GSTR-9 Annual Return Filing: Due Date, Applicability, Turnover Limit, and Eligibility

GSTR-9 is a yearly GST return, and it must be filed by December 31st, following the end of the financial year. It includes details of a business’s total sales, purchases, and the GST collected and paid throughout the year. Businesses with an annual turnover exceeding Rs. 2 crores are required to file GSTR-9. For finance professionals, GSTR-9 is not just copying data from GSTR-1, 2B, and 3B, it still needs careful review.

It requires thorough settlement to ensure accuracy, and any unpaid tax or excess input tax credit claimed must be adjusted with the government before submission. Filing GSTR-9 correctly helps you stay compliant with GST rules and saves you from penalties or unexpected tax troubles. This blog will dive into the GSTR-9 annual return and its procedure.

What is the GSTR-9 Annual Return?

GSTR-9 is a yearly GST return that every registered taxpayer needs to file to stay updated and compliant. It serves as a comprehensive summary of a business’s transactions throughout the financial year, which ensures transparency and accuracy in tax reporting. This return covers details of sales and purchases, divided into tax categories like CGST, SGST, IGST, and Cess. It also includes HSN codes, which help classify goods and services accurately.

GSTR-9 annual return filing sums up yearly data from monthly and quarterly returns like GSTR-1, GSTR-2A, GSTR-2B, and GSTR-3B. While filing this return may seem complicated, it is important for reconciling tax records, identifying any mismatches, and ensuring compliance. Proper reconciliation helps businesses disclose their financial details transparently, which reduces the risk of errors, penalties, or tax liabilities.

Types of GSTR-9

Under the CGST Rule 80, there are four types of annual GST returns, and each is meant for different types of taxpayers. These returns help businesses report their yearly tax details and ensure compliance with GST regulations. Let us discuss the four types of GSTR-9:

1. GSTR-9: For Regular Taxpayers

This return is mandatory for all regular GST taxpayers who file GSTR-1 and GSTR-3B. If a taxpayer’s annual turnover exceeds Rs. 2 crores, filing GSTR-9 becomes compulsory. It provides a comprehensive summary of sales, purchases, tax paid, and input tax credit (ITC) claimed throughout the financial year.

2. GSTR-9A: For Composition Scheme Taxpayers (Until FY 2018-19)

Businesses registered under the Composition Scheme had to file GSTR-9A every year for their annual GST return. From FY 2019-20 onwards, this has been discontinued and replaced with GSTR-4, which must be filed by 30th April of the following financial year.

3. GSTR-9B: For E-commerce Operators (On Hold)

This return applies to e-commerce operators who collect TCS (Tax Collected at Source) and file GSTR-8 monthly. The requirement to file GSTR-9B has been put on hold, which means e-commerce operators currently don’t need to file it.

4. GSTR-9C: For Large Businesses (Turnover Above Rs. 5 Crore)

This is the Annual Reconciliation Statement, required for businesses with a turnover exceeding Rs. 5 crores in a financial year. It acts as a self-certified audit form, which ensures that the taxpayer's books align with their filed GST returns.

Process of Filing GSTR-9 Annual Return Online

Let us discuss the process of filing the GSTR-9 annual return online:

Step 1: Logging in and Accessing GSTR-9

Visit the official website of GST and log in using your user ID and password. Go to the ‘Returns Dashboard’ and select ‘Annual Return’ from the available options.

Step 2: Selecting the Financial Year

When the ‘File Annual Returns’ page opens, select the relevant financial year. A message will appear that will explain the steps for online or offline filing of GSTR-9. Click on ‘Prepare Online’ to proceed.

Step 3: Choosing Nil Return (If Applicable)

If you had no business activity during the year, you might qualify to file a Nil GSTR-9 return easily. If all the following conditions are met, then click ‘Yes’ for Nil return.

• No sales (outward supply).
• No purchases (receipt of goods/services).
• No tax credits claimed.
• No refunds received.
• No outstanding liabilities or penalties.
• No demand orders issued.

If you meet all the conditions, you can calculate your details and easily file the Nil GSTR-9 return.  If you do have transactions, click on the ‘No’ option and proceed with filing detailed data.

Step 4: Entering Details in GSTR-9

On the GSTR-9 Annual Return page, you will see different sections where various business details need to be entered. You need to download the following to assist in filling out the form:

• GSTR-9 System Computed Summary
• GSTR-1 Summary (outward supply details)
• GSTR-3B Summary (tax payments and ITC details)

Data will be auto-filled based on previous returns but you can modify certain fields if needed. If there is a 20% variance in any auto-populated data, the system will highlight those fields and ask for confirmation. Click ‘Yes’ to accept the values.

Step 5: Saving and Previewing GSTR-9

Once all the necessary details are entered, you need to save the data to avoid losing any progress.Before submitting the application, you should preview the form in PDF or Excel format by clicking on ‘Preview GSTR-9 (PDF)’.

Step 6: Computing Liabilities and Late Fees

Click on the ‘Compute Liabilities’, and then the system will calculate any pending tax payments or late fees. If a late fee applies, it will be displayed on the screen, and you must pay it before submission. Payments can be made using the following methods:

• Electronic Cash Ledger (if there is enough balance).
• Net banking, over-the-counter (OTC) payments, or NEFT/RTGS if additional funds are required.

