Any individual who is enlisted for GST (Labor and products Assessment) and whose yearly income surpasses the specified furthest reaches of INR 5 crore should finish Form GSTR-9C, the compromise proclamation, and self-ensure it prior to submitting it on the GST portal.
Form GSTR-9C contains a reconciliation statement between: The statistics taken from the taxpayer’s annual Financial Accounts, which have been reviewed, and the annual returns for a fiscal year (FY) that are submitted in Form GSTR-9.
It will be made up of gross and taxable turnover that has been calculated by the books and compared to the sums calculated by combining all GST returns for a fiscal year.
Thus, any disparities found by means of this compromise cycle will be recorded here alongside their avocations and afterward confirmed by the citizen. The certified statement must be issued for each GSTIN. A PAN may necessitate the submission of multiple GSTR-9C forms as a result.
Who is responsible for submitting Form GSTR-9C?
The taxpayer is required to complete and self-certify Form GSTR-9C, which must be submitted with additional documentation, such as a copy of the audited financial statements and annual report, either on the GST site or through a facilitation center.
This statement is pertinent to all citizens who, as per GST regulation, are expected to have a review of their yearly records.
According to CBIC’s CGST notification dated July 30, 2021, all foreign corporations engaged in the aviation industry and adhering to the Companies Act of 2013’s relevant requirements and guidelines are exempt from the GSTR-9C requirement.
Additionally, non-residents are not required to submit Forms GSTR-9 and GSTR-9C if they provide OIDAR services to unregistered individuals in India.
What Is The Importance Of Form GSTR-9C?
The taxpayer is responsible for filling out the GST Reconciliation statement. The reasons for any inconsistencies between the information on all GST forms and the audited accounts must be noted there. The GST specialists utilize this statement as an establishment to check the precision of the GST returns presented by the citizens. The taxpayer must self-certify the Form GSTR-9C.
When must the Form GSTR-9C be submitted?
In addition, Form GSTR-9C must be submitted by the same deadline as the annual returns required by GSTR-9. By December 31 of the year following the relevant FY under audit, the Form GSTR-9C must be submitted. Assuming the public authority decides it is required, the due date might be broadened.
- The GSTR-9C consists of two essential parts: the Reconciliation Statement in Part A;
- Part-A: Self-certification in Part B Compromise Explanation
- The fiscal reports’ examined figures are at the Container level. Therefore, the audited records of the organization must be used to determine the total turnover, tax paid, and ITC gained for a particular GSTIN (or State/UT).
- Based on Notification Number 56/2019, which was made public on November 14, 2019, included the following changes for FY 2017–18 and FY 2018–19:
- The descriptions of turnover adjustments that must be made in tables 5B to 5N are now optional, but the taxpayer may report any necessary adjustments in Table 5O.
- A taxpayer can choose not to fill out the details of the ITC reconciliation in tables 12B, 12C, and 14.
The following five sections make up the Reconciliation Declaration:
Part I: The following is basic information: FY, GSTIN, Legitimate Name, and Business trademark. Additionally, the taxpayer must indicate whether he has been audited under any other laws.
Part Two: Comparison of the annual return (GSTR-9) turnover and the turnover reported in the audited annual financial statement:
This requires submitting the audited financial statements in addition to the annual return’s reported gross and taxable turnover. It is important to keep in mind that the audited financial statements typically include PAN levels. As a result, for reporting in GSTR-9C, the audited financial statements may need to be divided at the GSTIN level.
Third Part: Compromise of assessment paid: This part requests GST rate-wise announcing of the duty obligation that arose by the records and paid as detailed in the GSTR-9, separately, with the variations therebetween.
Additionally, it requires taxpayers to disclose any additional liabilities brought about by differences discovered during reconciliation.
Part-IV: Input Tax break (ITC)
Compromise Information tax reductions guaranteed and involved by citizens as announced in GSTR-9 and as expressed in the Examined Fiscal report are accommodated in this part.
In addition, it must distinguish between eligible and ineligible ITC, report expenses incurred in accordance with audited accounts, and reconcile eligible ITC with GSTR-9 amount. This statement will be made in the wake of considering any ITC asserted inversions.
