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A Complete Guide to Preparing GSTR 9C: Explained Table-wise

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A Complete Guide to Preparing GSTR 9C: Explained Table-wise

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
1 Scope
  • It is GST annual audit Form
  • And it also includes reconciliation statement for reconciling turnover, input tax credits and tax payments.
  • It should be Certified by CA/CMA
  • Auditor will report all discrepancies or liabilities found in any of the GST returns
  • Auditor will also mention the reasons of discrepancies found
  • And it must be digitally signed by the GST Auditor
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:
  • Part I : Basic details
  • Part-II : Reconciliation of turnover declared in the Audited Annual Financial Statement with turnover declared in Annual Return (GSTR-9)
  • Part-III : Reconciliation of tax paid
  • Part-IV : Reconciliation of Input Tax Credit (ITC)
  • Part-V : Auditor’s recommendation on additional Liability due to non-reconciliation
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
  • Balance Sheet
  • Profit & Loss account or Income & expenditure account
  • Cash flow statement
  • Others prescribed

Structure of reconciliation statement under GSTR 9C

The reconciliation statement is required to be prepared in two parts:-

  • Part A is the reconciliation statement
  • Part B is the certification by the chartered accountant or the cost accountant who has drawn the Part A.

Let us understand both the parts in detail:

Part A – Reconciliation Statement

This part if further subdivided into 5 parts as discussed below:

  1. Part-I Basic details

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.

  1. Part II

This part requires the reconciliation of turnover declared in an audited financial statement with the turnover declared in Annual return (GSTR 9).

  • Table 5 - Need to provide reconciliation between Gross turnover and need to mention un-reconciled turnover
  • Table 6 - Auditor need to explain reason of un-reconciled gross turnover
  • Table 7 - Need to provide reconciliation between taxable turnover and need to mention un-reconciled turnover as declared in the audited annual financial statement with the GSTR-9 taxable turnover. The difference between Table 5 and Table 7 is that in case of Table 5, the reconciliation is between gross turnover (which includes taxable as well as non-taxable turnover) whereas Table 7 provides for reconciliation between taxable turnover.
  • Table 8 - Need to explain reason of un-reconciled taxable turnover
  1. Part III

This part deals with the reconciliation of taxes paid

  • Table 9 - Need to provide reconciliation of rate wise liability and the amount payable thereon. The turnover in the audited annual financial statement may be liable to tax at different rates. There is need to provide details of taxable value and tax payable for goods or services supplied at various rates. This amount is required to be compared with the total turnover and tax liability declared in the Annual Return.
  • Table 10 - Auditor need to explain the reasons for un-reconciled payment of amount.
  • Table 11 - This table is summary of the additional amount payable. The tax declared under this table has to be paid in cash.
  1. Part IV

This part deals with reconciliation of Input Tax Credits as per books of account and ITC as declared in the Annual Return.

  • Table 12 - Need to provide reconciliation of net input tax credits as per audited annual financial statements for the GSTIN and Input Tax Credit availed in the GSTR-9 suitably adjusted for the credits pertaining to the one financial year availed in different financial year. The difference between the two is un-reconciled ITC.
  • Table 13 - Need to provide reasons for un-reconciled ITC has to be declared
  • Table 14 - This table requires submission of details as to the credits availed on various categories of expenses as per audited annual financial statement or books of account. This detail has to be reconciled with the credits availed in the GSTR-9
  • Table 15 - Need to provide a reason of the difference in credits arrived under Table 14 have to be reported under this table.
  • Table 16 - Auditor need to comment upon the tax payable on un-reconciled differences in ITC which has arisen in table 13 and Table 15.
  1. Part V

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.

IRIS Sapphire’s GSTR9 utility fetches all the filed data from GSTN in one go. IRIS Sapphire also provides you with working details of the auto-drafted sections of GSTR9 to ease your computations. This saves you enough last minute frenzy waiting for government releases, as you are all set with your data way ahead of time to cross verify the computations done by the government. And You can do all of this even if you have not been filing your monthly GST returns through IRIS!

To know more about IRIS Sapphire and how it can ease your GSTR9 preparation, please visit https://irisgst.com/gstr9/ or write to support@irisgst.com.

About Ashwini Gorhe

Ashwini

Ashwini Gorhe, a Chartered Accountant, is associated with IRIS as a Financial Analyst. She has around 6 years of experience in compliance space which includes XBRL reporting, GST and Data analysis. She is actively involved in the IRIS Sapphire (GST filing solution) and IRIS Topaz (E-way bill solution) product development. Before GST, she was handling US compliance analyzing US financial statements and reviewing XBRL filings for US and India market.

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