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

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  1. S.Kannan says:

    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.

  2. Shivanand Gokak says:

    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?

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November 2020