Guide to Preparing Form GSTR-9C

GSTR-9C is a reconciliation statement to be submitted by a taxpayer under GST. It is to be self-certified by the taxpayer after a due verification of the annual GST returns in GSTR-9 with the financial statements.

Latest Updates

18th February 2023
49th GST Council meeting updates-
1. Council recommended the late fee rationalisation for delayed GSTR-9 filing from FY 2022-23 onwards as follows: 
   (a) Registered persons with Annual Aggregate Turnover (AATO) up to Rs.5 cr is reduced to Rs. 25 per day subject to a maximum of 0.02% of turnover.
   (b) Registered persons with AATO of more than Rs.5 cr to 20 cr is reduced to Rs 50 per day subject to a maximum of 0.02% of turnover.
2. The Council recommended an amnesty scheme for pending GSTR-9 returns. This scheme comes with a conditional waiver/ reduction of late fees.

16th November 2022
Changes are made in the format of GSTR-9 (annual returns), to mention the period after the FY 2021-22 as ‘April 2022 to October 2022 filed up to 30th November 2022’ instead of ‘April 2022 to September 2022’ in various tables.

05th July 2022
The department has exempted taxpayers with a yearly turnover of more than Rs.2 crore during the FY 2021-22 from filing GSTR-9 or annual returns.
 

What is form GSTR-9C?

GSTR-9C is a reconciliation statement between the annual GSTR-9 of a financial year and the audited financial statements of the taxpayer. Every registered taxpayer whose turnover exceeds Rs.2 crore during a financial year is required to file this reconciliation statement. This ensures correct self-assessment of taxes by a taxpayer.  The taxpayer shall prepare this statement and later filed by a taxpayer online or through a facilitation centre along with a copy of the audited financial statements and the GSTR-9 return.

What are the Sections to be Filled in Form GSTR-9C?

GSTR-9C is divided into two parts:

Part A is the reconciliation statement which is further subdivided into five sub-parts: 

Part I: Basic Details 
Basic details such as the GSTIN, FY, legal name and trade name are to be reported here. A taxpayer is also supposed to report if he is subject to audit under any other law.   

Part II: Reconciliation of turnover declared in audited financial statements and the one declared in Annual Return
This part consists of four tables –

Table 5: Reconciliation of gross turnover

Table 6: A taxpayer can provide reasons for non-reconciliation between the turnover declared in the annual return and the audited annual financial statements here.

Table 7: Reconciliation of taxable turnover

Table 8: A taxpayer can provide reasons for un-reconciled taxable turnover in Table 7G over here.

Part III: Reconciliation of taxes paid
This part consists of three tables –

Table 9: Reconciliation of taxes paid

Table 10: A taxpayer can provide reasons for any un-reconciled amount of tax in Table 9R here.

Table 11: Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be reported here.

Part IV: Reconciliation of ITC  
This part consists of five tables –

Table 12: Reconciliation of net input tax credit

Table 13: Reasons for unreconciled ITC in Table 12F should be provided here.  

Table 14: Reconciliation of ITC declared in GSTR-9 with the ITC availed on expenses as per audited financial statement or Books.

Table 15: Reasons for non-reconciliation between ITC availed on the various expenses declared in Table 14R and ITC declared in Table 14S shall be specified here.

Table 16: Any amount which is payable due to reasons specified in Table 13 and Table 15 above shall be reported here.

Part V: Additional Liability due to non-reconciliation

This part consists of:

1. Additional liability arising on the part of a taxpayer due to non-reconciliation of turnover or ITC
2. Any other amount to be paid for supplies not included in the annual return. 
3. Erroneous claiming of refund which should be paid back to the government.
4. Any other outstanding demands to be paid off.

Note: Towards the end of the GSTR-9C return form, taxpayers have the option of making payment for any additional liability declared in the form, through FORM DRC-03. A taxpayer has to select ‘Reconciliation Statement’ from the dropdown menu provided in FORM DRC-03. Such liability can be paid through the electronic cash ledger only.   

Part B is for certification. Form GSTR-9C should be self-certified by the taxpayer. He should authenticate the return either through a DSC or by using Aadhaar based signature mechanism.

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