What is GSTR-9C: GST Reconciliation Statement

GSTR 9C is a GST reconciliation statement between Annual Returns in GSTR-9 that is filed for a particular financial year and the figures present on the audited annual Financial Statements prepared by the auditor on behalf of the taxpayer. This form consists of the gross and taxable turnover according to the books (internal financial statement) reconciled with the respective figures present in the consolidation of all GST returns that the taxpayer filed for assessment year.

Hence, if there are any mismatches between the GSTR -9 and the final Financial Statement, it will instantly get reflected in this form, i.e. GSTR-9C or GST Reconciliation Statement. If GST has been paid in excess, taxpayer can file for the GST refund and in the case of a shortfall, the difference amount is to be paid within the stipulated time.

Every taxpayer who is registered under GST and has a venture turnover of over Rs. 5 crores during a financial year must prepare the GST reconciliation statement or GSTR-9C. Assessee then needs to file this statement in the GSTR-9C form and self-certify it when filing on the GST portal. Taxpayers can visit the online GST portal and upload the necessary documents such as a copy of Annual Return in form GSTR-9, balance sheet, P&L Statement as well as the Audited Accounts duly e-signed (.JSON-file) by the auditor etc. There are several reasons that make GST reconciliation a mandatory process as detailed in further sections.

The following are some reasons that make GST Reconciliation Statement significant:

• The GSTR-9C reconciliation statement acts as a reference for the concerned authorities to verify the validity of GST returns that the taxpayers are filing
• It helps establish accuracy and transparency between the GSTR-9 and the audited financial statement (prepared by a certified auditor)
• GSTR 9C helps in identifying and rectifying the errors in GSTR 9, if any, so that the GSTR 9 form is submitted without any errors/discrepancies
• Leads to reduced risk of penalties which are levied if the data submitted is not GST-compliant
• Quickens the audit process by government authorities leading to speedy refund process, if any refunds are to be made by the tax authorities

There are usually two parts to GSTR-9C reconciliation statement:

• Part-A: Reconciliation Statement
• Part-B: Self-certification

The Reconciliation Statement Part-A of GSTR-9C is further divided into the following sub-parts:

Following are some details that you will need to furnish in the reconciliation statement:

• The annual turnover, exempted/nil-rated turnover, output tax liability and more
• Tax credits that are available in various account books
• Details of various refund applications that you have filed and sanctioned during the current financial year
• Various adjustments in input tax credit or turnover that you have made in the current or previous year
• Details of ITC (Input Tax Credit) reversed during the current financial year and the reason associated with it

Below are the key steps that need to be completed for GST reconciliation using GSTR-9C form:

The due date for filing Form GSTR-9C for a particular financial year is determined as the 31st of December of the following financial year. Please note that this due date can be extended by the government from time to time, of which public is informed through an official notification at the website of GST (gst.gov.in). To ensure that you do not miss any GST filing due dates, you should keep a close watch on the GST Calendar available through various online sources including the official GST website.