The government has revised the threshold for mandatory GST audit requirements, offering relief to a broader segment of small and medium enterprises. Under the updated rules, businesses with an annual aggregate turnover exceeding ₹10 crore will now be required to get their annual accounts audited and file a reconciliation statement (GSTR-9C). This marks a significant increase from the earlier threshold of ₹5 crore, thereby reducing the compliance burden on a large number of smaller taxpayers.

The revision aligns with the broader government objective of simplifying GST compliance while maintaining adequate oversight for larger entities. Businesses below the ₹10 crore threshold are now exempt from mandatory certification by a Chartered Accountant or Cost Accountant, though they must still file their annual returns (GSTR-9). The authorities believe that this change will promote ease of doing business without compromising the accuracy of tax declarations by small taxpayers, who typically have lower audit risk profiles.

This move has been welcomed by the industry, especially MSMEs, as it significantly lowers the administrative and financial costs associated with annual audits. At the same time, the government has indicated that it will continue to monitor compliance behavior using data analytics and risk-based assessments. By shifting focus toward high-risk and high-turnover taxpayers, the revised threshold ensures that audit efforts are more targeted, effective, and resource-efficient.