CBIC exempts these businesses from filing GSTR-9 annual return for FY 2023-24
July 17, 2024
Synopsis
GST annual return: Now there is no need to file GSTR-9 annual return for FY 2023-24 as the Central Board of Indirect Taxes and Customs (CBIC) has exempted small businesses from filing annual return (GSTR-9) for FY 2023-24. Read here to know who is required to file GSTR-9 and who is not.
The Central Board of Indirect Taxes and Customs (CBIC) has exempted Goods and Services Tax (GST) registered small businesses from filing Annual Return (GSTR-9) for FY 2023-24.
A notification issued a few days ago says “In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2023-24 is up to two crore rupees, from filing annual return for the said financial year”
What is the GSTR-9 form?
According to the CBIC website, form GSTR-9 is to be filed by a person who is registered as a normal taxpayer, including SEZ unit or SEZ developer . It is also to be filed by the taxpayers who have withdrawn from the composition scheme to normal taxpayers any time during the financial year.
According to the CBIC website, “The taxpayers are required to furnish details of purchases, sales, input tax credit or refund claims or demand created etc. in this return (GSTR-9).”
“Annual Return is not required to be filed by casual taxpayer / Non Resident taxpayer / ISD/ OIDAR Service Providers,” the CBIC website states.
As per the CBIC website, GST registered taxpayers who opted for composition scheme can file their GST annual return in Form GSTR-9A.
"In terms of Notification No.14/2024–Central Tax, every registered person whose aggregate turnover in the financial year 2023-24 is up to two crores is exempted from filing annual return in Form GSTR 9 for the said financial year," says Rajarshi Dasgupta, Executive Director - Tax, AQUILAW.
Who is not exempt from filing Annual Return in GSTR-9 form for FY 2023-24
According to Ankur Gupta, Practice Leader - Indirect Tax at SW India, "The exemption from filing the annual return for FY 2023-24 applies to GST-registered persons whose aggregate turnover does not exceed Rs 2 crore during the financial year. However, there are exceptions:
Composition Scheme dealers: These dealers file a different return, GSTR-4 annually, and are not covered under this exemption.
Casual Taxable Persons: These persons do not have a fixed place of business and have to comply with specific return filing requirements.
Non-Resident Taxable Persons: These individuals are also subject to separate filing requirements.
Input Service Distributors (ISD): These entities distribute the credit of input services to other branches and are not included in the exemption.
Persons Required to Deduct/Collect Tax at Source: Those liable to deduct (TDS) or collect (TCS) tax at source must file their returns irrespective of turnover.
"The above exemption is in continuation of the option granted by the government since 2019 to taxpayers with annual aggregate turnover (AAT) up to Rs 2 crore to not file the Annual Return in Form GSTR 9. However, taxpayers opting for composition scheme or registered as casual taxable persons, input service providers, non-resident taxpayers and taxpayers deducting/ collecting tax at source are not included for the above exemption," says Ayush Mehrotra, Partner, Khaitan & Co, a law firm.
For whom it's compulsory to file a GST annual return?
As per the CBIC website, as of July 17, 2024, “It’s mandatory to file Form GSTR-9 for normal taxpayers. It may, however, be made optional for taxpayers having average annual turnover (AATO) up to a certain threshold, from time to time.”
How can you file GSTR-9 annual return form?
According to the CBIC website, there are two ways to file the GSTR-9 form - online or offline.
Online: Navigate to ‘Services’, then ‘Returns’ and here you will find the option to file Annual Return using Form GSTR-9.
Offline: Form GSTR-9 return can be filed through an offline tool. The instruction link for downlading the offline tool is this: https://tutorial.gst.gov.in/downloads/gstr9offlineutility.pdf
If your GST registration is cancelled then do you still need to file GSTR
As per the CBIC website the annual return needs to be filed even if the taxpayer has got his registration cancelled during the said financial year.
What if you had opted out of the composition scheme under GST?
“Taxpayers who have opted out from the composition scheme during the relevant financial year are required to file Form GSTR-9 for the period they paid the tax at normal rates,” said the CBIC on its website.
Is it possible for you to file a nil GST annual return?
According to the CBIC website, a nil GSTR-9 form can be filed for the respective financial year, if you have:
Not made any outward supply (commonly known as sale); and
Not received any goods/services (commonly known as purchase); and
No other liability to report; and
Not claimed any credit; and
Not claimed any refund; and
Not received any order creating demand; and
There is no late fee to be paid etc.
This notification which exempted small businesses from filing Annual Return in GSTR-9 form was issued by CBIC on July 10, 2024.
How this exemption can benefit you?
Gupta from SW India explains the impact of this notification:
It provides compliance relief by reducing the burden on small taxpayers, allowing them to focus more on their business activities rather than regulatory requirements.
It results in cost savings by minimizing the expenses associated with return preparation and filing services. Additionally, the move simplifies the GST regime, making it easier for small businesses to comply with GST laws without the need for complex annual filings.
This exemption serves as a supportive measure from the government to encourage the growth and sustainability of small enterprises by reducing administrative overheads.
However experts say that there exists certain risks behind this exemption. "There is a slight risk that reduced compliance could lead to under-reporting or tax evasion, though the exemptions generally aim to balance easing compliance with maintaining tax discipline," says Gupta.
[The Economic Times]
