Filing GST annual return (GSTR-9) and reconciliation statement (GSTR-9C) always looks cumbersome for the financial year, as annual GST compliance may look tedious at times. Therefore, this guide will not only take you through that step-by-step process but will also provide a practical checklist of all of that and include links to official documentation for your ease of reference, so you can stay on top of compliance regulations.

What are the GSTR-9 and GSTR-9C forms?

GSTR-9 – Annual Return

In essence, this serves as the summary of your GST data, such as outward supplies, inward supplies, ITC claimed, reversals, tax paid, and adjustments, for the financial year, which is then presented in a consolidated GST return. You can find it covered in the manual of the portal.

GSTR-9C – Reconciliation Statement

This form is required when your aggregate turnover exceeds the limit of ₹ 5 crore (based on threshold limit, which is currently ₹ 5 crore) and you have to provide a reconciliation of your annual return with the audited financials.

Key bullets points:

• Threshold of ₹ 5 crore aggregate turnover: notification number 30/2021 dated 30 July 2021.
• Deadline for filing: Along with GSTR 9 (typically by 31 December in the following year).

Structured Step-by-Step Method for Completing GSTR-9

Step 1

Gather the Required Returns & Records

• All monthly/quarterly returns: GSTR-1 (outward supply) and GSTR-3B (summary of tax)
• Purchase/ITC data: GSTR-2A/2B (for input tax credit)
• Financial books/ledgers (sales, purchases, ITC)

Step 2

Reconcile Outward Supply

• Reconcile your books of accounts (sales invoices) against GSTR-1 and GSTR-3B for the applicable year.
• Identify any invoices not recorded or amendments
• Ensure that the outward supplies declared in GSTR-9 reflect the accurate value

Step 3

Reconcile Input Tax Credit (ITC)

• Reconcile ITC claimed in your records against the auto portal data (GSTR-2B)
• In addition, identify ineligible ITC, reversals mandated under Rule 42/43, and any obligations under the reverse charge (RCM) mechanism.
• Amend your books or provide for reversals in your tax filing prior to filing the return.

Step 4

Examine Tax Liability & Payments

• Confirm all GST late fees and tax liabilities owed for the tax year (CGST + SGST/IGST as there may be)
• Look for late fees, interest or RCM taxes owed
• Correspond the cash/credit ledger balances

Step 5

Complete GSTR-9 Online

Important tables are as follows:

• Table 4:  Moreover, it highlights the details of the advances and the inward/outward supplies on which taxes are owed.
• Tables 6-7: The ITC availed (corrected/reversed)
• Table 8: The ITC eligible as determined by the portal (2B/2A etc)
• Table 9: Details of taxes paid:
• Tables 10-13: Amendments made, credit notes, altered supplies

Step 6: Preview, Compute & File

• Use the compute liabilities option on the portal in filing GSTR-9 (important step)
• Preview your draft tax return done carefully, make sure to fix mismatches/faults
• File using DSC/EVC if necessary
• Keep your acknowledgment and proof of filing for your records.

Structured Step-by-Step Method for Completing GSTR-9C

When it is time to file GSTR-9C, here is the procedure to follow:

Step 1

Download Financial Statements : Audited P&L, Balance Sheet, and Trial Balance as well as the Annual accounts as per Companies Act, or audit requirement applicable for your entity.

Step 2

Turnover Reconciliation :  Turnover based on books vs GSTR-1 vs GSTR-3B vs e-way bills (if applicable) and identifying differences and the reasons for each difference (for example, exports, exempt supplies, etc.)

Step 3

ITC Reconciliation : ITC based on books vs auto-data (GSTR-2B) and consider any blocked credits, reversals and RCM credit (if applicable) differences and provide a report or reason for any unreconciled differences

Step 4

Taxes Paid Reconciliation : Also, compare the tax liability shown in GSTR-9 with the actual tax payments, and adjust any pending or late-paid liability.

Step 5

Part-A for GSTR-9C (Reconciliation Statement) :  In addition, Part A would include turnover, ITC, taxes paid, and any non-reconciled items, accompanied by the reasons for such differences.

Step 6

Certification (Part-B) :  To the extent applicable (as per turnover and audit requirement) to be certified by CA (Chartered Accountant) or CMA (Cost Accountant) attached with audited accounts (and audit report) as well.

GSTR-9 & GSTR-9C: Complete Filing Checklist :

Documents Required

• Sales register , purchase register, ITC ledger
• GSTR-1 , GSTR-3B , GSTR-2A/2B details
• E-way-bill summary (if applicable)
• Trial Balance, Audited Financials, Balance Sheet, Profit & Loss Account
• Tax Payment Challans , ledger of tax paid
• Credit/debit notes, register of amendments

Important Reconciliations

• Comparison of GSTR-1 to the books to GSTR-3B (outward supplies)
• Comparison of ITC ledger to GSTR-2B (inputs)
• Book turnover comparison to returns
• RCM liabilities comparison to the books
• Supplies reported by amendments in the books
• Late fees / interest paid / not paid

Pre‐Filing Verification

• Verify all tax dues cleared (CGST + SGST/IGST)
• Verify late fees & interest paid
• Data checks in the main tables : Table 4, 6-8, 9 in GSTR-9
• GSTR-9C: Verify reconciliations prepared & (if needed) audited
• Backup all data, take printout/screenshot for the client

Common Mistakes

• Reporting turnover incorrectly (under/over)
• Not accounting for ineligible ITC / not taking back
• Not taking back RCM (reverse charge mechanism) liabilities
• Not checking or reconciling Table 8 (ITC per portal) to books
• Not filing or filing late (for GSTR-9C) and incurring excess penalty.

Why Choose BookMyAccountant for Your Filing?

If you want a stress-free and accurate filing experience, consider Book My Accountant.

• Qualified CA and GST experts with previous experience in filing annual return and completing reconciliations.
• Full end-to-end service: Data reconciliation completed, auditing coordinated if applicable, and e-filing handled through the portal.
• Transparency in pricing and non-googling every filing deadline (so we won't miss 31st December filing deadline).
• Safeguard your books and any filings or data related to your GST.
• Furthermore, you will be able to reach our client support team for any inquiries, even towards the end of your client experience.

Email or call us today and we will schedule your GST return review and you will never worry about GST compliance again, to be done professionally.