Is auditor required for GSTR 9C?

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posted on 1 week ago — updated on 1 second ago

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Hi! This article is about whether an auditor required for GSTR 9C. Hope it is useful.

GSTR-9C is a crucial compliance requirement under the Goods and Services Tax (GST) regime in India. It is a reconciliation statement that compares the audited financial statements with the GST returns filed during the financial year. If you have completed <a href="https://www.shoplegal.in/gst-registration-in-karur.php">GST registration in Karur</a>, understanding whether an auditor is required for GSTR-9C is essential for compliance.What is GSTR-9C?GSTR-9C is a self-certified reconciliation statement filed by taxpayers whose annual aggregate turnover exceeds the prescribed limit. It ensures that the details reported in the GSTR-9 (Annual Return) align with the audited financial statements.Is an Auditor Required for GSTR-9C?Under the earlier GST rules, businesses with an annual turnover of more than ₹2 crore were required to file GSTR-9C, and an audit certification from a Chartered Accountant (CA) or a Cost Accountant was mandatory for businesses with an annual turnover exceeding ₹5 crore.However, as per the Finance Act, 2021, the requirement for a GST audit and CA certification for GSTR-9C has been removed. Now, taxpayers must self-certify GSTR-9C and file it along with GSTR-9, eliminating the need for an external auditor.Who Needs to File GSTR-9C?Even though audit certification is not required, businesses with an annual turnover exceeding ₹5 crore must still file GSTR-9C. This applies to taxpayers engaged in regular business activities, including manufacturers, traders, and service providers who have obtained <a href="https://www.shoplegal.in/gst-registration-in-karur.php">online GST registration in Karur</a>.Key Components of GSTR-9C<ol start="1" type="1"><li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; line-height: normal; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt;">Reconciliation of Turnover – Compares turnover reported in GSTR-9 with audited financials.</li><li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; line-height: normal; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt;">Reconciliation of Tax Paid – Verifies tax liability, ITC claimed, and tax payments.</li><li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; line-height: normal; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt;">Additional Tax Liability – Identifies any discrepancies and calculates additional tax payable.</li><li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; line-height: normal; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt;">Self-Certification – The taxpayer must sign and certify GSTR-9C before submission.</li></ol>Consequences of Non-FilingIf a business eligible for GSTR-9C fails to file it, penalties may be imposed under Section 125 of the CGST Act, which includes a general penalty of up to ₹25,000.ConclusionWhile the requirement for audit certification by a CA for GSTR-9C has been removed, businesses with an annual turnover above ₹5 crore must self-certify and file GSTR-9C. If you have completed <a href="https://www.shoplegal.in/gst-registration-in-karur.php">GST registration in Karur</a>, staying compliant with annual GST filings is crucial. For hassle-free online GST registration in Karur and expert guidance on GSTR-9C filing, consulting a professional can help avoid errors and penalties.