How to File GSTR 9 and 9C for F.Y. 2023-24

[Gaurav Agarwal]

How to File GSTR 9 and 9C for F.Y. 2023-24 - Ultimate Guide

Did you know a small error in filing GSTR 9 can cost your business a lot? It's vital for small business owners and professionals in India to know how to file GSTR 9 and 9C for 2023-24. This guide will help you understand these forms and follow GST rules.

GSTR 9 is key for reporting your business activities for the year. It includes details like supplies, taxes, and credits. Knowing both GSTR 9 and 9C is crucial, especially if your turnover is over Rs. 2 crore. These forms are required for accurate reporting.

This guide will answer important questions. For example, how to file GSTR 9 and 9C online for 2023-24? What are GSTR 9 and 9C, and can you file 9C without 9? We'll explore the GSTR 9 filing process to help you meet your GST obligations.

Understanding GSTR 9 and 9C

In India, the Goods and Services Tax (GST) system requires clear annual return filing. Taxpayers need to grasp GSTR 9 and 9C to follow GST rules. Here's a detailed look at what GSTR 9 and 9C are, along with who must file them.

What is GSTR 9?

GSTR 9 is the annual return for regular GST taxpayers. It outlines all inward and outward supplies made in a year. Key details include:

• Sales and purchases
• Input tax credits claimed
• Refunds and demands

Every regular taxpayer must file GSTR 9, even if they switch from the composition scheme. For example, a business with ₹50 lakh in sales and ₹30 lakh in purchases will detail these in GSTR 9.

What is GSTR 9C?

GSTR 9C is a reconciliation statement for tax entities with over ₹2 crore turnover. It matches GSTR 9 data with audited financials. It requires:

• Audited accounts by a Chartered Accountant or Cost Accountant
• Consolidated tax compliance insights

Businesses with over ₹5 crore turnover must file GSTR 9C with their audited accounts.

Eligibility Criteria for Filing GSTR 9 and 9C

The rules for filing GSTR 9 and 9C are clear. Taxpayers must be GST registered and active in the year. The GST Council has made changes, exempting businesses with up to ₹2 crore turnover. The key criteria are:

• Active GST registration during the financial year
• Filing of all required returns before GSTR 9 submission
• All taxpayers must file, except those specifically exempted

Businesses in the composition scheme or switching schemes need to file both GSTR 9 and the correct return for those periods. Knowing these rules helps avoid penalties.

Preparing for GSTR 9 and 9C Filing

Filing GSTR 9 and 9C needs careful planning to follow tax rules. Businesses must gather all necessary documents. They also need to match data accurately for a smooth filing process.

Documents Required for Filing GSTR 9 and 9C

To start, you need to collect certain documents:

• GSTR-1: Details of outward supplies made during the financial year.
• GSTR-3B: Summary of inward supplies and tax liabilities.
• Financial statements: Audited financial statements for the relevant financial year.
• Table 8A: Input tax credit details available for utilization.

Reconciling Data from GSTR-1, GSTR-3B, and Books of Accounts

Accurate filing starts with reconciling data from GSTR-1 and GSTR-3B with your books of accounts. This step is crucial because it:

• Ensures all outward supplies in GSTR-1 match your financial statements.
• Checks if the input tax credit claimed in GSTR-3B matches your actual records.

Businesses with an annual turnover over Rs. 5 crores must file GSTR-9C. This is a reconciliation statement between your financial statements and annual returns.

Step-by-Step Guide on How to File GSTR 9 and 9C Online for F.Y. 2023-24

Filing GSTR 9 and 9C online needs focus and a clear plan. Here's a detailed guide to help you file GSTR 9 and 9C correctly.

Logging into the GST Portal

First, go to the official GST Portal. You'll need to use your registered email ID and password to log in. Use the right credentials to keep your account safe.

Navigating to the GSTR 9 and 9C Filing Section

After logging in, find the 'Returns Dashboard'. Choose 'Annual Return' from there. This will lead you to the GSTR 9 and 9C filing areas.

Filling Out GSTR 9 Form

The GSTR 9 form asks for important financial details. Here's how to fill it out:

• Enter basic details: Put in your GSTIN, financial year, and other key info.
• Outwards supplies: Report your total sales for the year.
• ITC availed: List the input tax credit you claimed on purchases.
• Tax paid: State any taxes you paid during the year.

Filling Out GSTR 9C Form

The GSTR 9C form checks if your books of accounts match your GST returns. Follow these steps:

• Financial statement reconciliation: Fill out all categories based on required documents.
• Data verification: Make sure all info matches your previous returns, like GSTR 1 and GSTR 3B.

Common Errors and How to Avoid Them

Filing GSTR 9 and 9C can be tough. Knowing the common errors in gstr 9 and 9c filing helps reduce stress. Here are some common mistakes and how to avoid them:

• Data Mismatches: Inconsistencies between GSTR filings and books of accounts can lead to GST department notices. Keep records up to date and reconcile them regularly.
• Incorrect Filing Details: Double-check the information before you submit it. Filling in all required fields correctly is key to avoid re-filing.
• ITC Mismatch: Differences between GSTR-2A/2B and GSTR 9 can confuse taxpayers. Most issues come from the place of supply criteria.
• Lack of ITC Bifurcation: Not dividing ITC in GSTR 9 can make compliance and audits harder. It's crucial to report input credits accurately.
• Unreflected Input Tax Credits: If input tax credits claimed don't match GSTR-2A/2B, taxpayers might get notices about ineligible credits.
• Reporting Imported Goods: Not having specific fields for input credits of imported goods in GSTR 9 can cause errors in reconciliation.
• Overlapping Figures in Tables: Tables 6(B) and 6(H) might show the same values for inward supplies and input tax credits. Clarifying these areas is key for accuracy.
• HSN Summary Reporting Challenges: Businesses might struggle to provide HSN summaries for incoming and outgoing supplies without proper records.
• Confusion in Table 4(F): Filling out disclosures for tax paid on advances without invoices can be tricky. Thorough preparation helps avoid confusion.
• Miscellaneous Issues: Common problems include copying negative values, accurately reflecting tax payments in the portal, and uploading JSON files.

