In terms of taxation, two terms often cause confusion for businesses and individuals: GSTR 9 and GSTR 9C. These are forms used in the Goods and Services Tax (GST) system in India, and they play different roles. GSTR-9 is an annual return that taxpayers need to file, while GSTR-9C is a reconciliation statement. On the other hand, GSTR-9 provides a summary of the annual GST transactions, offering an overview of the financial year’s activities.
In the section below, we’ll explain the GSTR 9 and 9c differences to help taxpayers.
What is GSTR-9?
GSTR-9, commonly known as the Annual Return, is a mandatory document that every GST-registered taxpayer must submit. This return consolidates all the monthly and quarterly GST returns filed during the financial year. It paints a comprehensive picture of taxpayers’ financial activities throughout the year. ll regular GST-registered taxpayers should file GSTR-9. This includes various categories, such as businesses, individuals, and entities operating under the GST regime. Continue reading to learn more about GSTR 9 vs. 9C.
Features of GSTR-9
Here are the key 6 features and details of GSTR-9 in a straightforward manner:
- Annual Summary: GSTR-9 is an annual return, which means you file it once a year. It covers all the transactions and activities related to GST for the entire financial year.
- Consolidated Data: The form requires you to provide a consolidated summary of your transactions, including both inward and outward supplies of goods and services.
- GSTIN and Legal Name: You’ll need to mention your GST Identification Number (GSTIN) and your legal name, ensuring that the details match your GST registration.
- Inward and Outward Supplies: You must report details of your inward and outward supplies, which means purchases and sales made during the year. This includes the GST paid and collected.
- Reconciliation: It’s also a tool for you to reconcile your annual financial statements with your GST returns. This helps in identifying any discrepancies.
- Penalties: Non-compliance or late filing can lead to penalties, so it’s important to file GSTR-9 by the due date.
What is GSTR-9C?
GSTR-9C is the reconciliation statement that supplements GSTR-9. It’s essentially a detailed audit report that reconciles a taxpayer’s annual financial statements with the annual returns filed in GSTR-9. GSTR-9C is mandatory for taxpayers whose aggregate turnover surpasses a specified threshold. It is a vital component of the GST system, as it ensures the accuracy and reliability of GST data.
Features of GSTR-9C
- Reconciliation Statement: GSTR-9C is essentially a reconciliation statement. It acts as a bridge between your annual financial records and the data you’ve reported in your GSTR-9 for a given financial year. This reconciliation helps ensure the accuracy and consistency of your GST data.
- Audit Requirement: One of the standout features of GSTR-9C is that it necessitates an audit. A qualified chartered accountant or cost accountant conducts a detailed audit of your financial statements to make sure your GST returns (GSTR-9) align with the actual financial transactions.
- Correcting Discrepancies: If discrepancies or errors are discovered during the audit, GSTR-9C provides a mechanism for rectification. This process is crucial for maintaining the integrity of your GST data and ensuring that it accurately reflects your business transactions.
- Aggregate Turnover Threshold: GSTR-9C is mandatory for taxpayers whose annual aggregate turnover exceeds a specified threshold, currently set at a threshold limit. This ensures that larger businesses undergo a thorough audit to maintain data reliability.
- Two Parts: GSTR-9C is split into two sections. Part A collects detailed information related to taxes, while Part B involves a certification that must be completed by the auditing Chartered Accountant or Cost Accountant. This division simplifies the audit process.
- Filing Deadline: GSTR-9C must be filed after GSTR-9. It’s an annual compliance requirement, and adhering to the filing deadline is crucial to avoid penalties.
Difference between GSTR 9 and 9c
Mentioned below are the basis of the difference between GSTR 9 and 9c:
1. Nature of Form
GSTR-9: This is your annual report card, summarizing all your GST activities for the year.
GSTR-9C: gstr 9 and gstr 9c vary in terms of nature. GSTR-9C acts as the quality control for your GSTR-9. Its primary purpose is to verify and validate the information you provided in GSTR-9.
2. Filing frequency
GSTR-9: You file it just once a year, and it’s your chance to provide an overview of your financial activities, including sales, purchases, input tax credits, and your GST liability for the entire financial year.
GSTR-9C: Just like your regular GSTR-9, you also file GSTR-9C once a year. However, there’s a little twist: you file GSTR-9C after you’ve already submitted your GSTR-9. It comes in after to ensure everything is in order.
3. Mandatory Audit
GSTR-9: The good news is that GSTR-9 doesn’t require a mandatory audit by a chartered accountant or cost accountant. You, as the taxpayer, can prepare and file it yourself.
GSTR-9C: GSTR-9C must be filed after a detailed audit by a chartered accountant or cost accountant. Their job is to scrutinize your financial records and make sure your GSTR-9 is accurate.
4. Purpose
GSTR-9: When looking at gstr 9 and 9c difference, purpose is a major factor to differentiate. GSTR-9 summarizes GST returns, serving as an annual overview for the taxpayer.
GSTR-9C: Its primary purpose is to ensure the accuracy of the information in GSTR-9 through a detailed audit.
5. Applicability
GSTR-9: It is applicable to all GST-registered taxpayers.
GSTR-9C: It applies to taxpayers with an aggregate turnover exceeding a specified threshold.
Conclusion
These fundamental distinctions between GSTR 9 and 9C are crucial for taxpayers, as they dictate who needs to file which form and for what purpose. GSTR-9 is the annual return that offers an overview of GST activities, while GSTR-9C acts as an essential verification tool, ensuring data accuracy. Understanding these differences between GSTR 9 and 9C empowers taxpayers to fulfill their compliance obligations effectively.