Quick view on provision of GST Audit by Lavina Vidhani

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.

Need for GST Audit- GST audit involves examination of correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess, returns and record and other documents maintained by a registered person and other compliances under GST Act to be checked by an authorized expert. GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns. GST audit is required to ensure that whether the taxpayer has correctly self -assessed his tax liability. GST audit is one of the measures to check proper implementation of GST.

Types of GST Audit
  1. If the Turnover exceeds 2 crores the taxpayer has to get his accounts & records audited by Chartered Accountant or Cost Accountant.
  2. On order of Commissioner by giving 15 days prior notice audited by Commissioner of CGST/SGST or any Officer authorized by him. This audit is known as normal or general audit.
  3. On order of Deputy/Assistant Commissioner with prior approval of Commissioner audited by Chartered Accountant or Cost Accountant, nominated by Commissioner known as a special audit.

Appointment of GST Auditor:

A proprietor, partner or Board of Directors in case of a Company should appoint a GST Auditor at the beginning of the financial year and GST auditor will review accounts like sales register, purchase register, stock register and expenses ledgers and Input tax credit availed and utilized and Output tax payable and paid and other compliances of GST.

The further auditor must report any tax liability pending for payment by the taxpayer, identified during GST audit. Taxpayers can pay taxes as recommended by the auditor in Form DRC-03.

The finalized GSTR-9C can be certified by any CA either he conducted the GST audit or not.

**An internal auditor cannot be appointed as a GST Auditor and also GST practitioner is not allowed to perform the audit.

GST Auditor must report and certify:-

  1. Whether or not all the requisite accounts or records are maintained.
  2. Whether or not the Financial Statements are prepared as per the books of accounts maintained at the principal place of business or additional place of business of the taxpayer.

Documents to be furnished by the taxpayer:

  1. Audited financial statements (which is PAN-based)
  2. Annual return in form GSTR-9(for every GSTIN)
  3. 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.
Forms and Due date:-
  1. Taxpayer eligible for GST Audit have to file form GSTR-9C i.e. reconciliation statement.
  2. Taxpayer not eligible for GST audit and regularly filing GSTR 1 and GSTR 3B have to file form GSTR-9 i.e. annual return.
  3. Taxpayer who are under composition scheme have to file form GSTR-9A

 GSTR-9 and GSTR-9C are due on or before 31st December of the subsequent fiscal year.

The due date for GSTR-9, GSTR-9A & GSTR-9C Annual Returns further extended to 30 November 2019 for FY 2017-18

*GSTR-9 filing for businesses with turnover up to Rs 2 crore made optional for FY 2017-18 and FY 2018-19.

*GSTR-9A filing for composition taxpayers waived off for FY 2017-18 and 2018-19.

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