GST Audits

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. It is the process of analyzing the records, documents and returns maintained by taxpayers as per GST laws.

Frequently Asked Questions

Is GST audit required?

GST Audit applies every year for those GST registered businesses (GSTIN) having turnover more than Rs. 2 crore, by the sale of goods or services in the financial year. It is dealt under Sections 35(5) and 44(2) of the CGST Act.

What is the criteria for GST audit?

GST Audit will apply every year for those GST registered business (GSTIN) having turnover more than Rest 2 crores, by the sale of goods or services in the financial year. Please note- For businesses with an annual turnover of less than Rs. 5 crore, filing of GSTR-9C for FY 2018-19 and FY 2019-20 has been waived off.

How do I start a GST audit?

GST Audit Checklist

1. Turnover based audit. ...
2. General audit. ...
3. Special audit. ...
4. Cross verifying GSTR 3B with GSTR 1 & GSTR 2A. ...
5. Checking the format of the invoice. ...
6. Input Tax Credit (ITC) reversal for non-payment within 180 days. ...
7. Reconciling e-Way Bills with invoices.

Is GST audit removed?

The need for a GST audit by CA/CMA stands removed for FY 2020-21 and any later financial years. Every applicable taxpayer must submit a self-certified reconciliation statement by reconciling values between the audited financial statements and the annual returns.