Complete Guide: Know Who is Obligated to File GST Annual Return by December 31, 2024

Filing the GST annual return is an essential compliance requirement for taxpayers under the Goods and Services Tax (GST) regime. Introduced to simplify the tax structure in India, GST ensures businesses report their sales, purchases, and claim their Input Tax Credit (ITC) through periodic filings. This comprehensive guide will help you understand who is obligated to file GST annual returns by December 31, 2024, and the consequences of missing the deadline.

Complete Guide: Know Who is Obligated to File GST Annual Return by December 31, 2024 Who is Obligated to File GST Annual Return by December 31, 2024?

1. Taxpayers Under GST

• Form GSTR-9: Mandatory for taxpayers with an aggregate turnover of more than Rs 2 crore.

  • This form includes details of purchases, sales, and ITC claimed.

  • Even if there is no business activity, filing GSTR-9 is mandatory. Learn more about GST Filing Services
    

2. Taxpayers Under Composition Scheme

• Designed for small businesses with turnover up to Rs 1.5 crore (Rs 75 lakh for services).

• Form GSTR-9A is required for taxpayers under this scheme.
  

3. Taxpayers Who Are E-Commerce Operators

• E-commerce operators managing digital platforms and responsible for collecting TCS (Tax Collected at Source) must file Form GSTR-9B.

  
  

Who is Exempt From Filing GST Annual Return?

Certain taxpayers are exempt from filing annual returns, including:

1. Taxpayers with Annual Turnover Below Rs 2 Crore

   • Filing is optional but recommended for maintaining records.
     

2. Input Service Distributors

   • Entities that distribute ITC within a business group.
     

3. Casual Taxable Persons and Non-Resident Taxable Persons

   • Casual taxable persons: Taxpayers who occasionally conduct business in a state where they are not registered.

   • Non-resident taxable persons: Businesses without a permanent establishment in India.
     

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Important Details to Keep in Mind While Filing GST Annual Returns

1. Reconciliation Statement (GSTR-9C)

   • Mandatory for taxpayers with a turnover exceeding Rs 5 crore.

   • Ensures financial statements and GST returns match accurately.
     

2. Optional Filing for Turnover Below Rs 2 Crore

   • Although not mandatory, filing the GST annual return helps maintain comprehensive business records.
     

3. Amendments Allowed

   • The annual return allows amendments to monthly or quarterly returns filed during the financial year.

What Happens if the GST Annual Return is Not Filed on Time?

The deadline to file the GST annual return for FY 2023-24 is December 31, 2024. Missing this deadline can lead to:

1. Late Fees

   • Rs 200 per day (Rs 100 CGST and Rs 100 SGST) until the return is filed.
     

2. Increased Scrutiny

   • GST authorities may impose additional scrutiny or audits.
     

3. ITC Restrictions

   • Taxpayers may lose the ability to claim ITC for the year, affecting cash flow.
     

To avoid penalties and additional compliance burdens, ensure timely filing. Contact us for GST Return Filing Services.

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