Auditors Comment on Unreconciled ITC in GSTR 9C

Hello everyone...
Please help me out in writing the Auditors comment on Unreconciled ITC in GSTR 9C in the following case:
While filing the GSTR 9, the company has missed out filling the details of ITC for FY as per books in Table Pt III. Due to which their is a difference of ITC as per 3 B & Books.
Due to which their is Unreconciled ITC to that an extent in GSTR 9C too. This case is pertaining to FY 2019-20.

Please suggest in this regard.
Replies (15)
Quick Summary
This discussion addresses an auditor's comment regarding unreconciled Input Tax Credit (ITC) in GSTR 9C for FY 2019-20. The discrepancy arose because the company omitted ITC details as per their books in Table Pt III of GSTR 9, leading to a difference between GSTR 3B and book figures. The recommended solution is to provide a clear explanation for the omission in the annual return and ensure accurate reconciliation in future filings.

Just state the reason as to why there is a difference between books and GSTR-3B. There will be adverse impact of difference if ITC in books is less than GSTR-3B

Hiii sir
There is no difference between books and GSTR 3B, they both are tallying. There is difference between 3B and GSTR 9 as figures in ITC table of GSTR 9 are not filled.

Then just give reason that itc in gstr9 was not filled mistakenly and itc actually availed is in conformance with audited books of accounts.

Okay Thank you 😃

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ITC claimed in the annual return but not recorded in the financial statements due to ineligibility.

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What impact, if any, does the unreconciled ITC have on the company’s overall GST compliance or on the auditor’s opinion of the financial statements for FY 2019-20? This question will help the auditor clarify whether the discrepancy affects their assessment of the company's financial health.

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During the review of the GSTR 9 filing for the financial year 2019-20, it was observed that the company failed to include the details of Input Tax Credit (ITC) as per the books in Table Pt III. This omission has resulted in a discrepancy between the ITC reported in GSTR 3B and the books of accounts, leading to an unreconciled ITC reflected in GSTR 9C. It is recommended that the company rectifies this discrepancy by reconciling the ITC amounts and ensuring accurate reporting in future filings to maintain compliance with GST regulations.
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