Every GST-registered individual or business entity whose annual turnover exceeds a limit of Rs. 5 crore should learn about GSTR 9C. Now, what is GSTR 9C? Let’s get straight to the point in this post. Welcome to the all-encompassing guide that narrates the definition, meaning, formats, and other details of GSTR 9C.
Introducing You to the GSTR 9C Meaning and Key Objective
According to the GSTR 9C meaning, it happens to be the reconciliation statement between the GSTR returns in one fiscal year and figures depending on the audited financial report of the taxpayers annually. It came into being on September 13, 2018. This audit form is somewhat similar to the tax audit report of a taxpayer. The GSTR 9C includes taxable and gross turnover. Taxpayers who need to get their annual income returns audited must file Form GSTR 9C.
Understanding the Format of this Form
Now that you know what is GSTR 9 C, let’s learn about the format. GSTR 9C is divided into two main parts: Part A and Part B. Let’s introduce them one by one in the following points:
Part A:
Part A is the reconciliation statement, which contains the basic tax details, categorized into the following:
1st: This contains the basic information and comprises sections: financial year, taxpayer’s GSTIN, loan name and business trade name of the registered individual, and liability of the taxpayer.
2nd: The next is the reconciliation turnover declared in the company’s turnover declared in the GSTR-9 and audited annual financial statement.
3rd: The third is the reconciliation of paid taxes, which contains information on the reconciliation of the rate-wise liability and amount.
4th: This part is the reconciliation of the input tax credits, accounting for the net input tax credit according to the ITC amount, and accounting books.
5th: This includes the suggestions of the auditor on the liabilities discharged by taxpayers owing to the non-reconciliation of the turnover, or ITC
Part B
Part B is all about auditor certification, which is a certificate filed by the CA or chartered accountant. It is completed after GSTR 9. It consists of the following two parts:
1st: Certification, where the GSTR 9C form is drawn by the ones carrying out the audit
2nd: Based on the trustworthy auditor’s mentioned audit figure
Preparing and Submitting GSTR 9C: Steps to Follow
Taxpayers with more than Rs. 2 crore in turnover need to file the GSTR 9C form. It is certified and prepared by a chartered accountant or cost accountant. Taxpayers may file it via the center or directly from the GST portal. Note that one must have the GSTR filed before filing for the GSTR 9C, or they can file simultaneously. Another thing that taxpayers need to consider is that they need to submit a few documents. One can file the GSTR 9C in two ways: by downloading the form or by using an offline tool.
Method 1: The Online Process
In this method, you need to file for GSTR9C by following these steps, as given below:
Firstly, you need to visit the official GST portal.
Now you are required to log in with your credentials, such as your password and username.
In the third step, you need to search for the option that mentions ‘Annual Return’ on the dashboard. After you click on it, you can proceed with the next step.
Now, it is time to tap on the fiscal year to choose the assessment year.
In the fifth and final step, you need to choose the ‘Initiate e-filing’ option.
However, one must note that when the said option is clicked, the user will be directed to file the GSTR 9 Form before proceeding to file the reconciliation form.
Method 2: The Process Using a Tool
To file for GSTR 9C using an offline tool, you need to follow the below-offered steps:
You are required to visit the official GST portal.
After this, find the option that mentions “Downloads.”
Next, you need to visit the ‘Offline Tools’ and choose the GSTR-9C Offline Tool.
You will be directed to the offline page of GSTR-9C. Wait for it, and then tap on the link that mentions: Download.
Wait for a confirmation to appear on your screen. After that, all you need to do is tap Proceed.
In the next step, you need to wait for the GSTR 9C offline utility to be downloaded in zip format. Then, you need to extract that file.
Next, you need to tap on the option that mentions “Enable Editing.”
In the eighth step, you need to tap on the ‘Enable Content’ option.
After this, you need to navigate to ‘Read Me’.
Now, you need to visit the ‘Home’ page and fill in the details such as GSTIN, trade name, fiscal year, Act, and financial year.
Wait for a question to pop up on your screen. Confirming your choice either by pressing ‘No’ or ‘Yes’.
After completing the above steps, you can save your data before closing it.
FAQs
Is there any due date for GSTR-9C?
Yes, there is a due date for submitting the annual returns in GSTR 9C. And the due date is the same as that of the GSTR-9. So, you must file GSTR-9C before December 31 of every year after the FY under audit. Note that the due date might be extended by the government in case of urgency.
What should taxpayers know before filing for the GSTR-9C form?
A taxpayer should prepare the GST Reconciliation statement. Differences in the details reported in GST returns and audited accounts should be reported earlier, with specific reasons indicating the differences. The statement verifies the GST returns’ correctness as filed by taxpayers. Note that the GSTR-9C should be self-certified by taxpayers.
What are the documents required for filing GSTR 9C?
The following are the documents required for filling out GSTR 9C:
- The photocopy of your balance sheet
- The profit and loss account
- Audited accounts’ photocopy
- Cash flow
- Annual report’s photocopy
How do you find the status of the GSTR 9C filing?
You can check your GSTR 9C status by tapping on the service option present on the GST portal. Next, it is imperative to tap on the return option and click on Track Return Status. After this, you need to enter the details by mentioning the return filing period in order to check your status.
What is the difference between GSTR-9 and GSTR-9C?
GSTR-9 is the annual return required for filing every taxpayer who is GST-registered. On the contrary, the GSTR-9C form is the reconciliation statement submitted by the ones who are GST-registered, and the annual aggregate turnover is more than Rs 5 crores.
Is there any late fees for the failure to submit the Annual Return and not getting accounts audited?
Suppose a taxpayer fails to file the GSTR-9C form and Annual Return. He or she is liable to Rs.200 fee every day during which their default continues. However, the provisions apply to the filing of GSTR-9, but there are no specific provisions for GSTR-9C. So, filing GSTR-9 as well as non-filing GSTR-9C might be subject to a penalty of Rs 25K.
Is there any necessity for a taxable person to disclose details of the notice pay recovery from the employees in GSTR-9C?
Yes, in case the notice pay recovered is a taxable supply, but the same isn’t the income in the Profit & Loss account; it might be reported under Section 5O.
Can you revise the GSTR-9C form?
As of now, no provisions are there where it mentions that you can revise the form. So, taxpayers need to be careful while reporting the details in the GSTR 9C.