Tax and Law Advisor

Audit under GST

0 1,150

What is Audit?

Section 2(13): “Audit” means:

the examination of records, returns and other documents maintained or furnished by the registered person under this Act or rules made thereunder or under any other law for the time being in force to verify;

  • the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed; and
  • to assess his compliance with the provisions of this Act or the rules made thereunder.

Kinds of Audits under GST

Audit by Tax Authorities- Section 65

- Advertisement -

  • Commissioner of CGST / SGST or any officer authorized;
  • Audit of any registered person for a particular period, at particular frequency and in particular manner;
  • At the place of business of registered person or in their office;
  • Notice to registered person at least 15 working days prior to audit [Form GST ADT-01];
  • Audit to be completed within 3 months from the date of commencement (can be extended further by 6 months by Commissioner);

    • Result of Audit to be intimated within 30 days [Form GST ADT-02] and further action.

 

  • The registered person should provide the auditors:
    • The necessary facility to verify the books of account or other documents as he may require.
    • Such information as he may require and render assistance for timely completion of the audit
  • Result of audit to be intimated within 30 days [Form GST ADT-02] and further action.
  • The proper officer may take action under section 73 or 74 if, he detect
    • tax not paid or
    • short paid or
    • erroneously refunded, or
    • input tax credit wrongly availed or utilized

Special Audit- Section 66

  • Proceeding must be pending before any officer not below the rank of Assistant Commissioner;
  • Nature and complexity of the case and interest of revenue to be considered;
  • Opinion : Correct value not declared or ITC claimed not within normal limits;
  • Prior approval of the Commissioner of CGST / SGST;
  • Direct registered person to get his records and books of accounts audited [Form GST ADT-03];
  • Audit to be done by CA / Cost Accountant nominated by the Commissioner;
  • Audit Report is to be submitted within 90 days (can be extended by further 90 days by Assistant Commissioner);
  • Opportunity of hearing is to be given to registered person and further action taken by proper officer;
  • Expenses of audit including remuneration of such CA/Cost Accountant shall be determined and paid by the Commissioner.
  • The proper officer may take action under section 73 or 74 if, he detect
    • tax not paid or
    • short paid or
    • erroneously refunded, or
    • input tax credit wrongly availed or utilized

Audit under Section 35(5)

According to Section 35(5) of the CGST Act:

- Advertisement -

  • Every registered person whose turnover during a financial year exceeds the prescribed limit (presently two crore rupees) shall get his accounts audited by
    • a Chartered Accountant or
    • a Cost Accountant
  • and shall submit a copy of the audited annual accounts
  • along with a reconciliation statement (in FORM GSTR-9C, reconciling the value of supplies declared in return with audited annual financial statements)
  • Contents of the audit report and other particulars to be prescribed
  • Audited Report and Audited Annual Accounts to be submitted along with annual return on or before 31st December following the end of financial year.

CAG Audit

Power of Revisional Authority:

  • The Government or the authority specified by it;
  • shall maintain proper record in relation to fund (for the welfare of the consumer);
  • and prepare an annual statement of accounts in such form and manner as may be prescribed;
  • in consultation with the Comptroller and Auditor-General of India.

The Comptroller and Auditor-General of India shall have the power to inspect the accounts of such Government or authority by virtue of powers vested in it by other law.

Leave A Reply

Help-Desk