GST Audit
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Effect
Procedures
Advisory
Audit under GST means inspection of returns, records and other documents furnished by the taxpayer. GST Audit is carried out to check whether the turnover, taxes paid, ITC refund claimed and ITC availed mentioned in his annual report are true and fair or not. Moreover, a GST Audit helps in evaluating whether the taxpayer is compliant with the GST provisions.
Lex Koterie LLP, emphasizes on self-assessment processes, offers a qualitative value added services encompassing a comprehensive review of all GST records, providing recommendations on strengthening internal controls for appropriate data entry, data recording, data analysis and data requirements for compliance. The level of tax compliances prevailing and the complex nature of tax laws in our country make it necessary for audit of records under various laws. Therefore, our experienced professionals provide GST audit above certain limits.
Eligibility for audit under GST
Any registered taxable person whose annual *aggregate turnover exceeds the limit as prescribed by the department during a financial year needs to get their accounts audited. The eligible taxpayer can get their records and account audited either by a CA (Chartered Accountant) or a CWA (Cost and Work Accountant).
It shall be noted that the audit under GST is carried out state-wise. This is the reason why a separate GST audit is done for each unique registrations under the same Permanent Account Number (PAN).
*Aggregate Turnover under GST is calculated as follows:
Value of all taxable supplies whether inter-state or intra-state + exempt supplies + supplies made outside India (export supply)
Types of Audit under GST
There are three types of audits under GST and these are:
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Types of Audit
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When is it carried out?
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Carried out by whom?
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Turnover based
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It is carried out when the aggregate turnover of the taxpayer exceeds the limit as prescribed by the department.
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Chartered Accountant/Cost Accountant appointed by the taxpayer.
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General Audit
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It is carried out after the order is passed by the commissioner. However, it is important to give 15 days prior notice.
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CGST/SGST commissioner or any other person authorized by them.
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Special Audit
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It is carried out after the order is passed by the deputy or assistant commissioner after the prior approval of GST commissioner.
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Chartered Accountant / Cost Accountant appointed by the commissioner.
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Appointment of GST Auditor
At the beginning of the financial year, the proprietor in case of sole-proprietor, a partner in case of LLP or Partnership Firm and the Board of Directors (BOD) in a case of a company can appoint the GST auditor.
Here is the list of documents that need to be audited by the GST auditor:
- Register of Sales.
- Register of purchase.
- Register of Stock.
- Expenses ledgers.
- Input tax credit (ITC) claimed and utilized.
- GST payable and paid.
- All the e-Way bills generated.
- Any other document or record as may be necessary for that relevant period.
- GST eliminates the cascading effect of tax.
- Higher threshold for registration.
- Composition for small businesses.
- Defined treatment of E-commerce operators.
- Improved efficiency of logistics.
- Unorganized sector is regulated under GST.
- Review of business operations to identify tax optimization opportunities, compliance gaps etc.
- Advisory support on product classification, valuation, place of supply, tax credits etc.
- Complete outsourcing of GST compliances.
- Structuring of contracts and transactions to optimize indirect tax incidence.
- Anti-profiteering study including assistance on any enquiry in this regard.
- Assistance in processing of GST refund claims.
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