GST Audit — Checklist and recent update.

GST Audit

Audit under GST involves examination of records, returns and other documents maintained by a GST registered person. It also ensures correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess other such compliances under GST Act to be checked by an authorized expert.

GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns. Thus, to ensure whether the taxpayer has correctly self -assessed his tax liability a robust audit mechanism is a must. Various measures are taken by the government for proper implementation of GST and audit is one amongst them.

Turnover-based Audit under Section 35(5) of CGST Act

If the annual turnover of a registered taxpayer is more than Rs. 2 crores in a financial year , he is required to get his accounts audited by a Chartered Accountant or Cost Accountant every year.

A financial year covers the 12-month period beginning from April of a calendar year to March of the next calendar year.

Note: For the purpose of finding out the turnover limit for Financial Year 2017–18, it has been clarified in the government’s press release dated 3 July 2019. It shall cover the period 1 July 2017 to 31 March 2018 and excludes the first quarter of FY 2017–18.

Latest Update on GSTR-9 and GSTR-9C

Update as on 14th March 2020*

The due date for filing GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for FY 2018–19 is extended to June 30, 2020.

For businesses with an annual turnover of less than Rs 5 crore, filing of GSTR-9C for FY 2018–19 to be waived off.

For businesses with less than Rs 2 crore aggregate turnover in FY 2017–18 and FY 2018–19, no late fee will be charged for the delayed filing of GSTR-9.

*Subject to CBIC notification

Here is the Checklist for GST Audit.

Click here to downlaod Checklist: https://taxclue.in/gst-audit-checklist-and-recent-update/