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CA India
Swati K & Co. Chartered Accountants ICAI FRN 021392S

GST Audit — GSTR-9 / 9C Reconciliation

Annual return GSTR-9 is mandatory for every registered taxpayer with turnover above ₹2 crore. Self-certified reconciliation GSTR-9C kicks in above ₹5 crore — reconciling audited financials with the year’s monthly returns. Discrepancies surface fast; reconciling them well surfaces ITC and avoids notices.

What’s in scope

GSTR-9 and GSTR-9C after the 2021 amendment

GST audit takes two forms after the 2021 amendment:

  • GSTR-9 — Annual return consolidating outward and inward supplies, ITC and tax paid for the financial year. Mandatory for every registered taxpayer with turnover above ₹2 crore (optional below).
  • GSTR-9C — Self-certified reconciliation between audited financial statements and GSTR-9. Mandatory for taxpayers with turnover above ₹5 crore. The earlier requirement of CA / CMA certification was dropped from FY 2020-21 onwards, but the underlying reconciliation discipline did not.

The work centres on reconciling four streams: turnover (per books vs per GSTR-1), tax liability (per books vs per GSTR-3B), ITC claimed (per books vs GSTR-2A / 2B), and tax paid (cash + ITC).

Who needs this

Who must file GSTR-9 / 9C

Every registered taxpayer above ₹2 crore turnover; every registered taxpayer above ₹5 crore for both GSTR-9 and GSTR-9C. Even where filing is optional, taxpayers nearing the threshold typically run the reconciliation as preventive hygiene — mismatches surfaced now are far cheaper to fix than mismatches surfaced in a CBIC notice.

Statutory framework

Governing provisions

The relevant provisions:

  • Section 35(5) of the CGST Act — original audit requirement (subsequently amended).
  • Section 44 of the CGST Act — annual return.
  • Rule 80 of the CGST Rules — GSTR-9 / 9C format and timeline.
  • Notification 30/2021-CT — self-certification regime.
  • Due date: 31 December of the following financial year.
Our approach

How we run the engagement

  • Data assembly — we extract GSTR-1, GSTR-3B, GSTR-2A / 2B, GSTR-2X for the full financial year, plus the trial balance and audited financials.
  • Turnover reconciliation — per books vs GSTR-1 outward supplies; we identify discount rebates, sales returns, exempt / nil-rated, branch transfers and sample-export discrepancies.
  • ITC reconciliation — ITC per books vs GSTR-3B Table 4(A) vs GSTR-2A / 2B; ineligible ITC under Section 17, blocked credits, lapsed credits.
  • Tax-paid reconciliation — cash ledger plus credit ledger utilisation, mapped to GSTR-3B Table 6.
  • Form fill — Tables 4 to 18 of GSTR-9 and Tables 5 to 16 of GSTR-9C, with internal review.
  • Filing — on or before 31 December.
Documents required

What we’ll ask for

  • Trial balance, P&L and balance sheet (audited).
  • GSTIN-wise GSTR-1, GSTR-3B and amendment filings for the FY.
  • GSTR-2A / 2B PDFs, vendor-wise reconciliation if maintained.
  • E-way bill data extract.
  • Sales register, purchase register, ITC register.
  • List of credit notes / debit notes issued and received.
  • Records of branch transfers, exports, SEZ supplies, deemed exports.
Timeline & fees

How long it takes and what it costs

Standard engagement runs 4–6 weeks from data-pack receipt for a single-GSTIN entity. Multi-state taxpayers add per-GSTIN time. We start in October so the December deadline is not the bottleneck. Fixed-fee per GSTIN with discount for grouped GSTINs.

FAQ

Frequently asked questions

Is GSTR-9C still mandatory after self-certification?

Yes — what changed is that the taxpayer can self-certify instead of getting CA / CMA certification. The form, the data, the deadline are unchanged.

What happens if GSTR-9 reconciliation surfaces extra liability?

Pay through DRC-03 with interest under Section 50. The reconciliation reduces the risk of department-issued notices; voluntary payment also keeps penalty exposure minimal.

Can ITC be claimed for the first time in GSTR-9?

No. ITC claim is locked at the GSTR-3B filing dates. GSTR-9 is a reporting and reconciliation form, not a claim form.

Does the new 5% / 18% / 40% structure affect GSTR-9 for FY 2025-26?

Yes — the reconciliation must split rate-wise turnover correctly. The transition month (September 2025) needs careful handling on both outward and inward sides.

Ready when you are

Talk to a partner.

A 30-minute call with a partner — no deck, no follow-up email blasts. Just a read on whether we’re the right team to handle your GSTR-9 / 9C audit.