(I) Mandatory GST Audit (Section 35 of CGST Act, 2017)

Conducted by CA / CMA where aggregate turnover exceeds Rs. 2 crore.

-This is a mandatory audit by CA / CMA where aggregate turnover exceeds Rs. 2 crore.

-Form used for this is GSTR-9C.

-Due date for filing GSTR-9C is 31st December of following year to which audit relates. For e.g. If F.Y. 2020-21 due date will be 31.12.2021.

(II) Departmental GST Audit (Section 65 of CGST Act, 2017)

GST AuditNormal Audit. Commissioner or any officer can undertake audit of any registered person for such period, at such frequency as may be prescribed.

  • It is also called as audit by tax authorities.
  • Commissioner or authorized officer can undertake audit of registered person.
  • Audit can be conducted for financial year or part thereof or multiplies thereof.
  • Place of audit will be place of business of registered person or in their office.
  • Fifteen days prior notice for conduct of audit in form GST ADT-01.
  • Time limit for conducting audit is three months from date of commencement of audit. Further extension by Commissioner by six months with reasons to be recorded in writing.
  • Findings of audit to be informed to taxable person within thirty days.
  • Initiation of action against taxable person if tax liability identified.

(III) Special Audit (Section 66 of CGST Act, 2017)

Registered person directed to get his records audited including books of accounts by CA / CMA during any stage of scrutiny, inquiry depending upon the complexity of accounts.

  • Special audit resorted if value not correctly declared or excess input tax credit availed.
  • Assistant Commissioner with prior approval of Commissioner directs this audit.
  • Audit conducted by CA / CMA nominated by the Commissioner.
  • Report by CA within period of ninety days. Further extension by ninety days if

1. on an application made by registered person or CA or

2. for any reason sufficient and material available

  • Accounts to be audited even if already audited.
  • Opportunity of being heard is to be given.
  • Expenses w.r.t. Audit borne by the Department.
  • Initiation of action against taxable person if tax liability identified.
  • GST ADT-04 used for Audit Findings.

Hope the article served your purpose.

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Author Bio

Qualification: Student - CA/CS/CMA
Company: CA Rajendra Y. Padhye
Location: Mumbai, Maharashtra, India
Member Since: 02 Mar 2019 | Total Posts: 39
I am professionally engaged in Direct and Indirect Taxation, Audit and also an Author, Poet, Cartoonist, Caricaturist, you tuber. I authored a book named - Have a Wonderful Day. Available on amazon.in Link is https://www.amazon.in/dp/B088PC55TZ My you tube channel link is https://www.youtube.com/ch View Full Profile

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May 2021