GST Annual Filing is the process where registered businesses submit a consolidated report of their yearly sales, purchases, tax paid, and Input Tax Credit (ITC) claimed to the GST department. It ensures that all monthly and quarterly GST filings are correctly reported and reconciled.

Filing annual GST returns is mandatory for every GST-registered business, subject to turnover thresholds.

Why is GST Annual Filing Important?

GST annual filing-primarily through GSTR-9-is crucial for companies and registered taxpayers in India for several reasons:

• Statutory Compliance: Filing GSTR-9 is a legal requirement for most regular taxpayers whose annual turnover exceeds ₹2 crore. Non-compliance can lead to penalties, late fees, and scrutiny from tax authorities.

• Comprehensive Financial Summary: GSTR-9 consolidates all monthly and quarterly GST returns (like GSTR-1 and GSTR-3B) into a single annual report, providing a complete summary of sales, purchases, tax paid, and input tax credit claimed during the financial year.

• Data Reconciliation and Accuracy: The annual return acts as a reconciliation tool, helping businesses cross-verify data reported throughout the year, identify discrepancies, and correct errors. This ensures that tax liabilities and input tax credits are accurately reported and claimed.

• Facilitates Audit and Transparency: GSTR-9 creates an audit trail for all GST-related transactions, simplifying internal and external audits and enhancing transparency for tax authorities and stakeholders.

• Impact on Financial Statements: Accurate annual filing ensures that a company’s financial statements reflect the true tax position, which is vital for management, investors, and compliance with statutory requirements.

• Maximizing Input Tax Credit (ITC): Proper reconciliation through GSTR-9 helps businesses maximize eligible input tax credits and avoid loss of credits due to mismatches or errors.

Who Needs to File GST Annual Return?

• Mandatory Filing: Every GST-registered taxpayer classified as a regular taxpayer (including SEZ units and SEZ developers) must file the GST annual return (Form GSTR-9) if their annual aggregate turnover exceeds ₹2 crore in the financial year

• Optional Filing: For taxpayers with turnover up to ₹2 crore, filing GSTR-9 is optional, as per the latest government notifications

• Who Else Must File: Businesses that transitioned from the composition scheme to regular taxpayer status during the year must file GSTR-9

Types of GST Annual Returns

There are several types of GST annual returns in India, each designed for specific categories of taxpayers. 

The main types are:

• GSTR-9

1. Who files: Regular taxpayers registered under GST (excluding composition taxpayers, casual taxable persons, non-resident taxable persons, ISDs, and TDS/TCS deductors)

2. Purpose: Consolidates all monthly/quarterly GST returns for the financial year, summarizing outward and inward supplies, tax paid, and input tax credit claimed

3. Due date: 31st December of the following financial year.

• GSTR-9A (Now Replaced by GSTR-4)

1. Who filed: Composition scheme taxpayers (for periods prior to FY 2019-20; now replaced by GSTR-4 as the annual return for composition taxpayers).

2. Purpose: Provided a simplified annual summary for composition dealers, focusing on aggregate turnover and tax paid.

• GSTR-9C

1. Who files: Taxpayers whose annual turnover exceeds ₹2 crore.

2. Purpose: Reconciliation statement between GSTR-9 and the audited financial statements, certified by a Chartered Accountant or Cost Accountant. It ensures accuracy in tax payments and input tax credit claimed.

• GSTR-4 (Annual Return for Composition Taxpayers)

1. Who files: Taxpayers under the composition scheme (from FY 2019-20 onwards).

2. Purpose: Annual summary of turnover, tax liability, and payments made by composition taxpayers.

Documents Required for GST Annual Filing (GSTR-9 & GSTR-9C)

Filing your GST annual return requires compiling several key documents to ensure accuracy, compliance, and smooth reconciliation.

Below are the main documents typically needed for GST annual filing:

• Monthly/Quarterly GST Returns

1. GSTR-1: Details of outward supplies (sales)

2. GSTR-3B: Summary return of outward and inward supplies, tax paid

3. GSTR-2A/2B: Auto-populated details of inward supplies (purchases) for reconciliation

• Annual Financial Statements

1. Profit & Loss Statement

2. Balance Sheet

• Reconciliation Statement (GSTR-9C)

Applicable if turnover exceeds ₹5 crore: GSTR-9C is a reconciliation statement matching figures in your annual GST return (GSTR-9) with your audited financial statements. It must be prepared and certified by a Chartered Accountant or Cost Accountant.

• HSN Summary

HSN-wise summary of outward and inward supplies as required in GSTR-9.

1. Additional Supporting Documents

1. Tax payment challans (if any additional tax was paid)

2. Details of amendments, credit/debit notes, and adjustments made during the year

3. Details of advances received and adjusted

4. Details of input tax credit (ITC) reversals and ineligible ITC

• Prerequisites

1. Ensure all monthly/quarterly GST returns (GSTR-1, GSTR-3B) are filed for the year.

2. The taxpayer must be registered as a normal taxpayer under GST for at least one day during the financial year

Due Dates for GST Annual Filing

For the financial year 2024–25, the key due dates for GST annual returns are as follows:

• GSTR-9 (Annual Return for Regular Taxpayers): The due date to file GSTR-9 for FY 2024–25 is 31st December 2025.

• GSTR-9C (Reconciliation Statement, if applicable): Taxpayers with annual turnover exceeding ₹5 crore must also file GSTR-9C by 31st December 2025.

• GSTR-4 (Annual Return for Composition Taxpayers): The due date for GSTR-4 for FY 2024–25 is 30th April 2025

Summary Table:

Penalties for Late GST Annual Filing (GSTR-9 & GSTR-9C) – 2025

Filing your GST annual return after the due date attracts late fees and potential penalties. Here’s a concise breakdown of the current penalty structure:

Late Fee Structure for GSTR-9 (Annual Return)

• Per Day Late Fee:

• Up to ₹5 crore turnover: ₹50 per day (₹25 CGST + ₹25 SGST).

• Above ₹5 crore up to ₹20 crore: ₹100 per day (₹50 CGST + ₹50 SGST).

• Above ₹20 crore: ₹200 per day (₹100 CGST + ₹100 SGST).

• Maximum Cap:

• Up to ₹20 crore turnover: 0.04% of turnover in the state/UT.

• Above ₹20 crore: 0.25% of turnover in the state/UT.

Late Fee for GSTR-9C (Reconciliation Statement)

• No Separate Late Fee: The late fee for GSTR-9C is not charged separately. The late fee is calculated for the entire annual return (GSTR-9 and GSTR-9C, if applicable) as a single unit.

Filing is considered complete only when both GSTR-9 and GSTR-9C (if required) are submitted

Summary Table:

Why Choose Us for GST Annual Filing?

We help businesses by managing their GST compliance efficiently, ensuring timely and accurate filing of all GST returns to avoid penalties. Our expert team provides personalized support, guiding you through complex GST regulations and optimizing your tax liabilities. We handle reconciliation, input tax credit claims, and audit assistance, using advanced technology for seamless integration with your accounting systems. By partnering with us, you gain peace of mind, save valuable time and resources, and maintain a strong compliance record that supports your business growth.