GST Audit: Turnover Limit For GSTR 9C for FY 2019-20

As we all know, for GST Audit (Reconciliation Statement) the last date has been extended to 28th February 2021 for FY 2019-20. The major concern among the taxpayers is that what is the turnover limit for GSTR 9C for FY 2019-20. All doubts of the taxpayer regarding the applicability of the GST Audit for FY 2019-20 will be clear in this post.

What is the Turnover Limit for GSTR 9C for FY 2019-20?

Under GST, an eligible assessee is required to get his accounts audited for each financial year in the GSTR 9C form.

Turnover Limit for GSTR 9C for FY 2019-20- The turnover limit for GST Audit (GSTR 9C) for FY 2019-20 is Rs. 5 Crore.

The below chart will clear all your doubts regarding the turnover limit for GST Audit (Reconciliation Statement).

Aggregate TurnoverGST Audit (GSTR 9C)
Turnover less than Rs. 2 CroreNA
Turnover more than Rs. 2 Crore and less than Rs. 5 CroreOptional
Turnover of more than Rs. 5 CroreMandatory
Turnover Limit for GSTR 9C for FY 2019-20

GST Audit Limit For FY 2019-20: Rule 80(3) prescribes a GST Audit turnover limit of Rs. 2 crores but as per notification no. 79/2020- central tax dated 15th October 2020 (Principal notification 16/2020-CT dated 23rd March 2020) inserted a proviso under rule 80(3) which clearly states that every registered person whose aggregate turnover during the financial year 2019-20 exceeds Rs. 5 crores shall get his accounts audited as specified under subsection (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified in form GSTR 9C.

Now, It is clear that the GST audit turnover limit is Rs. 5 crores for FY 2019-20.

Note- Here turnover word will be read as Aggregate Turnover. For this, you can read- “Aggregate Turnover In GST- How to Calculate Threshold Limit for GSTR 9 and GSTR 9C

Non-applicability of GSTR 9C- GST Audit

The following persons are not required to get the audit of their accounts (GSTR 9C).

  • Casual Taxable Person.
  • Tax Deductor.
  • Tax Collector.
  • Input Service Distributors.
  • Non-Resident Taxable Person.
  • Person supplying OIDAR service from a place outside India.
  • Foreign airlines are not required to submit form GSTR -9C.

Example

As per the above, The GST audit is applicable when total turnover on the PAN India basis exceeds Rs. 5 crores for FY 2019-20. However, GST Audit will be done GSTIN wise. For Example, Newtaxroute has units in Delhi having turnover Rs. 2 Crore, in Uttar Pradesh Rs. 2 Crore, and in Gujrat Rs. 2 Crore. The turnover is, therefore is Rs. 6 Crore. Therefore GST Audit is applicable to all its units.

Also Read- GSTR 9 Turnover Limit for Financial Year 2019-20

Frequently Asked Questions- FAQs

  1. What is turnover for GSTR 9C?

    Under GST, an eligible assessee is required to get his accounts audited for each financial year in the GSTR 9C form. The turnover limit for GST Audit (GSTR 9C) for FY 2019-20 is Rs. 5 Crore.

  2. What is the turnover limit for GST Audit?

    For FY 2019-20, the assessee is required to get his accounts audited under GST if his turnover for the financial year is more than Rs. 5 Crore and if turnover is less than Rs. 5 Crore but more than Rs. 2 Crore then it is optional to get his accounts audited.

  3. What is the limit for GST Audit For FY 2019-20?

    Turnover Limit For GSTR 9C for FY 2019-20: Rule 80(3) prescribes a GST Audit turnover limit of Rs. 2 crores but as per notification no. 79/2020- central tax dated 15th October 2020 (Principal notification 16/2020-CT dated 23rd March 2020) inserted a proviso under rule 80(3) which clearly states that every registered person whose aggregate turnover during the financial year 2019-20 exceeds Rs. 5 crores shall get his accounts audited as specified under subsection (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified in form GSTR 9C.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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