GSTR-9C : Reconciliation Statement & Certification - Filing, Format & Rules

Definition of GSTR-9C

GSTR-9C is a reconciliation statement that businesses in India must file annually as part of their GST return (GSTR-9). It is a certification of the reconciliation between the data declared in the annual return (GSTR-9) and the books of accounts maintained by the taxpayer.

In addition to the GSTR-9C audit form, the taxpayer must complete the reconciliation statement and obtain certification from an auditor. It must be certified by a professional accountant and failure to file it can result in penalties.

Who needs to file GSTR-9C

GSTR-9C is a reconciliation statement that needs to be filed by businesses registered under the Goods and Services Tax (GST) in India. The company must have a turnover of more than Rs. 2 crores in the financial year for which the return is being filed. All businesses must file the GSTR-9 return and the reconciliation statement (GSTR-9C) annually, along with certification from a Chartered Accountant or a Cost Accountant.

Significance of GSTR-9C in GST

GSTR-9C is important in the Goods and Services Tax (GST) system in India for several reasons:

1. Compliance: Filing GSTR-9C is a mandatory requirement for businesses registered under GST and non-compliance can result in penalties and legal consequences.

2. Reconciliation of Data: The GSTR-9C reconciliation statement provides a detailed comparison between the data declared in the annual return (GSTR-9) and the books of accounts maintained by the taxpayer. This ensures that the information declared in the return is accurate and complete.

3. Transparency: The certification by a Chartered Accountant or a Cost Accountant assures the Indian government that the reconciliation has been properly conducted and that the information declared in the return is accurate. This enhances the transparency and accountability of the GST system.

4. Detection of Errors: The reconciliation process helps in detecting any errors or discrepancies in the data declared in the return and the books of accounts, and provides an opportunity to correct them.

5. Maintenance of Records: GSTR-9C serves as an important record-keeping tool for businesses and helps in maintaining accurate records for tax purposes.

In summary, GSTR-9C is an important aspect of the GST system in India as it promotes compliance, ensures the accuracy of data, enhances transparency, helps detect errors, and supports record-keeping.

Format of GSTR-9C

There are two parts to registering for GSTR-9C:

1. Reconciliation Statement
2. Auditor Certification

Reconciliation Statement:

The GSTR-9C reconciliation statement requires the following information:

1. Total turnover as per books of accounts

2. Total tax liability as per books of accounts

3. Total input tax credit availed as per books of accounts

4. Total tax liability declared in GSTR-9

5. Total input tax credit declared in GSTR-9

6. Variance analysis between the data declared in GSTR-9 and books of accounts

7. An explanation for the differences, if any, between the two sets of data

Auditor Certification:

Being auditor certified in GSTR-9C means that a Chartered Accountant or a Cost Accountant has reviewed and certified the reconciliation statement filed as part of the annual GSTR-9 return by a business registered under the Goods and Services Tax (GST) in India. The certification confirms the precision and completeness of the reconciliation between the data declared in the annual return (GSTR-9) and the books of accounts maintained by the taxpayer. The certification assures the Indian government that the reconciliation has been appropriately conducted and that the information declared in the return is accurate. Failure to obtain the certification can result in penalties and legal consequences.

Documents for filing GSTR-9C

The following documents are required for filing GSTR-9C:

1. Books of accounts (ledgers, balance sheets, profit and loss statements, etc.)

2. Purchase and sales invoices

3. GST returns (GSTR-1, GSTR-2, GSTR-3) filed during the financial year

4. Bank statements and other financial documents that support the entries in the books of accounts

5. Certification from a Chartered Accountant or a Cost Accountant

These documents are needed to prepare the reconciliation statement which is a part of the GSTR-9C filing. The reconciliation statement compares the data declared in the GST returns with the books of accounts and ensures that the information declared is accurate and complete.

Download GSTR-9C

There are two ways to download GSTR-9C: online and offline.

Online Method:

1. Go to the GST portal. 
2. Log in with your username and password.
3. On the dashboard, click the "Annual Return" tab.
4. Choose the relevant fiscal year.
5. Click "Initiate e-filing" and file the GSTR-9 form first before filing the reconciliation form.

Offline Method:

1. Go to the GST portal. 

2. Select "Downloads" and go to "Offline Tools."

3. Find the GSTR-9C Offline Tool.

4. Download the tool and extract the zip file.

5. Enable the editing and content option.

6. Read the "Read Me" tab.

7. Fill in the basic details on the "Home" page like GSTIN, fiscal year, trade name, legal name, and Act. 

8. Confirm your choice when prompted and save the data before closing the tool.

Frequency of Filing

GSTR-9 and GSTR-9C must be filed annually together with a deadline of December 31st of the following financial year. For instance, the deadline for the financial year 2021-22 is December 31, 2022.

Consequences of Non-Filing

The consequences of non-filing of GSTR-9C in India can include:

1. Financial penalties: Late fees or penalties may be imposed for failing to file the GSTR-9C return on time.

2. Legal action: The government may take legal action against businesses that do not comply with the filing requirements for GSTR-9C.

3. Disruptions to business operations: Non-compliance with the filing requirements for GSTR-9C can result in disruptions to a business's operations, such as frozen bank accounts, seizure of assets, and other enforcement actions.

4. Loss of credibility: Failure to file the GSTR-9C return on time can damage a business's reputation and credibility in the eyes of suppliers, customers, and the government.

5. Missed opportunities: Failing to file the GSTR-9C return can result in missed opportunities to claim input tax credits or other benefits available under the GST regime.

Importance of accurate reconciliation of data

Accurate reconciliation of data in GSTR-9C is important because it helps ensure the correctness and completeness of the information declared in the annual return (GSTR-9) and the books of accounts maintained by the taxpayer. 

The reconciliation statement and certification by an auditor assure the Indian government that the data declared in the return is accurate and that the reconciliation has been appropriately conducted. 

Inaccurate reconciliation can result in penalties and legal consequences, so it is important to ensure that the reconciliation statement is accurate and properly certified.

Summary in Key points

Here is a summary of GSTR-9C in bullet points:

1. GSTR-9C is a reconciliation statement that must be filed annually along with the GSTR-9 return in India under the Goods and Services Tax (GST) regime.

2. The reconciliation statement certifies the accuracy and completeness of the data declared in the annual return (GSTR-9) and the taxpayer's books of accounts.

3. The certification must be done by a Chartered Accountant or a Cost Accountant.

4. The due date for filing GSTR-9 and GSTR-9C is December 31st of the next financial year for which the return is being filed.

5. Inaccurate reconciliation can result in penalties and legal consequences.

6. Accurate reconciliation helps ensure the correctness and completeness of the information declared in the return and the taxpayer's books of accounts.

7. The reconciliation statement and certification assure the Indian government that the data declared in the return is accurate and that the reconciliation has been appropriately conducted.