GSTR 9C is an annual audit form for all the taxpayers having the turnover above 2 crores in a particular financial year. It includes reconciliation Statement for a particular FY to be filed by taxpayers on or before 31st December after being certified by CAs/CMA. However, the due date for the same has been extended to 30th June 2019 in the 31st GST Council Meeting. It must be filed along with or after filing of the GSTR-9 i.e. GST annual return.
GSTR 9C form has a reconciliation statement for reconciling turnover, input tax credits and tax payments.
Let’s see in brief about GSTR 9C:
|Sr. No.||Key Points||GSTR 9C|
|2||Applicable to||Every registered person, whose aggregate turnover during a financial year exceeds the prescribed limit of Rs. 2 Crore, shall get his accounts audited by a chartered accountant or a cost accountant and need to file GSTR 9C.|
|3||Due date||31st December of the subsequent financial year E.g. 31st December 2018 with or after filing GSTR-9 for FY 2017-18 Due date extended to 30th June 2019 for FY 2017-18 (Order No.03/2018-Central tax)|
|4||Penalty||In a situation where a registered person files only GSTR 9, but fails to file GSTR 9C, the filing of GSTR 9C is not considered to have been defaulted. However, For GSTR 9C there may be consequences of default in complying with the provisions of Section 44(2).|
|5||Return consist of||GSTR-9C consists of two main parts:
Part-A: Reconciliation Statement Part-B: Certification
|6||GSTR 9C - Part A consist of||Part A divided into 5 sections:
|7||GSTR 9C – Part B consist of||Part B is about GST auditor need to provide certificatification based on audits|
|8||Is it possible to revise GSTR 9C||There is no provision enabling a dealer to file revised Form GSTR 9C.|
|9||Documents required to be submitted along with GSTR 9C||Documents required to be submitted along with the Reconciliation statement in GSTR 9C are Audited Financial Statements such as
Structure of reconciliation statement under GSTR 9C
The reconciliation statement is required to be prepared in two parts:-
Let us understand both the parts in detail:
Part A – Reconciliation Statement
This part if further subdivided into 5 parts as discussed below:
It seeks the basic details about the registered person i.e. FY, GSTIN, legal name, trade name. In addition, it also requires mentioning as to whether the registered person is liable to be audited under any other Act and if yes, the reference to that Act has to be specified.
This part requires the reconciliation of turnover declared in an audited financial statement with the turnover declared in Annual return (GSTR 9).
This part deals with the reconciliation of taxes paid
This part deals with reconciliation of Input Tax Credits as per books of account and ITC as declared in the Annual Return.
Auditor needs to recommend additional liability arising due to non-reconciliation. The additional liability has be mentioned separately under various categories of rates of tax, input tax credits, interest, late fees, penalty, any other amount not included in the GSSTR-9, erroneous refund to be paid back and outstanding demands to be settled.
Part B: Auditor Certification
This part provides the format of certification by the auditor. The Format I is applicable when the certification is done either by the chartered accountant/cost accountant who had conducted the audit whereas Format II is applicable where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts.
So, while GSTR9 is your annual return, GSTR9C is more of an audit certification. Read our blog on GSTR 9 and GSTR9C for more details.
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