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 authorized 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.
Under section 35 (5) of GST law, three types of GST audit is being specified-
|Sr. No.||Name of Audit||Prescribed Authority||Condition|
|1||Based on Turnover||Chartered Accountant/Cost Accountant||Turnover Exceeds Rs 2 Cr.|
|2||General Audit||GST Commissioner or any other officer authorized by him||On order passed by Commissioner, giving prior notice of 15 days.|
|3||Special Audit||Chartered Accountant/Cost Accountant nominated by Commissioner||On order passed by Deputy/Assistant Commissioner with|
|prior permission of Commissioner.|
|GSTR 9||For Filling Annual Return|
|GSTR 9C||For Certified Reconciliation Statement|
While computing the limit of Rs. 2 Cr., turnover of all the branches of an organization is be considered and if the cumulative turnover exceeds the limit of Rs. 2 Cr then every branch will be liable for GST audit irrespective of the fact that their individual turnover does not exceed the specified limit.
– Organization can appoint either the single auditor for all branches or separate auditor for each branch.