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GSTR 9C Filing

Introduction

A reconciled statement is what we name as GSTR 9C return under GST. It is basically an annual return necessary to be filed by every taxpayer falling under the GST regime. Well, if we talk legally then as per Rule 80 of the CGST Rules 2017, every registered business is liable to file a GST Annual Return for each financial year. As, in this article, we are covering GSTR 9C filing, so the due date for filing the same is 31st December 2022 for the financial year 2021-22.

After knowing the basics of GSTR 9 filing, let us now proceed further and learn more about it in detail.

What is GSTR 9C in GST?

Under the Goods and Services Tax, form GSTR 9C is required to be filed by all those taxpayers whose aggregate turnover has exceeded Rs. 2 crore in a financial year. It means that the turnover of the complete year i.e. from 1st April 2021 to 31st March 2022 has to be taken into account for calculating the turnover.

Let’s take an example and understand the applicability of GSTR 9C filing. So, if Amitesh has a turnover of Rs. 2.1 crore for the period 1st April 2021 to 31st March 2022 and a turnover of Rs. 1.9 crore for the period 1st July 2021 to 31st March 2022 then in that case, Amitesh is required to file form GSTR 9C.

Is it compulsory to file GSTR 9C?

Yes, whosoever is falling under the limit on filing GSTR 9C shall compulsorily be required to file GSTRC filing. However, there is one exception to the provision of GSTR 9C filing. The GSTRC filing exemption applies to taxpayers whose aggregate turnover is less than or equal to Rs. 2 crore.

Who is required to necessarily file GSTR 9C?

GSTR 9C is to be filed by a person registered as a normal taxpayer including SEZ unit or SEZ developer and also to be filed by a taxpayer who has withdrawn from the composition scheme to normal taxpayers any time during the financial year.

Moreover, GSTR 9C filing can also be done by composition taxpayers. However, an annual return is not required to be filed by

  • Casual taxpayer
  • Non Resident taxpayer
  • Input Service Distributor
  • OIDAR Service Providers

This was all about gstr 9c applicability. Let us move further and learn about the contents of audit report given under GSTR 9C .

Contents of Audit Report in form GSTR 9C

The contents under GSTR 9C filing are as follows:-

Part A – Reconciliation Statement

This part consists of some additional sub-parts, namely-

Part I- Basic Details – (1) Financial year (2) GSTIN (3A) Legal Name (3B) Trade Name (if any) (4) Are you liable to audit under any Act? (like Companies Act, Income Tax Act, Indian Trust Act etc.)

Part II- Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR 9)

Part III- Reconciliation of tax paid

Part IV- Reconciliation of net Input Tax Credit (ITC)

Part V – Auditor’s recommendation on additional Liability due to non-reconciliation.

Part B – Certification by Auditor

Part b contains the form of report to be given by the auditor who has conducted an audit of the reconciliation statement. Since the audit of the reconciliation statement can be conducted either by person who conducted the audit of the annual financial statement of the company or by any other practicing CA/CMA, there are two different formats of certification by auditor.

Contents of Part II of Audit Report GSTR 9C

Part II consists of reconciliation of the annual turnover declared in the audited Annual Financial Statement with the turnover as declared in the Annual Return furnished in form GSTR 9 for this GSTIN. Instructions to fill this part are given below the form GSTR 9C.

The turnover as per the audited Annual Financial Statement shall be declared in column 3A. There may be cases where multiple GSTINs registrations exist on the same PAN.

Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return shall be specified in column 6.

Contents of Part III of Audit Report GSTR 9C

Part III consists of reconciliation of the tax payable as per declaration in the reconciliation statement and the actual tax paid as declared in Annual Return.

Contents of Part IV of Audit Report GSTR 9C

Part IV consists of the reconciliation of Input Tax Credit (ITC). Under this, reconciliation of ITC declared in GSTR 9 against the expenses booked in the Audited Financial Statement or books of account is also required.

Instructions to fill this part are given below the form GSTR 9C

ITC availed which is given as per the audit Financials shall be mentioned in column 12A. Reference to audited Financials includes reference to books of accounts in case of persons/ entities having presence over multiple states.

In addition to it, reasons for non-reconciliation of ITC as per the audited Financials or books of account and the next ITC availed in GSTR 9 are required to be disclosed in column 13.

Contents of Part V of Audit Report GSTR 9C

Part V consists include the auditor’s recommendation made on the additional liability that is required to be disclosed by the taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit.

Also, at the end of the reconciliation statement, an option is open for taxpayers to pay taxes as recommended by the auditor. This can be done from form DRC-03.

Final Words

As we all have come to the end of the year, every taxpayer should have knowledge of the GSTR 9C. Also, gstr 9c last date is also necessary to be aware of. Well, the last date of GSTR 9C filing is 31st December 2022. Hurry and get your GSTR 9c file at the earliest.

You may consult EAdvisors in case of any query. We also provide GST Registration, GST Annual Return Filing services as well. Feel free to raise your doubts regarding any registration services with us.

Contact EAdvisors regarding any query.

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