Understanding GST Forms 9 and 9C: Key Updates and Common Compliance Challenges
The Goods and Services Tax (GST) has completely transformed how businesses in India manage their taxes. If your business has an annual turnover above a certain threshold, you’re going to need to go beyond just regular filing, and there comes GST Forms 9 and 9C. These forms ensure complete transparency and maintaining precise financial records that align with GST regulations. In this blog, we’ll break down exactly what GST Forms 9 and 9C are, plus the latest updates you need to know.
What is GST Form 9?
GST Form 9 is an annual return that needs to be filed by taxpayers registered under GST. It provides a comprehensive summary of the outward and inward supplies made during the financial year. Essentially, this form helps the GST authorities assess the total tax liability and credits availed by the taxpayer during the year. The deadline for filing GST Form 9 is typically 31st December following the end of the financial year. Businesses surpassing the designated threshold of Rs. 2 crore are eligible for file Form 9.
What is GST Form 9C?
GST Form 9C is an important audit-related form. It is a reconciliation statement that needs to be filed by taxpayers who have a turnover exceeding Rs. 5 crore during a financial year. GST Form 9C essentially verifies the correctness of the GST returns filed by comparing them with the audited annual financial statements of the business. GST Form 9C is applicable to businesses with an annual turnover of more than Rs. 5 crore.
If you’re a taxpayer whose turnover falls under this threshold, you must submit this form after conducting an audit of your financial records. It's an essential part of the compliance process for larger businesses. GST Form 9C should be filed by 31st December 2024 for 2022-2023 financial year as well, but only if the business is subject to audit and meets the turnover threshold.
Key Differences
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Feature
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Form 9
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Form 9C
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Purpose
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Annual return summary for GST purpose
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Reconciliation statement
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Applicable to
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Taxpayers whose turnover exceeds Rs. 2cr
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Taxpayers who aggregate turnover exceeds over Rs. 5cr
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Audit Requirement
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Optional
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Mandatory under the supervision of CA or CS.
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Basis
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Summary of outward and inward supplies, GST paid, and ITC claimed.
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Reconciliation of GST return data with audited financials.
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Considering the Recent Update
Addressing the Mismatch between Table 8A and Table 8C in GSTR-9
When filing GSTR-9 for FY 2023-24, businesses must reconcile their Input Tax Credit (ITC) between Table 8A and Table 8C. Recent changes in credit reporting could cause discrepancies between these tables.
Table 8A automatically populates the total credit for inward supplies from the GSTR-2B form, while Table 8C records ITC on supplies received in the current year but availed in the next. The shift from GSTR-2A (used in FY 2022-23) to GSTR-2B (used in FY 2023-24) may cause mismatches, with Table 8A potentially reflecting inflated credits for the previous year and lower credits for the current year. Businesses should review and adjust Table 8C values to ensure accurate reporting and avoid filing errors or penalties.
How to Handle Specific Scenarios of Mismatch between Table 8A and 8C
Businesses may face specific scenarios that require extra attention when handling mismatches between Table 8A and Table 8C:
- Late Reporting of an Invoice by the Supplier: If an invoice issued in FY 2023-24 is reported late in GSTR-1 after March 2024, the ITC won’t appear in Table 8A. You must manually report this ITC in Table 8C and Table 13 of your GSTR-9.
- ITC Reversal Due to Non-Payment to Supplier: If ITC was claimed in FY 2023-24 but later reversed due to non-payment within 180 days, the reclaimed ITC should not appear in Table 8C of FY 2023-24. It should be reported in Table 6H of the GSTR-9 for FY 2024-25.
- Ensuring Accurate Reporting: To avoid errors, businesses should carefully review invoices, cross-check with GSTR-2B, and understand when manual adjustments are needed. If discrepancies remain, consult a GST professional or tax advisor before filing.
Summing Up
Think of GST Form 9 as a detailed financial summary of your GST journey and Form 9C as the audit check-up that ensures everything is in tip-top shape. Don't let GST compliance overwhelm you! With Webtel's GST Filing Software, you can file your GST Form 9 and 9C quickly, accurately, and hassle-free. Whether you're a small business or a large enterprise, we’ve got the tools you need to stay compliant and stress-free.