GSTR forms are mandatory documents used to file GST returns in India, detailing a taxpayer's sales, purchases, and tax liability. These forms, including GSTR-1, GSTR-3B, and GSTR-9, help the government track tax compliance and collect revenue efficiently. Additionally, understanding the place of supply in GST is crucial, as it determines the appropriate tax jurisdiction for reporting. Businesses must submit these forms periodically to ensure transparency and avoid penalties, maintaining adherence to GST regulations.
What is GSTR 9?
GSTR 9 is an annual return form that businesses registered under GST must file once a year. This comprehensive return consolidates all the monthly or quarterly returns, such as GSTR 2, filed during the financial year. It includes detailed information about the inward and outward supplies, input tax credit (ITC) availed, taxes paid, and refunds claimed. Filing GSTR 9 is mandatory for every taxpayer, except for casual taxpayers, non-resident taxpayers, and input service distributors. By ensuring accurate and timely submission of GSTR 9, businesses maintain compliance with GST regulations and avoid penalties.
What is GSTR 9C?
GSTR 9C is a reconciliation statement that businesses with an annual turnover exceeding Rs. 2 crores must file along with their annual return GSTR 9. This statement includes a thorough reconciliation between the audited annual financial statement and the annual return filed in GSTR 9. It also requires a certification from a Chartered Accountant (CA) or a Cost Accountant (CMA). The purpose of GSTR 9C is to ensure accuracy and transparency in the reported GST data and to identify discrepancies that may need to be addressed by the business. To address certain discrepancies, businesses may need to issue a debit note in GST, which adjusts tax liabilities for previous transactions.
Understand the comparison between GSTR 9 and GSTR 9C
Points of comparison |
GSTR-9: Annual return |
GSTR-9C: Reconciliation statement |
Nature |
Informational/ a consolidation of all GST returns |
Analytical statement on GST returns to be self-certified by CFO/Finance head |
Who must file |
GST registered taxpayer |
GST registered taxpayer to whose aggregate annual turnover is more than Rs 5 crore |
Not applicable to |
|
Those persons mentioned under the column for GSTR-9 including a registered person whose aggregate turnover in an FY is less than Rs 5 crore |
Optional for |
Businesses having less than Rs 2 crore turnover (w.e.f FY 2017-18) |
Businesses having less than Rs 5 crore turnover |
Due date for filing^ |
31st December of next FY* |
31st December of next FY, either with or after filing GSTR-9* |
Late fees and penalty |
From FY 2022-23 onwards: |
|
|
Turnover limit |
Late fee per day |
|
1. Up to Rs 5 crore |
Rs 50 (Rs 25 each under CGST and SGST Act) |
|
2. More than Rs 5 crore and less than Rs 20 crore |
Rs 100 (Rs 50 each under CGST and SGST Act) |
|
3. More than Rs 20 crore |
Rs 200 (Rs 100 each under CGST and SGST Act) |
|
Up to FY 2021-22: |
No specific provision, Hence, subject to a general penalty of Rs 25,000 |
Filing of the return |
On GST portal or through facilitation centre |
On GST portal or through facilitation centre at the time of or after filing GSTR-9 |
Format of the return |
Consolidated summary details of:
Also, below details must be declared wherever applicable:
|
Part-A - Reporting of reconciliation needed between turnover, tax paid and ITC. Report on Auditor’s recommendation of any additional tax liability. |
Who must certify/ attest |
No certification required by CA/CMA; however it must be attested by the taxpayer using a digital signature |
CFO/Finance head must certify using a digital signature |
Annexures |
No annexures to be attached |
Annexure of Audited financial statement is required |
Understanding GST compensation cess is crucial as it impacts the total tax liability and ensures businesses remain compliant with government regulations.
^Budget 2023 amended that taxpayers cannot file a GSTR-9 after three years from the expiry of the original due date. CBIC is yet to notify this change.
*Subject to CBIC notifications for any due date extension.
Understanding GST compensation cess is important as it affects the overall tax liability and helps businesses stay compliant with government regulations.
How to use a GST calculator for GSTR 9 and 9C?
- Step 1: Enter the GSTIN of your business.
- Step 2: Input the details of inward and outward supplies.
- Step 3: Provide information on input tax credit availed.
- Step 4: Enter the tax paid details.
- Step 5: For GSTR 9C, input the audited financial statement figures.
- Step 6: The GST calculator will compute the tax liability or refund due.
- Step 7: Use the calculator’s output to accurately fill in the GSTR 9 and GSTR 9C forms.
Conclusion
Filing GSTR 9 and GSTR 9C is crucial for maintaining GST compliance and ensuring transparency in financial reporting. Using a GST calculator can simplify this process, helping businesses to accurately determine their tax liabilities. Additionally, understanding how to track GST refund status ensures businesses can claim their rightful refunds on time, further aiding in effective financial management. Staying compliant not only avoids penalties but also strengthens a business’s credibility, which can be beneficial when applying for a business loan.
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