As per GSTR-9C, Part B auditor is required to examine the balance sheet, profit and loss account and cash flow at GSTIN level. This could lead to a view that there is need to prepare the trial balance, profit and loss account and balance sheet at the GSTIN level.
However, if one considers the instruction 5A, it provides that in case of the multi-locational unit, the turnover may be derived from the internal records of the registered person from the audited financial statement. This further states that reference to audited annual financial statement includes reference to books of account in case of persons having multi presence. Based on this, it appears that even if the state level transactions could be identified from the internal record, it could be said to be the fulfillment of the requirement of law. Hence, based on this, the author is of the view that there is no need to prepare a state level balance sheet and profit and loss account. However, it is suggested to have state-level trial balance so that all transaction pertaining to that State could be separately identified and reported in the GSTR-9 and GSTR-9C.