“Audit” means the examination of records, returns and other documents maintained or furnished by the registered person under GST Acts or the rule 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.
Type of GST Audit:-
Three type of GST audit can be performed:-
A.Turnover based Audit:-
- GST Audit is mandatory in case of registered dealer turnover exceeding of Rs. 2 Crore in a financial year.
- This type of audit is to be done by a Chartered Accountants (CA) or Cost Accountants (CMA).
- This type of audit not turnover based.
- This type of audit is to be done by a Commissioner or officer authorised by commissioner.
- To conduct this type of audit it is mandatory to give 15 days prior notice to the registered taxpayer.
- This type of audit is to be done by a Chartered Accountants (CA) or Cost Accountants (CMA), on the nominated by Commissioner.
Point to be Noted:-
- Aggregate Turnover means:-
Taxable Supply + Exempt Supply (Including Non-GST Supply) + Zero Rated Supply + Inter-state Supply
(Branch transfer having same PAN but different GST number)
Reverse charge supply + CGST/SGST/IGST/UTGST/Cess
- State wise GST Audit:
When calculate the turnover limit of Rs.2 Crore, then all of the state or union territories turnover shall be
include i.e. on all over India basis under same PAN.No separate threshold limit has been specified for
Special Category States shall be include i.e. on all over India basis under same PAN.No separate
threshold limit has been specified for Special Category States.
- An internal Auditor cannot be appointed for doing the GST Audit.
- A GST Practitioner cannot perform the GST Audit. The power to doing the GST Audit is given to Chartered Accountant (CA) or Cost Accountant (CMA) who is in practise or an employee in CA firm or CMA firm. Thus a CA or CMA registered under GST Practitioner cannot issue the GST Audit Report.
- GST Auditor can be appointed at the beginning of the financial year by a Proprietor, Partner in case of Partnership firm or Board of Directors in case of Company.
- Which type of Accounts to be checked by the GST Auditors? :-
Sale Register, Purchase Register, Stock Register, Expenses file, Input tax credit (ITC) availed or utilised, Output tax liability and paid, E-way bill related rules, and any other documents.
Audited Financial Statement like Audit Report, Balance Sheet, Profit & Loss Account etc.
Copy of GST Annual Return in the Form of GSTR 9 or GSTR 9B.
Reconciliation Statement in Form GSTR-9C, which is certified.
- An GST Auditor is require to report in case of any tax liability pending for payment by the taxpayer which is identified during the GST Audit. A taxpayer can settle the taxes on the recommendation of Auditor in form DRC-03.
- GSTR 9C can be certified by same CA who is conducted the GST Audit or it can be also certified another CA who did not conduct the GST Audit.
- Filing due date of GST Audit report (i.e. GSTR-9 and GSTR-9C Form) is 31st December of the subsequent financial year.