GSTR 9C must be filed by every registered taxpayer under GST who is liable to get their annual accounts audited. This primarily includes taxpayers whose annual aggregate turnover exceeds ₹2 crores in a financial year.
Understanding the Requirement
The requirement to file GSTR 9C is intrinsically linked to the GST audit provisions. Taxpayers are obligated to undergo a GST audit if their annual aggregate turnover crosses a specified threshold. Once audited, the GSTR 9C serves as a crucial document for reconciliation.
Key Conditions for Filing GSTR 9C
| Condition | Detail |
|---|---|
| Taxpayer Type | Any registered person under GST (Goods and Services Tax). |
| Audit Liability | The taxpayer must be liable to get their annual accounts audited as per the GST law. |
| Turnover Threshold | Their annual aggregate turnover must have exceeded ₹2 crores in a particular financial year. |
| Form Type | It is a reconciliation statement that reconciles the data reported in the annual return (GSTR 9) with the audited annual financial statements of the taxpayer. |
| Certification | It must be certified by a Chartered Accountant (CA) or a Cost Accountant (CMA) after conducting the GST audit. |
| Filing Deadline | The due date for filing GSTR 9C is generally the same as that for GSTR 9, which is December 31st of the following financial year. |
What is Annual Aggregate Turnover?
Annual aggregate turnover refers to the total value of:
- All taxable supplies (excluding inward supplies on which tax is payable by a person on reverse charge basis)
- Exempt supplies
- Export of goods or services or both
- Inter-State supplies of persons having the same Permanent Account Number (PAN)
This calculation is done on an all-India basis and excludes Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST), and Integrated Goods and Services Tax (IGST).
Purpose and Importance of GSTR 9C
GSTR 9C plays a vital role in ensuring compliance and transparency under the GST regime. Its main purposes include:
- Reconciliation: It reconciles the turnover and tax details declared in the audited financial statements with those reported in the GSTR 9 (annual return). This helps identify any discrepancies.
- Verification: It verifies the accuracy of the tax liability declared and the Input Tax Credit (ITC) availed by the taxpayer.
- Audit Report: It essentially acts as an audit report, providing a detailed breakdown of the audited figures versus the declared figures, along with reasons for discrepancies.
- Transparency: It promotes transparency in tax administration and helps the tax authorities in verifying the correctness of tax payments and refunds.
Who Prepares and Certifies GSTR 9C?
While the taxpayer is responsible for providing the necessary financial data, the GSTR 9C form is prepared and certified by a Chartered Accountant (CA) or a Cost Accountant (CMA). These professionals conduct the GST audit, review the financial records, reconcile the data, and then certify the accuracy of the GSTR 9C.
Practical Implications and Examples
Consider a manufacturing company, "XYZ Pvt. Ltd.," whose total taxable supplies, exempt supplies, and exports combined for the financial year 2023-24 amount to ₹2.5 crores. Since their annual aggregate turnover exceeds the ₹2 crore threshold, XYZ Pvt. Ltd. will be required to:
- Get their annual accounts audited by a CA or CMA under GST law.
- File GSTR 9 (the annual return).
- File GSTR 9C, which will reconcile the figures in their audited financial statements with those reported in GSTR 9. The GSTR 9C will be certified by their appointed CA/CMA.
It's crucial for businesses to monitor their turnover throughout the financial year to anticipate the GSTR 9C filing requirement and prepare accordingly. Staying updated with GST regulations and deadlines is key for compliance. For more details on GST forms and compliances, you can refer to the official GST Portal.
