GSTR-9C is a robust GST system tool that enables correct financial reporting and compliance. Taxpayers can use GSTR-9C to reconcile their financial data with GST data, find anomalies, and correct inaccuracies.
Taxpayers demonstrate their allegiance to transparency, correctness, and compliance by filing GSTR-9C. It provides a comprehensive perspective of their financial activities, aids in tax optimization, and reduces the possibility of penalties and legal ramifications.
This article will overview the GSTR-9C rules, format, who should use it, and everything related to its functions.
What Is the GSTR-9C?
The GSTR-9C is a reconciliation between the taxpayer's annual audited financial statements and the annual returns. Taxpayers must file it annually, and the GSTR-9C limit of turnover is typically set at INR 2 crores and is confirmed by CA (Chartered Accountant).
The taxpayer's gross and taxable sales revenue, as recorded in their accounting books, will be reconciled with the data required for the form.
Who Prepares and Submits GSTR-9C?
Every taxpayer obligated to have their yearly reports audited must file GSTR 9C. Under GST rules, taxpayers must have their annual reports audited if their yearly aggregate turnover exceeds Rs. 2 crores in a fiscal year.
A chartered accountant must first prepare and certify the form before the taxpayer can submit it on the GST system or through a facilitation facility.
When and How to File GSTR-9C?
As a rule, the GSTR-9C must be filed on or before the 31st of December following the audited fiscal year. (For example, for the fiscal year 2021-2022, the GSTR-9C must be filed on or before December 31, 2023).
To file a GSTR-9C, complete these steps:
- Obtain the necessary documents: Gather the audited financial accounts for the fiscal year in question and the annual return submitted in GSTR-9
- Reconciliation statements: Prepare by comparing the audited financial statements to the annual report and noting any discrepancies or changes.
- Obtain certification: Have a Chartered or Cost Accountant certify the reconciliation statement.
- To access the GST portal, follow these steps: Log in using your credentials to access the GST portal and file GSTR-9C. Then, on the "Services" page, navigate to "Returns" and pick "Annual Return (GSTR-9C)" from the drop-down menu. Enter the fiscal year, GSTIN, and taxpayer's legal name.
- Fill out the reconciliation form: Fill up the reconciliation statement's details, including any other pertinent financial information.
- Pay the fees: Following submission, you may be required to pay the GSTR-9C filing fees. Fees can be paid online via the GST portal.
Due Date for GSTR-9C
Both GSTR-9 and GSTR-9C must be filed on the same date to meet their respective deadlines. Therefore, the GSTR-9C documentation must be submitted before December 31 following the audited fiscal year. If the Government determines that further time is required, the GSTR-9C due date can be extended.
Detailed Format of GSTR-9C
The GSTR-9C Format is divided into several sections and tables. The format is specified below:
Part A: Reconciliation Statement
Section 1: Basic Details
- Financial Year: Mention the fiscal year for which the reconciliation statement is being filed.
- GSTIN: Provide the GSTIN of the taxpayer.
- Legal Name: Mention the taxpayer's name as registered under GST.
Section 2: Reconciliation of Turnover Declared
Table 2a: Reconciliation of Gross Turnover
- Provide the gross turnover figures from the audited financial statements.
- Make the changes required to reconcile the turnover with the turnover declared in GSTR-9.
Table 2b: Reconciliation of Taxable Turnover
- Provide information on taxable turnover based on audited financial statements.
- Make the appropriate changes to reconcile the taxable turnover with the turnover declared in the GSTR-9.
Section 3: Reconciliation of Tax Paid
Table 3: Reconciliation of Tax Paid
- Provide a reconciliation of the taxes paid according to the audited financial accounts and the taxes paid according to GSTR-9.
Section 4: Reconciliation of Input Tax Credit (ITC)
Table 4: Reconciliation of Input Tax Credit
- Reconcile the input tax credit claimed in the audited financial accounts with the input tax credit claimed in GSTR-9.
- Include information on ITC received, ITC reversed, and any adjustments.
Section 5: Auditor's Recommendations on Additional Liability Due to Non-Reconciliation
Table 5: Auditor's Recommendations on Additional Liability
- If any additional tax due is discovered throughout the reconciliation process, the auditor can specify suggestions or comments in this table.
Part B: Certification
Section 6: Certification by the Auditor
- The auditor confirms the reconciliation statement by providing their information and membership number and digitally signing it.
- The auditor certifies that the reconciliation statement was produced following the audited financial statements and GSTR-9.
