GSTR-9 and GSTR-9C Annual Returns: Why Businesses Choose TaxBuddy for Year-End GST Compliance
- Rashmita Choudhary
- 2 days ago
- 8 min read
GSTR-9 and GSTR-9C form the backbone of year-end GST compliance, bringing together the full record of outward supplies, inward supplies, ITC claims, and audited financial data for the financial year. These annual returns help businesses confirm whether their monthly and quarterly filings match the books, preventing mismatches that may trigger notices. As FY 2024–25 closes, accurate reconciliation becomes essential for avoiding penalties and ensuring transparent reporting. Many businesses now rely on automated platforms to handle complex validations, review ITC differences, and streamline year-end documentation, making annual GST compliance far more reliable and predictable.
Table of Contents
Understanding GSTR-9 and GSTR-9C Annual Returns
GSTR-9 serves as the yearly GST return that compiles a business’s outward supplies, inward supplies, input tax credit claimed, tax payable, and tax paid across the financial year. It acts as a consolidated summary of all monthly or quarterly filings such as GSTR-1 and GSTR-3B. Every active GST-registered business, unless specifically exempt, is expected to complete this annual return to close the compliance cycle for the year.
GSTR-9C functions as the reconciliation and certification statement for businesses crossing the ₹5 crore turnover threshold. It compares the figures reported in GST returns with the company’s audited financial statements. Any mismatches, ITC variations, turnover differences, or reporting inconsistencies must be addressed and reconciled. Together, GSTR-9 and GSTR-9C ensure accuracy, transparency, and compliance integrity in the GST reporting framework.
Applicability of GSTR-9 and GSTR-9C for FY 2024–25
GSTR-9 applies to nearly all active GST registrants, apart from composition taxpayers, casual taxable persons, non-resident taxable persons, and a few government-notified categories. Businesses that shifted schemes during the year still need to complete the return for the period they were under regular GST.
GSTR-9C is specifically tied to turnover. Any business with annual aggregate turnover above ₹5 crore must file this reconciliation statement. The certification is self-attested on the portal along with mandatory submission of audited accounts. Matching values across ledgers, invoices, and GST filings helps avoid notices that may be triggered by unreported ITC, mismatches, or turnover discrepancies.
Due Dates, Prerequisites, and Mandatory Conditions
Both GSTR-9 and GSTR-9C for FY 2024–25 must be filed by December 31, 2025, unless the government extends the deadline due to system load or procedural challenges. Before these forms become available for filing, the GST portal requires all monthly or quarterly GSTR-1 and GSTR-3B returns for the year to be submitted without gaps.
Accurate recordkeeping, ITC matching with GSTR-2B, and reconciliation of outward supplies with GSTR-1 form the foundation of a compliant annual return. Any amendments, credit notes, or adjustments made during the year should also be verified to ensure consistency before uploading data into the annual forms.
Step-by-Step Filing Process for GSTR-9 and GSTR-9C
The filing journey begins with extracting outward supply details from GSTR-1 and tallying them with financial statements. The next step focuses on inward supplies and ITC reported in GSTR-3B, verifying them against purchase registers and vendor reconciliations.
GSTR-9 requires populating tables for taxable supplies, exempt supplies, ITC availed or reversed, and taxes paid. Once completed, businesses with turnover above ₹5 crore move to GSTR-9C, where reconciliation between GST figures and audited books takes place. Differences must be explained clearly, and final values must reflect accurate reporting. After review, both forms are submitted with digital verification on the portal.
Common Challenges While Filing GSTR-9 and GSTR-9C
The annual GST filing cycle often uncovers issues that may have gone unnoticed during monthly or quarterly filings. One of the biggest hurdles is reconciling data pulled from different accounting systems, ERP tools, vendor records, and GST returns. Even minor inconsistencies in invoice classification, tax rates, or supply categorisation can snowball into larger mismatches when preparing the annual return. For many businesses, the complexity increases when invoices were uploaded late, wrongly classified, or not aligned with the corresponding entries in financial statements.
