GSTR 9A Annual Return for taxpayers registered under composition levy

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GSTR 9A Annual Return for taxpayers registered under composition levy

Composition scheme

It is a scheme under the GST regime for small taxpayers. Small taxpayers under GST means those who have an annual aggregate turnover up to Rs. 1 crore. This scheme helps in getting rid of tedious formalities of filing monthly returns and maintaining detailed records. It would also make it easy by paying tax at a uniform rate of turnover. i.e 1 % for manufacturers and traders and 5 % for restaurants.

(Note: There was a recommendation to increase the threshold for the composition scheme to Rs. 1.5 crore in 23rd GST Council Meeting held on 10th November 2017, but this has not been approved and notified yet. )

 

Do you need to file an Annual Return if you are registered under a composition scheme?

Yes, As per the provisions of section 44(1) of the CGST Act 2017, every registered person (except ISD, NRI, CTP, e-commerce operators) has to file the GST Annual Return. So, even the person registered as the composition dealer has to file the annual return.

Section 44(1) of CGST Act, 2017 for reference

Which is the GST Annual Return form applicable to composition dealers?

Form GSTR-9A is an Annual return form for the persons registered under the composition scheme at any time during the relevant financial year. It will include the consolidated information furnished by the composition taxpayers in the quarterly returns GSTR 4.

Is the format of GSTR 9A notified by the Govt.?

Yes, CBIC has notified the formats of GST Annual Return Form GSTR-9A for the taxpayers registered under the composition scheme to vide Notification No. 39/2018 – Central Tax dated 04th September 2018.

Download the GSTR 9A in PDF format

What is the due date for filing an annual return for a composition dealer?

Click here for the due date of GSTR 9 and GSTR 9C for FY 2018-19

31st August 2019 is the extended due date for filing the annual return under GST for the financial year 2017-18. Click here to read download the official press release for the due date extension.

What will be the penalty for delayed filing of annual returns?

As per section 44, if there is a delay in filing in Annual return then late fees of Rs. 100 per day under CGST plus Rs. 100 per day under SGST/UTGST subject to the maximum of 0.5% ( 0.25%+0.25% ) of Turnover in-state/Union Territory shall be levied.

As per section 125,  General Penalty up to Rs.25,000/- can be levied.

What if the registered person has canceled/surrendered the GST registration before 31st March 2018?

As per the legal provision of Section 44(1) of the CGST Act, every registered person shall be required to file the annual return. Hence, even if the status of the taxpayer is not registered as of 31st March 2018 but he was registered between July-17 to March-18, he will be required to file the annual return providing details for the period during which he was registered.

What if the registered person has applied for the cancellation of registration before 31st March 2018?

As per the legal provision of Section 44(1) of the CGST Act, every registered person shall be required to file the annual return. Hence, even if the status of the taxpayer is registered but applied for cancellation as on 31st March 2018, he was registered between July-17 to March-18, he will be required to file the annual return providing details for the period during which he was registered.

What if the person was registered under the composition scheme but switched to the regular taxpayer before 31st March 2018?

If a person is registered under the composition scheme for a few months and then switches to a regular/normal taxpayer for the remaining months during a financial year.

In such cases, two annual returns are required to be filed by the taxpayer. One as composition dealer and the other as the normal/regular taxpayer.

  • GSTR 9A needs to be filed for the period the person was registered as a composition taxpayer and
  • GSTR 9 needs to be filed for the remaining period of the financial year where the person was registered as a normal taxpayer.

And if the aggregate annual turnover exceeds 2 cr for the financial year then even the reconciliation statement in GSTR 9C also needs to be filed.

Other points related to composition dealer

  •  Conversion from a regular/normal taxpayer to a composition dealer was allowed only after the end of 31st March 2018.
  • A person registered under the composition levy cannot make supplies through an e-commerce operator.


 

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About CA Ankita Khetan 164 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

2 Comments

  1. Composite dealer enter inward supplies(purchases ) mandatory for gstr9a annual return.

    • Details of inward supply will have to be entered as it won’t auto-populate (but it is not a mandatory requirement).So most of the taxpayers are skipping that while filing annual return GSTR 9A.

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