What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Detailed reconciliation between books of account and GST returns.
- Identification of turnover and tax liability differences.
- Review of input tax credit reported in books and GST returns.
- Identification of classification, timing, and reporting differences.
- Better accuracy in annual GST reporting.
- Early identification of potential additional tax liabilities or compliance issues.
- Preparation and filing support for applicable GSTR-9C requirements.
How the engagement works
GST reconciliation and GSTR-9C requirements are governed by the applicable provisions of the Central Goods and Services Tax Act, 2017, corresponding State or Union Territory GST laws, GST Rules, notifications, and prescribed procedures. GSTR-9C is a reconciliation statement used by applicable taxpayers to reconcile information reported in the annual GST return with the corresponding figures in the financial statements, subject to the requirements applicable for the relevant financial year. The applicability, certification requirements, thresholds, and filing procedures may change through amendments and notifications and should be evaluated for the relevant period.
Scenario 1: A business has differences between annual turnover reported in its financial statements and the turnover reported in GST returns.
Scenario 2: A company needs to reconcile taxable turnover, exempt supplies, exports, and other supply classifications before completing annual GST compliance.
Scenario 3: A taxpayer has differences between input tax credit recorded in its books and credit reported or claimed through GST returns.
Scenario 4: Management wants to identify potential additional GST liability arising from year-end reconciliation before finalizing annual GST filings.
Scenario 5: An eligible taxpayer requires professional assistance with preparation and filing of the applicable GSTR-9C reconciliation statement.
Financial Statements & GST Data Collection
We collect the annual financial statements, trial balance, GST returns, sales and purchase records, input tax credit information, and other relevant data required for reconciliation.
Turnover Reconciliation
We reconcile turnover reported in the financial statements with turnover and outward supplies reported in GST returns and identify differences arising from accounting or GST treatment.
Tax Liability Reconciliation
We compare tax liability reported in GST returns with the corresponding financial and transaction records and analyze differences in tax rates, classification, timing, or reporting.
Input Tax Credit Reconciliation
We reconcile input tax credit recorded in the books with credit reported in GST returns and review reversals, ineligible credit, timing differences, and other relevant adjustments.
Difference Analysis & Adjustments
We identify and classify reconciliation differences and assist in determining the appropriate treatment, additional liability, or disclosure required under the applicable GST framework.
GSTR-9C Preparation & Filing
Where applicable, we prepare the prescribed GSTR-9C reconciliation statement and assist with filing and related compliance requirements.
Step-by-step process
Step 1: Financial & GST Data Collection
We collect financial statements, trial balance, GST returns, sales and purchase records, input tax credit data, tax payment details, and other relevant information.
Step 2: Turnover & Supply Reconciliation
We reconcile financial statement turnover with GST return figures and analyze differences in taxable, exempt, zero-rated, export, and other applicable supplies.
Step 3: Tax & ITC Reconciliation
We reconcile GST tax liability and input tax credit with the books and analyze reversals, timing differences, classification issues, and other discrepancies.
Step 4: Difference Analysis & Finalization
We investigate significant differences, determine the appropriate treatment, and discuss potential adjustments or additional liabilities with the client.
Step 5: GSTR-9C Preparation & Filing
Where applicable, we prepare the GSTR-9C reconciliation statement, complete the required review or certification process, and assist with filing and related annual GST compliance.
Key deliverables & outputs
General questions
01What is GST reconciliation?
GST reconciliation is the process of comparing figures reported in GST returns with the corresponding figures in books of account and financial statements to identify, explain, and appropriately address differences.
02What is GSTR-9C?
GSTR-9C is a prescribed GST reconciliation statement used by applicable taxpayers to reconcile information reported in the annual GST return with the corresponding figures in the financial statements, subject to the requirements applicable for the relevant financial year.
03Who needs to file GSTR-9C?
GSTR-9C applicability depends on the taxpayer’s turnover and the statutory requirements applicable for the relevant financial year. The applicable threshold and requirements should be checked for the specific period.
04What is reconciled in GSTR-9C?
Reconciliation may cover turnover, taxable turnover, exempt and zero-rated supplies, tax liability, input tax credit, tax payments, and other relevant information reported in GST returns and financial statements.
05Why are differences found between books and GST returns?
Differences can arise due to timing differences, accounting treatment, credit notes, debit notes, advances, exempt or non-GST income, classification differences, errors, input tax credit adjustments, and other transaction-specific factors.
06Does GST reconciliation identify additional tax liability?
It can. The reconciliation process may identify differences that result in additional tax liability or other compliance requirements. Such differences should be evaluated and addressed according to the applicable GST provisions.
07Can you help with GSTR-9 as well as GSTR-9C?
Yes. We can assist with annual GST return preparation and filing, reconciliation between books and GST returns, and GSTR-9C preparation and filing where applicable.