GSTR-9, E-Way Bills & Compliance

It was late March. The financial year was ending. Sharma Sir gathered Meera and Negi Bhaiya for a planning meeting. "We have three things to do before we close out the year for Bisht Ji. One — prepare for the annual return, GSTR-9. Two — Bisht Ji has a large shipment of spices going to Delhi next week, so we need an e-Way bill. Three — I want to do a full compliance check to make sure we haven't missed anything all year." He looked at Meera. "By the end of today, you'll know how to handle all three."

Part 1: GSTR-9 — The Annual Return

What is GSTR-9?

GSTR-9 is the annual return under GST. While GSTR-1 and GSTR-3B are filed every month (or quarter), GSTR-9 is filed once a year. It is a summary of all your monthly returns for the entire financial year.

Think of it like an annual exam paper that covers everything from all the monthly tests. The government uses GSTR-9 to see the full picture of your business for the year.

Who Files GSTR-9?

Bisht Ji is a regular taxpayer, so he files GSTR-9.

Note: Taxpayers with annual turnover up to Rs 2 crore have the option to file GSTR-9 (it is not mandatory for them as per recent relaxations). However, it is good practice to file it. Sharma Sir always recommends filing, even if optional.

Due Date

The due date for GSTR-9 is 31st December of the year following the financial year.

So Bisht Ji has until 31st December 2026 to file his annual return for FY 2025-26. But Sharma Sir starts preparation early — in April or May itself — because the data is fresh and any errors are easier to catch.

What Does GSTR-9 Contain?

GSTR-9 has six parts:

The Big Reconciliation

The most important part of GSTR-9 preparation is reconciliation. You need to make sure that:

1. GSTR-1 totals match GSTR-9 sales figures — Every invoice you reported in monthly GSTR-1 should add up to the annual total in GSTR-9.

2. GSTR-3B totals match GSTR-9 tax figures — The total tax you paid across 12 GSTR-3B returns should match the annual figure.

3. Books of accounts match GSTR-9 — Your accounting records (in ERPLite) should match what you reported in GST returns.

If there is a mismatch, you need to find out why and fix it.

Common Mismatches

Bisht Ji's Annual Reconciliation (FY 2025-26)

Meera started with a reconciliation worksheet:

Sales Reconciliation:

All months matched. Meera felt relieved. The discipline of filing GSTR-1 correctly each month paid off.

ITC Reconciliation:

There was a small difference. Meera investigated:

• Rs 3,500 difference between GSTR-3B and GSTR-2B: This was because one supplier filed their GSTR-1 late, and the ITC appeared in GSTR-2B of the next month. Meera adjusted this.
• Rs 1,200 difference between books and GSTR-3B: This was blocked credit (office meals) that was in the books but correctly excluded from GSTR-3B. No action needed — it was right.

After adjustments, everything reconciled.

Part 2: E-Way Bills — Moving Goods Across Distance

What is an E-Way Bill?

An E-Way Bill (Electronic Way Bill) is a document required when goods worth more than Rs 50,000 are being transported from one place to another.

Think of it as a digital "travel permit" for goods. Before GST, trucks were stopped at state borders for physical inspections. E-Way bills replaced that — now the details are online, and officers can verify with a simple scan.

When is an E-Way Bill Required?

Who Generates the E-Way Bill?

What Information is Needed?

To generate an e-Way bill, you need:

E-Way Bill Validity

The validity of an e-Way bill depends on the distance:

For Bisht Ji's shipment from Haldwani to Delhi (about 310 km): Validity = 2 days (200 km for day 1 + remaining 110 km within the next 200 km bracket for day 2).

If the goods cannot reach in time (truck breakdown, road block, bad weather in the mountains), the e-Way bill can be extended before it expires.

E-Way Bill Number (EBN)

When an e-Way bill is generated, you get a unique 12-digit E-Way Bill Number (EBN). This number can be verified by any GST officer on the road.

Hands-On: Generating an E-Way Bill for Bisht Ji's Delhi Shipment

Bisht Ji is sending a large shipment of spices to Delhi Masala House. The invoice value is Rs 2,85,000 — well above the Rs 50,000 threshold. An e-Way bill is mandatory.

Method 1: Generate on the E-Way Bill Portal

Step 1: Go to ewaybillgst.gov.in and log in with Bisht Ji's credentials.

Step 2: Click on Generate E-Way Bill.

Step 3: Fill in the form:

Step 4: Click Submit.

