FORM GSTR-9C: What You Need to Know

Form GSTR-9C is a reconciliation statement filed by registered taxpayers under the Goods and Services Tax (GST) regime in India. It serves as a bridge between the annual GST returns filed in Form GSTR-9 and the taxpayer’s audited financial statements.

Are you familiar with FORM GSTR-9C? If you are a taxpayer registered under the Goods and Services Tax (GST) regime, it is essential to understand the significance of this form. In this article, we will delve into the intricacies of FORM GSTR-9C, its purpose, and how it can benefit you as a taxpayer.

Understanding FORM GSTR-9C

FORM GSTR-9C is a reconciliation statement and certification to be filed by taxpayers whose annual turnover exceeds a specified threshold. This form acts as an audit report, ensuring that the annual financials and GST returns filed by the taxpayer are in sync. It helps in reconciling the data furnished in the annual return (FORM GSTR-9) with the audited annual financial statements. By examining these documents together, any discrepancies or inconsistencies can be identified and rectified.

The Purpose of FORM GSTR-9C

The primary purpose of FORM GSTR-9C is to provide assurance to the government and other stakeholders regarding the accuracy and completeness of the GST returns filed by the taxpayer. It serves as a mechanism to enhance transparency, reduce errors, and boost compliance in the GST system.

Why is FORM GSTR-9C Important for Taxpayers?

As a taxpayer, filing FORM GSTR-9C can be beneficial in multiple ways. Let’s explore some of the key advantages:

1. Enhanced Compliance: By thoroughly reconciling the financial and GST data, FORM GSTR-9C helps in ensuring compliance with the GST laws and regulations. This, in turn, reduces the risk of penalties or legal complications.
2. Accurate Information: FORM GSTR-9C enables taxpayers to rectify any discrepancies or errors between their financial statements and GST returns. By providing accurate information, it helps in fostering trust among all stakeholders, including the government, vendors, and customers.
3. Risk Mitigation: The certification provided in FORM GSTR-9C by a Chartered Accountant or a Cost Accountant adds credibility to the taxpayer’s filings. It acts as a safeguard against potential audits and scrutiny, minimizing the risk of non-compliance.

Filing FORM GSTR-9C: A Step-by-Step Guide

Now that you understand the importance of FORM GSTR-9C, let’s walk through the process of filing this form:

1. Compile Data: Gather all the necessary financial documents, including the audited annual financial statements, reconciliation statements, and GST returns filed during the financial year under consideration.
2. Reconcile Data: Identify any discrepancies or differences between the financial statements and GST returns. Rectify these discrepancies to ensure accurate filing.
3. Prepare and Certify FORM GSTR-9C: Fill out FORM GSTR-9C using the offline utility provided by the GST portal. Seek certification from a Chartered Accountant or a Cost Accountant, who will review the information and verify its correctness.
4. Upload on the GST Portal: Once the form is prepared and certified, upload it on the GST portal. Ensure that all the required fields are filled correctly and all supporting documents are attached.
5. Submit and Verify: After uploading FORM GSTR-9C, submit it on the portal. Verify the form using the electronic verification code (EVC) or digital signature certificate (DSC).
6. Acknowledgment and Compliance: Once the form is successfully submitted, you will receive an acknowledgment. Ensure that you comply with any further actions or requests from the tax authorities.

FORM GSTR-9C plays a crucial role in the GST compliance framework. It provides a comprehensive reconciliation of financial and GST data, enhances transparency, and minimizes the risk of non-compliance. By diligently filing and certifying FORM GSTR-9C, taxpayers can build trust, ensure accuracy, and mitigate any potential audit or scrutiny. Stay updated with the latest GST regulations and guidelines to ensure smooth and seamless compliance.

Applicability of Form GSTR-9C

Form GSTR-9C is mandatory for all registered taxpayers whose aggregate turnover exceeds ₹5 crore in a financial year. It is also applicable to non-profit organizations, including charitable trusts and educational institutions, if their aggregate turnover exceeds ₹5 crore.

Due Date for Filing Form GSTR-9C

The due date for filing Form GSTR-9C is within 30 days from the date of filing the audited annual financial statements. The audited financial statements must be prepared and certified by a chartered accountant (CA).

Format of Form GSTR-9C

Form GSTR-9C consists of two parts:

• Part A: This part contains general information about the taxpayer, such as PAN number, GSTIN, name of the business, and financial year.
• Part B: This part is divided into four sections:
  • Section I: Reconciliation of turnover
  • Section II: Reconciliation of input tax credit (ITC)
  • Section III: Reconciliation of output tax liability
  • Section IV: Reconciliation of other tax liabilities

Filing Process for Form GSTR-9C

Form GSTR-9C can be filed electronically on the GST Portal. The taxpayer needs to log in using their credentials and select the ‘Return Dashboard’ option. From there, they can choose the ‘File GSTR-9C’ option and follow the instructions.

Penalties for Non-Compliance

Failure to file Form GSTR-9C within the due date can attract a penalty of ₹10,000 per day of delay. Additionally, there may be further consequences, such as suspension of GST registration.

Importance of Form GSTR-9C

Form GSTR-9C plays a crucial role in ensuring compliance with GST regulations and streamlining the reconciliation process between GST returns and audited financial statements. It helps in maintaining transparency and accountability in the taxpayer’s financial reporting.