🔹 Introduction

Every registered taxpayer under GST must file annual returns summarizing yearly transactions. For certain taxpayers, a reconciliation statement (GSTR-9C) is also required to reconcile GST returns with audited financial statements. The GST audit framework ensures transparency, accuracy, and compliance in reporting turnover, tax liability, and ITC.

(Reference: Sec. 35(5) & 44 of CGST Act, Rule 80 of CGST Rules, CBIC notifications up to FY 2024-25)

🔹 Legal Framework & Applicability (As on FY 2024-25)

✅ GSTR-9 – Annual Return

• Mandatory for all registered persons (except composition dealers, ISDs, TDS/TCS deductors, and NRTPs).

• Turnover limit for mandatory filing: Exceeding ₹2 crore (though optional for those below ₹2 crore as per latest CBIC relaxation).

✅ GSTR-9C – Reconciliation Statement

• Applicable if aggregate turnover exceeds ₹5 crore during the financial year.

• Taxpayers must self-certify GSTR-9C (audit by CA/CMA no longer mandatory as per amendments from FY 2021-22 onwards).

🔹 Key Differences – GSTR-9 vs GSTR-9C

🔹 Step-by-Step Guide to File GSTR-9

📌 Step 1: Log in to GST Portal

Visit www.gst.gov.in → Returns → Annual Return → GSTR-9.

📌 Step 2: Choose Financial Year

Select FY 2024-25.

📌 Step 3: Auto-Populated Data

• System auto-fills data from GSTR-1 & GSTR-3B.

• Verify details (sales, tax liability, ITC, outward/inward supplies).

📌 Step 4: Add/Edit Data

Make necessary corrections in:

• Table 4: Outward supplies (taxable & exempt).

• Table 6: ITC availed during year.

• Table 8: ITC as per GSTR-2A/2B.

• Table 9: Tax paid as per returns.

📌 Step 5: Validate Data

Ensure totals of taxable value & tax match with books of accounts.

📌 Step 6: Preview & File

Use DSC/EVC for submission. Download filed copy & acknowledgment.

🔹 Step-by-Step Guide to File GSTR-9C

📌 Step 1: Access GSTR-9C on GST Portal

Navigate to Services → Returns → Annual Return → GSTR-9C.

📌 Step 2: Auto-Filled Data

System pulls data from GSTR-9 & financial statements.

📌 Step 3: Sections to Fill

• Part A – Reconciliation Statement:

  • Turnover, tax liability, rate-wise tax details.

  • Adjustments for unbilled revenue, advances, and credit/debit notes.

• Part B – Certification:

  • Self-certification (by taxpayer).

📌 Step 4: Validate & Submit

Use digital signature to file. Generate acknowledgment (ARN).

🔹 Due Dates, Late Fees & Penalties

• Due Date: 31st December following the end of the financial year (FY 2024-25 → 31st December 2025).

• Late Fees (Sec. 47):

  • ₹200 per day (₹100 CGST + ₹100 SGST).

  • Maximum = 0.25% of turnover.

• Penalty for Mismatch/Non-Filing: As per Sec. 125 & 74A for incorrect returns.

🔹 Documents Required

• Audited financial statements (Balance Sheet, P&L).

• GSTR-1, 3B, 2A/2B summary.

• ITC register.

• Reconciliation statements for turnover & tax paid.

🔹 Practical Examples

Example 1: Trader (Turnover ₹3 crore)
Filing GSTR-9 mandatory; GSTR-9C not required.

Example 2: Manufacturer (Turnover ₹6 crore)
Must file both GSTR-9 & GSTR-9C (self-certified).

Example 3: IT Service Provider (Turnover ₹1.5 crore)
GSTR-9 optional (as per CBIC relaxation for <₹2 crore).

🔹 Common Errors in GSTR-9/9C Filing

• Mismatch between GSTR-3B & GSTR-1 data.

• Incorrect ITC carried forward.

• Omission of credit notes/debit notes.

• Reversal errors under Rule 42/43.

• Late filing due to reconciliation delays.

🔹 Best Practices

• ✅ Reconcile returns monthly & quarterly.

• ✅ Conduct internal audit before year-end.

• ✅ Verify ITC via GSTR-2B regularly.

• ✅ File returns before due date to avoid late fee.

• ✅ Maintain digital backup of all filings.

🔹 FAQs

Q1. Is audit by CA mandatory under GST?
➡️ No, self-certification is sufficient for GSTR-9C since FY 2021-22.

Q2. Can nil return filers skip GSTR-9?
➡️ Yes, if turnover < ₹2 crore, filing optional.

Q3. What if turnover is ₹5 crore exactly?
➡️ GSTR-9C required if turnover exceeds ₹5 crore (i.e., > ₹5,00,00,000).

Q4. Can GSTR-9/9C be revised?
➡️ No, once filed cannot be revised.

Q5. What if annual return not filed?
➡️ Heavy late fee & potential notice under Sec. 46 & 74A.

🔹 Conclusion

GSTR-9 & GSTR-9C provide a consolidated view of a taxpayer’s compliance during the year. Proper reconciliation with books ensures accuracy, avoids scrutiny, and maintains compliance credibility.

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