GST Annual Return Limit (2023 Guide)

The GST annual return is a summary of your GST activity for the year. It includes your total GST payable and total GST refundable for the year, as well as any adjustments to your GST account. If you are looking for the GST annual return limit for GSTR-9 form filing, you have come to the right place. In this article, we will discuss the annual return limit, who should file a return, who is exempt, and the penalty for not filing.

What is GST annual reconciliation?

Reconciliation of GSTR 9 Annual GST Return turnover with audited annual financial statements

a. Rectification of

i. Gross Turnover

ii. Taxable turnover

b. reasons for unresolved differences

Reconciliation of tax paid and tax payable

a. Reconciliation of tax liability and tax payable,

b. Justifications for unreconciled tax payments,

c. Additional tax liability as a result of a difference in turnover or tax amount

Reconciling Net Input Tax Credit

a. Reconciliation of Input Tax Credit as per GSTR 9 with financial statements,

b. Reasons of unresolved differences,

c. Tax on unreconciled ITC difference

Auditor`s advice on the additional liability resulting from non-reconciliation

 Taxable Value and tax liability are to be shown rate by rate. The statement`s preparer must include his name, membership number, and address at the end.

What is the turnover limit for GSTR 9C?

The turnover limit for Form GSTR 9C is Rs 2 crores or more in any financial year.

What is quarterly GST return limit?

The QRMP Scheme is available all year, in any quarter. Registered persons may opt-in for any quarter beginning on the first day of the second month of the preceding quarter and ending on the last day of the first month of the quarter.

What is annual return 9 and 9C?

All registered taxpayers must file the GST Annual Return. 

GSTR 9 combines GSTR 1, GSTR 3B, GSTR 2A, and purchase information for the relevant financial year. It is an annual return that contains consolidated details of inward and outward supplies paid under State GST, Central GST, and Integrated GST during the financial year.

 GSTR 9C is a certified reconciliation statement. It is the reconciliation of data from GSTR 9 annual returns and your audited financial statements.

GSTR- 9 and GSTR-9C must be filed on or before the 31st of December succeeding the end of the FY.

 Any taxpayer whose turnover in the financial year exceeds Rs. 2 crores must file

 GSTR 9 and GSTR- 9C. Filing of GSTR 9C is optional for businesses with turnover less than Rs. 5 Crores.

Who should file GST annual return?

Form GSTR-9 is an annual return that must be filed once each fiscal year, by the 

• Registered taxpayers who were regular taxpayers
• Special Economic Zone (SEZ) units and SEZ developers

This declaration requires the taxpayer to provide information regarding purchases, sales, tax credits entered, refunds claimed, or claims incurred, etc.

How to file GST annual return?

Below are the steps to file GSTR 9 .

• Login and go to Form GSTR-9 – Annual Return for Normal Taxpayer
• Download GSTR-1, Form GSTR-3B and GSTR-9 Forms
• Enter details in fields
• Preview GSTR-9 Draft Form Summary
• Calculate liabilities and pay any late fees
• Examine the Draft Form GSTR-9
• File Form GSTR-9 with DSC/ EVC

Who is exempted from GSTR 9C?

The following individuals are exempted from filing GSTR-9C Annual Return

• Casual Taxable Person
• Input service distributors
• Non-resident taxable persons
• Persons collecting tax at source under Section 52 of the GST Act
• The person deducts tax at source (TDS) under section 51 of the GST Act.
• Online Information and Database Access Retrieval Service
• Composition Dealers 
• Taxpayers with an annual turnover not exceeding Rs 2 Crores in a given financial year are exempt from submitting the GSTR-9C reconciliation statement.

What is the limit for GST audits?

GST registered taxpayers with annual aggregate turnover up to Rs. 2 crores in FY 21-22 from filing Form GSTR-9.

Why GST return is filed?

File GST returns to pay the tax liability (money you owe the government). Every business owner and merchant registered in the GST system must file his GST return according to the nature of the business or transaction.

What is the penalty for not filing GSTR 9C?

The submission of GSTR-9C is by 31st December of the year subsequent to the relevant audit financial year. The government can extend the due date if necessary.

However, if a taxpayer fails to file the GSTR 9C within the deadline a late fee of ₹200 per day (₹100 each under CGST and SGST) is levied as a penalty up to a maximum of 0.5% of turnover.

How do I avoid the GST penalty?

Always check for current clear notices and file outstanding returns as quickly as possible, one such notice is the current notice where the maximum penalty per return is Rs.500.

To avoid a late fee, for companies that are registered but have not filed a return since the date of registration, it is always recommended to request cancellation of the registration if no sales or purchases have been made since the effective date of registration. Such companies must file GSTR10 (Final Return) and can apply for a new registration if they wish to set up a company.

If a company fails to file returns for six consecutive months starting from a date later than the registration’s effective date  (a company that filed a report after registration but did not file a report at a later date because there were no transactions). 

In such situations, if your effective date of cancellation is another date or the present day, you can go to the Assessing Officer’s office and request to cancel your GST as of the registration date to avoid late fees.

If you made any GST sales or purchases, you should first file the returns up to the month in which those transactions occurred, and then request the Assessing Officer to cancel your GSTIN starting from that month to avoid paying the GST late fee penalty.

What is the turnover limit for GSTR 4?

GSTR-4 is a GST Return Form that Composition Dealers must file quarterly. Filing of GSTR-4 is once a year. Taxpayers whose business turnover is less than ₹1.5 crores must file GSTR-4. 

Frequently Asked Questions(FAQs)-

Can we skip GST return?

Filing of GST return is mandatory. If taxpayers fail to file their returns, their tax liability is assessable.

Is annual return mandatory for all?

 Taxpayers with aggregate annual turnover above Rs 2 crore must file an annual return.

Can we claim ITC in Gstr 9?

A taxpayer cannot claim ITC directly in GSTR-9.

What is GSTR 1 quarterly return turnover limit?

GSTR 1 quarterly return turnover limit is up to Rs. 1.5 crore

Wrapping Up

One of the most significant returns is the annual return because it contains details on all transactions that took place throughout the fiscal year. The taxpayer must be cautious and also responsible while filing the form. It is important to file your GST returns in a timely manner to avoid penalties and keep the situation favourable to both your customers and the government.

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