GSTR-9C:- Applicability, Due Date, Late Fees and Penalty Exquisite-Accounts Professional

GSTR-9C

GSTR-9C is a reconciliation statement that needs to be filed along with the annual return GSTR-9. It is a certification of the reconciliation of the details provided in the annual return with the audited annual financial statements of the taxpayer.

The reconciliation statement must be prepared and certified by a Chartered Accountant (CA) or Cost Accountant, who must certify that the details furnished in the annual return are true and correct.

GSTR-9C consists of two parts – Part A and Part B. Part A requires the taxpayer to provide the audited financial statements, and Part B requires the taxpayer to reconcile the information provided in GSTR-9 with the audited financial statements.

The reconciliation statement helps to ensure that there are no discrepancies between the financial statements and the GST returns filed by the taxpayer. It is mandatory for taxpayers whose annual turnover exceeds Rs. 5 crore to file GSTR-9C along with GSTR-9.

^The limit is enhanced to Rs 5 crore for the GSTR-9C of FY 2018-19, FY 2019-20 and FY 2020-21 as per the CBIC notifications.

GSTR-9C Applicability

GSTR-9C is a reconciliation statement that is required to be filed annually by registered taxpayers with an aggregate turnover of more than Rs. 5 crores in a financial year, who are also required to get their accounts audited as per Section 35(5) of the CGST Act.

The purpose of GSTR-9C is to reconcile the data provided in the annual returns (GSTR-9) with the audited annual financial statements of the taxpayer. The reconciliation statement needs to be certified by a Chartered Accountant or a Cost Accountant.

Therefore, if you are a registered taxpayer whose annual turnover is more than Rs. 5 crores and your accounts are required to be audited under the GST Act, then GSTR-9C is applicable to you.

^The limit is enhanced to Rs 5 crore for the GSTR-9C of FY 2018-19, FY 2019-20 and FY 2020-21 as per the CBIC notifications.

GSTR-9C Late Fees and Penalty

GSTR 9C is an annual reconciliation statement that needs to be filed by taxpayers registered under the Goods and Services Tax (GST) regime who have an annual turnover of more than Rs. 5 crore. The late fees and penalties for non-compliance with GSTR 9C are as follows:

Late Fees:

If the taxpayer fails to file GSTR 9C by the due date, a late fee of Rs. 200 per day of delay (subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state/UT) will be applicable. This late fee is levied under both CGST and SGST/UTGST Acts, resulting in a total late fee of Rs. 400 per day.

Penalty:

If the taxpayer intentionally or knowingly provides incorrect information in GSTR 9C or fails to provide information, a penalty of Rs. 25,000 may be levied under Section 122 of the CGST Act, 2017.

Therefore, it is important for taxpayers to file GSTR 9C on time and ensure that the information provided is accurate to avoid any late fees or penalties.

Latest updates to GSTR-9C

8th 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.

5th July 2022 
The CBIC has exempted GST-registered taxpayers with annual aggregate turnover up to Rs.2 crore in FY 21-22 from filing Form GSTR-9. 

29th December 2021
The due date to file GSTR-9 & self-certified GSTR-9C for the FY 2020-21 has been extended up to 28th February 2022. 

31st July 2021
The CBIC has exempted GST-registered taxpayers with annual aggregate turnover up to Rs.2 crore in FY 20-21 from filing Form GSTR-9. 

30th July 2021
The CBIC has notified changes to Sections 35(5) and 44 of the CGST Act. The requirement to get a GST audit and certification done by a CA/CMA now stands removed. Taxpayers with a turnover exceeding Rs.5 crore in the previous financial year are required to file Form GSTR-9C on a self-certification basis. This change is applicable from FY 20-21 onwards. Further, Form GSTR-9C will be modified to support self-certification by the taxpayer.

28th May 2021
As per 43rd GST Council meeting outcome, GSTR-9 shall continue to be optional for taxpayers with turnover up to Rs.2 crore, whereas GSTR-9C can be self-certified by taxpayers with turnover less than or equal to Rs.5 crore from FY 2020-21 onwards.

9th March 2021
The Form GSTR-9A has been disabled from FY 2019-20 onwards for composition taxpayers due to the introduction of GSTR-4 (Annual return). However, the GSTR-9A is optional and can be filed for FY 2017-18 and FY 2018-19.

Comparison of GSTR-9 and GSTR-9C/Difference between GSTR 9 and 9C

GSTR 9 and GSTR 9C are both GST annual return forms required to be filed by registered taxpayers in India. While GSTR 9 is the annual return form, GSTR 9C is a reconciliation statement and certification form that must be filed along with the annual return.

Here are some of the key differences between GSTR 9 and GSTR 9C:

1. Purpose: GSTR 9 is an annual return form that provides a summary of all transactions made during the financial year, whereas GSTR 9C is a reconciliation statement and certification form that reconciles the information provided in the annual return with the audited financial statements of the taxpayer.
2. Applicability: GSTR 9 is applicable to all registered taxpayers who are registered under GST, except for composition scheme taxpayers, non-resident taxpayers, and input service distributors. GSTR 9C is applicable to taxpayers whose aggregate turnover exceeds Rs. 5 crores in a financial year and who are required to get their accounts audited under the GST Act or any other law.
3. Filing Due Date: The due date for filing GSTR 9 is December 31 of the next financial year, while the due date for filing GSTR 9C is within 6 months from the end of the financial year.
4. Contents: GSTR 9 contains information about all inward and outward supplies made during the financial year, taxes paid, and ITC availed. GSTR 9C contains additional information such as the details of the auditors, audited financial statements, and a certification by the auditor.
5. Consequence of Non-filing: The consequences of not filing GSTR 9 are a late fee of Rs. 200 per day of delay (subject to a maximum of 0.25% of the taxpayer’s turnover) and disallowance of ITC for the year. Non-filing of GSTR 9C attracts a penalty of Rs. 25,000 and disallowance of ITC for the year.

In summary, GSTR 9 is the annual return form that provides a summary of all transactions made during the financial year, while GSTR 9C is a reconciliation statement and certification form that reconciles the information provided in the annual return with the audited financial statements of the taxpayer. While both forms are important for GST compliance, they have different applicability, contents, and consequences of non-filing.

How to File GSTR 9C Online?

GSTR-9C is a reconciliation statement filed by taxpayers who are registered under GST (Goods and Services Tax) and have an annual turnover of over Rs 5 crores. It is a mandatory requirement for all taxpayers who are required to file GSTR-9.

Here are the steps to file GSTR-9C online:

1. Log in to the GST portal using your credentials (username and password).
2. Go to the ‘Services’ tab and select ‘Returns’ and then select ‘Annual Return’ option.
3. Choose the financial year for which you want to file GSTR-9C and click on ‘Search’.
4. Click on the ‘Prepare Online’ button to prepare the return online.
5. Fill in the required details in all the sections of the return form.
6. Once you have filled in all the details, click on the ‘Calculate’ button to calculate the tax liability.
7. If there is any tax liability, you can make the payment through the portal by selecting the ‘Payment of Tax’ option.
8. After making the payment, click on the ‘File GSTR-9C’ button.
9. A confirmation message will be displayed on the screen. Verify the details and click on the ‘Submit’ button.
10. A success message will be displayed on the screen. You can download the acknowledgement for future reference.

Note: You can also file GSTR-9C offline by downloading the utility tool from the GST portal and filling in the details offline. After filling in the details, you can generate an XML file and upload it on the GST portal to file the return.

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