Understanding GSTR-9C: Key Questions and Answers
This article clarifies essential aspects of Form GSTR-9C, the GST reconciliation statement. It covers key details such as filing requirements, due dates, necessary documents, and conditions for including specific transactions in aggregate turnover. Additionally, it addresses common concerns regarding revisions, auditor certifications, and potential late fees, providing a comprehensive overview for taxpayers.
Form GSTR-9C serves as a reconciliation statement that bridges the annual Goods and Services Tax (GST) return, GSTR-9, with a taxpayer's audited financial statements. Taxpayers whose annual turnover exceeds Rs. 5 crore are required to furnish this statement through self-certification.
Frequently Asked Questions about Form GSTR-9C
1. What are the system requirements for submitting GSTR-9C?
The offline utility for GSTR-9C functions optimally on Windows 7 and Microsoft Excel 2010 or later versions.
2. What is the deadline for filing GSTR-9C, and are GSTR-9 and GSTR-9C filed together?
According to Section 44(2), GSTR-9C must be submitted concurrently with the Annual Return, GSTR-9. Section 44(1) stipulates that the Annual Return's due date is on or before December 31st following the conclusion of the relevant financial year. Consequently, GSTR-9C is also due by December 31st after the financial year ends. For example, the deadline for the FY 2023-24 GSTR-9C is December 31st, 2024.
3. Which documents need to be included with Form GSTR-9C?
During the GSTR-9C filing process, taxpayers must upload documents like the enterprise's Balance Sheet and Profit and Loss Account (or Income and Expenditure Statement) in PDF format.
4. Can Form GSTR-9C be revised after submission?
Currently, there is no provision for revising Form GSTR-9C. Therefore, taxpayers must exercise extreme caution to ensure accuracy when reporting details and submitting the form.
5. Can an internal auditor certify Form GSTR-9C for an entity?
No, an internal auditor is not permitted to certify Form GSTR-9C. The Central Board of Indirect Taxes and Customs (CBIC) has mandated that this form must be self-certified by the taxpayer.
6. Is GSTR-9C required to be filed state-wise for multiple registrations under the same Permanent Account Number (PAN)?
Yes, Form GSTR-9C must be filed for each registration in every state. If the aggregate turnover linked to a PAN exceeds Rs. 5 crore, then every registered GSTIN under that PAN is obliged to file GSTR-9C.
7. Is a Chartered Accountant (CA) required to be registered as a GST practitioner to certify Form GSTR-9C?
The CBIC has clarified that Form GSTR-9C is to be self-certified. Thus, a Chartered Accountant's certification is no longer a requirement.
8. Who is mandated to file GSTR-9C?
Any person registered under GST whose annual turnover surpasses Rs. 5 crore during a financial year must file a self-certified reconciliation statement using Form GSTR-9C. This applies to every GSTIN and must be submitted along with audited accounts and the annual return (GSTR-9). Non-residents and individuals offering OIDAR services in India to unregistered persons are exempt from GSTR-9 and GSTR-9C, as per CBIC Notification No. 30/2019 dated June 30, 2019. Furthermore, foreign airline companies adhering to the Companies Act 2013 provisions are also exempt from the GSTR-9C requirement, as per CBIC Notification No. 09/2020 dated March 16, 2020.
9. Can GSTR-9C be filed without first filing the Annual GST Return (GSTR-9)?
No, GSTR-9C can only be filed subsequent to the submission of GSTR-9.
10. Which sections of Form GSTR-9C are automatically populated from GSTR-9?
The following details are automatically populated in Form GSTR-9C from GSTR-9:
- Turnover figures as per GSTR-9.
- Liability as reported in GSTR-9.
- Total tax payments as indicated in GSTR-9.
- Input Tax Credit (ITC) claimed in GSTR-9.
11. Does aggregate turnover include stock transfers or cross-charges between branches in different states?
As per Section 2(6) of the CGST/SGST Act, aggregate turnover encompasses inter-state supplies made by entities under the same PAN. Therefore, stock transfers from a branch in one state to a branch in another state will be factored into the turnover of the supplying branch.
