Unit:4 GST: By: Simran Jain Assistant Professor Gibs
Unit:4 GST: By: Simran Jain Assistant Professor Gibs
Points to Note:
An internal auditor cannot parallelly be appointed as a GST Auditor.
The GST Act does not allow a GST practitioner to perform the audit.
The power to audit is granted only to a Chartered Accountant or
Cost Accountant who is in practice or is an employee of a firm of
Chartered Accountants or Cost Accountants. Therefore, a Chartered
Accountant must not be registered as a GST practitioner for the
purpose of issuing the Audit Report.
Findings of Audit
An offence is a breach of a law or rule, i.e.,
an illegal act. Similarly, an offence under
GST is a breach of the provisions of the GST
Act and Rules.
Fraud:
He submits false information while
registering under GST
He submits fake financial
records/documents or files fake returns to
evade tax
Does not provide information/gives false
information during proceedings
Tax evasion:
He collects any GST but does not submit it
to the government within 3 months
Even if he collects any GST in contravention
of provisions, he still has to deposit it to the
government within 3 months. Failure to do
so will be an offence under GST.
He obtains a refund of any CGST/SGST by
fraud.
He takes and/or utilizes input tax credit
without actual receipt of goods and/or
services
He deliberately suppresses his sales to
evade tax
Supply/transport of goods:
He transports goods without proper
documents
Supplies/transports goods that he knows
will be confiscated
Destroys/tampers goods that have been
seized
Others:
He has not registered under GST although
he is required to by law
He does not deduct TDS or deducts less
amount where applicable.
He does not collect TCS or collects less
amount where applicable.
Being an Input Service Distributor, he takes
or distributes input tax credit in violation of
the rules
He obstructs the proper officer during his
duty (for example, he hinders the officer
during the audit by tax authorities)
He does not maintain all the books that he
required to maintain by law
He destroys any evidence
Forthe 21 offences above, for fraud cases,
penalty will be 100% (minimum Rs. 10,000)
GST Practitioner
CGST Act contains the provisions regarding
appointment of GST Tax Practitioner (GSTP).
GSTP is a person who is authorized by the GST
Department for performing certain functions on
behalf of the registered persons under GST.
Although any person can perform GST functions
whether authorized or not. Such registration will
increase the sense of responsibility in person
performing functions on behalf of other and
increase confidence in the registered persons.
GST Practitioner
file GSTR 1 and GSTR 2
furnish GSTR 3 and GSTR 9
make a deposit for credit into the electronic
cash ledger
file a claim for refund (after confirmation from
the registered person
file an application for amendment or
cancellation of registration (after confirmation
from the registered person)
appear as an authorized representative
Examination syllabus:
File an application for fresh registration
File an application for amendment or
cancellation of registration
Furnish details of outward and inward
supplies
Furnish monthly, quarterly, annual or final
GST returns
Make payments for credit into the electronic
cash ledger, i.e. payments for tax, interest,
penalty, fees or any other amount
File a claim for refund