As businesses grow and expand, their compliance obligations under the Goods and Services Tax (GST) law also evolve. One of the key requirements for businesses registered under GST is the annual return filing, which includes GSTR-9 and GSTR-9C. These forms play an essential role in ensuring businesses meet their tax obligations, provide accurate information, and maintain transparency with the tax authorities.

In this post, we will delve into the details of GSTR-9 and GSTR-9C, helping you understand their importance, who needs to file them, and how to complete the forms correctly.

What is GSTR-9?

GSTR-9 is an annual return that businesses registered under GST must file every year. It consolidates the monthly or quarterly returns (GSTR-1, GSTR-3B) that have been filed during the financial year. The purpose of GSTR-9 is to ensure that the business has accurately reported all details related to its GST liability, taxes paid, and input tax credit (ITC) claims.

Key Features of GSTR-9:

1. Consolidated Filing: GSTR-9 requires businesses to provide a summary of all GST-related transactions made during the year.
2. Details of Income: It includes details of sales, purchases, input tax credits, and tax paid.
3. Reconciliation: The form helps to reconcile the data filed in the periodic GST returns (GSTR-1 and GSTR-3B) with the final annual figures.

Who Needs to File GSTR-9?

Businesses with an annual turnover exceeding ₹2 crores are required to file GSTR-9. This includes both regular taxpayers and compounding taxpayers, excluding the composition scheme dealers. Even if there were no transactions during the year, GSTR-9 still needs to be filed, stating the “NIL” status.

Components of GSTR-9:

• Part A: Basic details such as GSTIN, legal name of the taxpayer, and details of the business.
• Part B: Information on the turnover, outward supplies, inward supplies, tax paid, and ITC claimed.
• Annexures: These provide further details on specific transactions, ITC reversals, and any discrepancies.

What is GSTR-9C?

GSTR-9C is a reconciliation statement that must be filed along with GSTR-9 for businesses whose turnover exceeds ₹5 crores in a financial year. It acts as an audit of the business’s financial statements and helps reconcile the data from the audited financial statements with the GSTR-9 return.

Key Features of GSTR-9C:

1. Reconciliation: GSTR-9C ensures that the GST returns match the figures in the business’s financial books, such as the Profit & Loss Statement and Balance Sheet.
2. Certified by a Chartered Accountant: The form requires a CA’s certification to ensure the accuracy of the reconciliation and the financial records.
3. Data Validation: It serves as a tool for verifying whether the tax paid and input credit claims align with the financial statements.

What has changed in GSTR-9C format & filing?

Following are the changes made to the format and filing procedure-

• Verification by Registered Taxpayers has been added & CA/CMA certification is removed.
• Taxpayers need to file the GST Returns for all the months of the financial year in GSTR-1, GSTR-3b and GSTR-9.
• At the end of this return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03 . Taxpayers shall select ―’Reconciliation Statement’ in the drop-down provided in FORM DRC-03. It may be noted that such liability shall be paid through electronic cash ledger only.

Who Needs to File GSTR-9C?

GSTR-9C is mandatory for businesses whose turnover exceeds ₹5 crores. The filing of this form is applicable in addition to GSTR-9, and it helps in verifying the financial information provided by the taxpayer.

Components of GSTR-9C:

• Reconciliation of Turnover: Details about discrepancies between the financial statements and the GST returns.
• Reconciliation of Taxes Paid: It includes information about taxes paid, input credits, and any discrepancies.
• Certified Audit Report: A Chartered Accountant must certify the figures provided in the reconciliation, ensuring transparency and accuracy.

Why are GSTR-9 and GSTR-9C Important?

• Transparency and Compliance: Filing GSTR-9 and GSTR-9C ensures that businesses are compliant with GST law. It allows the government to cross-verify the tax information provided by businesses and reduces the chances of errors or fraud.
• Avoid Penalties: Non-filing or incorrect filing of GSTR-9 and GSTR-9C can attract penalties. Timely submission ensures that businesses avoid unnecessary fines and legal issues.
• Tax Planning and Refunds: These forms provide an opportunity to rectify mistakes made in earlier returns. If businesses have overpaid taxes, they can claim refunds or make adjustments in subsequent filings.

Common Mistakes to Avoid While Filing GSTR-9 and GSTR-9C

1. Discrepancies in Tax Paid: Ensure that taxes paid during the year are correctly reported to avoid discrepancies with the financial statements.
2. Incorrect ITC Claims: Verify that input tax credit claimed is accurate and backed by valid invoices.
3. Missing Information: Double-check for missing details, such as turnover or supply data, as these could cause the return to be rejected.
4. Late Filing: Make sure to file on time to avoid late fees or penalties.

File Your GSTR-9 and GSTR-9C with Ease – Trust GST2ITR for Seamless Filing

Filing GSTR-9 and GSTR-9C can be a complex and time-consuming task, but with GST2ITR, you can ensure a smooth and hassle-free process. Our team of experts is well-versed in all aspects of GST compliance and will help you file your returns accurately and on time.

Let GST2ITR handle your GSTR-9 and GSTR-9C filings so you can focus on what matters most—growing your business. Contact us today for professional assistance and ensure your GST compliance is in safe hands.

Get in touch with GST2ITR now and file your GSTR-9 and GSTR-9C with confidence!