Form GSTR 9C is meant for filing the reconciliation statement of taxpayers pertaining to a particular financial year. The form is a statement of reconciliation between the Annual Returns in GSTR-9 and the figures mentioned in the Audited Financial Statements of the taxpayer. Given that, this CA certified form must be filed during the filing of Annual Returns in GSTR-9 and the Audited Financial Statements. The obligation can either be completed through the GST portal or a Facilitation Centre. This article deals with the usage and need of the form.
What is a Reconciliation Statement?
A reconciliation statement is a document which is intended to facilitate independent verification of the accuracy of the balance in the accounts of a company, added with the purpose of clarifying the differences between the two versions of the account. Under GST, the Chartered Accountant or Cost Accountant is required to formulate the GST reconciliation statement, wherein any differences between the details reported in the GST returns and the Audited Accounts must be reported along with the cause of such deduction. Such an obligation is enforced to certify any additional liability resulting out of the reconciliation exercise and GST audit in GSTR-9C.
The Purpose of GST Reconciliation
Reciliation under GST is a given, which can be attributed to the following factors:
Taxpayers part of this tax system will only be able to claim Input Tax Credit (ITC) if their invoice is present as a part of their 2A data or vendor data. Considering this, the taxpayers are necessitated to perform a reconciliation on the areas where there is a mismatch between the ITC and 2A data.
Taxpayers must perform reconciliation to ensure the correctness of the declaration made in the form of monthly and quarterly returns and to avoid duplications.
Apart from this, the provision caters to the following circumstances:
Claiming the eligible ITC against any invoice raised during the previous year.
Apportionment of ITC associated with the previous year.
Declaration of CDN’s issued against any invoices raised during the previous year.
Filing of amendments to the information furnished in the returns filed during the previous year.
Making amendments to the information reported in the GST returns for taxpayers who have opted for the composition scheme.
GSTR 9C is applicable to taxpayers who are required to obtain an annual GST audit of their accounts. It must be prepared and certified by a Chartered Accountant or Cost Accountant.
GST Audit: Taxpayers with an annual aggregate turnover of above Rs. 2 crores in a particular financial year qualifies for a tax audit.