Step 7: Final Submission of GSTR-9

Ensure all details are accurate before filing the GSTR-9. Select the declaration checkbox to confirm that the information provided is correct. Choose the authorized signatory for submission. You can file GSTR-9 using two methods:

• File with DSC (Digital Signature Certificate): Upload the DSC, sign, and submit.
• File with EVC (Electronic Verification Code): An OTP will be sent to your registered email and mobile number. Enter the OTP to complete the filing.

After successfully submitting the return filing, the status will change to ‘Filed’, which confirms the completion of your GSTR-9 return.

Documents Needed to File GSTR-9

Here is a list of documents required for filing GSTR-9:

• GSTR-1 is a monthly/quarterly return with sales (outward supply) details.
• GSTR-3B is a summary return containing tax liability and ITC claimed.
• GSTR-2A is an auto-generated statement showing purchases from registered suppliers.
• Annual Financial Statements: Profit & Loss statement and Balance Sheet.
• GSTR-9C (Reconciliation Statement) is required for businesses with turnover above Rs. 5 crores to match financial data with GST returns.

Prerequisites for Filing GSTR-9:

• The taxpayer must be registered as a regular GST taxpayer for at least one day in the financial year.
• All GSTR-1 and GSTR-3B returns must be filed for the financial year before submitting GSTR-9.
• Auto-filled sections in GSTR-9 include the following:

• Table 6A: Tax details from GSTR-3B.
• Table 8A:  ITC details from GSTR-2A.
• Table 9: Tax paid, auto-populated from GSTR-3B.

Who Should File the GSTR-9 Annual Return?

Every GST-registered taxpayer in India is required to file the GSTR-9 annual return. It summarizes all the transactions, tax payments, and input tax credits claimed during the financial year. There are some categories of taxpayers who are exempted from filing GSTR-9. The following details include the applicability of GSTR-9:

• Composition Scheme Taxpayers: They must file GSTR-9A instead.
• Casual Taxable Persons: Those who operate temporarily under GST.
• Input Service Distributors: The businesses that distribute input tax credit.
• Non-Resident Taxable Persons: Foreign entities registered for GST in India.
• TDS & TCS Deductors: Those paying tax under Sections 51 & 52 of the CGST Act.

GSTR-9 Turnover Limit

From FY 2017 – 18 to 2023 -24, businesses with turnover up to Rs. 2 crores can choose not to file GSTR-9. This means small businesses falling below this threshold are not required to file GSTR-9, but they can choose to do so voluntarily. For businesses exceeding this turnover limit, filing GSTR-9 is mandatory. Each year, the GST department issues a notification confirming the latest turnover threshold for compulsory filing. Taxpayers need to stay updated on these rules to ensure compliance and avoid penalties for non-filing.

GSTR-9 Due Date

The due date for filing GSTR-9 is 31st December of the following financial year. For example, the GSTR-9 deadline for FY 2024-25 is 31st December 2025. This means businesses must file their annual GST return by the end of the year after the financial period closes. The government may sometimes extend this deadline, which depends on the circumstances. Missing the due date can lead to penalties, so it’s advisable to file well in advance. Keeping track of deadlines and preparing accurate records can help businesses avoid last-minute stress and ensure smooth compliance.

Penalty for Late Filing of GSTR-9

Filing GSTR-9 after the due date attracts a late fee and interest on any unpaid tax. The penalty includes two components that are CGST and SGST, which are charged separately. If the tax liabilities remain unpaid, interest is charged at 18% per annum on the outstanding amount, which is calculated from the due date until payment.

Failing to file GSTR-9 for an extended period may lead to notices from the GST department, blocking of ITC claims, or further legal action. To avoid penalties, businesses should ensure timely filing and maintain proper tax records.

Late fee and interest structure

Common Mistakes to Avoid While Filing GSTR-9

Filing GSTR-9 can be confusing, and making mistakes can lead to penalties or unnecessary tax payments. Here are some common errors that you must avoid while filing GSTR-9:

Mismatch between GSTR-9, GSTR-1, and GSTR-3B

The details in GSTR-9 should match the sales data in GSTR-1 and the tax paid in GSTR-3B. If the numbers don’t match, the tax department may issue notices asking for clarification.

Incorrect Tax Calculation

Sometimes, the businesses miscalculate their tax liability, which leads to extra tax payments or penalties. Always double-check tax rates and calculations before submitting the return.

Ignoring Input Tax Credit (ITC) Reconciliation

• ITC is the tax you can claim back on purchases.
• Make sure the ITC claimed in GSTR-3B matches the ITC in GSTR-2A/2B.
• If there is a mismatch, you may lose ITC benefits and end up paying more tax.

Rushing to File Without Review

• Filing in a hurry increases the chance of errors.
• Always review all details carefully before submitting.

Filing GSTR-9 on time and accurately is important for businesses to stay compliant with GST laws. Delays or errors can lead to penalties, unnecessary tax payments, and even legal complications. By ensuring proper record keeping and reconciling data from GSTR-1, GSTR-3B, and GSTR-2A/2B, businesses can avoid mismatches and incorrect tax calculations.

It is always best to file it before the deadline to prevent any last-minute stress and late fees. If the process feels complicated, you should seek professional help from a tax expert or a CA who can ensure error-free filing. A well-prepared GSTR-9 keeps businesses on the right track financially and legally. This article provided a detailed explanation of the GSTR-9 annual return filing and its process.