Input tax credit continues to be a challenging area. Differences between eligible, ineligible, reversed, and lapsed ITC frequently emerge during annual reconciliation. For instance, credits that were wrongly claimed earlier in GSTR-3B may not fully match with GSTR-2B data, causing gaps that must be adjusted before proceeding. Inaccuracies in vendor filings also contribute to ITC problems, and businesses often face delays in tracking down missing or mismatched entries.
Another recurring issue arises from unreported or partially reported invoices. If outward supplies were corrected late or amendments were missed in GSTR-1, the differences reflect sharply during GSTR-9 preparation. Similarly, credit notes, debit notes, and year-end adjustments sometimes fail to appear in earlier returns, creating inconsistencies between books and portal data. These irregularities demand manual intervention, additional verification, and detailed documentation.
As deadlines approach, the GST portal experiences heavy traffic, leading to slower processing, session timeouts, and unsuccessful submissions. This increases the risk of uploading incorrect data or submitting incomplete forms due to system pressure. When businesses delay reconciliation until the final days, minor deviations become harder to fix, and the likelihood of mistakes multiplies.
Any unresolved mismatches in GSTR-9 or GSTR-9C can trigger audit queries or departmental notices. Discrepancies around turnover, tax paid, or ITC claimed must be supported with evidence, and the absence of proper documentation may attract penalties. Early preparation, systematic reconciliation, and a clear audit trail are essential to prevent such complications and maintain compliance throughout the filing process.
How Automated Reconciliation Supports Accurate Annual Returns
Automated reconciliation tools simplify year-end compliance by pulling data from GSTR-2B, GSTR-1, GSTR-3B, financial records, and audited statements. These tools instantly highlight mismatches, duplicated invoices, incorrect tax calculations, and ITC inconsistencies. Automated mapping reduces manual errors and creates a cleaner dataset for annual return preparation.
This structured approach brings visibility across the entire financial year, reducing the possibility of oversight and ensuring that the figures entered in GSTR-9 and GSTR-9C align with the company’s actual books.
Why Businesses Choose TaxBuddy for GSTR-9 and GSTR-9C Compliance
Businesses prefer TaxBuddy because of its automated reconciliation engine that matches data across GSTR-2B, GSTR-1, GSTR-3B, and books with minimal manual effort. The platform identifies mismatches in ITC, turnover, and tax liability, ensuring that the annual return reflects accurate and compliant figures.
TaxBuddy’s system checks turnover thresholds for GSTR-9C, aligns data formats with GST portal requirements, and resolves inconsistencies well before submission. This reduces the risk of notices, penalties, or audit triggers linked to incorrect annual filings. Its structured workflows offer clarity, especially for businesses dealing with high volumes of transactions.
How TaxBuddy Ensures Timely and Error-Free Year-End GST Compliance
TaxBuddy supports businesses through early reconciliations, reducing last-minute pressure and ensuring the annual return is prepared with clean, validated data. Its validation checks highlight incorrect reporting, missing invoices, or ITC inaccuracies before the data is uploaded.
Automated summaries, pre-populated fields, and expert-reviewed reconciliations save time while improving accuracy. Real-time tracking of compliance progress also helps businesses complete their filings smoothly, avoiding the usual year-end bottlenecks on the GST portal.
Conclusion
Accurate and timely filing of GSTR-9 and GSTR-9C forms a crucial part of closing the GST compliance cycle each year. With automated reconciliation, expert-backed validation, and simplified workflows, platforms like TaxBuddy make this complex process faster, smoother, and more reliable for businesses.
For anyone looking for assistance in tax filing, it is recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both self-filing and expert-assisted plans. Users who prefer a guided experience can rely on tax professionals who review documents, prepare the return, and ensure compliance accuracy. Those comfortable with filing on their own can use the self-filing option, which offers automated data extraction, error checks, and step-by-step workflows. Both formats help reduce mistakes and simplify the overall filing process.
Q2. Which is the best site to file ITR?
