Summary: GSTR-9 is a mandatory annual return for GST-registered taxpayers, providing a summary of all returns filed throughout the year. It consolidates data on outward and inward supplies, tax liabilities, and Input Tax Credit (ITC) claims, helping to ensure compliance with GST laws. While all GST-registered taxpayers must file GSTR-9, those with turnover over ₹5 crores must also submit GSTR-9C, a reconciliation statement that aligns GST returns with audited financial statements. Filing is due by December 31, with penalties for late submission. GSTR-9 includes sections on basic details, supplies, ITC, tax payments, amendments, and other financial data. Discrepancies between filed returns and books must be reconciled, and additional taxes, if any, must be paid via FORM DRC-03. Taxpayers are encouraged to review their GSTR-1, GSTR-3B, and financial records before submission. GSTR-9C, now self-certified, ensures accurate reporting and can only be filed once GSTR-9 is completed. Late filing leads to fines, affecting both compliance ratings and legal standing. Proper preparation and timely filing of GSTR-9 and GSTR-9C are essential for maintaining GST compliance and avoiding penalties.
Detailed Note on GSTR-9: Annual Return
Introduction
GSTR 9 is an annual return to be filed yearly by regular taxpayers registered under GST, including SEZ units and SEZ developers. GSTR-9 is an annual return under the Goods and Services Tax (GST) system that consolidates information from monthly or quarterly returns filed during the financial year. It is a reconciliation of outward and inward supplies, input tax credits (ITC), tax paid, and any adjustments made during the year. The purpose of GSTR-9 is to provide a comprehensive summary of the taxpayer’s GST compliance and operations for the year.
Section 44 of the CGST Act, 2017 read with Rule 80 of the CGST Rules, 2017, outline the provisions for furnishing annual return. Section 44 of the CGST Act, 2017 stipulates the provisions of filing annual returns by every registered person, which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement for every financial year. Rule 80 of the CGST Rules, 2017 prescribes FORM GSTR-9 as the form of Annual Return for a registered Taxpayer. (Section 44 of CGST Act, 2017) (Rule 80 of CGST Rules, 2017
Who Should File GSTR-9?
1. Mandatory Filing: All registered taxpayers under GST, including regular taxpayers and those opting for the composition scheme, are required to file GSTR-9.
2. Exempted Entities:
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- Casual taxable persons.
- Input service distributors (ISD).
- Non-resident taxable persons.
- Taxpayers paying tax under TDS/TCS provisions.
- Filing of annual returns is also not applicable in the case of any department of the Central Government, State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed to audit the accounts of local authorities.
The Annual Return needs to be filed if the taxpayer was registered for even a single day in a particular financial year.
If a Taxpayer has obtained multiple GST registrations, under the same PAN, whether in the same State or different States, he is required to file the Annual Return for each registration separately, where the GSTIN was registered as a normal taxpayer for some time during the financial year or for the whole of the financial year.
Types of GSTR-9
1. GSTR-9: For regular taxpayers registered under GST.
2. GSTR-9A: For taxpayers registered under the composition scheme (discontinued from FY 2019-20).
3. GSTR-9C: A reconciliation statement applicable to taxpayers whose aggregate turnover exceeds ₹5 crores and requires certification by a Chartered Accountant or Cost Accountant.
Structure of GSTR-9
GSTR-9 consists of six parts divided into multiple tables:
Part I: Basic Details (Tables 1-3)
- Includes basic information about the taxpayer, such as GSTIN, legal name, and trade name (if any).
- Covers the period for which the return is filed.
Part II: Details of Outward and Inward Supplies (Tables 4-5)
- Consolidates information about:
- Taxable outward supplies (B2B, B2C, exports, exempt, and nil-rated supplies).
- Inward supplies under reverse charge.
- Amendments made to outward supplies during the year.
Part III: ITC Details (Tables 6-8)
- Includes:
- ITC availed on inward supplies (inputs, capital goods, and services).
- ITC reversed or ineligible as per rules.
- Reconciliation of ITC as per GSTR-3B and GSTR-2A.
Part IV: Tax Paid (Table 9)
- Summarizes details of taxes paid, including CGST, SGST, IGST, cess, and interest/penalties.
Part V: Amendments and Transactions (Tables 10-14)
- Covers amendments related to previous financial years.
- Reports supplies and ITC adjustments made after March 31 but before filing the annual return.
Part VI: Other Information (Tables 15-19)
- Includes details of:
- Refunds claimed and sanctioned.
- Demands raised and settled.
- HSN-wise summary of outward and inward supplies.
- Late fees paid, if applicable
Key Points About GSTR-9
1. Time of Filing:
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- GSTR-9 must be filed by 31st December following the end of the financial year.
- Extensions, if any, are notified by the GST Council.
