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|
|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|