The best site to file ITR depends on the level of support required. The official Income Tax Department portal works well for users who already understand tax rules. For individuals and businesses seeking convenience, automated entry, expert verification, and error-free filing, dedicated platforms like TaxBuddy provide a more seamless experience. These platforms also help avoid common mistakes that may lead to notices.
Q3. Where to file an income tax return?
An income tax return can be filed through the Income Tax Department’s e-filing portal or through reliable third-party platforms that offer simplified filing tools. Many taxpayers prefer platforms that provide automated data reading, guidance for deductions, and expert-assisted services to ensure compliance and prevent errors.
Q4. What is the turnover threshold for GSTR-9C?
GSTR-9C is mandatory for businesses with an aggregate annual turnover above ₹5 crore. This threshold applies to all registered entities operating under the regular GST regime. Businesses below this limit only need to file GSTR-9, while those above must complete both GSTR-9 and GSTR-9C with proper reconciliation.
Q5. When is the due date for filing GSTR-9 and GSTR-9C for FY 2024–25?
The due date for both GSTR-9 and GSTR-9C for FY 2024–25 is December 31, 2025. This deadline may be extended by GST authorities depending on system load or administrative considerations. All monthly or quarterly GSTR-1 and GSTR-3B returns must be filed before GSTR-9 and GSTR-9C become available on the portal.
Q6. Who must file GSTR-9?
GSTR-9 must be filed by all regular GST-registered taxpayers, including businesses, service providers, and entities that were active during the financial year. It summarises the entire year’s returns and validates tax positions declared throughout the year. Even if operations were minimal, the annual return must be completed unless the taxpayer falls under an exempt category.
Q7. Who is exempt from filing GSTR-9?
The following categories are exempt from filing GSTR-9: • Composition taxpayers • Casual taxable persons • Non-resident taxable persons • Input Service Distributors • Taxpayers with GST registration cancelled before the end of the year and who completed all pending filings Additional exemptions may be notified by the government based on administrative decisions.
Q8. What is the difference between GSTR-9 and GSTR-9C?
GSTR-9 is an annual return summarizing outward supplies, inward supplies, taxes paid, and ITC claimed. GSTR-9C is a reconciliation statement comparing the values declared in GST returns with audited financial statements. GSTR-9C also includes explanations for mismatches and is applicable only to businesses crossing the ₹5 crore turnover threshold. Together, these forms ensure that yearly GST figures are accurate and consistent with books of accounts.
Q9. What documents should be kept ready before preparing GSTR-9 or GSTR-9C?
Businesses should prepare: • Audited financial statements • Trial balance • GSTR-1, GSTR-3B, and GSTR-2B data • Purchase and sales registers • ITC reconciliation statements • Credit and debit notes • Records of adjustments, amendments, and reversals • Turnover summary from books Having accurate and updated records ensures smooth reconciliation and error-free annual filing.
Q10. Can the due date for GSTR-9 and GSTR-9C be extended by GST authorities?
Yes, the GST Council or GST authorities may extend the due date depending on portal readiness, infrastructure constraints, or industry representations. Extensions are typically announced close to the deadline, but businesses are advised to prepare early to avoid relying on such extensions.
Q11. What happens if mismatches remain unresolved in GSTR-9C reconciliation?
Unresolved mismatches may result in inquiries, audit notices, or demands from GST authorities. Differences in turnover, ITC claims, or tax liability can trigger scrutiny and lead to penalties if not clarified. Proper reconciliation with supporting documentation reduces the likelihood of disputes and ensures transparency during compliance verification.
Q12. How does TaxBuddy help reduce compliance risks during GST annual filings?
TaxBuddy minimizes risks by automating data reconciliation across GSTR-1, GSTR-2B, GSTR-3B, and books of accounts. The platform detects mismatches, incorrect ITC entries, and errors before filing. It also guides businesses through each section of the annual return, ensuring accurate declarations. Expert review further strengthens compliance by validating figures and preventing reporting inconsistencies that may lead to notices or penalties.
