How to File GSTR-9C? A Detailed Guide
Taxpayers who made more than Rs. 5 crore in total revenue during the preceding fiscal year are required to self-certify and file GSTR-9C. To report any discrepancies, the yearly GST returns in GSTR-9 must be properly verified against the audited financial statements for a certain fiscal year. Businesses must make sure that their reporting is accurate and comprehensive in order to prevent scrutiny in the future. In this article, we will explain the process of filing GSTR-9C in detail.
Table of Contents:
Part-A: Reconciliation Statement
What is GSTR-9C?
GSTR-9C is a reconciliation statement used to compare the values of the taxpayer's audited financial statements with the yearly GSTR-9 of a fiscal year. Any registered taxpayer who makes more than Rs. 5 crore in a fiscal year must submit this reconciliation statement. This guarantees the appropriate taxpayer's accurate self-assessment of taxes for a fiscal year. This statement, a copy of the audited financial accounts, and the GSTR-9 return for the fiscal year must be prepared by the taxpayer and submitted online or through a facilitation centre.
Significance of GSTR-9C
Generally, GSTR 9C must be filed by taxpayers whose total revenue exceeds Rs. 2 crores. The GST auditor must digitally sign this reconciliation certificate, which must highlight any liabilities or inconsistencies found in any GST returns submitted during a specific fiscal year. It should be noted that a certified public accountant must report and certify the liabilities resulting from the GST audit and reconciliation process in GSTR 9C. The only reliable metric or indication available to the authorities for assessing the accuracy of GST returns submitted by taxpayers during a particular fiscal year is GSTR 9C.
Pre-Requisites to File GSTR-9C
A few prerequisites must be met in order to submit the GSTR-9C form:
The taxpayer needs to be registered for GST and have a valid GSTIN.
The taxpayer's login information (password and username) needs to be current.
For the fiscal year, the taxpayer was required to file Form GSTR-9 (Annual Return).
The total revenue of the taxpayer's company must be more than Rs. 5 crore.
Sections in GSTR-9C
GSTR-9C has the following sections:
Part-A: Reconciliation Statement
The following five sections make up the Reconciliation Statement:
Part I: Fundamental information includes the legal name, trade name, GSTIN, and FY. The taxpayer must also state whether any other laws require him to be audited.
Part II: Comparing the turnover reported in the annual return with that shown in the audited financial statements. This entails submitting the audited financial statements along with the gross and taxable turnover reported in the annual return. It should be noted that the audited financial statements are often at the PAN level. To report in GSTR-9C, the audited financial statements may need to be broken down at the GSTIN level. The taxpayer can submit any required adjustments in Table 5O. The details of the turnover adjustments that need to be made in Tables 5B to 5N are optional. The list of optional tables is available here.
For information on how to reconcile your gross turnover, see Section 5. This entails disclosing the following taxable and gross turnover:
A. The turnover as reported in the State's audited financial reports, including exports.
B. The revenue that was not yet invoiced at the start of the fiscal year.
C. At the end of the fiscal year, any unadjusted advances.
D. The Schedule I-listed presumed supply.
E. All credit notes that appeared in the annual return but were issued after the fiscal year ended.
F. Trade discounts that are prohibited by GST yet are included in the audited annual financial statement.
G. The turnover during the April–June period of 2017.
H. The amount of unbilled revenue determined at the conclusion of the financial year.
I. The initial unadjusted advances made throughout the financial year.
J. Credit notes that are prohibited by GST but have been recorded in the audited annual financial statements.
K. Any modifications resulting from SEZ units supplying DTA units with commodities.
L. The turnover during the time frame covered by the composition plan.
M. Any turnover modifications made in accordance with Section 15.
N. Any changes in turnover brought on by changes in foreign exchange rates.
O. Any changes in turnover brought about by factors not previously mentioned.
P. The yearly turnover following all of the aforementioned modifications. This field is automatically filled in.
Q. The turnover reported on GSTR-9, the annual return.
R. The unreconciled turnover, which is determined by subtracting the above lines P and Q. (Q-P)
You can provide a list of all potential causes for any discrepancies in the annual gross turnover that have not been reconciled under Section 6.
