Who needs to file GST annual return by December 31, 2024

GST Annual Return : The Goods and Services Tax (GST) is a comprehensive tax regime that simplifies indirect taxation in India. One crucial requirement under GST is the annual return filing, where registered taxpayers must provide a detailed report of their annual sales, purchases, and input tax credit. With the annual return for the financial year 2023-24 due on December 31, 2024, it’s essential to understand who is required to file, the forms involved, and the consequences of missing the deadline.

1. Who needs to File the GST Annual Return?

The GST annual return is mandatory for certain types of registered taxpayers. Here’s a breakdown of who is obligated to file:

Regular Taxpayers Under GST
1. Form GSTR-9 is required for regular taxpayers with an annual aggregate turnover above ₹2 crore. This return includes details of outward and inward supplies, tax paid, and any refund claimed.
2. Filing is mandatory even if there is minimal business activity or no activity in the year.
Composition Scheme Dealers
1. Taxpayers registered under the Composition Scheme need to file GSTR-9A. The composition scheme is for small taxpayers with turnover below ₹1.5 crore, allowing them to pay tax at a reduced rate.
2. GSTR-9A provides a summary of outward supplies, taxes paid, and inward supplies, similar to GSTR-9 but tailored to the simplified tax structure.
E-commerce Operators
1. E-commerce operators responsible for collecting TCS (Tax Collected at Source) must file GSTR-9B. This return provides details of supplies made through the e-commerce platform and TCS collected.
2. If an e-commerce operator’s annual turnover is below the specified limit, they may be exempt; however, for larger operators, it is a compliance necessity.

2. Exemptions from GST Annual Return Filing

While most taxpayers need to file, some are exempt from filing the annual return. Exempt categories include:

Input Service Distributors (ISD)
Casual Taxable Persons and Non-Resident Taxable Persons
Taxpayers whose annual turnover is below ₹2 crore for FY 2023-24 (filing is optional).

Such taxpayers should verify their exemption status to avoid unnecessary penalties or compliance actions.

3. Important Details for Annual Return Filers

Audit Requirement for Turnover Above ₹5 Crore: Taxpayers with turnover above ₹5 crore are subject to a GST audit and must file a reconciliation statement in GSTR-9C along with the annual return. This is crucial to ensure that records match between financial statements and GST returns.
Voluntary Filing for Below-Threshold Taxpayers: Although optional, taxpayers with turnovers below ₹2 crore can still file their annual return to maintain transparent records and to address any discrepancies early.
Amendments and Corrections: The annual return allows businesses to correct any discrepancies or omissions from the monthly or quarterly returns (GSTR-1, GSTR-3B) during the year.

4. Penalties for Missing the GST Annual Return Deadline

The deadline of December 31, 2024, is a critical date. Missing it can result in:

Late Fees: ₹200 per day (₹100 CGST and ₹100 SGST) up to a maximum of 0.25% of the taxpayer’s turnover.
Additional Scrutiny: Delayed filing could lead to additional scrutiny or audits by the GST authorities.
Restriction of Input Tax Credit (ITC): Failure to file on time can restrict a taxpayer’s access to input tax credits for the year, impacting cash flow.

Filing the GST annual return is a key responsibility for registered taxpayers, ensuring transparency and compliance with Indian tax laws. Understanding the requirements and preparing early will help taxpayers avoid late fees, penalties, and potential audits. Whether you are a regular taxpayer, a composition dealer, or an e-commerce operator, make sure to review your filings carefully and submit by December 31, 2024, to stay compliant and avoid unnecessary financial impacts.