GST Audit &#8211 Types, Objective, Applicability - Taxguru - in

GST AUDIT – TYPES, OBJECTIVE, APPLICABILITY
AUTHOR :AJAYBHAMBARI
https://taxguru.in/goods-and-service-tax/gst-audit-types-objective-applicability.html
Audit under GST is the process of examination of records, returns and other documents maintained by a taxable
person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax
credit availed, and to assess the compliance with the provisions of GST.
When GST Audit is required to be conducted?
Any registered taxable person whose annual aggregate turnover exceeds 5 crore INR during a financial year
needs to get their accounts audited.
OBJECTIVES OF GST AUDIT
Audit is examination of records, return and other documents.

Those records, returns and documents might have been maintained or furnished under GST law or any
other law.
To verify the correctness of :-
1.Turnover declared
2.Taxes paid
3.Refund claimed
4.Input tax credit availed
To assess auditee’s compliance with the provisions of GST Act and Rules.
Types of GST Audit
Mandatory GST Audit (Section 35(5) Audit by professionals)

Departmental GST Audit (Section 65 Audit by Tax Authorities)
Special Audit (Section 66 Audit by Tax Authorities)
Mandatory GST AUDIT by professionals
If the annual turnover of a registered taxpayer is more than Rs.5 crore in a financial year, he is required to
get his accounts audit every year.
Business with an annual turnover of More than Rs 5 crore, filing of GSTR-9C.
Registered person is required to furnish electronically through the common portal along with annual return
(GST-9).
i. Audited annual accounts
ii. A reconciliation statement, duly certified, in prescribed FORM GSTR-9C.
Aggregate turnover= value of all taxable (interstate and intra state supplies )+ exempt supplies
+ export supplies of all goods and services.
The total turnover calculation must be PAN-based ,which means that once the turnover under the pan is
more than than Rs 5 crore, filing of GSTR-9C.
Departmental GST Audit by tax Authorities (u/s 65)
The place of business of registered person or in tax office.

The commissioner or any officer authorized(CA/CMA) by him.
The registered person shall be informed by way of a notice 15 working days prior to the conduct of audit
in FORM GST ADT-01.
The audit by tax authorities shall be completed within a period of 3 months from the date of
commencement of the audit, and such period is further extendable for a period of 6 months by
commissioner for the reasons to be recorded in writing.
The proper officer shall, within 30 days, inform the registered person, whose records are audit, about
a. The findings,
b. His rights and obligations and
c. The reasons for such findings in FORM GST ADT-02.
Special Audit by Tax Authorities (u/s 66)
The registered person can be directed to get their records that include books of Account.
It shall be examined and audited by a chartered account or a cost account nominated by commissioner.
This examination can take place during any stage of scrutiny, inquiry, investigation or any other
proceedings.
The Assistant manager commissioner can order for special audit. The commissioner will nominate the CA
who will carry out the special audit.
The CA has to submit a report of the audit within 90 days. The assistant commissioner can also extend the
period over 90 days for the application person for any sufficient reason.
In this procedure results in
i. Detection of tax not paid
ii. Short paid
iii. ITC wrongly availed or utilized
The taxable person will be given an opportunity of being heard in the findings of special audit. If the result in
detection of unpaid/ wrong refund etc .The recovery will start against the registered person after this auditing.
Who will bear the expenses of the special audit?

The expenses for examination and audit including the auditor’s remuneration will be determined and paid by the
commissioner.
The author can be however contacted for further clarification at 9654182791 or via mail at [email protected]
DISCLAIMER:- This Blog is for the purposes of information / knowledge and shall not be treated as solicitation
in any manner or of for any other purposes whatsoever.

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GST AUDIT – TYPES, OBJECTIVE, APPLICABILITY

When GST Audit is required to be conducted?

OBJECTIVES OF GST AUDIT

Audit is examination of records, return and other documents.

4.Input tax credit availed

Types of GST Audit

Mandatory GST Audit (Section 35(5) Audit by professionals)

Mandatory GST AUDIT by professionals

ii. A reconciliation statement, duly certified, in prescribed FORM GSTR-9C.

Departmental GST Audit by tax Authorities (u/s 65)

The place of business of registered person or in tax office.

b. His rights and obligations and

c. The reasons for such findings in FORM GST ADT-02.

Special Audit by Tax Authorities (u/s 66)

i. Detection of tax not paid

ii. Short paid

iii. ITC wrongly availed or utilized

Who will bear the expenses of the special audit?

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