GST Audit suspension will lead to huge revenue leakage: ICAI backs GST Audit

GST Audit suspension will lead to huge revenue leakage: ICAI backs GST Audit The Budget 2021 proposed for Abolishing GST Audit by the Chartered Accountants. As per the Government, this would save the compliance cost of taxpayers. Also, this decision was taken by GST Council in March Last year but the decision was not announced due to COVID-19 Pandemic. But as per Experts, a Chartered Accountant doing an Audit highlights the mismatches to the taxpayer. In cases wherein taxes are not paid on account of such mismatches, the report is qualified by the professional. The existing process enables the timely identification of gaps. The self-certification process may not identify such mismatches on a timely basis. When these gaps are identified at a later stage, they will lead to applicability of interest and penalty as well. Additionally, ICAI president Nihar N Jambusaria said: “We are of the firm view that provisions relating to GST audit and certification of reconciliation statement by a chartered accountant should be retained in the GST law.” He dismissed the government’s argument that self-certification would be a major saving for businesses. “As on 12th Feb 2020, 12.42 lakh [1.24 million] taxpayers were required to submit GSTR-9C [the annual GST return]. Audit should not be seen as a cost to the taxpayer, rather it is an investment for him, the benefits of which are reaped over a period of time.” Source: Hindustan Times