GST AUDIT: GST AUDIT DUE DATE

MEANING OF GST AUDIT:

Audit under GST involve the scrutiny of records, returns and audit of all the other documents which is maintained by the registered person under GST. It also verifies the exactness of declared turnover, taxes which is paid, if refund is claimed, if there is any Input Tax Credit is availed and evaluate other such compliances which is needed to be examined by an expert authority under GST Act.

WHAT ARE THE TYPES OF AUDIT?

TURNOVER BASED AUDIT:

It is performed by Chartered Accountant or Cost Accountant who is arranged by the taxpayer, they will initiate the audit if the turnover of the taxpayer exceeds Rs. 2 crore as per CGST Act, the he will have to get his accounts audited by the same professionals.

NORMAL AUDIT:

It is performed by Commissioner of CGST/SGST or any Officer who has permission of the Commissioner. The audit under this type of audit will be initiated by giving 15 days prior notice by the Commissioner.

SPECIAL AUDIT:

Audit under this type of audit will be performed by a Chartered Accountant or Cost Accountant, who is appointed by the Commissioner. To initiate this audit the professional has to get the order of Deputy or Assistant Commissioner and also the approval of Commissioner.

QUALIFICATION OF AUDITOR:

Under Section 35 of GST Act, only a Chartered Account or Cost Accountant can carry out GST Audit.

IMPORTANT NOTE:

• An internal auditor cannot carry out the GST Audit.
• Any person who is GST Practitioner cannot be GST Auditor as per the GST Act.
• The power of GST is given only to a Chartered Accountant or Cost Accountant or they are an employee of any firm of Chartered Accountant or Cost Accountant.
• A Chartered Accountant or Cost Accountant should not be registered as a GST Practitioner if they are issuing Audit report.

APPOINTEMENT OF GST AUDITOR:

A GST Auditor shall be appointed at the beginning of the financial year and in case of Company, GST Auditor shall be appointed by the proprietor, or any partner or Board of Director can also appoint him.

ACCOUNTS WHICH SHOULD BE REVIEWED BY GST AUDITOR:

There are following accounts which should be reviewed by GST Auditor:

• Register of Sales;
• Register of Stocks;
• Register of Purchases;
• Ledger of expenses;
• If there’s any Input Tax Credit which is Availed or utilized;
• Output Tax which is payable and if paid;
• If during doing compliances under Act and there was e-way bill which was generated;
• e-invoice and if IRN is generated and is has record;
• Any other accounts which is communicated by GST Department for the financial year.

DOCUMENTS WHICH IS TO BE FURNISHED BY THE TAXPYER:

The taxpayer has to furnish the following documents:

• PAN based Audited Financial Statements;
• Annual Return which is in Form GSTR-9 and it should be for every GSTIN;
• Certified Reconciliation Statement which should be in Form GSTR-9C and it should also reflect all the reconciled value of supplies and declaration of tax amounts in Form GSTR-9 which shall be compared to audited financials in Part-A and it should also include the Part-B which shall be the Audit Report.

GST AUDITS DUE DATE

GSTR-9 and GSTR-9C are due on or before 31st December of the subsequent fiscal Year. The due date of GST audit for the financial year 2021 is 31^st December, 2021.

Author- Adv.Shivam Kumar

Legel and content Executive, Taxblock India Pvt. Ltd