India has transitioned its indirect tax regime with GST but there are plethora of compliance rules. As per GST, GSTR-9 which is annually return and GSTR 9C, which is reconciliation statement with respect to other entities, having turnover limit are some of the forms of major importance.

This blog provides the information about GSTR-9 and GSTR-9C in details such as the purpose, for what turnover it is filed, the process of filing the return, penalty and exemption related to it. This detailed guide is especially useful for new caregivers, but can also be useful for those conducting GST again.

What is GSTR-9?

GSTR-9, containing GSTR-1 and GSTR-3B, is submitted annually during the financial year. It covers internal and external supply, ITC, taxes paid, adjustments made, refund claims, and requests.

The form serves two primary purposes:

1. It guarantees the accurate reconciliation of all GST transactions.
2. It helps the government verify the taxpayer’s GST liability for the year.

Who Needs to File GSTR-9?

All GST-registered taxpayers must file GSTR-9. There are certain exceptions:

Exempt from filing GSTR-9: 

• Casual taxable persons
• Non-resident taxable persons
• Input service distributors (ISDs)
• Tax Deductors at Source (TDS)
• Tax Collectors at Source (TCS)

Turnover threshold exemption:

Taxpayers with an annual turnover below ₹2 crore are exempt from filing GSTR-9. However, they may file it voluntarily for better reconciliation.

What is GSTR-9C?

GSTR-9C reconciles GSTR-9 data with taxpayer audited financial records. It functions for the government as an audit tool to find differences between actual financial performance and returns.

Who should submit GSTR-9C?

Companies whose annual turnover comes above ₹5 crore have to submit GSTR-9C.

GSTR-9C Filing Exemption

Companies with yearly sales less than ₹5 crore are exempt from GSTR-9C submission.

variations Regarding GSTR-9 and GSTR-3B

• GSTR-3B lets companies pay their GST by summarising monthly returns including ITC claims and tax obligations.
  
  
• To guarantee precise reconciliation, GSTR-9—on the other hand—is an annual return including all monthly returns entered during the year.
  
  
• GSTR-3B is active: GSTR-9 is essentially a compliance tool.

Turnover limits for filing GSTR-9 and GSTR-9C

The following are the filing GSTR-9 and GSTR-9C turnover thresholds:

• GSTR-9: Requirement for companies turning at least ₹2 crore annually.
• GSTR-9C: Required for companies whose annual turnover comes in above ₹5 crore.

GSTR-9A applies depending on turnover restrictions particular to the composition scheme for taxpayers enrolled under the plan.

Due dates for filing GSTR-9 and GSTR-9C

GSTR-9 and GSTR-9C are due on December 31 of the year after the financial year.

For instance:

• Financial year 2023–24 deadline is 31 December 2024.

GST notifications should be checked often because the government may extend deadlines in extreme situations.

Details are required in GSTR-9.

There are six sections in GSTR-9, each requiring detailed data:

1. Basic Details:
   

   The information includes the GSTIN, legal name, trade name, and financial year.

2. Outward and Inward Supplies:
   

   Not filing GSTR-9 results in penalties, late fees, and possible tax examination.

3. Input Tax Credit (ITC):
   

   ITC has been availed, reversed, and netted.

4. Taxes Paid:
   

   Taxes paid under CGST, SGST, IGST, and Cess.

5. Adjustments for the previous financial year:
   

   The previous year's amendments and corrections have been made.

6. Other Information:
   

   The HSN-wise summary of supplies, late fees, refunds, and raised demands is available.

How to File GSTR-9 and GSTR-9C?

1. Log in to the GST Portal.
   

   https://www.gst.gov.in

   Visit the GST Portal and log in using your credentials.

2. Navigate to the Annual Return Section:
   

   Go to ‘Services → Returns → Annual Return.’

3. Select the Financial Year:
   

   Select the financial year for which you are filing the return.

