GST Audit under sec 13(2) of CGST Act , 2017 is the process of examination of records, returns and other documents maintained by a taxable person and also verifying the completion of compliances within the time frame allowed. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST.
This is basically a reconciliation between the GST returns filed by a business and books of accounts maintained by them. This Audit is mandatory for all the taxpayers having a turnover more them 2 crores in a FY. This Audit is done by a Practicing CA or a Cost Accountant.
Legal Window can help you with the GST Audit just by following certain steps by providing the best assistance, timely delivery and guaranteeing the highest customer satisfaction You may get in touch with our team on 072407-51000 or email firstname.lastname@example.org for GST Audit.
Advantages of GST Audit
Types of GST Audit
Every registered person having turnover during financial year is more than 2crores u/s 35(5).
Order by Commissioner u/s 65.
Order passed by Deputy/Assistant Commissioner with prior permission of Commissioner u/s 66.
1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team which will enable us to know the status of books of accounts of GST.
2. Document Processing
At the second step you will be required to produce the documents in accordance with the questionnaire filled based upon which case will be dealt so that we can arrange them as per the requirement and for further processing.
3. Preparation of form filing
After arranging the documents we will begin with the preparation of financial statements and analyse the accuracy of the documents
4. Submission of GST Audit Report
After verification of all the data provided, the practicing professional will provide the observations and comments, if any and submit the GST Audit Report with reconciled statements.
5. Information to Client
After submitting all the documents, the acknowledgement will be provided to the client via mail.
Legal Window carries out the audit process in a very smooth and transparent manner with the team of expert professionals. While we conduct the audit there are few things to be kept in mind
Calculation of Aggregate Turnover under GST
For computing the aggregate turnover, following sale shall be included-
- Value of all inter-state taxable supply
- Value of all intra- sate taxable supply
- Value of all exempt supplies
- Value of all export supplies
- Job work supplies on principal to principal basis
- Zero rated supplies
- Any supply to agent/ job work on behalf of principal
For computing the aggregate turnover, following sale shall be excluded-
- Taxable supply on which reverse charge is applicable
- All taxes and cess paid under GST
- Goods supplied and received back from job work
Books to be examined under GST Audit:-
- Purchase Register
- Sales Register
- Stock Register
- GST Returns
- Statement of ITC or Electronic Credit Ledger
- Electronic cash Ledger
- E way bill Statements
- Amendments made during the period.
- Annual Accounts maintained under Income Tax Act , 1961.
GST Audit Form
GSTR-9C: GSTR 9C is an annual audit form for all the taxpayers having the turnover above 2crores in a particular financial year. The GSTR 9C form has a reconciliation statement for reconciling turnover, input tax credits and tax payments.
Contents of GSTR 9C:-
Part-A:- Reconciliation Statement- This is further divided into 5 parts
- Basic Details
- Reconciliation between Turnover declared under the 2 Acts
- Reconciliation of Taxes paid
- Reconciliation of ITC availed
- Auditor comments on Reconciliation and Additional Liability if arises.
Part-B:- Certification By Chartered Accountant/Cost Accountant
Due date for filling annual return and GST audit is 31st of December of subsequent financial year
*Dates are subject to change according to the official notification from central Government
Penalty for not getting GST accounts audited as per act is Rs 200 per day ( Rs 100 for CGST and 100 for SGST). Maximum penalty will be 0.25% of total turnover declared.
Auditor Qualification for GST Audit
As per Section 35 of GST Audit, audit can be performed by a Chartered Accountant or a Cost Accountant. But there are exceptions in the provisions-
- An Internal Auditor cannot be appointed as a GST Auditor
- GST practitioner is also not allowed to perform GST Audit
FAQ's on GST Audit
If taxpayer is having turnover during previous year more than 2crore than GST audit is required.
The late fee for not filing the GSTR 9 within the due date is Rs 200 per day, per act. That means late fees of Rs 100 under CGST and Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default.
No, an internal auditor cannot certify Form GSTR-9C.
Ans. The Government can do so by way of issue of notification specifying the circumstances but, no such notification has been issued yet.
. Annual return is required to be filed by all registered taxpayers under GST irrespective of the turnover of an entity.
Yes, because the limit is PAN based and if both business are running on same PAN no then you are in the ambit of GST Audit, need to carried out by a practicing CA.
The GSTR-9 is an annual return which has to be filed by all taxpayer under GST. And the GSTR-9C is the GST reconciliation Statement for a particular FY on or before 31st December. The reconciliation must also be certified by a CA.
No, GSTR-9C can be filed only after filing GSTR-9.
No, Every registered person except as specified in section 44(1) needs to furnish an annual return for every Financial Year.
Annual return is required to be filed by all registered taxpayers under GST irrespective of the turnover of an entity.