2. Late Filing Penalty: A late fee of ₹200 per day (₹100 each for CGST and SGST) applies, subject to a maximum of 0.25% of turnover in the state or union territory.
3. Reconciliation Requirements: Ensures that data reported in GSTR-1 and GSTR-3B align with the details in GSTR-9.
Exemptions for Filing
1. Optional Filing for Small Taxpayers: For taxpayers with aggregate turnover up to ₹2 crores, filing GSTR-9 is optional for FY 2017-18 to FY 2021-22.
2. Composition Dealers: GSTR-9A filing was waived for FY 2019-20 and later years.
Common Challenges in Filing GSTR-9
1. Reconciliation Issues: Discrepancies between GSTR-1, GSTR-3B, and GSTR-2A.
2. Errors in ITC Reporting: Misclassification of eligible and ineligible ITC.
3. Data Compilation: Collecting data for the entire financial year from various returns
Preparation for Filing GSTR-9
1. Verify Monthly/Quarterly Returns: Ensure GSTR-1 and GSTR-3B filings are accurate.
2. Reconcile Books of Accounts: Match turnover and tax liability with financial statements.
3. Check ITC Records: Ensure ITC claimed matches invoices uploaded by suppliers.
4. Resolve Discrepancies: Amend discrepancies in the next available period or as per GST laws.
Consequences of Non-Filing
1. Penalties: Late fees and potential interest on unpaid taxes.
2. Compliance Rating: Non-filing affects the GST compliance rating of the taxpayer.
3. Legal Actions: Persistent defaults can lead to suspension or cancellation of GST registration.
Conclusion
GSTR-9 is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in the relevant year. This return is a complete document that summarises information on outward supplies made, inward supplies received, Input tax credits availed, and tax payments made during the financial year and helps in extensive reconciliation of data.
The common portal allows the Taxpayers to obtain a system-computed consolidated summary of GSTR-9, GSTR-1 and GSTR-3B. This summary is based on the monthly returns filed by the registered person and includes details like, the taxable value, liabilities paid through ITC and cash, ITC claims and reverse charge. GSTR-9 is auto-populated based on GSTR-1 & 3B and is for reference purpose only. It provides with an option to edit the auto-populated data with certain exceptions, so as to enable the Taxpayer to report the correct figures of liability in GSTR-9, which is matching with the accounts and other records.
The Taxpayer can report additional liability that was not reported in GSTR-1 or GSTR-3B and pay such liability through FORM DRC-03. However, the Taxpayer is not allowed to avail additional ITC through GSTR-9.
The GSTR-9 return has to be filed electronically on the GST common portal by 31st December, following the end of the financial year. Delay in filing the Annual Return attracts Late Fees at the applicable rate.
No revision of the GSTR-9 return filed is permissible.
GSTR-9 serves as an important tool for taxpayers and authorities to ensure GST compliance and transparency. Proper reconciliation and timely filing of GSTR-9 not only help avoid penalties but also maintain the taxpayer’s credibility. Businesses should prepare well in advance to ensure accurate reporting and smooth submission of the annual return. Consulting with tax professionals can be advantageous for efficient and error-free compliance.
Detailed Note on GSTR-9C: Self-Certified Reconciliation Statement
Introduction
GSTR-9C is a reconciliation statement that bridges the gap between the financial statements of a taxpayer and the annual return filed in GSTR-9. It ensures consistency in reported data and tax compliance under the GST regime. GSTR-9C is self-certified by the taxpayer and includes a detailed comparison of the declared turnover, tax liabilities, and ITC in the GST returns with audited financial statements.
The statement is mandatory for taxpayers whose aggregate turnover exceeds ₹5 crores in a financial year.
GSTR-9C is a self-certified reconciliation statement between the books of account and the GSTR-9 return to be filed by every registered Taxpayer under GST, whose turnover during a financial year exceeds the prescribed limit of Rs. 5 Crore.
Besides the category of Taxpayers exempt from filing GSTR-9 Annual Return, all foreign companies which are in the airline business and compliant with the relevant provisions and rules of the Companies Act 2013, are exempted from the GSTR-9C requirement.
(II) Rule 80(3) read with Notification No 49/2018-CT, dated 13-9-2018, substituted vide Notification No 74/2018-Central Tax dated 31-12-2018, has notified the FORM GSTR-9C under Section 44 of CGST Act, 2017, for filing a self-certified reconciliation statement by a registered taxpayer filing Annual Return in FORM GSTR-9. For the financial year 2022-23, the Annual return forms have been notified vide Notification No. 38/2023-Central Tax dated 04.08.2023. (Rule 80(3) of CGST Rules, 2017) (Section 44 of CGST Act, 2017)
The certification by a Cost Accountant or Chartered Accountant has been done away vide Notification No. 56/2019- CT dated 14-11-2019 and self-certification has been introduced.
