Article on Is GSTR-9C a Return ?

Is GSTR-9C a Return ?

Once the person obtains the GST registration he becomes liable to file the GST returns for declaring the details of outward supplies made by him and details of ITC availed by him on the inward supplies. There are different types of returns depending upon the taxpayer’s type like the return for composition taxpayers, return for Non-resident taxable persons, return for input service distributor and return for normal taxpayers etc. In addition to this the taxpayers have to file an annual return GSTR-9 along with the reconciliation statement in Form GSTR-9C. Here the question arises whether the said reconciliation statement i.e.,GSTR-9C is considered as Return under GST. In this article we will make a detailed discussion in this respect and try to find out the answer of the same along with legal interpretation of law.

Before going into detailed discussion first of all it is necessary to understand the meaning of “return” under CGST Act 2017. For this we have to refer section 2 of CGST Act which contains the list of definitions. As per sub section 97 of section 2 of CGST Act 2017 defines the return as follows;

“return means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder”

Thus from the above definition it is clear that return means any return which is prescribed under this act or rules. Now, we will discuss what constitutes a return under GST.

Whether FORM GSTR-1 is a Return?
As per section 37(1) of CGST Act 2017 read with rule 59 of CGST Rules 2017 every registered person shall furnish electronically in FORM GSTR-1, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period.

Thus from the above it is clear that GSTR-1 is merely a statement containing the details of outward supplies but it is not considered as “Return”.

Whether FORM GSTR-3B is a Return:

As section 39 (1) of CGST Act 2017 read with rule 61 of CGST Rules 2017, every registered person shall furnish a return electronically, of inward and outward supplies of goods or services, input tax credit availed, tax payable, tax paid and such other particulars, in such form i.e., FORM GSTR-3B and within such time as may be prescribed i.e., on or before the twentieth day of the month succeeding such month.

Thus from the above it is clear that GSTR-3B filed by the taxpayer is considered as Return under GST.

Whether FORM GSTR-4 is a Return:

Every registered person paying tax as per composition scheme shall furnish a statement, containing the details of payment of self-assessed tax in FORM GST CMP-08, till the 18th day of the month succeeding such quarter and furnish a return for every financial year in FORM GSTR-4, till the thirtieth day of April following the end of such financial year.

Thus from the above it is clear that CMP-08 filed by the person who has opted for the composition scheme is not a Return. However, the GSTR-4 filed by said person is considered as Return.

Similarly, as per Rule 63 of CGST Rules 2017 GSTR-5 is considered as Return for Non-resident taxable persons and as per Rule 65, GSTR-6 is a Return for input service distributor.

Also as per Rule 66 the registered person who is required to deduct tax at source u/s 51 shall furnish a return in FORM GSTR-7 on or before the tenth day of the month succeeding the calendar month. Accordingly, GSTR-7 is also a “Return”. But as per Rule 67 the FORM GSTR-8 is a statement to be filed by the electronic commerce operator who is required to collect tax at source (TCS) u/s 52.

Now we come to GSTR-9 & GSTR-9C:
Section 44 of CGST Act 2017 contains the provisions relating to Annual Return. As per section 44 (1) read with Rule 80 every registered person, other than an Input Service Distributor, a person paying tax u/s 51 or 52, a casual taxable person and a non-resident taxable person shall furnish an annual return in FORM GSTR-9 which may include a self-certified reconciliation statement in FORM GSTR-9C, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year on or before the thirty-first day of December following the end of such financial year.

Thus from wordings of section 44 it is clear that annual return i.e.,GSTR-9 includes a self certified reconciliation statement GSTR-9C. Accordingly, both GSTR-9 & GSTR-9C would be considered as “Annual Return”. However, it is important to note that section 44 was amended by section 111 of Finance Act 2021 and came into force with effect from 01.08.2021. The said section before the amendment made vide finance act is laid down as follows;

“(1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.

Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

(2) Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed”.

Thus it is clear that before this amendment it was mentioned in section 44(2) that the annual return (GSTR-9) is to be filed along with reconciliation statement (GSTR-9C). Which means that before 01.08.2021 the GSTR-9 & GSTR-9C were considered as two different things. But on or after 01,08.2021 the annual return (GSTR-9) includes the reconciliation statement (GSTR-9C).

The CBIC vide Circular No. 246/03/2025 has also clarified the same that in cases where the reconciliation statement in FORM GSTR-9C is required to be furnished, the furnishing of annual return under section 44 of the CGST Act, may not be said to be complete, unless both returns GSTR-9 and reconciliation statement in GSTR-9C are furnished. If only return in GSTR-9 is furnished and reconciliation statement in FORM GSTR-9C is required but not furnished, annual return under section 44 of CGST Act cannot be said to have been furnished.

Implications of considering GSTR-9C as Annual Return:
As we know that late fee under sub-section (2) of section 47 of the CGST Act, is leviable for the delay in furnishing of annual return under section 44 of the CGST Act. Since GSTR-9C is also considered as annual return, hence the late fee shall be payable for the period from the due date of furnishing of the annual return upto the date of furnishing of the complete annual return i.e. FORM GSTR-9 and FORM GSTR-9C.

In this respect it is also important to know that as per Notification No. 08/2025-Central Tax the late fee in respect of delayed filing of complete annual return for any financial year up to FY 2022-23 has been waived, which is in excess of the late fee payable section 47(2) of CGST Act upto the date of furnishing of return in GSTR-9 for the said financial year, if the reconciliation statement in GSTR-9C is furnished on or before 31st March 2025. For example the due date of filing annual return of F.Y 2022-23 was 31st December 2023 but GSTR-9 was filed on 5th January 2025 and GSTR-9C was not filed till date. Now, as per NN 08/2025 CT if the taxpayer files GSTR-9C on or before 31.03.2025 then in said situation the late would be leviable only for 5 days i.e., when GSTR-9 was filed.

Conclusion: Before 01.08.2021 the GSTR-9 & GSTR-9C were considered as two different things. GSTR-9 was considered as return but GSTR-9C was considered a statement. However, with effect from 01.08.2021 the GSTR-9 includes GSTR-9C which means the GSTR-9C is also a return under GST

Disclaimer: The information given in this article is solely for purpose of understanding the law. It is completely based on the interpretation of the author and cannot be constituted as a legal advise, the author of this article and Lawcrux team is not responsible for any legal issues if arises on the basis of the interpretation given above.