What Is GSTR-9C?

Understanding GSTR-9C for GST Filing

GSTR-9C is an annual reconciliation statement that must be filed by taxpayers whose annual turnover exceeds ?2 crores during a financial year under the Goods and Services Tax (GST) regime in India. 

Key Features of GSTR-9C:

1. Reconciliation Statement:

GSTR-9C is a reconciliation statement that taxpayers file along with their annual return (GSTR-9) to reconcile the data reported in their GST returns with the audited financial statements.

2. For Large Taxpayers:

GSTR-9C is applicable to taxpayers whose annual turnover exceeds ?2 crores during a financial year. 

These taxpayers are required to submit the reconciliation statement certified by a Chartered Accountant (CA) or Cost Accountant (CMA).

3. Verification of GST Data:

Taxpayers compare the data reported in their GST returns (GSTR-1, GSTR-3B, etc.) with the financial statements to ensure accuracy and consistency.

4. Certification by Auditor:

A Chartered Accountant (CA) or Cost Accountant (CMA) certifies the reconciliation statement after verifying the accuracy of the GST data and financial statements.

5. Disclosure of Discrepancies:

GSTR-9C requires taxpayers to disclose any discrepancies or differences identified during the reconciliation process and provide explanations for the same.

6. Additional Information:

Taxpayers may provide additional information or explanations related to the reconciled data, if necessary, to ensure clarity and transparency.

 Key Sections in GSTR-9C:

Part A: Basic details such as GSTIN, legal name, and trade name (if any) of the taxpayer.

Part B: Certification details, including the name and membership number of the certifying auditor.

Part C: Reconciliation of turnover declared in audited financial statements with turnover declared in annual return (GSTR-9).

Part D: Reconciliation of tax paid as per audited financial statements with tax paid as per annual return (GSTR-9).

Part E: Reconciliation of input tax credit (ITC) claimed in audited financial statements with ITC claimed in annual return (GSTR-9).

Part F: Auditor's observations and findings, including any discrepancies or differences identified during the reconciliation process.

Part G: Auditor's certification and declaration regarding the accuracy and completeness of the reconciliation statement.

Benefits of GSTR-9C:

Ensures Accuracy and Compliance: Helps taxpayers ensure accuracy and compliance with GST regulations by reconciling GST data with audited financial statements.

Enhances Transparency: Promotes transparency in the GST system by providing a mechanism for independent verification and certification of reconciliation statements by qualified auditors.

Facilitates Taxpayer Confidence: Increases taxpayer confidence in the accuracy and reliability of GST data and financial reporting.