GSTR-9C: Everything a Taxpayer Should Know!

GSTR-9C is an annual GST reconciliation statement that certain taxpayers are required to file. It applies to registered taxpayers whose annual aggregate turnover exceeds ₹5 crore during a financial year. 

Here’s a detailed breakdown of GSTR-9C:

What is GSTR-9C? 

GSTR-9C refers to the reconciliation that takes place between: 

• The annual GST returns (GSTR-9) filed for a financial year, and
• The taxpayer’s audited financial statements.

GSTR-9 C includes gross and taxable turnover based on books reconciled with the particular numbers as per consolidated GST returns for a specific financial year.  Differences arising from the reconciliation process will be recorded in this statement, as well as the respective reasons. 

GSTR-9C is prepared and self-certified by the taxpayer himself. Generally, the GST portal is an ideal website for filing GSTR-9C. But if you want an effortless GST return filing experience, you must check out Munim GST Return Filing Software! 

What is the Turnover Limit of GSTR-9C? 

All registered taxpayers who have an annual aggregate turnover of Rs 5 Crore or more are required to file GSTR-9C  for the financial year. 

What is the GSTR-9C due date? 

 GSTR-9C  is an annual return filing that must be filed on or before 31 December of the financial year. The GSTR-9C last date is the same as submitting GSTR-9 annual returns, but the government can extend this due date if necessary.

GSTR-9C Applicability  

According to the 30th July, 2021 CBIC notification; every taxpayer registered under GST with an annual aggregate turnover of Rs 5Cr or more meets the requirements of filing the 9C returns.  

On March 16, 2020, CBIC’s CGST notification said all foreign companies catering to the airline business and compliant with the provisions of the Companies Act 2013 are exempt from filing GSTR-9C returns.

NRIs and people offering OIDAR services to unregistered persons in India are also exempt from filing GSTR-9 and 9C as per the CBIC notification issued on 28 June 2019. 

Read More: Applicability of GSTR-9A Return Filing

Why is it Important to File GSTR-9C? 

The taxpayers need to create this GST reconciliation statement to sort out differences between sales, taxes, or input tax credit details which are reported in all GST returns. The audited accounts should be reported to observe the reasons for differences. 

This GST Reconciliation statement is a pillar for GST authorities that verify the accuracy of GST returns filed post self-certification. 

GSTR-9C Format

The GSTR-9C  format consists of two major parts. 

1. GST Reconciliation Statement
2. Verification/ Self-certification 

GST Reconciliation Statement

The values in the audited financial records are on PAN level. Therefore, the taxes paid, turnover, and ITC earned should be extracted from the audit reports of the organization. 

This section is divided into five parts! Let’s scroll down in detail: 

1. Basic Information

This part includes basic details and is further subdivided into four parts. 

• Financial Year
• GSTIN of Taxpayers 
• The legal name of registered persons and the trade name
• Taxpayers Applicability for Audit 

2. Turnover Reconciliation 

This section caters to reporting gross and taxable turnover stated in the yearly returns or GSTR-9 with the audited fiscal reports. These records are declared at the PAN level. 

3. Reconciliation of Paid Taxes 

This section involves reporting tax liabilities according to the GST rates based on accounts and taxes paid as recorded in GSTR-9. It also caters to the difference in taxes and ensures that the taxpayers state the additional liability spotted after reconciling taxes paid. 

4. Input Tax Credit Reconciliation 

This section caters to the net Input Tax Credit (ITC) reconciliation based on the accounting records, ITC amount stated in the yearly return. 

5. Non-reconciliation Additional Liabilities 

It involves the auditor’s suggestions on additional liabilities to be discharged by the taxpayers due to non-reconciliation of turnover. 

Verification/ Self-certification 

A CA files this certificate, which is essentially to complete post-auditing GSTR-9. Let’s check out the components: 

• The GSTR-9C certification is drawn from the people who carried out the audit. 
• Based on the audits specified by the entrusted auditor.

How to File GSTR-9C Using the GSTN Portal? 

Let’s check out the 4-step process for GSTR-9C filing 

1. Visit the official GSTN portal
2. Login to the GSTN portal with your credentials. 
3. Click on the Annual Return tab on the Dashboard. 
4. Click on “Initiate e-filing” 

Once you click the above tab, you will be redirected to the GSTR-9 form. Then, you can proceed to file the GST Reconciliation statement. 

What if GSTR-9C last Date is missed? 

Taxpayers who need to file GSTR-9 but miss the filing dates are applicable for penalty. As per the filing guidelines, GSTR-9C applicability entices Rs.200 per delayed day as a penalty. Here, Rs. 200 comprises of Rs. 100 SGST and Rs. 100 as CGST. 

However, aggregate fine is at any time is not more than 0.50% of the aggregate turnover for which the penalty is imposed. 

What is the Difference between GSTR-9 and GSTR-9C? 

Category	GSTR-9 Return Filing	GSTR-9C Return Filing
Nature	It is a annual return filing which is a consolidated filing for all GST returns.	It is a GST Reconciliation Statement that is analyzed for GST returns.
Exemptions	It is not applicable to the below: Casual Taxpayers NRI Taxpayers Holders of Unique Identification Number Input Service Distributor Composition Scheme Dealers People Subjected to TCS and TDS Online information and database retrieval services providers.	It is not applicable to registered taxpayers that fall below GSTR-9 but with an annual turnover of less than 2Cr.
Who can File It?	GST Registered Taxpayers	GST Registered Taxpayers applicable for GST reconciliation Statement and report auditing.
Authorized Signatories	Taxpayers can attest their digital signatures	Auditors and taxpayers need to attach their signatures
Due Date	31st December of the following financial year	GSTR-9C due date is 31st December of the next financial year either with GSTR-9 or after filing it.

Wrap Up! 

Hopefully, the GSTR-9C guide was helpful to you! If you have any other queries, there’s a comment section for you! Shoot your queries here, and we will answer them. 

Munim GST Return Filing Software is up with another feature for you! Now, file GSTR-9C effortlessly with Munim! Yes, you read it right! Munim upgrades itself with GSTR-9 and GSTR-9C filing features- Making compliance easy! Stay tuned and sign up right away! 

FAQs

1. What Documents are required for Filing GSTR-9C? 

• Balance Sheet Copy
• Profit and Loss Account Statement
• Cash Flow Statement
• Audited Account Copy
• Annual Report Copy

2. Is it Mandatory to File GSTR-9C? 

It is mandatory to file GSTR-9C  for registered taxpayers whose annual turnover exceeds Rs. 5Cr. 

3. How to check the status of filing GSTR-9C? 

Here are the steps to check GSTR-9C filing status.

• Login to the GSTN portal with your credentials 
• Navigate to Services > Returns > Track Return Status
• Now, enter the details to check the filing status 

4. Can GSTR-9C be revised? 

No, GSTR-9C can’t be revised.