SAJIVE ASSOCIATES
CHARTERED ACCOUNTANTS
GST AUDIT
GST is a trust based taxation regime wherein the Registered dealer is required to self- assess his returns and determine tax liability.
Audit has been defined in section 2(13) of the CGST Act, 2017 and it means the examination of records, returns and other documents maintained or furnished by the registered person under the GST Acts or the rules made there under or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of the GST Acts or the rules made thereunder.
Goods and Service Tax (GST) is structured for efficient tax collection, reduction in corruption, easy inter-state movement of goods and a lot more.
The GST Law provides for self-assessment to facilitate easy compliance and payment of taxes. It also explains the notices, the demand and recovery provisions when the taxes are unpaid, short paid and/or returns are not filed.
ANNUAL GST AUDIT
According to Section 35(5) of the CGST Act:
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Every registered person whose turnover during a financial year exceeds the prescribed limit (presently one crore rupees) shall get his accounts audited by
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a Chartered Accountant or
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a Cost Accountant
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and shall submit a copy of the audited annual accounts
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along with a reconciliation statement (reconciling the value of supplies declared in return with audited annual financial statements)
Contents of the audit report and other particulars to be prescribed
Audited Report and Audited Annual Accounts to be submitted along with annual return on or before 31st December following the end of financial year.
THRESHOLD LIMIT FOR GST AUDIT
Every registered person whose aggregate turnover ** during a financial year exceeds INR 2 crore shall get his accounts audited.
**aggregate turnover includes value of all exempt supplies and exports under the same PAN, on all India basis.
DOCUMENTS REQUIRED FOR GST AUDIT
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Audited Financials
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Annual return in Form GSTR-9
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All GST 1 & 3B Reconcilations
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Reconciliation statement, reconciling the value of supplies declared in the return furnished for the year with the audited annual financial statement in Form GSTR-9C.
