What is GSTR-9C and How to File it?

What is GSTR-9C?

GSTR-9C was introduced into GST Law on September 13, 2018. It’s an annual audit form that certain taxpayers must submit under GST. Along with this form, taxpayers need to file a GST reconciliation statement and submit audited copies of their annual financial statements, as required by Section 35(5) of the CGST Act.

While a certified Chartered Accountant (CA) or Cost and Work Accountant (CWA) can audit the taxpayer’s annual return reconciliation statement, it is no longer mandatory. However, self-certification of the GSTR-9C statement is still a necessity.

Who Needs to File GSTR-9C?

Taxpayers registered under GST with an annual turnover of ₹5 crore or more must submit the GSTR-9C reconciliation statement. This requirement applies to the GSTR-9C return file.

Recent Changes and Updates in GSTR-9C

Here are the key changes in GSTR-9C-

• Taxpayers can now self-certify the GSTR-9C reconciliation statement, and there is no requirement of CA/CMA certification.
• Unbilled Revenue at the start of the year can be disclosed in Table 5B.
• Items for turnover reconciliation from Table 5C to 5N are now reported separately.
• It is compulsory to disclose Tables 12B and 12C individually.
• There is introduction of a new 6% tax rate.
• Payments for reconciliation differences through DRC-03 are now made via the electronic cash ledger.
• Tables 12B, 12C, and 14 (ITC reconciliation) are no longer mandatory.
• Several changes have also been made in the Declaration section.

GSTR-9C Exemptions

Certain businesses are exempt from filing GSTR-9C, including-

• Airline companies complying with the Companies Act 2013.
• Non-residents providing OIDAR services in India to unregistered individuals.

Due Date of Filling GSTR-9C

The due date for filling GSTR-9C is 31st December of every month. Failure to file before this results in penalties and fines.

Consequences of Not Filing GSTR-9C on Time

If a taxpayer fails to submit the GST Audit form by the due date, a penalty of ₹200 per day (₹100 CGST and ₹100 SGST/UTGST) applies. However, this penalty cannot exceed 0.50% of the total annual turnover.

How to File GSTR-9C in India

There are two ways to file the GST Audit form (GSTR-9C)-

1. Online
2. Offline utility

GSTR-9C Details, Filing Format, and Instructions

The financial figures in the audited financial statements are consolidated at the PAN level. Therefore, you must extract the turnover, tax payments, and Input Tax Credit (ITC) for a specific GSTIN (State/UT) from the audited accounts of the entire organization.

The Reconciliation Statement consists of five parts-

Part I- Basic Details

Includes the financial year, GSTIN, legal name, trade name, and any other audits under other laws.

Part II- Reconciliation of Turnover

Aligns the turnover in the Audited Financial Statements with the Annual Return (GSTR-9). Since Audited Financial Statements are usually at a PAN level, the breakdown at the GSTIN level is necessary for reporting sales figures in GSTR-9C. You have provision to report any adjustments of tables 5B to 5N in Table 50 though this is optional.

Part III- Reconciliation of Tax Paid

This section provides a breakdown of tax liability by GST rate and compares it with what was reported in GSTR-9, highlighting any differences. You have to also declare any additional liability due to unreconciled differences.

Part IV- Reconciliation of Input Tax Credit (ITC)

This section compares the input tax credit claimed in GSTR-9 with that in the Audited Financial Statements. It also reports expenses booked per the GST Return and Audited Accounts, distinguishing between eligible and ineligible ITC. Taxpayers can opt not to fill in details of ITC reconciliation in tables 12B, 12C, and 14, according to Notification No- 56/2019.

Part V –Verification/Self-Certification by Taxpayer

The final step involves self-certifying or verifying the information provided in the GST Reconciliation Statement.

How GSTrobo^® Simplifies GSTR-9C

Filling out GSTR-9C can be quite challenging when managing GST compliance. It involves evaluating multiple returns, reconciling e-invoices with the returns you have filed, gathering the correct documents from suppliers, and ensuring everything is done on time. This process demands significant effort, time, and accuracy, which can be overwhelming. Utilizing GST software can be incredibly beneficial at this stage. With automation and cloud-based technology, GST software simplifies the GSTR 9C process, making it faster, easier, and more accurate.

GSTrobo^® is a software solution that transforms the GSTR-9C filing process, offering a seamless and user-friendly experience that makes GST compliance simpler for businesses. Here’s how GSTrobo enhances and simplifies GSTR 9C:

GSTrobo revolutionizes the GSTR-9C filing process by introducing a seamless and user-friendly approach, making GST compliance effortless for businesses.

Filing GSTR-9C can be complex and time-consuming, but GST software like GSTrobo can make it easier. Here’s how GSTrobo helps-

1. Automated Data Extraction

GSTrobo automatically extracts data from various sources, eliminating manual data entry and reducing errors.

2. Integration with Financial Systems & ERPs

GSTrobo integrates seamlessly with financial systems and ERPs, ensuring accurate data transfer for GSTR 9C filing.

3. Real-time Reconciliation

GSTrobo provides real-time reconciliation between audited accounts and GST returns, highlighting any discrepancies instantly.

4. User-Friendly Interface

The intuitive interface of GSTrobo allows even those with limited tax expertise to navigate the GSTR-9C filing process easily.

5. Notification Compliance

GSTrobo keeps users updated with the latest regulatory changes, ensuring the filing process remains compliant.

6. Detailed Reporting

GSTrobo generates comprehensive reports required for GSTR-9C filing, covering turnover, tax paid, and ITC reconciliation.

Conclusion

The GSTR-9C audit form is essential for verifying the accuracy of GST Returns and Audited Accounts filed by the taxpayer for a financial year.