Audit under GST involves examination of records, returns and other documents maintained by a GST registered person. It also ensures correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess other such compliances under GST Act to be checked by an authorised expert.
GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns. Thus, to ensure whether the taxpayer has correctly self -assessed his tax liability a robust audit mechanism is a must. Various measures are taken by the government for proper implementation of GST and audit is one amongst them.
Types of GST Audit
| Types | Performed By | When Initiated |
| Turnover based Audit | Chartered Accountant or Cost Accountant appointed by the taxpayer | As per the CGST Act, if the Turnover exceeds 2 crore,^ the taxpayer has to get his accounts & records audited |
| Normal audit/General Audit | Commissioner of CGST/SGST or any Officer authorized by him | On order of Commissioner by giving 15 days prior notice |
| Special audit | A Chartered Accountant or Cost Accountant, nominated by Commissioner | On order of Deputy/Assistant Commissioner with prior approval of Commissioner |
Turnover-Based GST Audit: CA or the cost accountant used to implement it and the CA is arranged by the assessee they shall execute the audit if the turnover of the assessee is more than Rs 5 cr under the CGST act, then he shall need to get his accounts audited through the same people.
Normal Audit Under GST: It gets executed through the commissioner of the CGST/SGST or any Officer who has been permitted by the commissioner. The audit in these types of cases will get executed by giving 15 days’ notice before the commissioner.
Special GST Audit: The audit beneath this shall be taken by the CA or the cost accountant who gets appointed through the commissioner. To execute the audit the professional needs to get the order of the Deputy or Assistant Commissioner and indeed the permission of the commissioner.
Qualification of Auditor
Only the CA or the cost accountant can take out the GST audit beneath section 35 of the GST act.
What is the GSTR-9 annual return?
GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. Points to note:
- It consists of details regarding the outward and inward supplies made/received during the relevant financial year under different tax heads i.e. CGST, SGST & IGST along with the cess and HSN codes.
- It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-2B, and GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.
GSTR 9 applicability: Who should file GSTR-9 annual return?
- Taxpayers opting composition scheme (They must file GSTR-9A)
- Casual Taxable Person
- Input service distributors
- Non-resident taxable persons
- Persons paying TDS under section 51 of CGST Act
- person collecting TCS under section 52 of CGST Act
Significance of GSTR 9C Audit Form
GSTR-9C is a reconciliation statement that must be certified by a Chartered Accountant or a CMA. Taxpayers whose aggregate turnover in a financial year exceeds Rs 5 Crores need to file GSTR-9C. The GSTR-9C must be digitally signed by the GST Auditor and must report all discrepancies or liabilities in filing any of the GST returns during the financial year. All additional liabilities arising out of the reconciliation exercise and GST audit must be reported and certified by a CS in GSTR-9C. The GSTR-9c is the only yardstick or indicator for GST Authorities to measure the correctness of GST returns filed by taxpayers during a given financial year
FAQs
GSTR-9 types?
- GSTR 9– Regular GST taxpayers who file GSTR 1 and GSTR 3B must file this return, especially if they cross the GST annual return limit of Rs.2 crore turnover during the financial year.
- GSTR 9A– Composition taxable persons had to file this annual return until FY 2018-19. However, from FY 2019-20 onwards, it is replaced with GSTR-4 annual return due for every financial year on 30th April of the following year.
- GSTR 9B– This annual return is applicable under the GST law to e-commerce operators collecting tax TCS (tax at source) and filing GSTR 8 each month. However, the filing of this annual return is put on hold.
- GSTR 9C– Annual Reconciliation Statement is an audit form that must be self certified and filed by all taxpayers whose aggregate turnover exceeds Rs.5 crores in a financial year.
What is GSTR-9 turnover limit?
GSTR-9 (Annual Return) is optional for businesses with turnover up to Rs.2 crore since FY 17-18 onwards till FY 2023-24. Every year, the GST department notifies the threshold turnover limit above which it is mandatory to file GSTR-9.