Under the GST regime, certain businesses are required to undergo an audit by a certified Chartered Accountant or Cost Accountant. This audit is known as the GST audit and is conducted to ensure compliance with the provisions of GST laws and rules.
Here are some key points regarding GST audit in India:
- Applicability: GST audit is applicable to certain categories of taxpayers whose annual aggregate turnover exceeds the prescribed threshold. The threshold for GST audit is currently set at Rs. 2 crore for regular taxpayers and Rs. 5 crore for taxpayers opting for the composition scheme.
- Auditor Selection: The taxpayer is responsible for appointing a qualified Chartered Accountant or Cost Accountant to conduct the GST audit. The appointed auditor must file Form GSTR-9C, which is the reconciliation statement and audit report, on the GST portal.
- Audit Period: The GST audit is conducted for a specific financial year. The auditor reviews the taxpayer’s records, accounts, and returns for that financial year to ensure accuracy and compliance with GST laws.
- Audit Process: The auditor examines various aspects of the taxpayer’s GST compliance, including the correctness of turnover declared, the accuracy of taxes paid, input tax credit claimed, the reconciliation of turnover and tax paid, and compliance with other applicable provisions of GST laws.
- Audit Report: After completing the audit, the auditor issues an audit report in Form GSTR-9C. This report contains details of the audit findings, reconciliations, and any additional information required by the GST authorities. The taxpayer must submit the audit report electronically on the GST portal.
- Due Date: The due date for filing the GST audit report is generally December 31st of the subsequent financial year. However, the government may extend the deadline if necessary.
- Penalties and Consequences: Non-compliance with the GST audit requirements or failure to file the audit report within the due date may attract penalties and consequences, including the imposition of fines and interest charges.
It is important for businesses to maintain proper records and comply with GST regulations to facilitate a smooth audit process. It is recommended to consult with a qualified tax professional or Chartered Accountant to ensure compliance with GST laws and fulfill audit obligations.Regenerate response