Explain Audit under GST and GST audit meaning is inspection of returns, records and other documents furnished by the taxpayer. GST Audit is carried out to check whether the turnover, taxes paid, ITC refund claimed and ITC availed mentioned in his annual report are true and fair or not. Moreover, a GST audit also helps in evaluating whether the taxpayer is compliant with the GST provisions.
Next will know what is GST audit, types of audit in GST, GST audit eligibility, GST audit applicability and much more.
Any registered taxable person whose annual *aggregate turnover exceeds 2 Crore INR during a financial year needs to get their accounts audited. The eligible taxpayer can get their records and account audited either by a CA (Chartered Accountant) or a CWA (Cost and Work Accountant).It shall be noted that the GST auditing is carried out state-wise. This is the reason why a separate GST audit is done for each unique registrations under the same Permanent Account Number (PAN). *Aggregate Turnover under GST is calculated as follows: Value of all taxable supplies whether inter-state or intra-state + exempt supplies + supplies made outside India (export supply)
There are three types of GST audit and under GST the third type of audit is called Special Audit:
|Types of Audit||When is it carried out?||Carried out by whom?|
|Turnover based||It is carried out when the aggregate turnover of the taxpayer exceeds the 2 Crore INR mark.||CA or CWA appointed by the taxpayer|
|General Audit||It is carried out after the order is passed by the commissioner. However, it is important to give 15 days prior notice.||CGST or SGST commissioner or any other person authorized by them.|
|Special Audit||It is carried out after the order is passed by the deputy or assistant commissioner after the prior approval of GST commissioner||Chartered Accountant (CA) or Cost and Work Accountant (CWA) appointed by the commissioner.|
At the beginning of the financial year, the proprietor in case of sole-proprietor, a partner in case of LLP or Partnership Firm and the Board of Directors (BOD) in a case of a company can appoint the GST auditor.
Here is the list of documents that need to be audited by the GST auditor:
In case if the auditor finds any mismatch in the accounts or records, the GST auditor shall add a comment on such a mismatch in the audit report. Moreover, the taxpayer can reconcile such a mismatch reported by the auditor in the C-03 Form.
After GSTR-9C gets audited by the CA or CWA, the following things shall be reported by him or her:
Under GST, there is no such specific penalty for not submitting the GST Audit Report. Hence, the general provisions of the penalty will be applicable that may amount up to 25,000 INR.