To successfully file GSTR 9 and 9C, it's important to recognize these common errors and take steps to fix them.

Deadline for Filing GSTR 9 and 9C for F.Y. 2023-24

Filing GSTR 9 and GSTR 9C on time is key to following GST rules. For the year 2023-24, the deadline is December 31, 2024. This is important for businesses to stay in good standing with GST authorities.

Late Fees and Penalties for Non-Compliance

Not filing GSTR 9 and 9C on time can lead to penalties. The late fees depend on your annual turnover. Here's how much you might pay if you're late:

Turnover Range	Late Fees per Day	Maximum Late Fees Cap
Up to ₹5 crore	₹50	₹25,000
Above ₹5 crore	₹200	₹50,000

The penalties are ₹200 per day, split between CGST and SGST. This is capped at 0.25% of your total turnover. Knowing the deadline and what happens if you're late helps businesses avoid extra costs.

Benefits of Timely Filing of GSTR 9 and 9C

Filing GSTR 9 and 9C on time has many benefits for taxpayers. It helps keep your business in good standing with tax authorities. Here are the main advantages of filing these forms on time.

Maintaining Good Compliance Record

By filing GSTR 9 and 9C on time, you show you're serious about taxes. This can help you build a good relationship with tax authorities. A clean compliance record can lead to:

• Reduced scrutiny: Timely filings can lower the chance of audits.
• Increased trust: Being reliable can make it easier to work with tax authorities.
• Better planning: Staying on top of compliance helps with managing money and planning.

Avoiding Legal Complications

Another big plus is avoiding legal trouble. Filing GSTR 9 and 9C on time can save you from fines and penalties. Here's why:

• Punitive measures: Late filings can cost a lot, hurting your profits.
• Audit triggers: Missing deadlines can cause unnecessary audits.
• Peace of mind: Being compliant means less worry about tax problems.

Conclusion

The GSTR 9 and 9C filing process is key for businesses in India under GST. Knowing how to file GSTR 9 and 9C online for F.Y. 2023-24 helps keep businesses in line and avoids fines. The process summary shows how important it is to match data from GSTR-1 and GSTR-3B for accurate returns.

Filing on time is crucial, with a deadline of December 31, 2024. Missing this deadline can lead to big fines based on your business size. It's vital to know what documents you need and the fines for late filing to avoid financial trouble. Following the rules also helps keep your business transparent and in good standing with the government.

By following these steps, businesses can handle GST returns with confidence. This guide helps small business owners and professionals understand their tax duties well. Being informed about compliance not only avoids legal issues but also boosts your business's reputation in the market.

FAQ

Q: How to file GSTR 9 and 9C online on the GST portal?

A: To file GSTR 9 and 9C online, first log in to the GST portal with your credentials. Then, go to the 'Returns Dashboard' and choose 'Annual Return'. Fill out the tables for GSTR 9 and provide reconciliation data for GSTR 9C before you submit.

Q: Can we file GSTR 9C without filing GSTR 9?

A: No, you can't file GSTR 9C without GSTR 9. GSTR 9C is a reconciliation statement. It needs data from the GSTR 9 filing.

Q: What is GSTR 9 and 9C with examples?

A: GSTR 9 is an annual return that summarizes all sales and purchases. For example, a restaurant might use it to report its sales and purchases. GSTR 9C is a reconciliation statement. It matches the data from GSTR 9 with the taxpayer's financial statements. It's needed for businesses with a turnover over ₹2 crore.

Q: How to file GSTR 9 annual return?

A: To file GSTR 9, log in to the GST portal. Then, go to the 'Returns Dashboard', select 'Annual Return', and fill out the tables with your sales and purchase data. Finally, submit the return.

Q: What is the due date of GSTR 9 and 9C for the financial year 2023-24?

A: The due date for GSTR 9 and 9C is December 31, 2024. The GST authorities might extend this date.

Q: What is the turnover limit for filing GSTR 9 and 9C?

A: Businesses with an annual turnover over ₹2 crore must file GSTR 9. Those under ₹2 crore don't need to file GSTR 9. GSTR 9C is mandatory for all taxpayers with turnover over ₹2 crore.

Q: How to avoid late fees when filing GSTR 9 and 9C?

A: To avoid late fees, file GSTR 9 and 9C on time by December 31, 2024. Late fees range from ₹50 to ₹200 per day, depending on turnover. There's a cap on the maximum fee.

Q: What are the common errors made while filing GSTR 9 and 9C?

A: Common errors include data mismatches and incorrect filing details. Also, not checking for errors before submitting.

Q: What are the benefits of timely filing of GSTR 9 and 9C?

A: Timely filing shows you're responsible and compliant. It helps avoid legal issues and keeps your record clean.