12. Does aggregate turnover include stock transfers or cross-charges between branches within the same state for threshold calculation?
- Branches with the same GSTIN: If both branches share the same GSTIN, these stock transfers will not be included when calculating aggregate turnover for the threshold limit.
- Branches with different GSTINs: If the branches possess distinct GSTINs, such stock transfers will be counted towards aggregate turnover for determining the threshold limit.
13. Is the supply of alcohol for human consumption included in the Rs. 5 crore aggregate turnover threshold for a registered person?
Aggregate turnover includes exempt turnover. Under the CGST Act, exempt turnover covers goods or services with a nil tax rate or those wholly exempt from tax under Section 11 or Section 6 of the Integrated Goods and Services Tax Act, also including non-taxable supplies. Non-taxable supplies are those not chargeable to tax under the CGST Act or IGST Act. Specifically, Section 9(1) of the CGST/SGST Act and Sections 7(1) and 5(1) of the UTGST and IGST Acts exclude alcoholic liquor for human consumption from GST levy. By combining these provisions, it can be inferred that alcoholic liquor for human consumption falls under exempt turnover. Since exempt turnover is part of aggregate turnover, it must be included in calculating the Rs. 5 crore threshold.
14. Is a registered person exclusively dealing in exempted supplies exceeding Rs. 5 crore required to file GSTR-9C?
Yes, this is required because the definition of aggregate turnover explicitly incorporates exempted supplies.
15. What are the penalties for not filing the Annual Return or failing to get accounts audited?
If a taxpayer fails to submit both the Annual Return (GSTR-9) and Form GSTR-9C, a late fee of Rs. 200 per day (Rs. 100 under CGST law + Rs. 100 under State/Union Territory GST law) will be imposed. This penalty is capped at 0.50% (0.25% under CGST Law + 0.25% under SGST/UTGST Law) of the turnover in the State/UT. These regulations specifically pertain to GSTR-9 filing. While no explicit penalties apply directly to GSTR-9C, the non-filing of GSTR-9C, when required, could incur a general penalty of Rs. 25,000.
16. Can late fees be waived in exceptional circumstances?
The Government has the authority to waive late fees by issuing a notification outlining specific conditions; however, no such notification has been released to date.
17. Can errors in the monthly return be corrected during GSTR-9C filing?
No, monthly return errors cannot be rectified when filing GSTR-9C. GSTR-9C is a self-certified reconciliation statement comparing the annual GSTR-9 return with audited financial statements, not a mechanism for correcting previous filings.
18. Which details should be provided in Table 5B of Form GSTR-9C?
Table 5B necessitates reporting unbilled revenue that was present at the start of the financial year. This section requires the disclosure of any unbilled revenue recorded in the books during the prior financial year for which an invoice was issued in the current year under GST law.
19. Should a taxable person declare details of notice pay recovery from employees in GSTR-9C, and if so, where?
If notice pay recovered from employees is classified as a taxable supply but is not accounted for as income in the Profit and Loss statement, it should be reported under Sl. No. 5O of GSTR-9C.
20. Where should an auditor-identified ineligible Input Tax Credit (ITC) — initially claimed as eligible by the dealer in GSTR-3B and GSTR-9 — be reported in Form GSTR-9C?
The total ITC availed by the dealer is reported in column 3, Part IV of Sl. 14 of Form GSTR-9C. The eligible ITC, as determined by the auditor, is reported in column 4, Part IV of Sl. 14 of Form GSTR-9C. The difference between these two figures represents the ineligible ITC, which the auditor must disclose in their issued certificate.
21. How can an error report be downloaded in GSTR-9C?
After a user uploads the JSON file to the GST Portal and encounters validation errors, they can download a zipped error report by following these steps:
- In the ‘Upload History’ table, click the ‘Generate error report’ hyperlink.
- Once the error report is generated, click the ‘Download error report’ link found in the ‘Error Report’ column.
- Click the ‘Download error report’ link to save the zipped error report.
- The error JSON file will download to your system. Import this file into the GSTR-9C offline tool to make necessary corrections.