GSTR9: Everything you Need to Know about the Format, Eligibility & Rules

Goods & Services Tax (GST) regime stipulates that registered businesses are required to file monthly, quarterly, and annual returns as per their business operations.

These operations fundamentally include the purchase of raw materials, manufacturing and warehousing of finished goods, and finally the sales process involved between the wholesaler, retailer, and customers.

Registered businesses of all scales are mandated to file GST returns via relevant GST forms such as GSTR 1, GSTR 3B, and GSTR 9 among others.

These returns-filing forms are meant to provide necessary information of business transactions to the GST machinery within a taxable period.

What is GSTR-9?

Goods & Services Tax Return 9 or GSTR 9 simply refers to an annual tax return document containing information on the transaction of supplies within a taxable period carried out by businesses registered under GST.

Enterprises whose aggregate turnover exceeds Rs.20 lakh are required to file GSTR-9 on an annual basis.

As per Section 35 of the CGST Act, 2017, taxpayers have to file multiple sections of this form on the basis of the aggregate turnover of their businesses.

GSTR-9 is primarily filed by businesses which are eligible to file returns with GSTR-1, monthly or quarterly, containing the details of sales and supply of goods.

Enterprises eligible to file GSTR-3B, where the consolidated summary returns of supplies are mentioned, are included under the purview of GSTR-9.

GSTR-9A, 9B and 9C

GSTR-9A is additionally filed by composite dealers annually registered under the GST composition scheme. This scheme involves minimal compliance and tax liabilities to small businesses with a turnover of up to Rs.1.5 crore.

GSTR-9B, on the other hand, is filed exclusively by e-commerce platforms, which are eligible to file GSTR-8 and collect taxes at the outset of transactions.

GSTR-9B is the summary of details such as supplies made to customers, their basic information, tax amount collected at source, and tax payable.

The final component of GSTR-9 is GSTR-9C, which is a reconciliatory audit form filed by businesses with turnover above Rs.2 crore.

The Central Board of Indirect Taxes & Customs (CBIC) had extended the due date for GSTR-9 and GSTR-9C filing for FY 2017-2018 to January 31, 2020.

Who are eligible to file GSTR-9?

The GST council has laid down certain eligibility criteria to determine which businesses are suitable for GSTR-9 compliance.

These include –

1. The taxpayer has to be registered under GST.
2. The individual must possess a 15-digit GSTIN linked to PAN.
3. The aggregate turnover of the enterprise should be above Rs.20 lakh.
4. Taxpayers are required to preserve invoices related to all inter-state, intra-state, B2B, B2C, GST-exempt, and stock transfer transactions within a stipulated period.

NRI taxpayers and individuals who do not have a Unique Identification Number (UIN) are duly exempt from filing GSTR-9 annually.

What is the format of GSTR-9?

GSTR-9 is categorised into several sections where taxpayers have to provide relevant details related to the transaction of supplies, tax payable, and tax paid.

GSTR-9 can be broadly classified into the following sections –

• Sections 1, 2, 3A, and 3B – These preliminary sections are meant to gather information related to the financial year, GSTIN, legal name of the taxpayer, and trade name if available.
• Section 4 – Section 4 collects information regarding sales and supply transactions, advances, purchases, and taxable value under CGST, SGST, IGST, and cess.
• Section 5 – Individuals have to enter details of tax-exempted supplies in this section.
• Section 6, 7, and 8 – Information regarding input tax credit (ITC) reversed ITC, and exempt ITC with respect to CGST, SGST, IGST, and cess.
• Section 9 – Taxpayers have to provide details such as tax paid in the current financial year.
• Section 10 – This section deals with information regarding transactions registered in the previous financial year.

Additionally, individuals have to provide information related to refund claimed, sanctioned and rejected in the secondary sections to file GST returns online successfully.

Enterprises can further leverage their GST returns statements to avail several financial services and product, like business loans. Financial institutions such as Bajaj Finserv offer such loans of up to Rs.30 lakh against minimal documentation.

Registered businesses thus have to file GSTR 9 annually to provide details regarding supplies extended and received during a financial year. Enterprises should also check what other associated forms they should file on the basis of their aggregate turnover.