Gulshan Aggarwal in Administrative, Auditors, Finance / Banking Feb 19, 2020 · 1 min read · 2.0K

GST Audit: Things you should know

GST Audit: Things you should know

Applicability of GST Audit:

If the aggregate turnover of any taxpayer registered under the GST exceeds Rs. 2 Crores in a particular financial year, then that person or company is obliged to get its accounts audited as per the GST Laws. This type of audit process is called GST Audit, as prescribed by the laws and statutes.The turnover of such taxpayers or companies are calculated on the basis of PAN related to the sales of goods and services, which will be computed in the threshold limit provided by the government.

Related Articles: How to do GST Audit in India

GST Audit Requirement:

GST Audit is required because of the following reasons-

1. For examining and evaluating the GST Returns, records and all other relevant documents.

2. For obtaining an assurance that is reasonable and which ensures that no misstatements have been there in the financial statements.

3. For ensuring taxpayers tax liabilities have been assesses correctly.

Documents to be furnished under GST Audit:

The documents that are necessary to be furnished during the GST Audit are as follows-

1. Filed Annual Return

2. Copy of the Annual Accounts that have been audited

3. Copy of the reconciliation Statement

Types of GST Audit:

Under section 35 (5) of CGST Act, 2017, there are three types of GST Audit. These are-

1. Based on Turnover

2. General Audit

3. Special Audit

Calculating Aggregate Turnover for GST Audit:

The following sales have to be included to compute the aggregate turnover of a registered person or taxpayer for GST Audit Service-

1. Zero rated supplies

2. Any supply on behalf of the principal to the agent or job worker

3. Supplies from job work on principal to principal basis

4. Value of the supplies that are exempted

5. Value of supplies that are taxable under inter-state

6. Value of supplies that have been exported

7. Value of supplies that are taxable under intra-state

The following points are to be excluded while computing the aggregate turnover-

1. All the cess and taxes payable under the GST Regime

2. Goods that have been supplied and received back from the job work

3. All the taxable supplies for which reverse charge is applicable

Accounts to be reviewed under GST Audit:

The accounts that have to be reviewed by the GST Auditor while conducting the audit are-

1. Registers of sales

2. Registers of purchase

3. Registers of stocks

4. Availed and utilized Input tax Credit statements

5. Challan of Output Tax

6. All the incurred GST Expenses

7. Changes that were made under GST during a particular period

8. E-way bills and statements that were generated during a particular period

Forms to be filled under the GST Return:

Two forms are to be filed any company in India under the GST Return. These are-

1. Form GSTR 9

2. Form GSTR 9C

Due Date of GST Audit and Penalty for Late filing of GSTR 9C:
The due date of audit and annual return has been specified as 31st December for any subsequent financial year by the GST Act, but
GST Audit due date for FY 2017-18 again extended by the government. In case a company fails to comply with the same then the act does not prescribe any specific penalty. So under the general penalty head an amount of Rs. 25,000 is to be recovered from the company.