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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



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