Annual Return Filing – Section 44 of GST

Under the GST regime in India, compliance plays a crucial role in ensuring transparency and accountability. One of the key compliance requirements for registered taxpayers is the filing of an annual return under Section 44 of the CGST Act. This article provides a detailed analysis of Section 44, its applicability, due dates, exemptions, and recent amendments.

What is Section 44 of the CGST Act?

Section 44 of the CGST Act mandates every registered taxpayer, except certain exempted categories, to furnish an annual return for each financial year. This return must reconcile the value of supplies declared in periodic returns with the audited financial statements.

Who is Required to File an Annual Return?

According to Section 44, every registered person must file an annual return except for:

• Input Service Distributors (ISD)

• Taxpayers under Section 51 (Tax Deducted at Source – TDS)

• Taxpayers under Section 52 (Tax Collected at Source – TCS)

• Casual taxable persons

• Non-resident taxable persons

• Government departments and local authorities whose accounts are audited by the Comptroller and Auditor-General of India (CAG) or any legally appointed auditor

Due Date for Filing Annual Return

The due date for filing the annual return is  December 31st following the end of the financial year. 

Amendment in 2023

The Finance Act of 2023 introduced a significant change, setting a three-year limitation period from the original due date for furnishing the annual return. However, the government retains the power to extend the filing timeline for specific taxpayers.

Forms for Annual Return Filing

• GSTR-9: Standard annual return for regular taxpayers

• GSTR-9A: Earlier applicable to composition taxpayers (now removed)

• GSTR-9C: Reconciliation statement for taxpayers exceeding a prescribed turnover limit (Rs. 5Cr.)

The reconciliation statement (self-certified) ensures that the data submitted in periodic GST returns aligns with the audited financial statements.

Exemptions from Filing Annual Returns

As per recent amendments, certain categories of taxpayers have been exempted from filing annual returns, particularly:

• Government departments audited by the CAG

• Small businesses with an annual turnover below a prescribed limit (subject to notification by the government)

Penalty for Late Filing

Failure to file the annual return within the prescribed timeline can lead to penalties under Section 47 of the CGST Act. The late fee is ₹200 per day (₹100 CGST + ₹100 SGST), subject to a maximum of 0.25% of the taxpayer’s turnover in the respective state or union territory.

Conclusion

Section 44 of the CGST Act is a vital compliance requirement aimed at ensuring accuracy and transparency in GST filings. Recent amendments, including the introduction of a three-year filing limit, have streamlined the process while maintaining flexibility for taxpayers. Businesses should remain updated on government notifications to ensure timely and accurate annual return submissions, thereby avoiding penalties and compliance issues.

Stay updated with the latest GST compliance requirements and ensure hassle-free tax filing!