Join Online GST Certification Course by TaxGuru & GST Professionals
Audit under GST
Audit under GST is the examination of records maintained by the taxable person to verify the correctness of information declared, taxes paid and to assess the compliance with the provisions of GST. There are three types of audits which is conducted under GST –
Audit by Chartered Accountant or Cost Accountant – every registered person whose turnover during the financial year exceeds the prescribed limit i.e. Rs. 1Crore shall get his accounts audited by Chartered Accountant or Cost Accountant and shall submit a copy of audited annual accounts, the reconciliation statement and other documents along with the GST annual return.
Audit by tax authorities – the Commissioner or any officer authorized by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed. Audit may be conducted at the place of business of the registered person or in the office of the Commissioner or officer authorized by him. A notice will be sent to the registered person at least 15 days prior to the conduct of the audit. The audit shall be completed within a period of 3 months from the date of commencement of the audit. The Commissioner can extend the audit period for a further period of 6 months with reasons recorded in writing.
During course of audit, the authorized officer may require the registered person –
1. To afford him the necessary facility to verify the books of account or other documents as he may require.
2.To furnish such information as he may require and render assistance for timely completion of the audit.
On conclusion of an audit, the officer shall inform the registered person within 30 days about the findings, his rights and obligations and the reason for such findings. Where the audit conducted 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.
Special Audit – if at any stage of scrutiny, inquiry, investigations or any other proceedings, if department is of the opinion that the value has not been correctly declared or credit availed is not with in the normal limits, department may order special audit by Chartered Accountant or Cost Accountant nominated by department.
The Chartered Accountant or Cost Accountant shall within the period of 90 days submit a report of such audit duly signed and certified by him. Such period can be further extended by 90 days by the Assistant Commissioner on the basis of material and sufficient reason.
The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit. Where the audit conducted 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.