Section 7: Certification by the Taxpayer
- The taxpayer verifies that the information in the reconciliation statement is correct and complete.
- The taxpayer's authorized signatory digitally signs the statement.
How to Download GSTR-9C?
Log in to the official GST portal, navigate to the "Services" page, pick "Returns," select the applicable fiscal year, and access the GSTR-9C form. For future reference, click the download button/link, save the PDF file, and open it using a PDF reader.
GSTR 9 Filing - Implications of Missing the GST Audit Due Date
Missing the GST audit due date for GSTR-9 filing can have several consequences for taxpayers.
Here are some of the most significant implications:
- Penalty and GSTR-9C Late Fees: Failure to meet the GST audit due date may result in fines and late fees. The amount of penalty varies depending on the length of the delay and tax jurisdiction.
- Legal Consequences: Noncompliance with the GSTR-9C filing deadline might result in legal consequences such as notices, audits, and further penalties from tax authorities.
- Loss of Input Tax Credit (ITC): Delayed GSTR-9 submission may result in the loss of qualifying ITC if reconciliation is not reported accurately and within the stipulated date, affecting the taxpayer's tax liability.
What's the Importance of GSTR-9C?
Here are some important reasons for GSTR-9C's significance:
- Compliance with Statutory Requirements: Filing GSTR-9C is an obligatory requirement. Failure to file on time may result in penalties and legal ramifications.
- Reconciliation and Accuracy: GSTR-9C ensures the accuracy of financial and GST data by detecting and reducing inaccuracies.
- Audit Assurance: GSTR-9C, certified by professionals, offers tax authorities and stakeholders assurance about the accuracy and reconciliation of GST information.
- Risk Mitigation and Compliance Review: GSTR-9C assists in identifying non-compliance concerns, lowering the possibility of penalties and negative audit findings.
- Tax Planning and Optimization: GSTR-9C aids in tax planning by finding chances to optimize tax positions and properly utilize Input Tax Credits.
- Transparency and Stakeholder Confidence: GSTR-9C filing shows transparency and boosts regulatory and stakeholder confidence in financial and GST reporting.
Difference Between GSTR-9 and GSTR-9C
GSTR-9 is an annual return filed by all ordinary taxpayers that provide consolidated data on outward supplies, ITC claimed, and tax paid. It is a self-declared return form that does not require certification.
GSTR-9C, on the other hand, is a reconciliation statement and certification filed by taxpayers with an annual turnover greater than a certain level. It entails a thorough reconciliation of audited financial accounts and annual GST reports.
Simplify GSTR-9C Filing With TranZact
GSTR-9C is a vital component of GST compliance, ensuring accurate reconciliation and certification of financial statements. By filing the GSTR-9C form, taxpayers demonstrate their commitment to transparency, accuracy, and compliance.
With TranZact, taxpayers can easily navigate the complexities of GST documentation and invoicing. TranZact provides accurate information that facilitates GST-compliant transactions and saves time for manufacturing business owners.
FAQs on GSTR-9C
1. What is the purpose of filing GSTR-9C?
The purpose of filing GSTR-9C is to reconcile financial statements with GST returns for accuracy and compliance.
2. What is the applicability of GSTR-9C?
The GSTR-9C applicability is for taxpayers whose annual turnover exceeds the specified threshold.
3. What is the role of a Chartered Accountant or Cost Accountant in GSTR-9C?
A Chartered or Cost Accountant's role in GSTR-9C is to certify the reconciliation statement, ensuring accuracy and compliance.
4. How does GSTR-9C contribute to risk mitigation?
GSTR-9C contributes to risk mitigation by identifying and rectifying discrepancies. By rectifying errors and addressing gaps, taxpayers can mitigate the risk of penalties, legal consequences, or adverse audit findings.
5. Is GSTR-9C mandatory for all taxpayers?
No, GSTR-9C is not mandatory for all taxpayers. However, eligible taxpayers must file GSTR-9C to ensure compliance with GST laws, promote transparency, and maintain credibility.
6. Can GSTR-9C be revised after filing?
As per the current guidelines, GSTR-9C cannot be revised after filing. Therefore, it is crucial to ensure accuracy and thoroughness before submitting the form.
7. What happens if GSTR-9C is not filed?
Failure to file GSTR-9C on time may result in fines under GST rules. It is critical to follow the filing requirements to avoid penalties and other legal consequences.
8. Can I file GSTR-9C if I have not undergone a statutory audit?
No, GSTR-9C can only be filed by taxpayers who are required by law to undergo a statutory audit.
