Taxpayer with turnover over Rs 2 cr need GST audit certificate, will be arduous job for auditors

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The Government on Thursday notified the GSTR-9C form for annual GST audit under which every taxpayer above Rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of audit. Under GST, annual return is to be furnished in GSTR-9 (recently notified on September 4, 2018). In addition, as per Section 35 of CGST Act, 2017, every tax payer whose turnover exceeds Rs 2 crore during a financial year, is required to submit audited annual accounts and a reconciliation statement in GSTR-9C. The Government on Thursday through the notification No. 49/ 2018 – Central tax dated September 13, 2018 has notified the format for GSTR-9C. GSTR-9C – Design A look at GSTR-9C makes it clear that it is essentially a reconciliation statement for reconciling turnover, input tax credits and tax payments reported in GST returns (annual return) vis-a-vis annual books of accounts. GSTR-9C is broadly segregated into the following:

a) Gross turnover (including taxable and non-taxable turnovers)

b) Taxable turnover

c) Tax liability and payments (rate-wise)

d) Input tax credit availment

The reconciliation is to be accompanied with certification from the auditor (can be statutory auditor as well). Further, there is a separate table for auditor’s recommendation on additional liability to be discharged on account of non-reconciliation of turnover and input tax credit. The auditor may also recommend on erroneous refunds, outstanding demands etc.

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