Type of GST Audit
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| GST Audit |
Types of Audit :-
1) Mandatory Audit :-2) Audit by Tax Authorities :-
3) Special Audit :-
1) Mandatory Audit :-
In terms of Section 35(5) " Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub section (2) of section 44 and such other documents in such form and manner as may be prescribed".In terms of Rule 80(3) of the CGST Rules “every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of the audited annual accounts and a reconciliation statement, duly certified, in GSTR 9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner”.
2) Audit by Tax Authorities :-
Conduct of Audit :-As per section 65 read with Rule 101 of CGST Rules, 2017 , commissioner or any officer authorised by him may conduct audit of any registered person for a financial year or multiples thereof.
Prior Notice :-
The registered person shall be informed by way of a notice not less than 15 working days prior to the conduct of audit in such manner as may be prescribed.
Time period for concluding audit :-
The audit shall be completed within a period of 3 months from the date of commencement of the audit.
However in case where commissioner is satisfied that audit can not be completed within 3 months then he may for the reasons to be recorded in writing, extend the period by a further period not exceeding 6 months.
" Commencement of audit " shall mean -
the date on which the records and other documents, called by the tax authorities are made available by the registered person, or the actual institution of audit at the place of business, whichever is later.
3) Special Audit :-
Conduct of Audit :-As per section 66, any officer not below the rank of Assistant Commissioner with the prior approval of the Commissioner direct such registered person by a communication in writing to get his records including books of accounts examined.
Audit can be ordered if such officer at any stage of scrutiny, inquiry, investigation or any other proceedings before him having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the registered person has -
(i) not correctly declared the value, or
(ii) availed credit which is not within the normal limits.
Audit to be conducted by a conducted by a Chartered Accountant or a Cost Accountant as may be nominated by the Commissioner.
Time period of Audit :-
The Chartered Accountant or a Cost Accountant so nominated shall within the period of 90 days submit a report of such audit signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified.
However the Assistant Commissioner may on an application made to him in this behalf by the registered person or the Chartered Accountant or a Cost Accountant for any material and sufficient reason, extend the said period by a further period of 90 days.
Accounts to be audited even already audited :-
The provisions of this section shall have effect notwithstanding that the accounts of the registered person have been audited under any other provisions of this act or any other law for the time being in force.
