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GST 9C (Reconciliational Statement)

About of Service

  • Turnover Reconciliation:

    • Gross Turnover: Reconciliation of the gross turnover declared in GSTR-9 with the audited financial statements.
    • Taxable Turnover: Reconciliation of the taxable turnover reported in GSTR-9 with the financial records.

  • Tax Reconciliation:

    • Tax Paid: Reconciliation of the tax paid as per GSTR-9 with the amounts reported in the financial statements.
    • Additional Tax Liability: Identification of any additional tax liability that may arise due to discrepancies found during reconciliation.

  • Input Tax Credit (ITC) Reconciliation:

    • ITC Claimed: Reconciliation of ITC claimed in GSTR-9 with the audited financial statements.
    • ITC Utilized: Verification of ITC utilized and its accuracy as per the financial records.
    • ITC Reversed: Reconciliation of ITC reversed with the financial statements.

  • Other Reconciliations:

    • Adjustments: Any adjustments or corrections identified during the reconciliation process.
    • Unreported Items: Reconciliation of any unreported items that should have been included in the GST returns.
  • Part B: Certification
  • Certification by a CA/Cost Accountant:
    • The CA or Cost Accountant certifies that the reconciliation statement (Part A) and the annual return (GSTR-9) are true and accurate.
    • This certification provides assurance that the data has been independently verified and reconciled.
  • Filing Process

  • Data Compilation:

    • Collect all relevant data from GSTR-9, audited financial statements, and other financial records.

  • Preparation:

    • Prepare the reconciliation statement (Part A) using the collected data.
    • The CA or Cost Accountant reviews and certifies the reconciliation statement.

  • Submission:

    • Upload the certified GST-9C on the GST portal.
  • Due Date
  • The due date for filing GST-9C is typically aligned with the due date for filing GSTR-9, which is 31st December following the end of the financial year, unless extended by the government.
  • Importance and Benefits
  • Accuracy Verification: Ensures that the data reported in the GST returns is accurate and reconciled with the financial statements.
  • Discrepancy Identification: Helps in identifying and rectifying any discrepancies between the GST returns and the financial records.
  • Compliance Assurance: Provides an additional layer of compliance verification, reducing the risk of non-compliance with GST laws.
  • Audit Facilitation: Facilitates easier audits and assessments by tax authorities by providing a clear reconciliation of GST data.
  • Penalties for Non-Compliance
  • Late filing or inaccuracies in GST-9C can attract penalties and interest as per GST law. It is essential to ensure timely and accurate filing to avoid such issues.
  • Conclusion
  • GST-9C is a vital document in the GST compliance process for businesses with a turnover exceeding ₹5 crores. It ensures that the GST returns filed throughout the year are accurate and reconciled with the taxpayer's audited financial statements. By identifying discrepancies and ensuring compliance, GST-9C helps maintain transparency and accuracy in GST reporting, facilitating smoother audits and reducing the risk of legal issues.

Uses and Benefits
  • Taxpayers whose aggregate turnover exceeds ₹5 crores in a financial year. It must be certified by a Chartered Accountant (CA) or a Cost Accountant.
  • Part A: Reconciliation statement. Turnover Reconciliation: Reconciliation of gross and taxable turnover declared in GSTR-9 with the audited annual financial statement. Tax Reconciliation: Reconciliation of taxes paid as per GSTR-9 with the amounts reported in the audited financial statements.
  • Data Compilation: Collect and reconcile data from GSTR-9, audited financial statements, and other relevant records. Form Preparation: The taxpayer prepares the reconciliation statement, and the CA or Cost Accountant certifies it.
  • Reconciliation of Turnover: Ensures that the turnover declared in GST returns matches the audited financial statements. Verification of Tax Paid: Confirms that the tax paid as per GST returns is accurate and reconciled with financial records.
  • Accuracy: Ensuring accurate reconciliation is crucial to avoid discrepancies and potential legal issues. Professional Certification: The reconciliation statement must be certified by a CA or Cost Accountant, ensuring that an independent professional has verified the details.

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Charges Structure & Our Scope of Work

Additional Disclosure

  1. Organizational Information:

    • Provide detailed information about your organization, including its legal name, GSTIN (Goods and Services Tax Identification Number), address, and contact details.

  2. Financial Statements:

    • Include audited financial statements for the financial year, such as balance sheet, profit and loss statement, and cash flow statement, as per applicable accounting standards.

  3. GST Returns Filing Details:

    • Provide a summary of all GST returns filed during the financial year, including GSTR-1 (Outward Supplies), GSTR-3B (Monthly/Quarterly Return), and any other applicable returns.