The system generates the e-Way bill and provides:

• E-Way Bill Number (EBN): 3210 5678 9012
• Generated on: 25-Mar-2026, 10:30 AM
• Valid until: 27-Mar-2026, 11:59 PM (2 days)

Step 5: Print the e-Way bill or share the EBN with the transporter. The driver must carry a copy (printed or on mobile).

Method 2: Generate from ERPLite

ERPLite has an integrated e-Way bill generation feature.

Step 1: Open the sales invoice BT/0165 in ERPLite.

Step 2: Click the E-Way Bill button (or go to Actions > Generate E-Way Bill).

Step 3: ERPLite pre-fills most fields from the invoice:

• Supplier details (from company profile)
• Buyer details (from party master)
• Item details, HSN codes, tax amounts (from the invoice)

You only need to add:

• Transport mode: Road
• Vehicle number: UK07AB1234
• Transporter details: Kumaon Road Carriers
• Distance: 310 km

Step 4: Click Generate. ERPLite connects to the e-Way bill portal via API and generates the bill.

Step 5: The EBN is saved against the invoice in ERPLite. You can print it anytime.

"This is so much easier," Meera said. "Everything comes from the invoice automatically."

Negi Bhaiya nodded. "That's the whole point of ERP. Enter the data once, use it everywhere."

E-Way Bill Rules to Remember

Part 3: Common Compliance Mistakes and Penalties

Sharma Sir pulled out a list he had compiled over years of practice. "These are the mistakes I see most often. Learn from other people's errors, Meera."

Mistake 1: Late Filing of Returns

For Bisht Ji (Rs 86 lakh turnover): Maximum GSTR-9 late fee = 0.50% x Rs 86,00,000 = Rs 43,000. That is a significant amount.

Mistake 2: Wrong HSN Code

Using the wrong HSN code can lead to:

• Paying wrong tax rate (too much or too little)
• Mismatch in returns
• Notice from the GST department
• If you paid less tax due to wrong HSN: you owe the difference plus 18% interest

Example: If Bisht Ji classified a "masala paste" (which falls under a different HSN at 18% GST) as "spice powder" (5% GST), he would be paying 13% less tax than required. On Rs 10 lakh of such sales, that is Rs 1,30,000 in unpaid tax — plus interest and possible penalty.

Mistake 3: Mismatch Between GSTR-1 and GSTR-3B

Your GSTR-1 (invoice-wise sales details) and GSTR-3B (summary tax payment) should show the same totals. If they don't:

Mistake 4: Not Reconciling ITC

If you claim ITC that is not supported by your GSTR-2B (because the supplier didn't file their return), the department will ask you to reverse the excess ITC and pay interest at 18%.

Prevention: Always reconcile ITC with GSTR-2B before filing GSTR-3B. We covered this process in Chapters 19 and 21.

Mistake 5: Missing E-Way Bills

Every time goods worth more than Rs 50,000 move, an e-Way bill must be generated. If Bisht Ji's truck is caught without a valid e-Way bill:

• Penalty: Rs 10,000 or the tax amount, whichever is higher
• Detention: Goods and vehicle can be detained
• Release: Only after paying the penalty and tax (if applicable)

In the hills of Uttarakhand, transport can be unpredictable. Bisht Ji once had a truck delayed for 3 days due to a landslide near Kathgodam. The e-Way bill expired. He had to extend it before expiry — which he almost forgot. Negi Bhaiya saved the day by extending it online just in time.

Mistake 6: Not Filing Nil Returns

Even if there were no transactions in a month, you must file nil returns. Not filing = late fee accumulates every day.

Mistake 7: Charging Wrong Tax Type (CGST+SGST vs IGST)

If the place of supply is wrong on an invoice, the wrong tax type gets charged. For example:

• Charging CGST+SGST on an inter-state sale (should be IGST)
• Charging IGST on an intra-state sale (should be CGST+SGST)

This creates problems for both the seller and the buyer. The buyer may not get ITC, and the seller may face notices.

Summary of Penalties

A Compliance Checklist for the Year

Sharma Sir gave Meera a checklist that every accountant should follow:

Monthly Checklist

Quarterly Checklist (For QRMP taxpayers)

Annual Checklist

GSTR-9C — The Reconciliation Statement

For taxpayers with turnover above Rs 5 crore, there is an additional requirement: GSTR-9C, which is a self-certified reconciliation statement between:

• The annual return (GSTR-9)
• The audited financial statements

Bisht Ji's turnover is under Rs 5 crore, so GSTR-9C is not required for him. But Sharma Sir told Meera to keep it in mind for larger clients.

Hands-On: Meera Helps Bisht Ji with Year-End Activities

Activity 1: Generate the Annual Sales Report

In ERPLite, go to Reports > GST Reports > Annual Summary.

