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GSTR-9 vs GSTR-9C: Key Differences You Should Know

  • 30 December, 2024
  • 4 Mins

Highlights

  • GSTR-9 is an annual return consolidating all GST activities, while GSTR-9C reconciles GST data with audited financial statements.
  • Businesses with an annual turnover of ₹5 crore or more are required to file GSTR-9C along with GSTR-9.
  • Recent amendments include reduced penalties, simplified formats for small businesses, and enhanced ITC disclosures.

GST compliance often confuses businesses, especially when distinguishing between GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement). Misunderstandings about their purposes, applicability, and requirements can lead to errors, penalties, or even audits—challenges that are particularly daunting for businesses with higher turnovers.

By clarifying the differences and requirements of these forms, this guide aims to simplify GST compliance, helping businesses avoid pitfalls, streamline processes, and meet their filing obligations with confidence. It will also help you stay up to date with the latest updates for GSTR-9 and GSTR-9C as notified by the GST officials.

Comparison Between GSTR-9 and GSTR-9C Returns

AspectGSTR-9  (Annual Return)GSTR-9C  (Reconciliation
Statement)
NatureConsolidates all GST returns and provides information.An analytical statement reconciling GST returns with audited financial statements, self-certified by the CFO/Finance Head.
Who Must FileGST-registered taxpayers with ₹2 crore turnover or more.GST-registered taxpayers whose aggregate annual turnover exceeds ₹5 crore.
Who are Exempt – Composition Dealers 
– Casual Taxable Persons (CTP) 
– Non-Resident Taxable Persons (NRTP) 
– Input Service Distributors (ISD) 
– Unique Identification Number (UIN) holders 
– OIDAR service providers 
– Persons subject to TCS or TDS provisions 
Same as GSTR-9, plus registered persons with aggregate turnover below ₹5 crore.
Optional ForBusinesses with less than ₹2 crore turnover (applicable from FY 2017-18). Businesses with turnover below ₹5 crore.
Due Date for Filing31st December of the following FY.31st December of the following FY (either simultaneously or after filing GSTR-9).
Late Fees & PenaltyFrom FY 2022-23 onwards: 
– Up to ₹5 crore turnover: ₹50/day, max. 0.04% of turnover. 
– ₹5-20 crore turnover: ₹100/day, max. 0.04% of turnover. 
– Above ₹20 crore turnover: ₹200/day, max. 0.50% of turnover. 
 
Up to FY 2021-22: 
₹200/day, capped at 0.50% of turnover (relief provided for filings made between April 1, 2023, and June 30, 2023). 
No specific late fee; however, subject to a general penalty of ₹25,000 under GST provisions.
FormatSummary of turnover, ITC, taxes paid, and late fees, along with amendments made up to November 30th of the following FY. 
Additional details (if applicable): 
– Demands/refunds 
– Supplies from composition dealers 
– Job works 
– Goods sent on approval basis 
– HSN summary of sales/purchases 
– Late fees payable. 
Two parts: 
– Part A: Reconciliation of turnover, tax paid, and ITC, along with the auditor’s recommendations for tax liability. 
– Part B: Self-certification by CFO/Finance Head. 
Certification/ AttestationNo certification required; only attestation by the taxpayer using a digital signature. Certification by CFO/Finance Head using a digital signature.
AnnexuresNo annexures required.Requires annexure of audited financial statements.

Recent Amendments to GSTR-9 and GSTR-9C

Recently, taxpayers have witnessed several significant updates to GSTR-9 and GSTR-9C aimed at simplifying compliance and improving accuracy. Here are the key amendments:

  • GSTR-2B Replacing GSTR-2A: This amendment substitutes ITC Reconciliation in GSTR-9 done with GSTR-2A with GSTR-2B, as applicable from FY 2023-24.
  • Relaxation in Late Fees: The government provided relief in late fee penalties for small taxpayers filing GSTR-9. This included capped penalties for turnover up to ₹5 crore, encouraging timely compliance.
  • Enhanced ITC Disclosure: Both forms now emphasize detailed disclosure of Input Tax Credit (ITC) claims and reversals, ensuring greater transparency and reducing disputes during audits.
  • Simplified Format for Small Businesses: For taxpayers with a turnover below ₹10 crore, the forms have been simplified, requiring fewer details and enabling faster filing.
  • Digital Signature Requirement Tweaks: Digital signature requirements were relaxed for specific categories of taxpayers, particularly for small and medium enterprises (SMEs), to ease the compliance burden.
  • Integration with Financial Statements: Enhanced reconciliation features in GSTR-9C now allow smoother integration with audited financial statements, reducing manual intervention.
  • Deadline Extensions: Filing deadlines were extended for certain financial years, considering technical issues and providing businesses with adequate time to comply.

These amendments are part of the government’s ongoing efforts to streamline GST compliance and make it more taxpayer friendly. Staying updated with such changes is crucial to avoid penalties and ensure seamless GST return filing.

Conclusion

Understanding the distinctions between GSTR-9 and GSTR-9C is essential for seamless GST compliance. With the right knowledge, businesses can avoid errors, penalties, and the risk of audits. By staying informed about recent amendments and leveraging simplified processes, businesses can confidently manage their GST obligations and focus on growth.

For hassle-free compliance, businesses can explore our automated GST solutionGSTrobo®, which simplifies filing and ensures accuracy.

FAQs

1. What is the primary difference between GSTR-9 and GSTR-9C?
GSTR-9 is the annual return summarizing all GST activities, while GSTR-9C reconciles GST returns with audited financial statements.

2. Who is required to file GSTR-9C?
Taxpayers with an annual turnover exceeding ₹5 crore must file GSTR-9C.

3. Is GSTR-9 mandatory for all GST-registered businesses?
Yes, except for exempt entities like composition dealers, casual taxable persons, and others.

4. Can businesses with turnover below ₹2 crore file GSTR-9?
Filing GSTR-9 is optional for businesses with turnover below ₹2 crore for FY 2017-18 onwards.

5. What is the penalty for late filing of GSTR-9?
Late fees range from ₹50/day to ₹200/day, depending on the turnover.

6. Are financial statements required for GSTR-9C filing?
Yes, audited financial statements must be annexed with GSTR-9C.

7. What recent updates have been made to GSTR-9 and GSTR-9C?
Key updates include simplified formats for small businesses, enhanced ITC disclosures, and relaxed penalties.

8. When is the due date for filing GSTR-9 and GSTR-9C?
The due date for both GSTR-9 and GSTR-9C is December 31st of the following financial year.

9. Does GSTR-9C require certification?
Yes, it must be self-certified by the CFO or finance head using a digital signature.

10. What happens if GSTR-9C is filed without GSTR-9?
GSTR-9C cannot be filed unless GSTR-9 is submitted first.