Part-V: self-certification by taxpayers.
Recent Changes Regarding Form GSTR-9C 49th GST Council Meeting Updates (18 February 2023) The council recommended the following late fee rationalization for GSTR-9 filing delays beginning in FY 2022–23:
If a registered person’s annual aggregate turnover (AATO) is less than INR 5 crores, their daily fee is reduced to INR 25 up to a maximum of 0.02 percent of turnover.
There is a daily limit of INR 50 for registered AATO users with a turnover of between 5 and 20 crores, with a maximum of 0.02 percent.
A program of amnesty for GSTR-9 returnees was supported by the Council. This plan includes a conditional waiver of or reduction in late fees.
Financial plan 2023 (first February 2023)
The GSTR-9 due date was added to Segment 44 because of Financial plan 2023 changes. Taxpayers are no longer permitted to submit a GSTR-9 after three years have passed since the initial due date.
16 November 2022: The structure of the GSTR-9 (annual returns) has been changed to refer to the time period following FY 2021–22.
According to the CBIC, taxpayers who are GST-registered and have annual aggregate revenue of up to INR 2 crores in FY 21–22 are exempt from completing Form GSTR-9 as of July 5, 2022.
30th July 2021
Changes to the CGST Act’s Segments 35(5) and 44 have been reported by the CBIC. A CA/CMA is no longer required to conduct a GST audit and certification. If a taxpayer’s revenue in the fiscal year before them was greater than INR 5 crore, they must self-certify on Form GSTR-9C. This change produced results in FY 20-21.
Additionally, a modification to Form GSTR-9C will be made to make taxpayer self-certification easier.
The GSTR-9 will remain optional for taxpayers with a turnover of up to INR 2 crore as of May 28, 2021; However, taxpayers with a turnover of less than or equal to INR 5 crore will be able to self-certify GSTR-9C beginning in FY 2020–21.
49th GST Gathering Meeting Updates (eighteenth February 2023)
From FY 2022-23 ahead, the gathering suggested the accompanying late charge justification for GSTR-9 documenting delays:
If a registered person’s annual aggregate turnover (AATO) is less than INR 5 crores, their daily fee is reduced to INR 25 up to a maximum of 0.02 percent of turnover.
There is a daily limit of INR 50 for registered AATO users with a turnover of between 5 and 20 crores, with a maximum of 0.02 percent.
A program of amnesty for GSTR-9 returnees was supported by the Council. This plan includes a conditional waiver of or reduction in late fees.
Financial plan 2023 (first February 2023)
The GSTR-9 due date was added to Segment 44 because of Financial plan 2023 changes. Taxpayers are no longer permitted to submit a GSTR-9 after three years have passed since the initial due date.
16 November 2022: The structure of the GSTR-9 (annual returns) has been changed to refer to the time period following FY 2021–22.
According to the CBIC, taxpayers who have GST Registration and annual aggregate revenue of up to INR 2 crores in FY 21–22 are exempt from completing Form GSTR-9 as of July 5, 2022.
30th July 2021
Changes to the CGST Act’s Segments 35(5) and 44 have been reported by the CBIC. A CA/CMA is no longer required to conduct a GST audit and certification. If a taxpayer’s revenue in the fiscal year before them was greater than INR 5 crore, they must self-certify on Form GSTR-9C. This change produced results in FY 20-21.
Additionally, a modification to Form GSTR-9C will be made to make taxpayer self-certification easier.
The GSTR-9 will remain optional for taxpayers with a turnover of up to INR 2 crore as of May 28, 2021; However, taxpayers with a turnover of less than or equal to INR 5 crore will be able to self-certify GSTR-9C beginning in FY 2020–21.
Conclusion
The GST reconciliation statement that qualified taxpayers must submit annually is Form GSTR-9C. If a registered person’s combined annual revenue exceeds INR 5 crore, their accounts must be audited in accordance with subsection (5) of Section 35 of the CGST (Central Goods and Service Tax) Act. A properly certified reconciliation statement and a copy of the audited annual accounts must be submitted on Form GSTR-9C.
