What is GSTR 9C?
GSTR 9C is a reconciliation statement between the GSTR-9, the Annual return of GST and the Audited Financial Statements (AFS). This reconciliation is aimed to verify the correctness of the balances as lying in the audited books of accounts with the figures as mentioned in the GSTR-9 Annual Return.
Under GST, a Chartered Accountant or a Cost Accountant is required to certify this reconciliation statement, wherein differences, if any, needs to be identified and reported therein, along with the reason for such discrepancies. Such an obligation is enforced by GSTN to certify any additional liability resulting out of the reconciliation exercise.
GSTR 9C compliances are applicable to those taxpayers under GST, whose annual aggregate turnover exceeds Rs. 2 crores for a particular financial year.
The due date for filing of GSTR 9C is 31st December following the particular financial year. But for the Financial Year 2017-18, the due date has been extended till 30th June,2019.
What is Cygnet ACE?
Cygnet Infotech has created a solution known as ACE – Audit Compliance made Easy.
ACE is developed with an eye to cater to the need of the hour. It is developed with an Artificial Intelligence which helps the Auditor/Chartered Accountant/Cost Accountant to identify the defects in the accounted data i.e. whether it is consistent with the GST Act, 2017 and all of the rules and regulations thereby, as applicable, have been adhered to or not. With respect to this, discrepancies in the GSTRs filed on the GST Portal are recognized and it is here that Cygnet ACE provides a possible set of actions or suggestions, which assists the taxpayer or the Auditor/Chartered Accountant/Cost Accountant to carry out their GST certification process in a systematic and detailed manner.
What is the Structure of the GSTR 9C Form?
GSTR-9C comprises of 2 parts
Part A – Reconciliation Statement, which is subdivided into;
- Part I: Basic Details
- Part II: Reconciliation of Declared Turnover
- Part III: Reconciliation of Tax Paid
- Part IV: Reconciliation of Net Input tax Credit
- Part V: Auditor’s recommendation on additional liability due to non-reconciliation
Part B – Certification by a Chartered Accountant or a Cost Accountant
What makes Cygnet ACE a “must have” Solution?
Cygnet ACE has the following benefits which makes it a quite significant and a much-needed tool
- Reconciliation is performed between the data as lying in the books of accounts and returns filed on the GST portal, to ensure the correctness of the declaration made by the user.
- To ensure that Input Tax Credit (ITC) is claimed correctly and to avoid any under utilization or over utilization of the same, comparative reports are generated, reflecting the possible discrepancies and errors in the same.
- The system reflects the errors with a detailed error report, over and above to it, it also provides the facility of amendment, whereby the user can correct the defect from the system itself and proceed further.
For example, say, when the location of the supplier and recipient is in the same state, then CGST and SGST should have been levied, but due to clerical or some other error, IGST was levied on the same. Such an error is spotted by ACE and it highlights the same through an error report, which assists the Auditor to proceed with his audit in a timely and effective manner.
- ACE is designed in a way which imitates the thinking of a Chartered Accountant, thus enabling the user to identify the possible defects in the system before the actual scrutiny of the same by a Chartered Accountant.
- Reports generated by ACE helps the Auditor/Chartered Accountant/Cost Accountant to get a better insight into the company’s data and conduct the entire audit in a seamless manner. Some of the value-added reports generated by ACE are
- Pseudo GSTRs based on book data
- Reconciliation of Tax Liability as per book data and GSTR filed
- GSTR 1 vs. GSTR 3B report