Arjun (Fictional Character): Krishna, the due date for filing GSTR-9 and GSTR-9C for the financial year 2023-24 is 31st December, 2024, so, please explain what are these forms and why they are important for businesses ?
Krishna (Fictional Character): Arjuna, GSTR-9 is the annual return where businesses report all their GST related transactions during the year such as sales, purchases and other expenses/ incomes. On the other hand, the GSTR-9C is a reconciliation statement that ensures the figures in GSTR-9 matches with the figures in books of accounts of business. It is optional for the taxpayer to file GSTR-9 if aggregate turnover is upto Rs. 2 crore. If the aggregate turnover is more than Rs. 2 crore then GSTR-9 is mandatorily required to be filed. Further, if the aggregate turnover exceeds Rs. 5 crore then it is mandatory to file GSTR-9C.
These return and reconciliation statement are crucial for staying compliant with GST laws and avoiding penalties.
Arjuna: What are the key things which one should remember while filing GSTR-9 and GSTR-9C for FY 2023-24?
Krishna: Here are the 10 important things to remember while filing GSTR-9 and GSTR-9C for FY 2023-24:
1. Turnover Reonciliation:
It is important to reconcile our turnover stated in books of Accounts with the GST returns filed. As we report in GSTR-9 total sales turnover of our business made during the financial year, the same must be reconciled with the figures declared in GSTR-1 and GSTR-3B. Also, the Credit notes and Debit notes must be properly reconciled and need to be reported separately in GSTR-9.
2. Reconciliation of Outward Supplies through amendments:
The outward supplies are reported in GSTR-1, GSTR-3B must be reconciled with the books and any discrepancy in it which has been rectified through amendments in FY 2024-25 then the same must be reported in table 10 and table 11 of GSTR-9 of FY 2023-24.
3. Correct reporting of exempt, Non-GST and nil rated supplies:
While filing GSTR-9, the outward supplies must be correctly categorized in exempt supplies, non-GST supplies and nil rated supplies in table 5 of GSTR-9.
4. Reconciliation of Input Tax Credit:
ITC is one of the most critical aspects of GSTR-9 and GSTR-9C. From FY 2023-24, the ITC in the GSTR-9 will be auto-populated from the GSTR-2B instead of GSTR-2A. The ITC claimed in GSTR-3B shall match with the ITC recorded in your books of accounts and with GSTR-2B as well.
If there is any difference arise, such as excess claim or short claim of ITC in GSTR-3B of FY 2023-24 and whose effect has been taken in any GSTR-3B of FY 2024-25 filed upto 30.11.2024, the same must be reported in table 12 and table 13 of GSTR-9 of FY 2023-24.
5. New Changes related to E-Commerce operations:
From FY 2023-24, two new tables has been inserted in form GSTR-9 for E-commerce operators (ECO). These figures can be fetched from table 14 and table 15 of GSTR-1. It is imported to properly report the details of supplies in these respective tables of GSTR-9. This is the recent amendment applicable from FY 2023-24.
6. Report HSN /SAC Codes Accurately:
It is mandatory to report the HSN wise details of outward supplies along with the tax amount in table 17 of GSTR-9 and the same must be matched with the total turnover appears below table 13 of GSTR-9.
7. Rate wise summary of outward supplies:
While filing GSTR-9C, it is important to report the rate wise bifurcation of taxable outward supplies and RCM in the table 9 of GSTR-9C and the same must be matched with our total taxable outward supplies which auto populates from GSTR-9 in table 9Q of GSTR-9C.
8. Bifurcation of ITC claimed in GSTR-3B:
The ITC claimed in GSTR-3B must be properly bifurcated in Input, Input Services and capital goods and the same must be reported in table 6B, 6C and 6D of GSTR-9.
9. ITC Reversal:
It is mandatory to report the details of ITC reversal made in GSTR-3B return during the financial year in table 7 of GSTR-9. Also, if any ITC has been reversed through DRC-03 at the time of GSTR-9 then the same also must be reported in table 7H1 of GSTR-9.
10. File on time to avoid penalties:
Timely filing of GSTR-9 and GSTR-9C is crucial. Failing to file this by the deadline (i.e. 31.12.2024) can result in late fees and penalty. If the taxpayer fails to file both GSTR-9 and GSTR-9C they will incur a late fee. For non-filing of GSTR-9C there is no specific penalty, but it may result in a general penalty of of Rs.50,000 (CGST -25000 + SGST 25000).
Arjuna: What should taxpayers learn from this?
Krishna: Filing of GSTR-9 and GSTR-9C teaches us the importance of keeping accurate records and regularly checking GST data with our books of accounts. It shows that staying compliant is not just about following rules but also about being disciplined and transparent in business. Filing on time and without mistakes helps avoid penalties, builds trust and supports the smooth growth of a business.
Source: Lokmat Times
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