitting that the yearly only filing to annual return be for 9 months and never maybe to its entire year. Taxpayers must be extremely careful reporting trades transactions for FY 2017-18 as only data for 9 months of time i.e. July 20 17 on March 2018 needs to be reported.
3. Mismatch in monthly and Quarterly Returns – Taxpayers needs to ensure that each of monthly and quarterly registered returns matches appropriately with all the data reported in the Return of income tax. Mismatch of information is one of the ordinary causes of a requirement see from the GST section. While the due date in earning alterations into data of FY 2017-18 has passed, taxpayers may still disclose any additional tax liability in their GSTR-9 Return. And this may be paid in form DRC-03.
4. Forgot/Ignored to file a monthly/quarterly/annual NIL Return – In accordance with the GST Act, just about every single citizen enrolled GST must repackage file GSTR-1 and GSTR-3B monthly and GSTR-9 by the close of the FY till up the period up to that his enrolment is canceled/surrendered. In scenarios in which there haven’t been any trades throughout a certain month/quarter or even the whole year, a Nil return has to be required registered mandatorily.
5. Non-maintenance of proper documentation – Before filing GSTR-9 online about the Govt. portal, it’s the responsibility of the citizen to reconcile, confirm, and document merely accurate details. Additionally, the taxpayer has to guarantee there is complete documentary proof of all data that can be reported in the return, to avoid clear of unnecessary complications in the future.
6. Ignoring GST Audit – In accordance with the GST Act, even in the event, the annual turnover of this business exceeds ₹ 2 crores from the FY 2017-18, the owner (registered taxpayer) is subjected to GST audit. In case the taxpayer doesn’t commence the GST audit, then subsequently he needs to do it straight away, as such situations, the annual returns must become annexed using a licensed reconciliation announcement in GSTR-9C along with also the audited financial statements.
GST audit will ensure a whole scope of trades undertaken throughout the FY and thus will probably soon be very essential to your identification of discrepancy and accepting timely corrective activities in order to minimize anticipated, wherever possible.
7. Filing two Annual Returns at a time – Previously, when a taxpayer had opted to the ‘structure Scheme’ below GST then changed to become ‘Regular tax-payer’, in the aspect he is going to need to file two-yearly annual returns i.e. GSTR-9 along with GSTR 9-A for its various periods with the designated due date.
In case this happened in the last Financial year, then buckle yourself and keep each detail prepared for GSTR 9 & 9A. At the time of reporting, the taxpayer should be ensuring that she or he doesn’t duplicate the entries from both returns, by mistake.
8. Segregation of claimed ITC – The Input Tax Credit claimed in GSTR-3B has to be bifurcated because ‘Inputs’, ‘Input services’ and ‘Capital goods’ for the intended purpose of reporting. This was not compulsory in GSTR-3B. Properly systematized accounting bookkeeping for each transaction as funding items, services, and goods can help a lot.
The taxpayer should be careful while reporting that the ITC claimed and so they should also know that they are going to be unable to claim any unutilized ITC and reverse any ITC claimed in GSTR-9.
To receive all advice for submitting GST annual returns in one position is absolutely a time-consuming and very dull endeavor. It’d be simpler for taxpayers to start with all the procedures for studying along with a GST audit if appropriate. A taxpayer should get willing to use the written financial accounts for just about every enrolment to prevent any complication unnecessary or further punishment. Now if filed as soon as, there’s not any supply to update GSTR-9. So, simply keeping those points at heart, an individual will ensure submitting of error-free annual returns.