Essential Guide to GSTR 9 and GSTR 9C Difference and Complete GST Annual Reconciliation Checklist

The Goods and Services Tax (GST) in India, introduced in July 2017, is a unified tax system that replaced various indirect taxes like VAT, excise duty, and service tax. This streamlined tax structure promotes ease of doing business by implementing a single tax across the nation. As part of GST compliance, businesses must file periodic returns known as GSTRs. Two critical annual filings, GSTR-9 and GSTR-9C, provide comprehensive summaries of transactions and help the government monitor compliance. Proper GST registration is essential for businesses to ensure they meet all tax obligations and remain compliant.

What are GSTR-9 and GSTR-9C?

• GSTR-9: The annual return form for all regular taxpayers under GST, summarizing all outward and inward supplies, Input Tax Credit (ITC) claimed, and tax paid during the year 2 crore or more.
• GSTR-9C: A reconciliation statement for taxpayers with turnover above a specified threshold (typically ₹5 crore or more). It reconciles annual returns with audited financial statements.

Who is Eligible for GSTR-9 and GSTR-9C?

• GSTR-9 Applicability: Mandatory for all regular GST-registered taxpayers with a turnover of ₹2 crore or more.
• GSTR-9C Applicability: Required for taxpayers with an annual turnover exceeding ₹5 crore.

Due Dates and Filing Frequency for GSTR-9 and GSTR-9C

Note: The GST authorities may extend deadlines, so staying updated with the latest notifications is essential.

Penalty for Late Filing

• GSTR-9 Late Fee: ₹200 per day of delay (₹100 each for CGST and SGST), with a maximum limit of 0.5% of the taxpayer’s turnover.
• GSTR-9C Late Fee: May subject to a general penalty of ₹25,000 in the absence of a specific provision.

Ultimate Checklist for GST Annual Reconciliation

A comprehensive GST reconciliation before filing GSTR-9 and GSTR-9C ensures accuracy and compliance. Here’s a checklist:

1. Outward Supplies Reconciliation

• Match GSTR-1 with GSTR-3B: Ensure that all outward supplies reported in GSTR-1 align with GSTR-3B.
• Account for Credit and Debit Notes: Include all credit and debit notes to adjust taxable values accurately.

2. Inward Supplies and Input Tax Credit (ITC)

• Cross-check GSTR-2A with GSTR-3B: Ensure that ITC claimed aligns with inward supplies reported in GSTR-2A.
• Confirm ITC Eligibility: Validate ITC claims to avoid disallowances based on GST rules.

3. Reconcile Tax Payments with Cash/Credit Ledger

• Verify Tax Payments: Check tax payments made in cash and credit ledgers against declared liabilities.
• Reverse Charge Transactions: Confirm accurate reporting of all transactions under reverse charge.

4. Financial Statements Cross-Check

• Revenue Match: Verify that revenue declared in GSTR-9 aligns with audited financial statements.
• Asset and Capital Goods: Ensure accurate reporting and ITC claims on capital goods purchases.

5. Turnover Threshold Compliance

• Turnover Calculation: Confirm if GSTR-9C filing is required based on the ₹5 crore threshold.
• Audit Requirement Check: Ensure compliance with audit.

6. Final Review and Verification

• Refund Claims and Adjustments: Reconcile refund claims and ensure they’re accounted for.

7. Audited Financial Statements

• Need to upload Audited Balance Sheet and P&L with GSTR9C.

Important:- GSTR-9 cannot be revised once filed. Therefore, please ensure all fields are accurate before submission. Additionally, note that certain amounts/columns in GSTR-9C will be auto-populated based on the information provided in GSTR-9, and these entries cannot be modified in GSTR-9C afterward. Please review carefully before finalizing the filing.

Conclusion

Filing GSTR-9 and GSTR-9C accurately and on time is essential for GST compliance, minimizing penalties, and ensuring a smooth audit process. Proper reconciliation, as outlined above, aligns annual returns with financial records and protects businesses from discrepancies and potential legal issues. For businesses with a turnover exceeding ₹5 crore, staying compliant with these requirements is crucial to avoid hefty late fees and maintain a seamless relationship with tax authorities. Professional assistance can simplify the complexities of managing outward and inward supplies, reconciling ITC claims, and handling e-way bills.

Need Help?

For more assistance with GST compliance, contact ApkiReturn at 7665156000 or email info@apkireturn.com. We’re here to help with all your GST needs, ensuring your business remains compliant and efficient.

Frequently Asked Questions (FAQs) on GSTR-9 and GSTR-9C Filing

1. What is GSTR-9 and who needs to file it?
   GSTR-9 is the annual return form for regular taxpayers under GST, required for those with a turnover of ₹2 crore or more.
2. What is GSTR-9C and who is required to file it?
   GSTR-9C is a reconciliation statement for taxpayers with a turnover exceeding ₹5 crore.
3. When are GSTR-9 and GSTR-9C due?
   Both are due by 31st December of the following financial year, though extensions may apply based on GST notifications.
4. What happens if I file GSTR-9 late?
   Late fees of ₹200 per day (₹100 each for CGST and SGST) apply, with a cap of 0.5% of the taxpayer’s turnover.
5. Is there a penalty for late filing of GSTR-9C?
   While there’s no specific late fee for GSTR-9C, a general penalty of ₹25,000 can apply for non-compliance.
6. How can I ensure my GSTR-9 and GSTR-9C filings are accurate?
   Follow a thorough GST reconciliation checklist that covers outward and inward supplies, ITC, tax payments, and financial statement cross-checks.
7. Can I claim ITC after filing GSTR-9?
   No, ITC claims cannot be made or adjusted after filing GSTR-9, so it’s essential to verify ITC before filing.
8. How can ApkiReturn help with GSTR-9 and GSTR-9C filing?
   ApkiReturn offers professional guidance on GST compliance and reconciliation to ensure your business meets all GST requirements accurately and efficiently.
9. What is the benefit of timely GSTR-9 and GSTR-9C filing?
   Timely filing avoids late fees, ensures compliance, and provides accurate records for a smooth tax audit process.

For expert guidance, contact ApkiReturn at 7665156000 or email us at info@apkireturn.com. Visit www.apkireturn.com for comprehensive GST return filing and reconciliation services.