Audit Under GST
GST Audit India GST regime is the examination of records maintained by taxable person to verify correctness of information furnished, taxes discharged and to analyses the compliance with the provision of GST registration.
The meaning of audit is given under Section 2(13) of Central Goods And Services Tax Act, 2017. Audit can be done by taxable person himself or by the tax authorities.
Audit by Taxable Person Himself :
GST Audit Limit : Every registered person, whose turnover during the financial year exceeds the prescribed “GST audit turnover limit”, shall get the accounts audited by a CA or CMA.
Registered person who is required to get his accounts audited in accordance with Section 35(5) shall submit electronically the Annual Return as per Section 44 along with a copy of the audited Statement of accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited Statement of accounts.
Audit by GST Tax Authorities:
Audit by tax authorities can divided into two parts:
(1) General audit by tax authorities and
(2) Special Audit by CA
General Audit by Tax Authorities:
The provisions of Audit by Tax Authorities are covered under Section 65 of CGST Act, 2017. GST Tax Authorities can conduct audit of taxable person if authorized by the Commissioner of the taxable person.
Important Point of Audit by Tax Authorities:
- Section 65 authorize conduct of audit, the commissioner or the proper officer authorized by him may conduct the audit of taxable person.
- Commissioner may issue a general order or specific order to authorize officer to conduct audit u/s 65.
- Audit shall be conducted at the place of business of the registered person or at the office of the tax authorities.
- Registered taxable person shall be informed in writing in advance not less than 15days.
- Audit shall be completed within 3 months from the date of commencement, further extension is possible but the period should not be more than 6 months
- Commencement of Audit :The date of record and other document called and submitted by registered taxable person or start of actual initiation of audit at the place of Registered Taxable Person, whichever is later.
- Within 30 days from the conclusion of audit, the proper office will inform the auditee about his findings, reasons for findings and his right and obligations.
SPECIAL AUDIT :
“Special audit” or “gst audit by ca” can be initiated based on the nature and complexity of the business and in the interest of Revenue Authority and Authority is of the opinion that :
1. Value has not been correctly declared or
2. Input tax credit has been wrongly claimed or availed.
Important Point of Special Audit:
- An officer not below the rank of an Assistant commissioner with prior approval of commissioner may serve notice for special audit.
- A Chartered Accountant or Cost Accountant so nominated by commissioner.
- The auditor will have to submit the report within 90days or further extended period of 90 days
- Expenses or auditor remuneration payable will be born by the commissioner.
- Based on findings/ observations of the special audit, action can be initiated under Section 73or 74 of the CGST Act,2017 as the case may be.
- Auditor shall be nominated by department only.