GSTR 9C is a reconciliation statement that aligns GSTR annual returns with figures from taxpayers’ audited financial reports for a given fiscal year. First introduced on 13th September 2018, this document plays a vital role in maintaining the accuracy of GST compliance. In this guide, we delve into the significance of GSTR 9, its format, the filing process, necessary documents, and its distinct role in GST audits.
GSTR 9C functions as an audit form comparable to a tax audit report. It includes critical figures like gross and taxable turnover and is mandatory for taxpayers whose annual income is audited. As per GST law, any entity with an annual turnover exceeding Rs. 2 crore must file Form GSTR 9. This form must be submitted alongside an audit certification and reconciliation statement to validate that the figures align with GSTR 9, the annual GST return.
Typically, GSTR 9C should be filed by 31st December of the following assessment year, though deadlines may occasionally be extended by government notification.
GSTR 9 is structured into two primary parts:
This part compares the annual turnover declared in the audited financial statement with that declared in GSTR 9. It consists of the following sub-sections:
This section includes the certification completed by a Chartered Accountant (CA) post-audit. The auditor confirms the accuracy of the GSTR 9 and certifies it with two components:
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A Chartered Accountant or Cost Accountant prepares and certifies GSTR 9. Taxpayers can file it online via the GST portal or through facilitation centers. This form should be filed in conjunction with the GSTR 9 return and requires submission of essential financial documents, such as:
Filing GSTR 9C ensures that businesses with a turnover exceeding Rs. 2 crore maintain compliance with GST requirements. A digitally signed certificate from a GST auditor, GSTR 9 validates the accuracy of GST returns filed in a given fiscal year.
The form highlights any liabilities or discrepancies between the GSTR returns and audited financials, establishing GSTR 9C as a key measure for authorities to evaluate compliance.
Taxpayers can download GSTR 9C using two methods:
Note: GSTR 9 must be filed before accessing the GSTR 9 form.
Upon completing these steps, save the form and upload it for filing.
Taxpayers need to submit the following documents:
Note: The audit report should be certified by an authorized auditor.
Taxpayers who miss the GSTR 9C filing deadline are subject to a penalty of Rs. 200 per day, including Rs. 100 as CGST and Rs. 100 as SGST. The total penalty cannot exceed 0.50% of the aggregate turnover. Therefore, timely filing is crucial to avoid late fees.
| Criteria | GSTR 9C | GSTR 9 |
| Type | Reconciliation statement | Annual GST return |
| Legal Provision | Section 35(5) of the GST Act | Rule 80 under Section 44 of CGST Act |
| Applicable for | Taxpayers with audited reports | Registered taxpayers |
| Annual Turnover Threshold | > Rs. 2 crores | Not applicable for certain taxpayer types |
| Filing Deadline | 31st December (with or post GSTR 9 filing) | 31st December of the following fiscal year |
| Penalty | Rs. 25,000 general penalty | Rs. 200 per day with a 0.25% turnover ceiling |
| Filing Mode | GST portal or facilitation center | GST portal or facilitation center |
| Documentation Requirement | Audited P&L, balance sheet | No such requirement |
| Digital Signatures | Auditors and taxpayers | Taxpayers only |
This comparison clarifies that GSTR 9 is the general annual return, while GSTR 9C is an audit certification. For businesses eligible for GSTR 9, understanding these differences is essential for accurate filing.
GSTR 9C is an essential audit and reconciliation statement that helps ensure accurate GST filings by aligning GST returns with audited financials. Failure to file on time results in penalties, making it crucial for eligible taxpayers to adhere to GSTR 9 requirements diligently.
Taxpayers with an annual turnover exceeding Rs. 2 crore who are subject to an audit are required to file GSTR 9C.
Essential documents include the balance sheet, Profit & Loss statement, cash flow statement, and a copy of the audited annual report.
Missing the due date attracts a penalty of Rs. 200 per day, with a maximum cap of 0.50% of the total turnover.
Yes, taxpayers can file GSTR 9C offline using the GST Offline Tool available on the GST portal.
Yes, GSTR 9C must be digitally signed by both the auditor and the taxpayer.
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