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FAQ’s on GST audit and GST audit report

FAQ’s on GST audit

FAQ’s on GST audit and audit report.

Q.1: Who is liable for GST Audit?

Ans. Section 35(5) provide for GST audit in case the turnover is more than prescribed limit. Rule 80(3) provide for threshold of turnover as Rs. 2 Crore.

 

Q.2: Whether the turnover is required to be checked PAN wise or GSTIN wise?

Ans: Rule 80(3) provide for aggregate turnover. Section 2(6) of CGST Act defines the aggregate turnover. It provides that aggregate turnover shall be calculated PAN wise. It means that once the turnover of a PAN is more than Rs. 2Cr all entities under that PAN will be liable for GST audit. Although some of the experts are having a contrary view. But this view is more prevailing.

 

Q.3: What is the penalty for not conducting the GST audit?

Ans: The penalty for not conducting GST audit is Rs. 100 per day limited to 0.25% of turnover.

 

Q.4: What is the last date for GST audit?

Ans: Last date for GST audit as such is not given. But last date to file annual return is 31st December. This will also be applicable for audit report.

 

Q.5: What is the prescribed form for audit report?

Ans: The prescribed form for audit report is Form GSTR 9C. This form is having two parts , first is reconciliation and second is certification.

 

Q.6: what information’s are required in GST audit form?

Ans: It is mainly divided into two parts, Reconciliation and certification.

Reconciliation part can be divided into 4 parts.

Table5,6 are for Gross turnover.

Table 7,8 are for taxable turnover.

Table9,10,11 are for rate wise liability.

Table 12,13,14,15,16 are for input tax credit.

Part V for auditor’s recommendation.

Certification part have two scenarios.

First the case when the audit is done by the person preparing the reconciliation statement.

Second the case when the audit is done by some other person.

 

Q.7 What is the meaning of audit in GST?

Ans: Section 2(13) of CGST Act defines the audit as:

“audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.

This is the definition of Audit in GST. As you can see it covers turnover, ITC and taxes paid.

 

Q.8 If any business was running only for a part of year, whether the GST audit will be required?

Ans: Yes. Audit will be required even if the business was in operations only for a part of year. This is subject to the turnover of business. If the turnover is more than Rs. 2 Cr audit is mandatory.

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Profile photo of CA shafaly girdharwal CA shafaly girdharwal

CA

New Delhi, India

CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.

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Opinions & information presented by ConsultEase Members are their own.