GST Annual Return

The GST Annual return i.e. GSTR 9 is a return to be filed by every taxpayer once a year which is a summary of all monthly/quarterly returns (GSTR 1, GSTR 2A, GSTR-3B) filed for that year. It consists of details regarding the outward and inward supplies made/received during the relevant year, ITC availed and utilized, and Refund claimed under different tax heads i.e. CGST, SGST & IGST.

Reconciliation Statement and GST Audit

GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes, and file returns. Thus, to ensure that the taxpayer has correctly self-assessed his tax liability a robust audit mechanism is a must. Various measures are taken by the government for the proper implementation of GST and audit is one among them.

Audit under GST involves the examination of records, returns, and other documents maintained by a registered person. It ensures the correctness of turnover declared, taxes paid, refund claimed, input tax credit availed, and compliance with provisions of law. Till Year 2019-20, GST Audit was to be conducted by CA/CMA. From the year 2020-21, Government has amended the act and there is no need for an audit to be done by CA/CMA. The taxpayer can self-certify the GSTR-9C i.e. Reconciliation Statement.

Details required to be furnished for annual return and Reconciliation Statement

GST annual return and audit for any given financial year requires the following details to be reported in prescribed forms by taxpayers.  These details should be reported after the due reconciliation of data reported in GST returns during the year and books of accounts. So that any errors reported earlier can be duly rectified:

  1. Annual turnover including taxable turnover, exempted turnover, zero-rated turnover during the year, and output tax liability thereon.
  2. Input tax credit available in books of accounts (whether availed or not in GST returns).
  3. Details of ITC reversed during the year due to ineligibility of ITC or any other reasons.
  4. Details of adjustments of turnover or ITC made in the current financial year pertaining to the previous applicable financial year. 
  5. Details of refund applications filed, sanctioned, and rejected during the financial year