The following values pertaining to the reconciliation of taxable turnover must be entered in this section:
A. The yearly turnover following modifications. This value is automatically filled in.
B. The amount of non-GST, nil-rated, exempted, and no-supply turnover.
C. The amount of zero-rated supplies for which no taxes were paid.
D. The value of the commodities for which the recipient is required to pay tax under reverse charge.
E. The taxable turnover after the modifications indicated in the lines above. (A, B, C, and D)
F. The taxable turnover in relation to the annual return liability (GSTR-9).
G. The unreconciled taxable turnover's value. (F–E)
Like in Section 6, you can provide explanations in Section 8 for the discrepancy between the taxable turnover determined from line E of Section 7 and the taxable turnover reported in the annual return.
Part 3: Reconciliation of tax paid
Information regarding the taxes you have paid is gathered in Part 3. For each of the following tax rates: 5%, 12%, 18%, 28%, 3%, 0.25%, and 0.10%, you must enter the taxable value, central and state taxes, integrated tax, and cess value in Section 9. The reverse charge tax paid for each rate is shown on a different line from the regular tax collected.
The reasons for the discrepancy between the total tax paid as reported in the annual return (GSTR-9) and the total tax paid as shown on the reconciliation statement can be entered under Section 10. Details of any taxes due but not yet paid for the reasons listed in Sections 6, 8, and 10 are provided in Section 11.
Part 4: Reconciliation of ITC
You can reconcile your ITC using the information in Part 4. Mention the value of the ITC received in the following categories under Section 12:
A. The ITC was taken out in accordance with the state or UT's audited yearly financial statement. This figure should be taken from the audited accounts if there are several GSTINs associated with the same PAN.
B. The ITC that was used in the current fiscal year but was referenced in the accounts for previous fiscal years.
C. The ITC that was noted in the current fiscal year's accounts but was retained for use in the following fiscal year.
D. The Internal Tax Credit that was utilised in accordance with the audited financial statements or accounts. This field will be filled in automatically.
E. The Internal Tax Credit (ITC) claimed on your yearly return (GSTR-9).
F. The ITC that was not reconciled.
You may provide an explanation under Section 13 for any discrepancy between the ITC claimed on the submitted annual return (GSTR-9) and the ITC claimed on the audited financial statement. In accordance with Section 14, indicate the value, total ITC, and eligible ITC received for each expense category. If there is a discrepancy between the amount of ITC claimed for the various expenses (listed in line R of Section 14) and the amount claimed according to the annual return (listed in line S), you must explain it in Section 15. Regarding the unreconciled discrepancies mentioned in Sections 13 and 15, enter the central and state taxes, integrated taxes, cess value, interest, and penalty payable in Section 16.
Section 5: The auditor's suggestion about supplementary liability resulting from non-reconciliation
Your auditor's suggestions regarding your increased tax burden as a result of non-reconciliation are included in Part 5. The taxable value, central and state taxes, integrated taxes, and cess value (if applicable) for a number of categories are to be entered here by your auditor. These include the individual tax rates of 5%, 12%, 18%, 28%, 3%, 0.25%, and 0.10%; the relevant ITC, interest, late fees, penalties, and any other amounts paid that are not included in GSTR-9; any incorrect refunds that need to be reimbursed; and any outstanding demands that need to be resolved. You must sign and validate the return using an Aadhar-based signature verification mechanism or a digital signature certificate (DSC) prior to submitting the GSTR-9C form.
Part B: Certification
After the person in charge of the audit completes the GSTR 9 audit, a certification portion is also completed. There are two main components to the form:
1. Certification when the person who performed the audit prepares the reconciliation statement (Form GSTR 9C).
A: Date of balance sheet
B: P&L account with dates included
C: Cash flow statement with dates included
2. The auditor stated, based on the audit:
Keeping books in good condition
or not kept up
Steps to Generate Form GSTR-9C JSON File
The following actions must be taken by the taxpayer on the GST portal and offline:
Step 1: Download the GSTR-9 form by logging into the GST system.
Step 2: After that, get the GSTR-9C tables that were created from GSTR-9.
Step 3: You also need to download the GSTR-9C Offline Tool. You can accomplish this by choosing "Offline Tools" and then "GSTR-9C Offline Tool" from the downloads menu.
Step 4: The GSTR-9C can be prepared by following these steps with the aid of the GSTR-9C Offline Tool: Launch the GSTR Offline Utility Worksheet, then enter the pertinent information in the worksheet's tables. The preview PDF file must then be created in order to view the draft version of Form GSTR-9C. The JSON file can then be created after this is finished.
Steps to Upload GSTR-9C JSON File on the GST Portal
The JSON file can be uploaded on the GST portal with the following steps:
Step 1: The taxpayer must use the GSTR-9C Offline Utility to log in to the GST portal.