GSTR-9C is to be filed along with the GSTR-9 and audited Financial Statement, by 31st December following the end of the financial year. Delay in filing GSTR-9C attracts general penalty under Section 125 of the CGST Act, 2017. (Section 125 of CGST Act, 2017)
GSTR-9C is a self-certified reconciliation statement that reconciles the value of supplies declared in the return furnished for the financial year with the audited Annual Financial Statement and GSTR-9 return. In GSTR-9C a registered Taxpayer is required to reconcile turnover, tax paid, and ITC availed as per books of accounts with GSTR-9 and provide reasons for the difference. Differential tax, if any, has to be paid vide FORM GST DRC-03.
GSTR-9C is to be filed for every GSTIN with one PAN, registered in different States or Union Territory.
GSTR-9C acts as a base for the Proper Officer to verify the correctness of the GST returns filed by the taxpayers after a self-certification.
Applicability
1. Mandatory for Large Taxpayers: Taxpayers with an aggregate turnover exceeding ₹5 crores in a financial year must file GSTR-9C along with GSTR-9.
2. Self-Certification: Starting from FY 2020-21, taxpayers can self-certify GSTR-9C. The requirement for certification by a Chartered Accountant or Cost Accountant was removed.
Contents of GSTR-9C
GSTR-9C is divided into two main parts:
Part A: Reconciliation Statement
This section contains detailed reconciliation between:
1. Turnover as per Audited Financial Statements: Reconciliation of gross and taxable turnover declared in financial statements with that in GSTR-9.
2. Tax Liability: Reconciliation of tax liability as per GSTR-9 and financial records.
3. ITC Claimed: Reconciliation of ITC claimed in GSTR-9 with ITC availed in books of accounts.
4. Adjustments: Any additional liability due to reconciliation differences is also reported.
Part B: Certification
1. Self-Certification: Taxpayer provides a certification regarding the correctness of the reconciliation.
2. Details of Auditor (Optional): Earlier, details of the Chartered Accountant or Cost Accountant certifying the statement were mandatory.
Key Components of GSTR-9C
1. Turnover Reconciliation: Compares the turnover in financial statements with turnover reported in GSTR-9.
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- Identifies unreported transactions, adjustments for exempt supplies, and revenue not subjected to GST.
2. Tax Paid and Payable: Matches the tax liability paid through cash and ITC with the liability declared in GST returns.
3. Input Tax Credit Reconciliation: Aligns ITC as per books with ITC claimed in GSTR-9 and identifies mismatches, reversals, or ineligible credits.
4. Demand and Refund Details: Provides details of tax demands raised or refunds claimed during the financial year.
How to File GSTR-9C
1. Preparation: Collect and verify data from financial statements, GSTR-1, GSTR-3B, and GSTR-9.
2. Filing Platform: File through the GST portal.
3. Submission: Upload the reconciliation statement along with GSTR-9.
Documents Required
1. Audited financial statements.
2. GSTR-9 (annual return).
3. Tax audit report (if applicable).
4. Trial balance and detailed accounts for the financial year.
Penalties for Non-Filing
1. Late Fees: Late fees for GSTR-9C are the same as for GSTR-9: ₹200 per day (₹100 CGST and ₹100 SGST), up to 0.25% of turnover.
2. Other Consequences:Non-filing can lead to notices from tax authorities and loss of compliance rating.
Benefits of GSTR-9C
1. Ensures Transparency: Highlights discrepancies between financial and GST data.
2. Improves Compliance: Encourages accurate reporting and tax payment.
3. Protects Revenue: Assists tax authorities in identifying under-reported liabilities and unclaimed ITC.
Challenges in Filing GSTR-9C
1. Data Reconciliation: Matching financial records with GST returns can be complex and time-consuming.
2. Multiple Adjustments: Identifying and reconciling adjustments for exempt supplies, non-GST income, and taxable supplies require meticulous effort.
3. Complex ITC Reconciliation: Differentiating between eligible, ineligible, and reversed ITC.
Key Amendments
1. Self-Certification: From FY 2020-21, taxpayers can self-certify GSTR-9C, eliminating the requirement for third-party certification by Chartered Accountants or Cost Accountants.
2. Turnover Threshold: Only taxpayers with turnover exceeding ₹5 crores are required to file GSTR-9C.
Conclusion
GSTR-9C serves as a vital reconciliation tool for large taxpayers, ensuring consistency between GST returns and audited financial statements. The shift to self-certification has simplified compliance while retaining the emphasis on accuracy and accountability. Taxpayers should prepare well in advance, reconcile data thoroughly, and maintain accurate records to avoid discrepancies and penalties.
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