GST Annual Return (Turnover < 2 crore)

Posted by Himani Bihani
On 30 Dec 2019

This article is about the GST taxpayer, who has turnover, less than 2 crore during FY 2017-18 and is under the Regular mechanism

Is GSTR-9 optional or mandatory?   – Yes, it is Optional

  • GSTR-9 is mandatory for every registered taxpayer who have turnover more than Rs. 2 crore for F.Y. 2017-18
  • GSTR – 9 is optional for the taxpayer having turnover less than 2 crore
  • This means those having turnover upto Rs. 2 crore are not required to file any annual return.

Is GSTR 9, should be filed by taxpayer having turnover, below 2 crore ?

The answer of this question depends upon the GST Returns filed during the FY 2017-18. And it can be broadly categorized in two parts:-

Part -1 (All data matching in GST returns)

In case all the figures in GSTR 3B, GSTR 1 and 2A are matching, then GSTR 9 is not required to be filed.

Part – 2 (Either data not matching in GST returns or there is some adjustments done after FY 2017-18 or both)

Just in case if the figures of GSTR 3B, GSTR 1 and GSTR 2A, do not match or there have been done some adjustment of FY 2017-18 in the next year GST Returns, then GSTR 9 must be filed to substantiate the adjustments.

Example – 1 :- All data matching

ACTUAL DATA

2017-18
Particular O/P IGST O/P CGST O/P SGST TOTAL
GSTR-1 10,500 9,000 9,000 28,500
GSTR-3B 10,500 9,000 9,000 28,000
Books 10,500 9,000 9,000 28,500

Here all the data of GSTR-3B, GSTR-1 and books is matched and turnover of the business is less than Rs. 2 crore. So, in this case there is no need to file GSTR 9.

Example – 2 :- Data Mismatch in GST Returns

ACTUAL DATA

2017-18
Particular O/P IGST O/P CGST O/P SGST TOTAL
Gstr-1 10,500 8,000 8,000 26,500
GSTR-3B 10,000 9,000 9,000 28,000
Books 10,500 9,000 9,000 28,500

  • According to given data, there is a difference between GSTR-3B, GSTR-1 and books of accounts
  • The above mismatch is adjusted in GST returns of May 2018, i.e. FY 2018-19
  • The only option to convey the adjustments of GST Returns is GSTR 9. So the above adjustment will be conveyed to the Govt, through filing of GSTR 9

Example -3 :- In case GSTR-9 is not filled and there is data mismatch in GST Returns

ACTUAL DATA

2017-18
  Particular O/P IGST O/P CGST O/P SGST TOTAL
Gstr-1 10,500 8,000 8,000 26,500
GSTR-3B 10,000 9,000 9,000 28,000
Tally 10,500 9,000 9,000 28,500

  • GSTR-9 is an auto generated return
  • If GSTR -9 is not filled than government will accept the auto generated GSTR-9
  • And there’s a difference between data of GSTR-3B and GSTR -1
  • Tax amount shown in auto populated GSTR -9 is Rs.10,500 but person paid tax according to GSTR – 3B i.e., Rs.10,000
  • So there’s a difference of Rs. 500(10,500-10,000)
  • In this case government may send a notice to person for not paying appropriate tax to govt.

Therefore it is better to consult with GST Expert, in order to determine the GSTR 9 filing position and stay relax from any tax litigation.

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