GSTR-9C is a GST reconciliation statement required for businesses with an annual turnover exceeding ₹5 crore. It must be filed along with the annual GST return and serves to reconcile the data reported in GSTR-9 with the audited financial statements. The statement identifies discrepancies in turnover, tax liability and input tax credit, if any.
In this guide, we’ll walk through the step-by-step process for filing the GST annual return and highlight common mistakes to avoid.
Step-by-step process to file GSTR-9c online
Below are some of the key steps that you need to follow to file GSTR-9c:
Login to the GST portal
Visit the official GST portal and log in using your valid GSTIN, username and password. Ensure that GSTR-9 (Annual Return) for the relevant financial year has already been filed.
Navigate to the GSTR-9C filing section
After logging in, navigate to the Services menu, select Returns, and then choose Annual Return. From there, select the relevant financial year and click on GSTR-9C – Reconciliation Statement.
Download the offline utility
Download the GSTR-9C offline utility (Excel/JSON tool) provided on the portal. This utility is used to prepare the reconciliation statement offline, as direct online editing is limited.
Prepare the reconciliation statement
Fill in Part A of GSTR-9C by reconciling turnover, tax liability, and input tax credit as per the books of accounts with figures reported in GSTR-9. Any differences must be clearly noted along with appropriate reasons. This step requires special attention, as unexplained mismatches may lead to scrutiny.
Upload the JSON file and validate data
Once the reconciliation is completed, generate the JSON file from the offline utility and upload it to the GST portal. Check for errors or inconsistencies and rectify them before proceeding.
Preview GSTR-9C
Use the preview option to review the complete GSTR-9C form. This is a critical step to ensure that all values are correctly populated and aligned with your records.
Self-Certification and submission
Complete Part B by providing the self-certification declaration. Submit the form using DSC or EVC, as applicable. Upon successful submission, an ARN will be generated as proof of filing.
Structure of GSTR-9C (Part-wise breakdown)
GSTR-9C is divided into two main parts and is designed as a reconciliation statement rather than a GST return.
Part A contains the reconciliation details between the figures reported in the GST annual return (GSTR-9) and the audited financial statements. This part covers reconciliation of gross turnover, taxable turnover, tax liability, and input tax credit (ITC). Any differences identified must be reported along with clear reasons, making this section critical from a scrutiny perspective.
Part B relates to self-certification by the taxpayer. Here, the registered person declares that the information provided in Part A is true, correct and complete to the best of their knowledge. Since CA or CMA certification is no longer required, this declaration places full responsibility on the taxpayer.
Common mistakes to avoid while filing GSTR-9C
Here are some of the common mistakes to avoid while filing the GSTR-9C return:
- Make sure there is no difference between your books and GST returns. The figures reported in GSTR-9 should align with your audited financial statements, or the differences should be properly explained in GSTR-9C.
- Use GST software effectively, not mechanically. GST software can significantly simplify reconciliation, but it should be used along with a careful review to ensure that all adjustments and year-end entries are accurately captured in the GST Return.
- Include all credit notes and amendments. Credit notes, debit notes, and amendments issued during the year must be correctly considered while reconciling turnover and tax liability.
- Cross-verify ITC figures thoroughly. A GST calculator can help validate ITC amounts, but the final figures should match GSTR-2B, GSTR-3B and the books of accounts.
- Ensure ITC reversals are properly accounted for. Reversals relating to exempt supplies, non-business use or ineligible credits should be accurately reported.
- Complete a final review before self-certification. Since GSTR-9C is filed under self-certification, a final check with proper documentation helps avoid future notices or disputes.
Conclusion
Under self-certification, GSTR-9C places greater responsibility on businesses to ensure their GST returns and financial records are accurate and aligned. Any inconsistencies between reported figures and the books of accounts can lead to queries or compliance issues.
This makes it important to maintain clean, reconciled data throughout the year rather than relying on last-minute checks. When accounting and GST records are consistently maintained on a single system, such as in TallyPrime, businesses are better positioned to complete GSTR-9C accurately and with fewer adjustments at the time of filing.
