Audit Under GST
The term ‘audit’ under GST means the examination of records, returns and other documents of a registered person to verify that the turnover declared, taxes paid, refund claimed an input tax credit availed are correct.
Types of Audit in GST:
1. Annual Audit by CA:
The GST Council has specified GST audit applicability as per the GST audit limit. The GST Audit turnover limit is Rs. 2 crores, so any registered person having a turnover above Rs. 2 crores has to get his accounts audited by a Chartered Accountant. While making an annual return in Form GSTR-9, one has to submit a copy of the audited accounts and a reconciliation statement.
2. Audit by GST Authorities:
A. General Audit:
Under General audit, the Commissioner or any officer authorised by him can undertake audit of any registered person.
General GST Audit process:
- The audit will be conducted at the registered person’s place of business or in his/her office.
- The person will be informed about the audit by a notice at least 15 working days prior to the date of the audit.
- The GST audit due date will be 3 months from the date of commencement of the audit, i.e. audit has to be completed within 90 days. If the Commissioner feels that the audit cannot be completed in 3 months, then it can be extended by another 6 months.The reasons for the extension have to be recorded in writing.
- After the audit is completed, the Officer should inform the registered person, within 30 days, about the findings, reasons for the findings and his rights and obligations.
- The Officer will initiate action for recovery of the tax if the audit results in detection of tax not paid or short paid or wrongly refunded or input tax credit wrongly availed.
B. Special Audit:
During a process of scrutiny, inquiry or investigation, if an Officer feels that the value of tax has not been correctly declared or wrong credit has been availed, he can initiate a Special Audit. Under Special audit, the registered person will be directed towards a Chartered Accountant to get their accounts audited. Within 90 days, the nominated chartered accountant has to submit the GST Audit report. This period can be extended for another 90 days if needed.The officer will initiate the action for recovery of the tax if the audit results in the detection of tax not paid or wrongly refunded or input tax credit availed falsely.
- Posted on Oct 31, 2017
- By Dhruv
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