Audit by Tax Authorities: Commissioner or any officer authorised by him may undertake audit of registered person (Section 65 & Rule 101). Special Audit: if proper officer is of opinion that value has not been correctly declared or credit availed is not within the normal limits, he may such direct registered person to get his records examined and audited by a chartered accountant or cost accountant nominated by him (Section 66 & Rule 102).
Why GST Audit?
To ensure the compliance of law by taxable personReliance of Tax Administration on Self AssessmentDetermination of tax liability without intervention of tax official
Who Can conduct GST audit ?
Practicing Chartered accountant or practicing Cost Accountant
What is the Due Date? (GST Audit & Annual Return)
For Financial year 2017-18 Extended due date is 30th June 2018.
What if Not filed on Due Date ?
Late Fees of INR 200/- per day during which failure continues subject to maximum of 0.5% of the turnover in State.
Relevant Provisions on GST Audit
Section 2(13): Definition of Audit
Audit means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder
Gist of the Provisions mentioned above Every registered person Other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person has to file annual return. Where aggregate turnover during a financial year exceeds 2 crore
Registered person has to get his account audited andfurnish copy of audited annual accounts andReconciliation Statement Duly Certified (Form GSTR 9C)
along with the annual Return. Reconciliation statement reconciles the value of supplies declared in returns furnished for the financial with audited annual financial statement Aggregate turnover means the aggregate value of
all taxable suppliesexempt supplies,exports of goods or services or both andinter-State supplies of persons having the same Permanent Account Number,to be computed on all India basis
excluding
the value of inward supplies on which tax is payable by a person on reverse charge basis andcentral tax, State tax, Union territory tax, integrated tax and cess.
