The GSTR 9 is a GST annual return form to be filed by the regular taxpayer once a year with all the consolidated details of SGST, CGST and IGST paid during the year.
The GSTR-9C is an annual GST reconciliation statement that underwent a major change in 2021. The Form GSTR-9C was earlier applicable to businesses with more than Rs.2 crore as annual turnover in a particular financial year. It required the audit of books and records of that year by a chartered accountant or a certified management accountant and their certification.
The GSTR-9 and GSTR-9C filing for Financial Year 2020-21 is available on the GST portal from August 2021. The due date to submit these forms is 31st December 2021. However, regular taxpayers must complete vital tasks by October 2021 in order to ensure accurate and efficient compliance.
Here are certain specified tasks which a taxpayer must keep in mind before filing the GSTR-9 and GSTR-9C.
GST returns are filed monthly or quarterly basis. Finally, after the financial year gets over, annual returns must be filed before the 31st December of subsequent FY. This would need consolidation of the data reported over the FY. In order to ensure the correctness of the declaration made and to avoid duplications, taxpayers must reconcile the data, then consolidate the values and make the declaration.
Make sure that you do not miss out on the annual GST reconciliation for the entire financial year of 2020-21.
Before filing GSTR-9 and GSTR-9C for Financial Year 2020-21 correct the errors and report omitted invoices and or Credit or Debit Note (CDN).
Amendments can be made in each invoice and details at the summary level also. Both types of amendments have their own limitations. These must be followed clearly to avoid any mistakes in filing GSTR-1. The return filing period must be the period in which the amendment is made.
There are many types of amendments namely B2B Amendments, B2C Large Amendments, Credit/Debit Notes (Registered) Amendments, Credit Debit Note (Unregistered) Amendments, Export Invoices Amendments.
There can be several causes for mismatches, some of them include the vendor has declared liability but credit is not availed in GST returns Such credits should be availed at the earlier the due date of September returns or Annual returns; the vendor has not declared liability on supplies made but businesses have availed credit on such procurements in the GST returns Businesses should follow up with the vendor to ensure that the liability is declared. Else, risks of such credits being disallowed may arise; Mismatch between liability declared by the vendor and credit availed, the reasons for differences should be identified and reconciled appropriately (e.g. by issuing debit notes/credit notes etc) at the earlier of, filing the return under section 39 for the month of September* following the end of the financial year to which a particular invoice pertains, or the furnishing of the relevant annual return.
Therefore, make sure that you cross-check with the vendor and report, claim missed out ITC for FY 2020-21
Missing documents should be followed up with respective vendors or suppliers for timely reporting before their corresponding Form GSTR-1 filing. Else, the taxpayers are at risk of losing such ITC for FY 2020-21. They will not be able to claim it while filing Form GSTR-3B again fully.
The taxpayers should perform the reconciliation or matching between reported figures in Form GSTR-9 and the audited financial statements at a GSTIN-level. If in case any differences which cannot be rectified has to be shown as unreconciled sales, ITC, and tax liabilities in Form GSTR-9C (self-certified Reconciliation Statement). If there is still tax payable, but the Form GSTR-3B of September 2021 is already filed, then use Form GST DRC-03 to pay additional tax dues.
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