ICAI 2025 Guide on GST Reco Statement GSTR-9C

The Institute of Chartered Accountants of India (ICAI) has released the revised Technical Guide on GST Reconciliation Statement (Form GSTR-9C) in December 2025, aimed at simplifying GST compliance and ensuring consistency between financial statements and annual returns.

This new edition reflects GST 2.0 reforms, enhanced digital compliance, and the latest legal and procedural amendments up to 30th November 2025.

Purpose and Scope of the Technical Guide

The GSTR-9C Reconciliation Statement is a crucial document ensuring that the turnover, tax payments, and input tax credits reported in GST returns match the audited financial statements.

According to the ICAI guide:

• It promotes transparency by reconciling declared and actual figures.
• Reduces penalties by identifying mismatches early.
• Provides clarity on new procedural and documentation requirements.

The revised guide provides practical instructions, examples of reconciliation mismatches, and guidance for multi-locational entities, reflecting real-world challenges in GST reporting.

Key Highlights of Technical Guide

1️⃣ Updated Legal Framework

The guide aligns with Section 44(1) and Rule 80(3) of the CGST Act and Rules:

• Mandatory filing of GSTR-9C for taxpayers with aggregate turnover > ₹5 crore.
• Clarification on aggregate turnover computation (includes exempt supplies).
• Self-certified reconciliation statement replaces audit certification since FY 2020–21.

2️⃣ Structure of GSTR-9C Form (Post-2020 Changes)

As per Chapter 3:

• Part A – Reconciliation Statement (five sections covering turnover, tax, and ITC reconciliation).
• Part B – Certificate removed after FY 2020–21.
• New Table 17 for late fees tracking under Section 47(2) of the CGST Act.

This update emphasizes self-certification and taxpayer accountability rather than external audit attestation.

3️⃣ Multi-Locational Entity Guidance

Chapter 2 of the guide provides extensive advice for multi-State or multi-branch entities:

• Each GSTIN is a distinct person under GST law.
• Ensures state-wise trial balances, cross-charge, and Input Service Distributor (ISD) mechanisms are properly maintained.
• Clarifies valuation rules under Rule 28 and allocation of common costs (HR, IT, finance) across branches.
• Provides practical insights on internally generated vs. third-party services and related cross-charging norms.

4️⃣ Consequences of Non-Compliance

Failure to file GSTR-9C attracts late fees under Section 47(2):

(Circular No. 246/03/2025-GST dated 30.01.2025 clarifies applicability to both GSTR-9 and GSTR-9C together.)

5️⃣ Common Mismatches and Reconciliation Tips

The guide lists major reconciliation checkpoints:

• Match GSTR-1, GSTR-3B, and financial books.
• Review trial balance and ITC ledger per GSTIN.
• Reconcile cross-charge transactions and e-way bills.
• Check turnover consistency between audited financials and GSTR-9.
• Maintain documentation for all reconciliation adjustments.

Conclusion

The ICAI Technical Guide on GSTR-9C (December 2025) is an indispensable reference for accountants, auditors, and businesses managing GST compliance.

It consolidates legal clarity, practical templates, and interpretations that simplify the complex reconciliation process and ensures adherence to the latest GST framework.

ICAI’s Technical Guide on GST Reconciliation Statement (Form GSTR-9C): December 2025 Edition

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ICAI’s 2025 Guide on GST Annual Return (Form GSTR-9)