When Audit under GST is required?
1. If Turnover of the registered person crosses the threshold limit for audit under GST i.e. Rs. 2 cr in a financial year
2. An audit by Tax Authorities
What is the GST audit limit under GST for a financial year?
The limit prescribed under the GST law for a taxpayer to get his books of account audited is Rs. 2 crores, Therefore, every registered person under GST with an aggregate turnover exceeding Rs. 2 crores is required to get his books of accounts audited by a qualified Chartered Accountant or a Cost & Management Accountant.
In this case, the registered taxable person is required to file:
Rectifications after Return Based on Results of Audit under GST
In a case where any registered person, after the submission of the return discovers any incorrect details /error/omission (from results of audit), then the registered person can rectify such incorrect details/error/omission subject to payment of interest. However, the registered person will not be allowed to rectify any error/incorrect details/omission after the due date for filing of return for the month of September or the date of filing o the relevant annual return, whichever is earlier.
For an example, during the audit, Mr. Y found that he has made an error in October 2017 return. Mr. Y furnished an annual return for Financial Year 2017-18 on 31st August 2018 along with audited accounts. Mr. Y can rectify error within-
20th October 2018 (last date for filing return for September month)
31st August 2018 ( the actual date of filing of relevant annual return)
-earlier, i.e., the last date on which rectification can be done is 31st August 2018.
The audit by Tax Authorities
The Commissioner of the CGST/SGST or any officer authorised by him may conduct the audit of any taxable person in such manner as may be prescribed in a general or a specific order. A 15 days notice shall be given to the registered person before the conduct of the audit in Form GST ADT-01. The time period prescribed under the act for the completion of the audit is three months and the same shall be reckoned from the date of commencement of the audit. The period can be extended further for a period not exceeding six months by the commissioner.
During the course of GST audit, the proper officer may require the auditee,—
Time limit for completion of the GST audit
The audit under the GST needs to be completed within three months from the date of commencing the audit. However, such period can be extended for a further period of 6 months by the Commissioner.