GSTR 9C FILING

What is GSTR 9C?

The GSTR9C is an audit form that was introduced on September 13, 2018. It must be filed annually by taxpayers with a turnover above 2 crores, and it must be certified by a CA. It is basically a reconciliation statement between the annual returns filed in GSTR-9 and the taxpayer’s audited annual financial statements.synmac provide you the best gst return filing consultants in bangalore, chennai & delhi.

The form will contain the taxpayer’s gross and taxable turnover according to their accounting books, reconciled with the corresponding figures after consolidating all of their GST returns for the financial year, and any difference revealed by the reconciliation. The difference, and the reason for it, should be mentioned explicitly. A GSTR-9C must be issued for every GSTIN.

Who should file GSTR 9C?

Every taxpayer who is liable to get their annual reports audited is required to file GSTR9C. (A taxpayer must get their annual reports audited under GST law if their annual aggregate turnover exceeds Rs. 2 crores within a financial year.)

To file a GSTR9C, a chartered accountant or cost accountant must first prepare and certify the form, after which the taxpayer must file it either on the GST portal or through a facilitation center. The taxpayer may also be required to submit other documents along with the GSTR9C form, such as a copy of their audited accounts and their annual returns in a GSTR-9 form. synmac provide you the best gst return filing consultants in bangalore, chennai & delhi.

When to file GSTR 9C?

Typically, the GSTR9C must be filed on or before the 31st of December following the financial year which is under audit.

Penal Consequences

Taxpayers who do not meet the obligation prescribed under this provision will be incurred with a penal charge of Rs. 200 per day of default (100 each for SGST and CGST). This will be in addition to interest at the rate of 18% per annum, which will be calculated from the outstanding tax amount.

Contents of the Form

GSTR-9C is divided into the following parts:

• Part A: Reconciliation Statement

• Part B: Certification

Part A: Reconciliation Statement

Part A of the form is further divided into five sections. Here’s an overview:

Part-I -basic details: Includes details of Financial Year, Legal Name and Trade Name. Here, the taxpayer is required to specify whether he/she is liable for audit under any other prevailing laws.

Part II – reconciliation of declared turnover: This part prompts for the reporting of the gross and taxable turnover declared in the Annual Return with the Audited Financial Statements. It may be noted that in normal cases, the Audited Financial statement is at a PAN level. Such a scenario may mandate the need of breaking up of the Audited Financial Statement at GSTIN level for reporting in GSTR-9C.

Part III – reconciliation of tax paid: In this part, the tax liability of the previous year and the respective payments (as reported in GSTR-9) with the differences thereof must be specified rate-wise. In addition to this, it mandates the taxpayers to state the additional liability due to unreconciled differences noticed upon reconciliation.

Part IV- reconciliation of Input Tax Credit (ITC): Part IV entails the reconciliation of Input Tax Credit (ITC) claimed and utilized by the taxpayers (as reported in GSTR-9 and the Audited Financial Statement). This must be supported with a report of the expenses booked in accordance with the audited accounts, which includes a breakup of eligible and ineligible ITC and reconciliation of the eligible ITC.

Part V – recommendation of the auditor on additional liability due to non-reconciliation: The concluding part of the reconciliation statement mandates the auditor to report any tax liability identified through the reconciliation exercise and GST audit, the payment of which remains to be paid by the taxpayer.

Part B: Certification.

As already observed, Form GSTR 9C requires the certification of a chartered or cost accountant. Part B of the form caters to this purpose. The certification can either be done by a CA who had conducted the audit or another person of a similar designation. With respect to the latter, the concerned personnel must have based an opinion on the Books of Accounts audited by another CA in the reconciliation statement. synmac provide you the best gst return filing consultants in bangalore, chennai & delhi.

Steps to Generate Form GSTR-9C JSON File Offline

• Step 1: Visit the GST Portal.

• Step 2: Download the Utility

1. Go to Downloads>Offline Tools>GSTR-9C Offline Tool and click download.

2. Unzip the GSTR-9C offline utility into an excel file.

Note: The offline functions of the utility work best on Windows 7 and above and MS EXCEL 2007 and above and the same is not mobile compatible.

Step 3: Fill the Utility

Open the ‘Read Me’ instructions page and fill the worksheets of GSTR-9C. A taxpayer can also download the GSTR-9C tables derived from GSTR-9 in PDF format, after logging in to their account, and pass on the same to the auditor. An auditor can use these tables for updating the offline utility of GSTR-9C.synmac provide you the best gst return filing consultants in bangalore, chennai & delhi.

After updating the utility an auditor should generate the JSON file and shall affix his digital signature. Upon completion of verification and signing, he should pass on the JSON file to the taxpayer for uploading.

Note: A taxpayer cannot make any changes to the JSON file generated by the taxpayer. The system validates the same before filing the Form.

Step 4: Upload GSTR-9C

1. Login to the GST portal and go the ‘Returns Dashboard’. Select the financial year, tax period and then click ‘Prepare Offline’.

2. Click on the ‘Upload’ option to upload the JSON file prepared using the offline tool. The uploaded file will be validated and processed by the portal.

Note: 1.In case the JSON file is uploaded with error, a taxpayer can return the same to the auditor for correction. After correction, the same can be re-uploaded.

2. The GSTR-9C utility can be downloaded by a taxpayer without logging-in to the portal, however, to upload the same a user needs to login to the portal.

Step 5: Preview the Form Before Filing (Steps to File are Listed Below)

A taxpayer should preview the form before proceeding to file GSTR-9C. A taxpayer should preview the form carefully as GSTR-9C cannot be revised, however, changes if any, can be incorporated through form GST DRC-03.

Steps to Upload and File Form GSTR-9C Online

Step 1: Login to the GST portal and go to returns dashboard and click on ‘Annual Return’.

Select the financial year from the drop-down menu.

Step 2: Select ‘Initiate e-filing’ to file GSTR-9C. A pop-up will appear on the screen asking to file GSTR-9 before filing GSTR-9C.

Step 3: File GSTR-9 if not already filed.

Step 4: After filing GSTR-9, upload the JSON file of GSTR-9C (as per steps mentioned above). Then go back and click on ‘Initiate Filing’ under the GSTR-9C options.

Step 5: Attach the balance sheet, profit and loss statement or statement of income and expenditure, cash flow statement, and the UDIN generated by the Chartered Accountant.

Step 6: Proceed to file GSTR-9C with EVC or digital signature, as applicable.