  4. Reconciliation of Turnover:

    • Reconcile the turnover reported in the audited financial statements with the turnover declared in GST returns, specifying any differences and their reasons.

  5. Reconciliation of Input Tax Credit (ITC):

    • Reconcile the ITC claimed in GST returns with the ITC available as per audited financials, detailing adjustments, reversals, and corrections.

  6. GST Payments and Liabilities:

    • Disclose details of GST payments made during the financial year, including tax liability, interest, penalties, and any late fees paid.

  7. HSN (Harmonized System of Nomenclature) and SAC (Services Accounting Code) Summary:

    • Provide a summary of HSN codes for goods and SAC codes for services used in the financial year, along with their corresponding turnover and tax liabilities.

  8. Auditor's Opinion and Certification:

    • Include the auditor's opinion on the reconciliation statement, certifying its accuracy and compliance with GST rules and regulations.

  9. Adjustments and Amendments:

    • Detail any adjustments or amendments made to GST returns during the financial year, explaining reasons for corrections and their impact on tax liability and ITC.

  10. Compliance with GST Rules and Regulations:

    • Ensure compliance with all GST rules, regulations, notifications, and circulars applicable during the financial year covered by GST 9C.

Terms & Conditions

Documents & Detail Required

  1. Audited Financial Statements:

    • Balance Sheet: A statement showing the financial position of the organization at the end of the financial year.
    • Profit and Loss Statement: A statement showing the financial performance of the organization during the financial year.
    • Cash Flow Statement: A statement showing the cash inflows and outflows of the organization during the financial year.
    • Notes to Accounts: Explanatory notes providing additional details about the financial statements and accounting policies.

  2. GST Returns:

    • Copies of all GST returns filed during the financial year, including GSTR-1 (Outward Supplies), GSTR-3B (Monthly/Quarterly Return), and any other applicable returns.

  3. Reconciliation of Turnover:

    • Reconciliation statement reconciling the turnover reported in the audited financial statements with the turnover declared in GST returns. This should include details of any differences identified and the reasons for those differences.

  4. Reconciliation of Input Tax Credit (ITC):

    • Reconciliation statement reconciling the ITC claimed in GST returns with the ITC available as per audited financial statements. This should detail adjustments, reversals, corrections, and the reasons for any discrepancies.

  5. Details of GST Payments and Liabilities:

    • Summary of GST payments made during the financial year, including tax liability, interest, penalties, and any late fees paid.

  6. HSN (Harmonized System of Nomenclature) and SAC (Services Accounting Code) Summary:

    • Summary of HSN codes for goods and SAC codes for services used in the financial year, along with their corresponding turnover and tax liabilities.

  7. Auditor's Opinion and Certification:

    • Auditor's opinion and certification on the reconciliation statement, confirming its accuracy and compliance with GST rules and regulations.

  8. Details of Adjustments and Amendments:

    • Details of any adjustments or amendments made to GST returns during the financial year, explaining the reasons for corrections and their impact on tax liability and ITC.

  9. Compliance with GST Rules and Regulations:

    • Confirmation of compliance with all GST rules, regulations, notifications, and circulars applicable during the financial year covered by GST 9C.

  10. Additional Supporting Documents:

    • Any additional documents or information deemed necessary by the auditor or required by GST authorities to substantiate the reconciliation and compliance with GST rules.

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OUR REVIEW

FAQ'S

What is GST 9C?

GST 9C is a reconciliation statement that reconciles the turnover declared in the audited annual financial statements with the turnover declared in the GST returns filed for the financial year.

Who needs to file GST 9C?

GST 9C needs to be filed by taxpayers whose annual aggregate turnover exceeds Rs. 2 crores during a financial year. It is mandatory for them to undergo a GST audit conducted by a Chartered Accountant or a Cost Accountant.

What is the due date for filing GST 9C?

The due date for filing GST 9C is December 31st following the end of the financial year for which the audit is conducted. For example, for the financial year ending March 31, 2023, the due date would be December 31, 2023.

What is the purpose of filing GST 9C?

GST 9C ensures reconciliation between the turnover reported in the audited financial statements and the turnover reported in the GST returns. It helps in verifying the correctness of the tax payments and facilitates compliance with GST laws.

What are the documents required to file GST 9C?

The documents required typically include audited financial statements (balance sheet, profit and loss account), reconciliation statement reconciling turnover between audited financials and GST returns, details of reconciling items, GST audit report, and other relevant supporting documents.