4.  Prepare and fill out data:
   

   Enter outward supplies, inward supplies, ITC, and tax details.

   HSN details are optional for GSTR-9.

5. Compute Late Fees (if applicable):
   

   Use the ‘Compute Liabilities’ option to calculate late fees.

6. Submit and file:
   

   Review the details and submit them using DSC or EVC.

Filing GSTR-9C

1. Prepare the reconciliation statement using data from GSTR-9 and audited financials.
   
   
2. Self-certify the statement (CA certification is no longer mandatory).
   
   
3. Upload the statement along with GSTR-9 on the GST portal.

How do you prepare GSTR-9 in Excel?

The GST offline utility available on the portal allows taxpayers to prepare GSTR-9 in Excel.

1. Download the Excel-based utility from the GST portal.
2. Enter details of outward supplies, inward supplies, ITC, and taxes paid.
3. Validate the data using inbuilt tools.
4. Generate a JSON file and upload it to the GST portal.

Large companies with lots of data will benefit from this strategy.

GSTR-9 and GSTR-9C non-filing penalties

Avoiding fines requires timely GSTR-9 and GSTR-9C reporting.

Set at 0.25% of turnover, GSTR-9 Late Fee: ₹100 day (₹50 CGST + ₹50 SGST).

• GSTR-9C Penalty: Under examination, we could impose extra fines depending on disparities and turnover.

Common FAQs

 Is HSN mandatory in GSTR-9?

No, HSN details are not mandatory in GSTR-9. However, GSTR-9C mandates them for taxpayers with a turnover over ₹5 crore.

What is the GST audit turnover limit?

Businesses with annual income over ₹5 crore require GST audits.

GSTR-9C matches GSTR-9 data with taxpayer audited financial accounts. Differences are highlighted.

Example:

If a taxpayer states ₹50 lakh as taxable turnover in GSTR-9 but audited financial accounts show ₹52 lakh, GSTR-9C reconciliation will indicate the ₹2 lakh discrepancy for additional review or correction

 

Does CA have to submit GSTR-9C?

CAs and cost accountants are no longer required to certify GSTR-9C. A taxpayer can self-certify the reconciliation statement.

 What is Table 12 in GSTR-9C?

Table 12 in GSTR-9C captures ITC reconciliation. It compares ITC as per the audited financial statements with the ITC claimed in GST returns. Any mismatches must be explained in this table.

 How to fill out Form 9C GST?

Steps to fill GSTR-9C:

1. Download the GSTR-9C format from the GST portal.
2. Gather audited financial statements and GSTR-9 data.
3. Reconcile turnover, ITC, and tax liability between financial statements and GSTR-9.
4. Enter details in respective tables (e.g., turnover in Table 5, ITC in Table 12).
5. Upload the self-certified form on the GST portal.

What is Form 9A in income tax?

Trusts and charities notify the IRS of income accumulation using Form 9A. It ensures tax exemption for revenue not spent within the authorised time but used for charity in future years.

What is the turnover limit for GSTR-9A?

Composition Scheme taxpayers use GSTR-9A. No turnover limit exists for GSTR-9A, however it applies to composition taxpayers having turnover thresholds (currently ₹1.5 crore yearly).

What is Table 9A in GSTR-1?

Table 9A in GSTR-1 is used to report amendments to taxable outward supplies from previous tax periods. It allows taxpayers to rectify any errors in reported invoices.

What is the difference between GSTR-9A and GSTR-4?

• GSTR-9A:

An annual return filed by composition taxpayers, summarising all the GST transactions for the financial year.

• GSTR-4:

A quarterly return filed by composition taxpayers to declare their outward supplies, tax paid, and ITC on purchases.

 

Feature	GSTR-9A	GSTR-4
Frequency	Annual	Quarterly
Applicability	Composition taxpayers	Composition taxpayers
Purpose	Yearly summary of GST filings	Quarterly tax payment and compliance