GSTR 9B Annual Return: Eligibility, Due Date, Penalty and More

Under the GST ecosystem, every registered taxpayer must file their returns and pay taxes. While some returns are required to be filed monthly or quarterly, returns like GSTR 9B must be filed annually. 

An annual return usually consists of information regarding purchases and sales made during the year. It also details relevant state and central tax heads like CGST, SGST and IGST. The form of GSTR 9B annual return applies specifically to e-commerce operators. Followingly, this comprehensive overview speaks of the eligibility, due date, penalty and filing process of GSTR 9B.  

What Is GSTR 9B Annual Return?   

GSTR-9B is a yearly return that e-commerce operators must submit under the Goods and Services Tax (GST) Act. This return summarises all the information these operators reported in their monthly or quarterly returns. 

This annual return combines data about the sales made on their e-commerce platform and the Taxes Collected at Source (TCS). It also ensures that all transactions on e-commerce platforms are reported correctly for the financial year. 

By filing GSTR-9B, e-commerce operators meet their annual GST requirements and keep their tax collection and payment transparent.

Who Has to File GSTR 9B Annual Return? 

If you are a GST-registered person who runs an e-commerce platform where suppliers sell goods and services and you collect TCS on these transactions, you need to file GSTR-9B every year. Under the GST norms, GSTR-9B is mandatory for e-commerce operators if:  

• They are registered under GST and collect TCS.  
• They have facilitated sales through their platforms.  
• They have filed monthly or quarterly GSTR-8 returns during the year. 

On the other hand, certain individuals are not required to file GSTR 9B. Take a look:  

• Unregistered person
• Input service distributors 
• Non-resident taxable person
• Casual taxable individuals 
• Composition taxpayers (Currently under the composition scheme)
• TDS paying individuals 

Scenarios Where GSTR-9B is mandatory 

E-commerce operators must file GSTR 9B if, they have:  

• GST registration  
• Collected TCS
• Promoted sales using their e-commerce platforms  
• Filed GSTR-8 for the relevant FY.

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GSTR-9B Applicability 

The form GSTR-9 B is for e-commerce operators who: 

• Has an aggregate turnover of more than ₹20 lakh a year 
• Collect TCS under Section 52 of the CGST Act.  

Due Date for Filing GSTR 9B Annual Return

The filing deadline for GSTR-9B is December 31st of the following year. For example, if you are filing for the financial year 2024-2025, you need to submit GSTR-9B by December 31st, 2025. E-commerce operators must meet this deadline to avoid penalties and stay legally compliant.

Note that the Central Government may extend the deadline for filing GSTR 9B in certain situations, such as technical issues with the GST portal or natural disasters.

In case of an extension, taxpayers will receive GST updates on the portal. It is important to keep an eye on such GST updates and file returns within the stipulated date.

Penalty for the Late Filing of GSTR 9B Annual Return

If you fail to file GSTR-9B by the deadline, you will be charged with a fine. Here is a detail of late filing penalties:  

• ₹200 for each day you are late (₹100 for CGST and ₹100 for SGST/UTGST)  
• The highest penalty is limited to 0.5% of your turnover in the relevant state or union territory (0.25% for CGST and 0.25% for SGST). This is one of the penalty norms. It ensures that penalties remain reasonable. This is especially beneficial for businesses with high turnover. 

Apart from the penalty, there are other consequences for late filing your Form GSTR-9B return. Take a look: 

• GST Compliance Rating: If you delay or fail to file returns, it can lower your GST compliance rating. Tax authorities use this rating to understand your adherence to the GST regulations. A low compliance rating can lead to a negative impact.
• Problem with Future Transactions: Late filing returns can cause trouble when you try to file other GST returns. The authorities can also cancel your registration or modify the tax schemes.
• Legal Notices: In case of late filing GSTR-9B for a prolonged period, GST authorities can also send you notice. This could lead to audits of financial statements, assessments or extra penalties.

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Step-by-Step GSTR 9B Filing Process 

Here is a step-by-step guide to the GSTR 9B filing process: 

• Step 1: Log in to the GST portal using your credentials.
• Step 2: Go to 'Services', then 'Returns'. Under the 'Returns' tab, you can find ‘Annual Return’, click on it. 
• Step 3: The Annual Return page has a list of annual returns, select 'GSTR 9B' from the list.
• Step 4: On the GSTR 9B form, you can find some auto-filled tables using the monthly or quarterly GSTR 8 filings. You have to include the following details:
  • Supplies Made: Enter the details of all outward supplies, whether they are taxable, exempt or zero-rated, made using your e-commerce platform.
  • Tax Collected: Report the total TCS collected from suppliers. 
  • Additional Details: Information related to tax demands, GST refunds or discrepancies needs to be furnished and revised.  
• Step 5: Post-filing all the sections, click on ‘Preview’ to check all your entries. 
• Step 6: If you have any tax due, you must complete the payment of tax before filing your GSTR 9B return. This step also determines if you have any late fees payable.
• Step 7: Next, click on ‘Submit’ to successfully file your GSTR 9B annual return. 
• Step 8: Go to ‘Download Filed Return’ to download the filed GSTR 9B form for future audit or tax inquiries. 

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Common Mistakes to Avoid While Filing GSTR 9B 

While filing GSTR 9B, mistakes are prone to occur if you do not pay attention. Here are some key mistakes along with tips to help you out:

• Data Mismatch with GSTR 8:  

The most frequent error is having different data in GSTR-9B compared to your GSTR-8 returns. Since GSTR-9B collects information from GSTR-8, any differences can raise concerns with the tax authorities.  

Before you file GSTR-9B, check all numbers against your GSTR-8 returns. Make sure that the supplies and TCS amounts match in both returns.

• Incorrect Information of Supplies or TCS:  

Incorrectly reporting Taxes Collected at Source (TCS) or supplies from e-commerce can lead to errors in tax liability.  

Thus, be careful when entering total supplies and TCS collected. Ensure you use the correct tax rates and classify supplies accurately as exempt, taxable or zero-rated.

• Overlooking Sections: 

Many taxpayers ignore sections about tax payable or report refunds and demands. This can delay the processing of refunds pending or cause issues during audits.  

Ensure to fill out all sections, including those about taxes paid, tax demands, or refunds issued. Keep records of any refunds received or tax payments made and check these details before you submit the return. 

Conclusion

GSTR-9B is an important annual return for e-commerce businesses under the GST system. It gathers tax information from GSTR-8 forms and ensures clear records of transactions on e-commerce platforms. Filing the GSTR-9B annual return correctly helps you stay compliant and avoid hefty penalties.

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