GST Audit by CAs

GST AUDIT -- Section 2(13):

It is an examination of records, returns and other documents maintained by the registered person under this Act 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;

COMPULSARY AUDIT OF GST – SECTION 35(5):

• every registered person
• whose turnover during a financial year exceeds Rs. 2 crores
• gets his accounts audited by a CA or CWA

ANNUAL RETURN (GSTR 9C) SECTION – 44(2)

GSTR 9 should be filed by the regular tax payers filing GSTR 1, 2, & 3 whereas, the registered person who is liable to get their accounts audited under this act shall file return in form GSTR 9C. alongwith:

• copy of audited annual accounts and
• Reconciliation statement of tax already paid and tax payable as per audited accounts.

PENALTY

     1. In case of failure to file annual return: Rs. 100 per day per act subject to maximum of 0.25% of state turnover.

     2. In case of failure to get accounts audited from CA: upto Rs. 25,000/-