It must be noted here that due date of filing of FORM GSTR 9C would be same as that of annual return in FORM GSTR 9 i.e. 31st December of the subsequent financial year. First Goods and Service Tax audit and filing of the audit report in FORM GSTR 9C is currently in the limelight with its soon emerging due date 31st December, 2018. The present article provides basic understanding of audit report in FORM GSTR 9C.
Simply saying, GSTR 9C is a reconciliation statement which provides a reconciliation between the following figures –
The difference between the aforesaid figures needs to be reported in GSTR 9C along with the reason for the said difference.
Central Board of Indirect Taxes and Customs (CBIC), vide notification no. 49/2018 – Central Tax dated 13th September, 2018, had published / provided the format of FORM GSTR 9C.
Broadly classifying, FORM GSTR 9C is divided in to below mentioned two basic parts –
Part A – Reconciliation Statement; and
Part B – Certification
Part A – Reconciliation Statement is sub-divided into 5 different parts. The said sub-divided 5 parts of Part A, along with the basic understanding of the same, is tabulated hereunder –
|I||Basic details||Details of the Financial year, GSTIN, Legal name and whether liable for audit under any act or not needs to be provided.|
|II||Reconciliation of turnover declared in the audited Annual Financial Statement with turnover declared in Annual Return (GSTR 9)||As the title itself clarifies, reconciliation of gross and taxable turnover, comparing figures reflected in audited financial statement and figures reflected in GST annual return, needs to be provided and in case of any difference in the same the reason for the same needs to be mentioned.|
|III||Reconciliation of tax paid||Rate-wise bifurcation of tax liability is required to be provided here and in case of any difference in tax paid and tax declared in annual return (FORM GSTR 9) the appropriate reason for the said difference needs to be provided here.|
|IV||Reconciliation of Input Tax Credit||Input tax credit reflected in the audited financial statement would be reconciled with the input tax credit claimed in annual return (GSTR 9) and in case of any difference, in the same, appropriate reason for the same needs to be provided here.|
|V||Auditor’s recommendation on additional liability due to non-reconciliation||This is auditor’s column, under this part the auditor is required to recommend the additional liability, if any, on account of a difference in either the turnover or the input tax credit or both or any other amount payable.|
Likewise, Part B – Certification is sub-divided into 2 different parts. The said sub-divided 2 parts of Part B, along with the basic understanding of the same, is tabulated hereunder –
|I||Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit.||The title itself is self-explanatory. In case the person who has conducted an audit is certifying FORM GSTR 9C then the part I is applicable.|
|II||Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who has conducted the audit of the accounts.||The title itself is self-explanatory. In case the person other than the person who has conducted an audit is certifying FORM GSTR 9C then part II is applicable.|