GST Audit

Goods and Service Tax (GST) is structured for efficient tax collection, reduction in corruption, easy inter-state movement of goods and a lot more. GST Audit will apply every year for those GST registered a business (GSTIN) having turnover more than Rs 2 crores, by the sale of goods or services in the financial year.

Audit under GST is the examination of records maintained by a registered dealer. The aim is to verify the correctness of information declared, taxes paid and to assess the compliance with GST.

Need for GST Audit

GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns. Thus, to ensure whether the taxpayer has correctly self -assessed his tax liability a robust audit mechanism is a must.

Types of GST Audit

GST Audit performed by a Chartered Accountant : If the Turnover exceeds 2 crores the taxpayer has to get his accounts & records audited by Chartered Accountant or Cost Accountant appointed by the taxpayer

 GST Audit performed by tax authorities : GST Officer performs this kind of GST audit, who has been authorized by the commissioner. To start this kind of GST audit, a notice will be sent out to auditee, at least 15 days in advance and such a GST audit shall be completed within 3 months from the date of commencement of an audit 

 Special GST Audit : A chartered accountant does this kind of GST audit as per directions received from the GST Officer. if he declares that the values have not been declared correctly and/or credits availed in not within the normal limits. The CA or CMA for such a GST audit is nominated by the commissioner. The commissioner pays the expense of such a GST audit and examination. On the conclusion of this special GST audit, the findings have communicated the auditee in Form GST ADT-04.

Documents Required

Audited financial statements (which is PAN-based)

Annual return in form GSTR-9 (for every GSTIN)
Certified reconciliation statement in Form GSTR-9C, reflecting reconciled values of supplies and tax amounts declared in GSTR-9 compared to audited financials in Part-A, along with the Audit report in Part-B.