To maintain a check and examine whether correct GST is being paid and the refund is claimed, certain taxable persons will be subject to audit under GST.
Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST.
Threshold for Audit
Every registered taxable person whose turnover during a financial year exceeds the prescribed limit [as per the latest GST Rules, the turnover limit is above Rs 1 crores shall get his accounts audited by a chartered accountant or a cost accountant. He shall electronically file:
Audit by GST Tax Authorities
- An annual return using the Form GSTR 9B along with the reconciliation statement by 31st December of the next Financial Year
- The audited copy of the annual accounts
- A reconciliation statement, reconciling the value of supplies declared in the return with the audited annual financial statement
- And other particulars as prescribed.
- General Audit: The commissioner or on his orders an officer may conduct any audit of any registered dealer.
- Special Audit: The department may conduct a special audit due to the complexity of case and considering interest of revenue. The CA or a CMA will be appointed To conduct the audit.