Gstr 9c Applicability

GSTR 9C Applicability: In order to be able to provide the necessary infrastructure and organizational conditions, it is necessary to understand the requirements of the compliance framework and to obtain detailed knowledge of the topics of internal control, risk management and legal compliance in accordance with the legislation and internal policies of the company.

 The Goods and Service Tax commonly known as GST is a new taxation system in India and has introduced a lot of changes in the landscape of business taxation. The verification procedure of return also has its compliance in GST where GSTR 9C form is to be filed which is a reconciliation statement and requires certification by a chartered accountant or a cost accountant. This article goes deeper on how GSTR 9C can be applied and the aspects regarding this important compliance element.

 What is GSTR 9C?

 GSTR 9C is an annual return that matches the figures from GSTR 1 (sale), GSTR 3B (summary return) and the business’s audited accounts. It is a document that encompasses all aspects of the compliance of the taxpayer with GST and an important document in the remit of compliance since it offers a brief of the overall compliance of the taxpayer concerning GST.

 Applicability Criteria:

 Thus, the requirement for filing GSTR 9C is based on the turnover of the taxpayer in the particular financial year that is under consideration. Here are the key criteria:Here are the key criteria:

1. Aggregate Turnover Threshold: GSTR 9C is required to be furnished by every registered taxpayer, a company, or a person required to furnish a reconciliation statement under section 80 in Form GSTR 9D if the aggregate turnover of all the supplies of goods or services or both, including the supplies in respect of which the taxpayer has availed the benefit of the exemption notification, the supplies made to the SEZ or the following places of relocation or supplied in the interstate

• Special Category States: Like earlier specified certainty states including Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand, the turnover limit is retrieved down to Rs. 2 crores ($250,000) for taxpayers registered in such states.

 The business entity should note that turnover threshold is calculated PAN wise that is in case if the business entity has multiple registrations with multiple PANs then the turnover from all the registrations would be taken into consideration to determine as to whether this GSTR 9C would apply to the entity or not.

Exceptions and Exclusions:

While the turnover threshold is the primary criterion for GSTR 9C applicability, there are certain exceptions and exclusions to consider:While the turnover threshold is the primary criterion for GSTR 9C applicability, there are certain exceptions and exclusions to consider:

1. Input Service Distributors (ISDs): As per the current GST format, every ISD is mandatorily to file the GSTR 9C, irrespective of its turnover.

• Composition Scheme Taxpayers: According to the general rule, the GST taxpayers who have paid taxes through the Composition Scheme are not required to file GSTR 9C.

• Non-resident Taxable Persons: For details, the technicality of the law does not make it imperative for the non-resident taxable person to file for GSTR 9C.

• Newly Registered Taxpayers: In case the company has registered under GST in the previous financial year itself then the GSTR 9C is not relevant for that specific year it was registered.

Importance of GSTR 9C:

In the case of GSTR 9C, this value stems from the truth that it should ideally give a great review of all elements of the GST compliance of a taxpayer. This will assist to discover the differences in the typical and reported results and determine if the taxpayer has fulfilled all the mandatory tax obligations appropriately. Also, since GSTR 9C reconciles the tax amount reported by the taxpayer with the actual figures submitted in the returns, it also acts as a good check for the tax authorities, which helps in the improvement of tax compliances.

Penalties for Non-Compliance:

There are serious penal consequences under GST law for not filing GSTR 9C or for filing incorrect details in the said form. Failure to adhere to these measures can result in charges being realized later for additional fees or interest or even legal action being taken against the offender. For the taxpayers, it is therefore important to complete the process of filing GSTR 9C within the stipulated time and do it correctly with the aim of avoiding any legal or Financial consequences.

Therefore, the GSTR 9C is one of the important regulatory requirements that firms need to comply with according to the GST laws in India. Recognizing the general prescription of the applicability criteria, exceptions procedure and essence of this reconciliation statement can be very helpful toward the bolstering of compliance measures meant for prevention of penalties among taxpayers. For more information, businesses should consult professional chartered accountants or some GST experts as the GSTR 9C filing process can be rather complicated.