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 –

GST Audit by Chartered Accountant or Cost Accountant

Every registered person whose turnover during the financial year exceeds the prescribed limit i.e. Rs. 2 Crore 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.

GST Audit by tax authorities  

The Commissioner or any officer authorized by him, by way of a general or a specific order, may undertake GST 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 GST 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 GST 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 GST Audit  

if at any stage of scrutiny, inquiry, investigations or any other proceedings, if officer, not below the rank of Assistant Commissioner, 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 GST 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.

The expenses of the examination / audit of records would be fixed and paid by the Commissioner and the expenses includes remuneration of chartered accountant / cost accountant.

(Republished With Amendments)

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    Answer of query of Shri Somanath, Sir, a partner can contribute as a capital to a partnership firm in which his a partner to any extend there is no bar in it. But as far as lending is concern , on which he would charge interest should be by a/c payee cheque only.


    As far as my knowledge is concern , I think there is no provision of Audit by a professional . If you have some information about it, kindly share with us.

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June 2021