To whom GST Audit will be applicable have been already discussed in our previous article, now let’s move ahead towards the workings for GST Audit.
As you all know, GST Audit will apply every year for those GST registered business (GSTIN) having turnover more than Rs 2 crores, by the sale of goods or services in the financial year. Do u know how to calculate this turnover of 2 crore to check the applicability of GST Audit?
Let’s discuss it.
The aggregate turnover is calculated by taking together the value in respect of the activities carried by all the entities of the concerned person on a pan- India basis.
|Aggregate turnover||=||Value of all taxable supplies + exempt supplies + Export supplies of all goods and services|
Items included while calculating turnover for GST Audit
When can you say job work is on principal to principal basis?
It’s simple as we are already aware that if the goods are not send back within the time limit of 1 year/ 3 year for inputs and capital goods respectively, the same has to be treated as supply and has to be considered in the turnover of 2cr for the purpose of audit.
|Irrelevant of the applicability to GST Audit all taxpayers are require to file the following return.||Form to be filed|
|A Regular taxpayer filing GSTR 1 and GSTR 3B||GSTR-9|
|A Taxpayer under Composition Scheme||GSTR-9A|
|Over and above for those to whom GST Audit is Applicable GSTR – 9C is required to be filed.|
|i.e.Taxpayers whose turnover exceeds Rs. 2 crores in FY||GSTR-9C|
Because GSTR-9C requires state-wise data, also keep a list of state-wise figures of turnover handy.
from 1/7/2017 to 15/11/2017
from 1/7/2017 to 31/3/2018
Note: For period 15/11/2017 to 31/3/2018 Exemptions are available only in cases of the supply of goods, and not for the supply of services.
Note: This was not required in forms GSTR-3B or GSTR-1, however businesses will need to compile this data before filling out GSTR-9. Every bill in which a taxpayer has claimed an input credit should reflect this information in form GSTR-2A. These input tax credits should be paid within 180 days; otherwise the ITC on these invoices will need to be reversed. Furthermore, take special care while reporting the ITC claim because any unutilised ITC cannot be claimed later or reversed, even in the annual return. GSTR-9 also calls for expense head wise bifurcation of ITC availed.
Note: This is a new requirement for GST’s annual return.
Consequences of not filing Annual Return:
1. Notice to defaulters
Section 46 of the CGST Act provides where a registered person fails to furnish a return under section 39 or section 44 or section 45, a notice shall be issued requiring him to furnish such return within 15 days in such form and manner as may be prescribed.
2. Late Fee for delayed filing-
Rs. 100/- per day for delay
0.25% of the turnover in state/UT.
Whichever is lower.
Section 47(2) of the CGST Act provides for levy of a late fee of Rs. 100/- per day for delay in furnishing annual return in Form GSTR 9, subject to a maximum amount of quarter percent (0.25%) of the turnover in the State or Union Territory. Similar provisions for levy of late fee exist under the State / Union Territory GST Act, 2017.
On a combined reading of Section 47(2) and Section 44 (1) of the CGST Act, 2017 and State / Union Territory GST Act, 2017 a late fee of Rs.200/- per day (Rs. 100 under CGST law +Rs. 100/- under State / Union Territory GST law) could be levied which would be capped to a maximum amount of half percent (0.25% under the CGST Law + 0.25% under the SGST / UTGST Law) of turnover in the State or Union Territory.
3. General Penalty for Contravention of Provisions
Any person, who contravenes any of the provisions of this Act or any rules made there under for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to Rs 25,000/-. An equal amount of penalty under the SGST/UTGST Act would also be applicable. To sum up a penalty of up to Rs.50,000/- could be levied.