Select financial year: 2025-26.

ERPLite generates a consolidated view:

Activity 2: Reconcile with Filed Returns

Meera compared the ERPLite annual total with the sum of all 12 GSTR-1 returns filed on the portal:

A perfect match! Consistent month-by-month filing with verified data pays off at year-end.

Activity 3: Prepare GSTR-9 Data

Meera used ERPLite's GSTR-9 Report to generate the annual return data. ERPLite fills in most of the GSTR-9 tables automatically:

• Part II (Sales): From sales invoice register
• Part III (Purchases/ITC): From purchase invoice register
• Part IV (Tax paid): From payment records
• Part VI (HSN summary): From item master and invoice data

She then downloaded the data and uploaded it to the GST portal for Bisht Ji to review and file.

Activity 4: Generate the Delhi E-Way Bill

As described in the hands-on section above, Meera generated the e-Way bill for the large Delhi shipment directly from ERPLite.

Sharma Sir reviewed everything and said, "This is excellent work, Meera. Bisht Ji's compliance is clean — no mismatches, no missing returns, no penalties. That's exactly what a good accountant delivers."

Quick Recap

• GSTR-9 is the annual return. Filed once a year by 31st December. Summarizes all monthly returns.
• The key to GSTR-9 is reconciliation — match GSTR-1, GSTR-3B, GSTR-2B, and books of accounts.
• Late fee for GSTR-9: Rs 200/day, max 0.50% of turnover.
• E-Way Bill is required when transporting goods worth > Rs 50,000.
• Generate on ewaybillgst.gov.in or directly from ERPLite.
• Validity depends on distance: 1 day per 200 km.
• Missing e-Way bill penalty: Rs 10,000 or tax amount (whichever is higher), plus detention of goods and vehicle.
• Common compliance mistakes: late filing, wrong HSN, GSTR-1/3B mismatch, unreconciled ITC, missing e-Way bills, not filing nil returns.
• Use the monthly, quarterly, and annual checklists to stay compliant throughout the year.

Practice Exercise

Exercise 1: GSTR-9 Reconciliation

Here is a simplified annual summary for a hypothetical business:

Questions:

1. What is the total GSTR-1 sales for the quarter?
2. What is the total tax paid in GSTR-3B for the quarter?
3. Is there an ITC mismatch? In which month? What is the difference?
4. What should the accountant do about the mismatch?

Exercise 2: E-Way Bill

Bisht Ji is making the following shipments. For each, say whether an e-Way bill is required:

1. Rs 80,000 worth of turmeric from Haldwani to Dehradun (200 km)
2. Rs 30,000 worth of chilli from Haldwani to Nainital (65 km)
3. Rs 1,50,000 worth of mixed spices from Haldwani to Lucknow (350 km)
4. Rs 60,000 worth of cumin from Bisht Ji's godown to his shop (same city, 3 km)

For each shipment that requires an e-Way bill, calculate the validity period.

Exercise 3: Penalty Calculation

Calculate the total penalty/cost for each situation:

1. Bisht Ji files GSTR-9 for FY 2025-26 on 15th February 2027 (46 days late). His turnover is Rs 86 lakh.
2. A truck carrying Rs 1,20,000 worth of spices is caught without an e-Way bill.
3. Bisht Ji forgot to file GSTR-3B for August 2025 (had tax liability). He files it on 15th October 2025. Cash tax payable was Rs 8,000.

Exercise 4: Compliance Checklist

It is the 8th of the month. List all the GST tasks that should have been completed by now and all the tasks coming up in the next 15 days. Use the monthly checklist from this chapter.

Exercise 5: Full-Year Mock Exercise

You are the accountant for a small trader (similar to Bisht Ji). The financial year just ended. Create a list of every GST return that was filed during the year and every return still to be filed. Include:

• Return type
• Period
• Due date
• Status (Filed / Pending)

(Assume monthly GSTR-1 and GSTR-3B filing.)

Fun Fact

When GST was launched on July 1, 2017, the very first e-Way bill system crashed within days because of the massive number of bills being generated. It was relaunched in February 2018 with better infrastructure. Today, India generates over 3 crore e-Way bills every month — that is about 10 lakh bills every day. The e-Way bill system has reduced the average time trucks spend at checkpoints from hours to minutes. For a state like Uttarakhand, where narrow mountain roads mean any delay at a checkpoint creates a long backup, this has been a huge improvement. The next time you see a spice truck winding its way down from Haldwani toward the plains, know that somewhere in a computer, an e-Way bill is tracking its journey — and somewhere, an accountant like Meera made sure it was generated on time.