EXEMPTED SALES AND PURCHASE -GSTR 9 FILING

The requirement to file the GSTR-9 annual return depends primarily on your aggregate annual turnover for the financial year, regardless of whether your sales and purchases were "exempted" (i.e., tax-exempt supplies).

Key Rules for GSTR-9 Filing

• Mandatory Filing: If your aggregate annual turnover exceeds ₹2 crore, you are legally required to file GSTR-9.

• Optional Filing: For taxpayers with an aggregate annual turnover up to ₹2 crore, filing GSTR-9 is optional. You may choose to file it voluntarily to maintain clean, reconciled records, but it is not mandatory.

• Exemptions: Certain categories of taxpayers are exempt from filing GSTR-9 regardless of their turnover. These include:

  • Casual Taxable Persons.

  • Non-Resident Taxable Persons.

  • Input Service Distributors (ISD).

  • Persons required to deduct/collect tax at source (TDS/TCS).

  • Taxpayers under the Composition Scheme (they file GSTR-4/GSTR-9A).

Important Considerations

• Exempted Supplies: Having "exempted" sales and purchases does not exempt you from the filing requirement itself. The obligation to file is tied to your total aggregate turnover, which includes all outward supplies (taxable, exempt, nil-rated, or non-GST).

• Nil Returns: If you are a normal registered taxpayer (not in one of the exempted categories) and your business had zero activity (no sales, no purchases, no ITC, no tax liability) during the year, you may be eligible to file a "Nil" GSTR-9.

• Multi-Registration: GSTR-9 is filed at the GSTIN level. If you have multiple registrations under the same PAN (even in the same state), each GSTIN must be evaluated individually for the turnover threshold.

Summary: You are required to file GSTR-9 only if your aggregate annual turnover exceeds ₹2 crore. If your turnover is below ₹2 crore, filing is optional. Always check if you fall under any of the specifically exempted categories (like Composition dealers or Casual Taxable Persons) that do not file GSTR-9 at all.

Understanding GSTR-9 Filing Requirements

This video provides a brief overview of filing requirements for taxpayers, including scenarios involving low or nil turnover.