Understanding GST Reconciliation Statement Form GSTR-9C

Understanding GST Reconciliation Statement Form GSTR-9C

The introduction of Goods and Service Tax has brought along with it huge return filing compliance. GST registered taxpayer is required to file various returns and one of such complicated and newly introduced compliance is filing of an annual return in FORM GSTR-9.

If the registered taxpayer exceeds the specified aggregate turnover limit then at the time of filing of an annual return in FORM GSTR-9 he is also required to file a reconciliation statement in FORM GSTR-9C.

As the name itself mentions, the reconciliation statement to be filed in FORM GSTR-9C is reconciliation between the figures / details provided in an annual return filed in FORM GSTR-9 and audited annual financial statement. Present article helps to understand the provisions attached with the filing of a reconciliation statement along with the online and offline steps to be followed by the registered taxpayer.

CATEGORY OF TAXPAYER WHO IS REQUIRED TO FILE GST RECONCILIATION STATEMENT IN FORM GSTR-9C –

As per GST law, if the registered taxpayer satisfies following two conditions, he is required to get his accounts audited–

CONDITION 1 – The registered taxpayer is required to file an annual return in FORM GSTR-9; and

CONDITION 2 – The aggregate turnover of the registered taxpayer during a financial year exceeds INR 2 Crore

If both the above conditions are satisfied, the registered taxpayer is required to get his account audited and at the time of filing of an annual return in FORM GSTR-9, such registered taxpayer is required to furnish reconciliation statement in FORM GSTR-9C. In short, the applicability of getting accounts audited and furnishing of a reconciliation statement in FORM GSTR-9C is co-related.

TIME OF FILING OF GST RECONCILIATION STATEMENT IN FORM GSTR-9C –

The basic question that would arise in the taxpayer’s mind would be when to file GST reconciliation statement in FORM GSTR-9C. The answer to the same is thatthe registered taxpayer who is required to get his account audited is required to file following documents at the time of filing of an annual return in FORM GSTR-9 –

• Copy of audited annual accounts;
• Copy of reconciliation statement in FORM GSTR-9C and
• Any other documents

Thus the registered taxpayer who is required to get his account audited is required to file GST reconciliation statement in FORM GSTR-9C at the time of filing of an annual return in FORM GSTR-9.

DUE DATE OF FILING OF FIRST RECONCILIATION STATEMENT IN FORM GSTR-9C –

In general, as per the GST provisions, the reconciliation statement in FORM GSTR-9C is required to be filed on or before 31^st December following the end of the financial year.

However, after various due date extension, at present, the due date for filing of first reconciliation statement for F.Y. 2017-2018 in FORM GSTR-9C is 30^th June, 2019.

UNDERSTANDING FORM GSTR-9C –

Form GSTR-9C is divided into two parts. Parts A contains the reconciliation portion and Part B contains the certification portion.

Part A is sub-divided into 5 parts, out of which first part covers the basic details of the taxpayer and the last part contains the recommendation, if any, given by the auditor. Middle 3 part contains a reconciliation of the following –

• Reconciliation of turnover as declared in the Annual audited financial statement as against the turnover declared in the Annual return in FORM GSTR-9;
• Reconciliation of tax paid; and
• Reconciliation of the input tax credit.

Part B covers the certification portion and is sub-divided into two parts as mentioned below –

• Certification in cases where the reconciliation statement is drawn up by the person who has conducted the audit of the accounts; and
• Certification in cases where the reconciliation statement is drawn up by the person other than the person who has conducted the audit of the accounts.

FILING OF FORM GSTR-9C –

STEPS TO BE FOLLOWED FOR ONLINE FILING OF FORM GSTR-9C –

• Go to site https://www.gst.gov.in/;
• Click on ‘Login’ icon and enter the correct username and password;
• Under the Dashboard click on ‘Annual Return’ tab;
• Select Financial Year from the drop down list;
• Click on ‘INITIATE FILING’ mentioned under ‘Reconciliation Statement GSTR 9C’ for online filing of FORM GSTR-9C.

STEPS TO BE FOLLOWED FOR OFFLINE FILING OF FORM GSTR-9C –

• Go to site https://www.gst.gov.in/;
• Click on ‘Login’ icon and enter the correct username and password;
• Under the Dashboard click on ‘Annual Return’ tab;
• Select Financial Year from the drop down list;
• Click on ‘PREPARE OFFLINE’ mentioned under ‘Reconciliation Statement GSTR 9C’ for offline filing of FORM GSTR-9C;
• An offline tool, for preparing FORM GSTR-9C, can be downloaded from the ‘Download’ section in the pre-login page.

Please note that filing of FORM GSTR-9C in online or offline mode would not be feasible unless annual return in FORM GSTR-9 is filed. In short, the taxpayer is mandatorily required to file an annual return in FORM GSTR-9 before initiating the filing of FORM GSTR-9C.

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