4.3 Audit Under GST

4.
3 Audit under GST

Presented by
Dr. SADYOJATHAPPA S
Associate Professor,
Dept of Studies & Research in Commerce
Vijayanagara Sri Krishnadevaraya University
Ballari-583105
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Audit under GST
 Audit 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.

 To maintain a check and examine whether correct GST is
being paid and the refund is claimed, certain taxable persons will
be subject to audit under GST.
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Types of audit under GST
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I. Audit by taxable person
 Threshold for Audit
 Every registered taxable person whose turnover during a
financial year exceeds the prescribed limit ( turnover limit
is above Rs 2 crores) shall get his accounts audited by a
chartered accountant or a cost accountant.
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 He shall electronically file:
 an annual return using the Form GSTR 9B along with the
reconciliation statement by 31st December of the next
Financial Year,
 the audited copy of the annual accounts,
 a reconciliation statement, reconciling the value of supplies
declared in the return with the audited annual financial statement,

 and other particulars as prescribed.
II. Audit by Tax Authorities
a) General Audit (Section 65 of CGST Act 2017)
Provisions
 The Commissioner of CGST/SGST (or any officer
authorized by him) may conduct audit of a taxpayer for such
period and in such manner prescribed.
 Period of Audit is conducted shall be a financial year.
 The officers may conduct audit at the place of business of
the registered person or in their office.
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 A notice will be sent to the auditee at least 15 days
before in form ADT-01.
 The audit will be completed within 3 months from
date of commencement of the audit.
 The Commissioner can extend the audit period for a
further six months with reasons recorded in writing.
Obligations of the Auditee/Taxable person
The taxable person will be required to:

 provide the necessary facility to verify the books of
account/other documents as required
 to give information and assistance for timely
completion of the audit.
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Findings of Audit
1. On conclusion of an audit, the officer will inform the taxable

person within 30 days of:
 the findings,
 their reasons, and
 the taxable person’s rights and obligations in Form GST
ADT-02
2. If the audit results in detection of unpaid/short paid tax or
wrong refund or wrong input tax credit availed, then
demand and recovery actions will be initiated.
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b) Special Audit (Section 66)
When can a special audit be initiated?
 The Assistant Commissioner may initiate special audit,
considering the nature and complexity of the case and interest of
revenue.
1. If he is of the opinion during any stage of scrutiny/ enquiry/
investigation that the value has not been correctly declared or the
wrong credit has been availed then special audit can be initiated.
2.Special audit can be conducted even if the tax payers books have
already been audited before.

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Who will order and conduct special audit?
1.The Assistant Commissioner (with the prior approval of the
Commissioner) can order for special audit (in writing).
2. The special audit will be carried out by a chartered accountant
or a cost accountant nominated by the Commissioner.
Time limit for special audit

 The auditor will have to submit the report within 90 days. This
may be further extended by the tax officer for 90 days on an
application made by the taxable person or the auditor.
Cost
 The expenses for examination and audit including the auditor’s
remuneration will be determined and paid by the
Commissioner.
Findings of special audit

 The taxable person will be given an opportunity of being
heard in findings of the special audit.
 If the audit results in detection of unpaid/short paid tax or
wrong refund or input tax credit wrongly availed then
demand and recovery actions will be initiated.
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Thank You

4.3 Audit Under GST

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4.

3 Audit under GST

other documents maintained by a taxable person.

assess the compliance with the provisions of GST.

be subject to audit under GST.

financial year exceeds the prescribed limit ( turnover limit

is above Rs 2 crores) shall get his accounts audited by a

chartered accountant or a cost accountant.

reconciliation statement by 31st December of the next

declared in the return with the audited annual financial statement,

The taxable person will be required to:

1. On conclusion of an audit, the officer will inform the taxable

considering the nature and complexity of the case and interest of

1. If he is of the opinion during any stage of scrutiny/ enquiry/

already been audited before.

1.The Assistant Commissioner (with the prior approval of the

Commissioner) can order for special audit (in writing).

2. The special audit will be carried out by a chartered accountant

or a cost accountant nominated by the Commissioner.

Time limit for special audit

Findings of special audit

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