Goods and Services Tax (GST) is perhaps India’s most revolutionary tax reform and has been envisioned as an efficient tax mechanism to simplify taxation procedures and to make India a unified market with its One Nation One Tax’ approach. Under CGST Act 2017, every registered person whose turnover during the financial year exceeds the prescribed limit i.e. Rs. 2 Crore shall have to get his accounts audited by Chartered Accountant or Cost Accountant as specified under sub-Section 35(5) and shall have to submit a copy of audited annual accounts, the reconciliation statement duly certified, in Form GSTR-9C. This being the first year of GST audit, due date for filing the returns now stands extended to 30th June 2019 for the financial year 2017-18, giving taxpayers more time to understand the nitty-gritties of compiling the annual returns and getting their GST audit conducted in a smooth manner.
To help in conducting GST audit and in order to facilitate a clause by clause analysis of Form GSTR-9C by members and other stakeholder, GST & Indirect Taxes Committee has brought out this Technical Guide on GST Audit. I am sure this Guide will provide a crisp and precise view of elaborative provisions of CGST Act 2017.
Government has given the responsibility of certifying the GSTR-9C to Chartered Accountants, which I am sure will be taken care by our members with utmost care and dedication. I am also confident that this technical guide will be of great significance and will provide assistance to our members on the critical issues arising while conducting such audit. I would request my professional colleagues to equip themselves and exercise due care while certifying t the relevant form.
| S. No. | Title | Page No. |
| 1. | Introduction to GST Audit | 1-10 |
| 2. | Auditor and their Appointment | 11-12 |
| 3. | Important Aspects for GST Audit of Multi-Locational entities | 13-17 |
| 4. | Analysis of GSTR-9C | 18-162 |
| Part I: Basic Details | 19-20 | |
| Part II: Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR 9) | 21-97 | |
| Part III: Reconciliation of tax paid | 98-116 | |
| Part IV: Reconciliation of Input Tax Credit (ITC) | 117-128 | |
| Part V: Auditor’s recommendation on additional liability due to non- reconciliation | 129-162 | |
| Appendices | 163-206 | |
| Appendix 1: Form GSTR 9C | 163 | |
| Appendix 2: Draft format for Appointment Letter | 178 | |
| Appendix 3: Suggested Audit Checklist | 182 | |
| Appendix 4: Draft Letter of Management Representation | 199 | |
| Appendix 5: Abbreviations | 205 |
Sources :- Download Technical Guide on Annual Return and GST Audit
Audited Annual Statement and Audited Annual Accounts are two different things. Any body can explain the legal term ” copy of the audited annual accounts “. As per my opinion the term copy of the audited annual accounts, A chartered Accountant or Cost Accountant who audited annual accounts of a registered person means Accounting Software ( Name of the Software with its version ) DATA on which the annual accounts was audited, so copy of such DATA shall be furnish along with Annual return in form GSTR- 9. I welcome if any legal definition in this regards.
In GSTR3B ITC utilisation for payment of CGST, SGST first ITC balance of CGST,SGST have to utilise and then IGST can be used. It means if there is no IGST liability , the ITC balance will be in IGST only. If there is any reversal of CGST SGST in subsequent month, whether it can be reversed by using IGST ITC Balance?