GST Audit – Types, Objective, Applicability

1. GST Audit – Types, Objective,Applicability taxguru.in/dgft/gst-audit-types-objective-applicability.html May 15,2022 Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify thecorrectness of turnover declared, taxes paid, refund claimed and input tax credit availed, andto assess the compliance with the provisions ofGST. When GST Audit is required to beconducted? Any registered taxable person whose annual aggregate turnover exceeds 5 croreINR during a financial year needs to get their accountsaudited. OBJECTIVES OF GSTAUDIT Audit is examination of records, return and otherdocuments. Those records, returns and documents might have been maintained orfurnished under GST law or any otherlaw. To verify the correctness of:- 1.Turnoverdeclared 2.Taxes paid 3.Refundclaimed 4.Input tax creditavailed To assess auditee’s compliance with the provisions of GST Act andRules. Types of GSTAudit

2. Mandatory GST Audit (Section 35(5) Audit by professionals) Departmental GST Audit (Section 65 Audit by TaxAuthorities) Special Audit (Section 66 Audit by TaxAuthorities) Mandatory GST AUDIT byprofessionals If the annual turnover of a registered taxpayer is more than Rs.5 crore in afinancial year, he is required to get his accounts audit everyyear. Business with an annual turnover of More than Rs 5 crore, filing ofGSTR-9C. Registered person is required to furnish electronically through the commonportal along with annual return(GST-9). Audited annualaccounts A reconciliation statement, duly certified, in prescribed FORMGSTR-9C. Aggregate turnover= value of all taxable (interstate and intra state supplies)+ exempt supplies + export supplies of all goods andservices. The total turnover calculation must be PAN-based ,which means that oncethe turnover under the pan is more than than Rs 5 crore, filing ofGSTR-9C. Departmental GST Audit by tax Authorities (u/s65) The place of business of registered person or in taxoffice. The commissioner or any officer authorized(CA/CMA) byhim. The registered person shall be informed by way of a notice 15 working days priorto the conduct of audit in FORM GST ADT-01. The audit by tax authorities shall be completed within a period of 3 months fromthe date of commencement of the audit, and such period is further extendable for a period of 6 months by commissioner for the reasons to be recorded inwriting. The proper officer shall, within 30 days, inform the registered person, whoserecords are audit,about Thefindings, His rights and obligationsand The reasons for such findings in FORM GSTADT-02. Special Audit by Tax Authorities (u/s66) The registered person can be directed to get their records that include booksof Account. It shall be examined and audited by a chartered account or a costaccount nominated bycommissioner. This examination can take place during any stage of scrutiny, inquiry,investigation or any otherproceedings.

3. The Assistant manager commissioner can order for special audit. The commissioner will nominate the CA who will carry out the specialaudit. The CA has to submit a report of the audit within 90 days. The assistant commissioner can also extend the period over 90 days for the application personfor any sufficient reason. In this procedure resultsin Detection of tax notpaid Shortpaid ITC wrongly availed orutilized The taxable person will be given an opportunity of being heard in the findings of special audit. If the result in detection of unpaid/ wrong refund etc .The recovery will startagainst the registered person after thisauditing. Who will bear the expenses of the specialaudit? The expenses for examination and audit including the auditor’s remuneration willbe determined and paid by thecommissioner. The author can be however contacted for further clarification at 9654182791 or via mailat [emailprotected] DISCLAIMER:- This Blog is for the purposes of information / knowledge and shall notbe treated as solicitation in any manner or of for any other purposeswhatsoever. Tags: goods and services tax, GST, GSTAudit Kindly Refer to Privacy Policy & Complete Terms of Use andDisclaimer. AuthorBio Name: AjayBhambari Qualification: CA in Practice Company: Ajay Satish Kumar andAssociates Location: DELHI, Delhi,India

4. Member Since: 01 Jun 2020 | Total Posts:14 I run my own Firm at Roshanara Road Near by kamla Nagar , Delhi. My ContactNo 9654182791 and Email Id [email protected]I am in Practice Since 2017. I am alsoa Founder of Solution TaxView FullProfile My PublishedPosts Maximum Retail Price (MRP) under GST Set Off and Carry Forward of Loss under Income Tax Act,1961 GST Registration Requirement Steps to be taken at the time of Finalization of books ofaccounts All about GST In Case of Death ofProprietor View More Published Posts Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects. Join us onWhatsapp GROUP LINK Join us onWhatsapp GROUP LINK Join us onWhatsapp GROUP LINK Join us onWhatsapp GROUP LINK Join us onWhatsapp GROUP LINK Join us onWhatsapp GROUP LINK Join us onWhatsapp GROUP LINK Join us onWhatsapp

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