GST Annual Return – GSTR – 9 and 9C

Form GSTR – 9 is an annual return to be filed once for each financial year, by every registered tax payers who were regular taxpayers (except exempt categories), including SEZ units and SEZ developers. The taxpayers are required to furnish details of purchases, sales, input tax credit or refund claimed or demand created etc. in this return.

GSTR-9

  • GSTR 9 is the annual return form under the Goods and Services Tax (GST) regime. It consolidates all the supply, purchase, tax payment and Input Tax Credit (ITC) data of a taxpayer for the financial year (April–March).
  • Essentially, it summarises the data already filed in periodic returns (like monthly or quarterly returns of sales and purchases).

GSTR-9C

  • GSTR 9C is a reconciliation statement and certification form. It compares (reconciles) the data declared in GSTR-9 (annual return) with the financial results as per the audited books of account (i.e. the company’s audited annual financial statements).
  • It helps ensure that what you declared under GST matches what your actual financial records show — including turnover, tax paid, ITC claimed, etc.

Pre-conditions for filing of Form GSTR-9 are:

  • Taxpayer must have active GSTIN during the relevant financial year as a normal / regular taxpayer even for a single day.
  • Taxpayer must have filed all the applicable returns i.e. Form GSTR-1/IFF and Form GSTR-3B of the relevant financial year before filing the Annual Return.

Applicability:

  1. Regular taxpayers.
  2. SEZ units & SEZ developers.
  3. Taxpayers who shifted from composition to regular during FY.
  4. E-commerce operators registered under GST (if not under TCS category).

Exempted or not applicable:

  1. Input service distributors (ISD).
  2. Non-resident taxable persons (NRTP).
  3. Casual taxable persons.
  4. Persons paying TDS/TCS under GST.

What’s new for the FY 2024-25

  • Introduction of a new row Table 6A1: This is for disclosing ITC (Input Tax Credit) of FY 2023-24 that is claimed in FY 2024-25. This helps track cross-year claims clearly.
  • Enhanced reporting for ITC reversals & reclaims: Reporting of ITC reversed under certain rules (like Rule 37, 37A, 38) — and subsequent reclaims — must be more precisely shown under new separate sections (Table 7A etc.).
  • Clarification on credit-notes timing, deferred ITC ledgers, and “spillover transactions”: i.e., invoices or credits that relate to a different financial year must be correctly tracked and disclosed.

Significances of GSTR 9 & 9C filing

  1. Statutory compliance: Annual return ensures you’re up to date under GST law — avoids penalties, interest, or notices from the department.
  2. Reconciliation & transparency: With GSTR-9C, the government (and you) can ensure that the GST data (sales, purchases, ITC, tax paid) truly matches your audited financials — reducing chances of mismatches or tax leakages.
  3. Audit readiness & due diligence: Proper filing demonstrates good corporate governance — important for lenders, investors, auditors, or during due diligence (e.g. M&A, financing, funding).
  4. Cleaner accounting & smoother operations: Annual reconciliation helps catch mistakes, unclaimed credits, pending invoices or disputes, which improves cash flow management.
  5. Risk mitigation: Avoids future notices, assessments or disputes with tax authorities; having reconciliation helps support your ITC claims, turnover figures, and tax paid liabilities.
ParticularsGSTR 9 Annual ReturnGSTR 9C Reconciliation Statement
ApplicabilityRegistered taxpayers with Annual Aggregate Turnover exceeding INR.2.00 Crores.Registered taxpayers with Annual Aggregate Turnover exceeding INR.5.00 Crores.
Due Date31st December of next Financial Year.31st December of next Financial Year.
Late filing feesLate fees INR.200.00 per day of delay, subject to a maximum of an amount at 0.50% of the turnover.In the absence of specific provision, general penalty of INR.25,000.00 may applicable.

Thank you.

Courtesy: Team Indirect Tax and customs.

Ganashri Advisers India LLP | +91 94801 18310 | +91 83106 26652 |

https://www.ganashri.com | cg@ganashri.com | LinkedIn: www.linkedin.com/in/chinmayahegde

Disclaimer

The information contained in this blog is provided for general guidance and informational purposes only. While efforts have been made to ensure the accuracy and timeliness of the deadlines, requirements and regulatory updates listed, laws and regulations are subject to change and may vary based on jurisdiction, industry, business constitution and specific circumstances.

This blog does not constitute legal, tax, accounting, or professional advice, nor should it be relied upon as a substitute for consultation with qualified advisors. Users are responsible for independently verifying all dates, obligations and compliance requirements applicable to their organization.

The team Ganashri assumes no responsibility or liability for any errors, omissions, or consequences resulting from the use of this blog.