Step 2: After successfully logging in, the taxpayer must choose "Annual Return" from the "Returns" page, choose the relevant fiscal year, and then click "Search." Click the "Upload" button after choosing the "Prepare Offline" option after the loading of the page.
Step 3: Before selecting "Proceed to File," the user has the option to make any necessary modifications to the GSTR-9C form. Users must re-generate the JSON file and upload it using the GSTR-9C offline application after making any modifications.
The taxpayer can download the Error Report, fix any issues, and then upload the corrected JSON file if the JSON file shows errors during the upload process.
Steps to File GSTR-9C on the GST Portal
Step 1: The user can add financial statements, including the balance sheet, profit and loss statement, and other required documents, after the created JSON file has been posted to the GST portal and verified.
Step 2: The uploaded documents need to be in PDF format. A maximum of two files may be uploaded in each section, with each file having a maximum size of 5 MB.
Step 3: When uploading the required papers, each document with the status "Processed" must be uploaded, and then the "SAVE" button must be pressed. An error notice will appear if the user clicks "PROCEED" after failing to click the "SAVE" button for each upload.
Step 4: Only after the following documents have been successfully uploaded will the "PROCEED TO FILE" button become active.
Generated JSON file
Balance Sheet
Income and Expenditure Account/Profit and Loss Account in PDF Format
If any, two more documents.
Step 5: By selecting the "PREVIEW DRAFT GSTR-9C (PREVIEW)" button, the user can decide whether to view the GSTR-9C draft.
Step 6: The user will be directed to the verification screen after clicking the "PROCEED TO FILE" button. Following the confirmation of the verification details, the "FILE GSTR-9C" button will become active, signifying that the form is now ready for filing.
Step 7: The user can always monitor it after it has been correctly filed by selecting "Returns" from the dropdown list under the "Services" tab on the GST Portal, and then choosing "View Filed Returns."
Conclusion
According to the latest updates, Form GSTR-9 and Form GSTR-9C relaxations for FY 2023–2024 have been notified by the 53rd GST Council. For taxpayers with an annual total turnover of up to two crore rupees, this includes the exemption from filing the annual return. These adjustments were made by the Council to lessen the burden of compliance for small taxpayers. Taxpayers must make it a point to learn more about each aspect of GSTR-9C in order to avoid the penalty and other difficulties that come with submitting the GSTR-9C incorrectly.
FAQ
Q1. What is GSTR 9C with an example?
Consider the GSTR-9C for FY 2023–2024 that is to be submitted by December 31, 2024. It is the yearly reconciliation statement that compares the values of your audited financial statements and GSTR-9 for FY 2023–2024.
Q2. What is the turnover limit for GSTR-9C?
For GSTR-9C, the maximum turnover is Rs. 5 crore.
Q3. Can we file GSTR 9C without CA?
Yes, you can file a self-certified GSTR 9C without a CA certification as of FY 2020–21.
Q4. What is the penalty for not filing GSTR-9C?
The late cost for late GSTR-9C filing is not specifically mentioned in the law. However, it will be deemed non-compliance if GSTR-9 is filed without GSTR-9C. Therefore, GSTR-9C is subject to a general penalty of Rs. 25,000 per Act.
Q5. Can GSTR-9C be revised?
No, once GSTR 9C is filed, it cannot be changed.
Q6. Is filing GSTR-9C compulsory?
For registered taxpayers whose total revenue for a given fiscal year exceeds Rs 5 crore, GSTR-9C is required.
Q7. What is the GSTR-9C due date?
The due date for GSTR-9C is December 31 of the successive financial year.
Q8. How can I check the status of the GSTR-9C filing?
Click 'Services' after logging into the GST system to view the GSTR 9C filing status. After that, select "Returns" and then "Track Return Status." Then, to check the status, provide the necessary information together with the return filing period.
Q9. Should Form GSTR-9 and Form GSTR-9C be filed separately?
A registered person is required to submit his annual return on Form GSTR 9 and a reconciliation statement on Form GSTR 9C as per the provisions of Section 44(2) of the CGST/SGST Act of 2017. As a result, when the turnover surpasses Rs. 2 crores, Form GSTR 9C must be filed with Form GSTR 9.
Q10. What are the contents of Form GSTR 9C?
There are two sections to Form GSTR 9C. The reconciliation statement is in Part A, and the certificate that the GST auditor will give is in Part B.
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