Comprehensive Checklist for Accountants During GSTR-9 and 9C Filing

As the financial year concludes, the responsibility of ensuring accurate GST compliance intensifies. Filing the GST annual return (GSTR-9) and reconciliation statement (GSTR-9C) are crucial for maintaining transparency and avoiding penalties. This blog provides a comprehensive checklist for accountants to ensure seamless GST compliance, especially when filing GSTR-9 and GSTR-9C.

Understanding GSTR-9 and GSTR-9C

Before diving into the checklist, it’s essential to understand the purpose of these forms:

• GSTR-9: This is the annual return summarizing the details of outward supplies, inward supplies, ITC claimed, and taxes paid during the year.
• GSTR-9C: This is a reconciliation statement between the annual return (GSTR-9) and the audited financial statements.

The GST Compliance Checklist for Accountants

1. Verify GST Registration Details

• Ensure that the GST registration is active and valid.
• Check for any changes or updates in registration details, such as address, contact information, or authorized signatories.

2. Review Periodic Returns (GSTR-1 and GSTR-3B)

• GSTR-1: Cross-check that all outward supplies are reported accurately. Verify details such as invoice numbers, taxable values, GST rates, and HSN/SAC codes.
• GSTR-3B: Ensure ITC claims, tax liabilities, and tax payments align with GSTR-1. Identify any mismatches or discrepancies.

3. Reconcile Input Tax Credit (ITC)

• Match ITC claims in the books with GSTR-2A/2B available on the GST portal.
• Reverse any ineligible ITC, such as ITC on personal expenses or blocked credits under GST law.
• Ensure compliance with time limits for claiming ITC.

4. Tax Payment Validation

• Confirm that all tax payments are made within the prescribed timelines.
• Cross-check challans for accuracy in payment details, such as GSTIN, payment type, and tax period.

5. E-Way Bill Compliance

• Review whether e-way bills are generated for applicable transactions as per GST rules.
• Retain a record of all e-way bills to facilitate future audits or queries.

6. Perform Reconciliation Tasks

• Reconcile turnover reported in GST returns with the audited financial statements.
• Match ITC and tax liabilities as per GST returns with the ledger accounts.
• Verify that HSN/SAC codes used in returns align with invoices.

7. Maintain Records as per GST Law

• Organize and maintain records of invoices, credit/debit notes, purchase orders, and payment receipts for at least six years.
• Ensure easy accessibility of these records for audits and inspections.

8. Stay Updated with GST Amendments

• Regularly monitor GST notifications, circulars, and amendments.
• Implement necessary changes in accounting software or processes to comply with the latest rules.

9. Audit Preparation

• Prepare a reconciliation statement to identify and rectify discrepancies.
• Collect all supporting documents, including bank statements, agreements, and ledger extracts, for verification.
• Be ready to explain any adjustments made during the filing process.

10. Address GST Notices Promptly

• Respond to GST notices or queries without delay.
• Maintain a log of all communications with tax authorities for future reference.

11. Miscellaneous Tasks

• File nil returns, if applicable, to avoid penalties.
• Conduct periodic reviews of GST compliance status, preferably on a monthly or quarterly basis.

Common Challenges and How to Overcome Them

1.Mismatch in Reconciliations:
Solution: Perform regular reconciliations between books of accounts and GST returns to avoid last-minute mismatches.

2.Delayed Updates on GST Notifications:
Solution: Subscribe to updates from reliable sources, including the GST portal, to stay informed about changes.

3.Inaccurate ITC Claims:
Solution: Use robust accounting software to automate ITC matching and reduce manual errors.

Conclusion: Ensuring GST Compliance Made Easy

GST compliance is a critical aspect of financial management for businesses. By following this comprehensive checklist, accountants can ensure that GSTR-9 and GSTR-9C filings are accurate, compliant, and hassle-free. Regular reconciliations, timely tax payments, and diligent record-keeping are the cornerstones of successful GST compliance.

LinkedIn Link : RMPS Profile

This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

Please follow and like us: