Avoid Late Fee and Notice: File GSTR-9C Form by Mar 31
A notification has been issued by the finance ministry concerning Goods and Services Tax (GST) payers who do not submit the annual reconciliation statement via the GSTR-9C form.
As per the GST circular, such registered taxpayers have an opportunity not to file any outstanding late fees for failing to file form GSTR-9C for FY 2017-18 to FY 2022-23. To claim the exemption, the pending GSTR-9C must be filed by March 31, 2025.
Who is Required to File GSTR-9C and GSTR-9?
Taxpayers who are registered under GST are mandated to file out the GSTR-9 which is an annual return. The same return brings together all the information that was shared in the monthly or quarterly reports (like GSTR-1, GSTR-2A, and GSTR-3B) throughout the financial year. It comprises information on the outward and inward supplies incurred or received under various tax heads like CGST, SGST/UTGST, IGST, and HSN codes.
All registered taxpayers with a total annual income of over Rs 2 crore under GST must file a GSTR-9 form. It's important to note that those with an income below Rs 2 crore can choose whether or not to file this form. There are a few exceptions to this rule as well.
It is important to file the GSTR-9 for regular taxpayers and it furnishes a detailed summary of all the transactions incurred throughout the year.
GSTR-9C is a document that helps compare the annual tax returns filed by businesses with their official financial statements. It's required for businesses that have reported total earnings of more than Rs 5 crore in a year. While it’s not mandatory for those earning less than that amount, they can choose to submit it if they wish. Essentially, GSTR-9C ensures that the reported financial information matches up correctly with what has been submitted to tax authorities.
GSTR-9C Filing Objective
GSTR-9C is a report that compares the annual tax returns submitted by a business with its yearly financial records that have been audited. Essentially, it helps ensure that the information the business reported to tax authorities matches its official financial statements. GSTR-9C includes gross and taxable turnover under the books reconciled with the respective numbers under the consolidation of all the GST returns for an FY.
Therefore any differences emerging from this reconciliation practice will be reported in this statement, including the reasons for it, and then certified via the taxpayers themselves. The same should get furnished on the GST portal or via a streamlined centre by the taxpayer including additional documents like a copy of the audited accounts and annual return in form GSTR-9.
Tax experts suggested how the new help impact taxpayers-
GSTR-9 and GSTR-9C both hold separate late fees for filing beyond the stipulated due dates. The same notification furnishes relief to the businesses that struggled to fulfill the compliance due dates for multiple financial years particularly at the time of the initial years of the GST implementation and the covid-19 pandemic.
The same relief can be influential for the case of GSTR-9 has been submitted long back as the exemption has been furnished for the late fee applicable from the filing date of GSTR-9 till the filing date of GSTR-9C given the due GSTR-9C is submitted by 31.03.2025. Also, the same exemption is aligned with the wider objective of the government to ease the GST compliance and support businesses particularly the small and medium enterprises (SMEs) that may not have the comprehensive resources for tax compliance.
The taxpayers are not qualified for a refund under the same notification who have earlier filed the late fees for the late submission of GSTR-9C.
If you earn more than ₹2 crore annually and are liable to pay Goods and Services Tax (GST), it is essential to file your GSTR-9 form. In some cases, you may also be required to submit the GSTR-9C form. To avoid late fees or issues with tax authorities, ensure you file the GSTR-9C form by March 31. For a hassle-free filing process, consider using SAG Infotech Gen GST to submit your GSTR-9C returns efficiently.