NOTES ON GSTR 9C - RECONCILIATION STATEMENT BETWEEN GSTR 9 (Annual Return) & ANNUAL FINANCIAL STATEMENT

GENERAL

• The reconciliation statement to be prepared for the period from July 2017 to March 2018 for the financial year 2017-18.
• The reconciliation statement to be filed for every GSTIN separately in cases where the multiple GSTIN exists for one PAN.
• Reconciliation statement to be prepared for the
• ANNUAL TURNOVER declared in audited Annual Financial Statement with the turnover as declared in the Annual Return (GSTR 9). [GSTR 9C - Part I)
• TAX PAYABLE as per declaration in the reconciliation statement(GSTR 9C-Part I) and the actual tax paid as declared in Annual Return (GSTR 9)
• INPUT TAX CREDIT (ITC).
• Audited Financial Statement for the financial year 2017-18 to be divided for two periods
• for the period from 01st Apirl, 2017 to 31st June 2017 and
• for the period from 01st July 2017 to 31st March 2018
• The reconciliation statement to be certified by a chartered accountant.

POINTS TO BE CONSIDERED FOR  ANNUAL TURNOVER RECONCILIATION

• In cases where One PAN with Multiple GSTIN - GSTIN wise turnover to be derived internally from the books of accounts / audited Annual Financial Statement.
• Turnover difference due to follwing reasons to be considered in the reconciliation statement
• Unbilled revenue existed at earlier financial year 2016-17 accounted on accrual basis but GST raised on current FY 2017-18
• Unbilled revenue accounted in current FY 2017-18 but GST billed and raised on subsequent FY 2018-19.
• Value of advances for which GST has been paid to be included in turnover.
• Value of advances fro GST paid but included in turnover
• Deemed supplies as per Schedule I (Activities to be treated as supply even if made without consideration) if not already included in turnover.
• Credit note issued after 31st March but reflected in GSTR 9(Annual Return).
• Credit Note accounted but not admissible under GST
• Trade discounts which accounted in audited Financial Statement but on which GST is leviable.
• Aggregate value of all goods suppplied by SEZ's to DTA units for shich the DTA units have filed bill of entry.
• Difference in value of supply by valuation rules under GST and turnover as declared under audited Financial Statement.
• Effect of foreign exchange fluctuation in turnover as declared under audited Financial Statement.
• Supplies on which tax not paid
• value of exempted, nil rated, non-GST and no-supply turnover.
• value od zero rated supplies (including supplies to SEZs) on which tax is not paid.\
• Value of reverse charge supplies on which tax is to be paid by the recepient.

POINTS TO BE CONSIDERED FOR INPUT TAX CREDIT RECONCILIATION

• In cases where One PAN with Multiple GSTIN - GSTIN wise Input Tax Credit to be derived internally from the books of accounts / audited Annual Financial Statement.
• Transitional credit which booked in earlier years but availed in current FY 2017-18
• Any ITC booked in audited Annual Financial Statement in current FY 2017-18 but not claimed in GSTR 3B or GSTR9 (ie., not credited to ITC ledger) for the said FY 2017-18.
• Expense head wise of Input Tax Credit declared in the Annual Return (GSTR9).

Compiled By

CA.R.Jeyarajan FCA.,

(Chartered Accountant)

Partner at R A R E & Associates_Tuticorin

can be reached at jeyarajan@rareassociates.in