Every person who is registered with Goods and Services Tax Department and whose turnover exceeds the prescribed limit of Rs. 2 crore is required to get his books of accounts audited from a Chartered Accountant or a Cost Accountant. Section 2(13) of Central Goods and Services Tax Act, 2017 defines audit as
“ “audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the 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;”
The audit under Goods and Services Tax is independent to audit requirements under any law i.e. if an assessee is required to get his books of accounts audited under say Income Tax Act, 1961, then also he is required to get his books of accounts audited under Goods and Services Tax Act.
Every registered person must consider following important aspects during the audit of books of accounts from GST perspective:
- Reconciliation: It must be ensured that input tax credit claimed in the periodical returns is matching with the input appearing in GSTR-2A and books of accounts. The amount of outward supply and GST charged as per books of accounts is matched with GSTR returns.
- Classification of Supply: An outward supply or supplies on which a registered person is liable to pay tax under Reverse Charge has been properly classified into intra state or interstate in accordance with place of supply specified in Integrated Goods and Services Tax Act (IGST).
- Input Tax Credit: Review of Input Tax Credit for ensuring availability of original invoices with the registered person, payment to the vendors made within specified time limit, ineligible input tax credit has been written off, reversal of input tax credit used for exempted supplies.
- Other Issues: Some other issues viz, free supplies, discount, point of taxation etc. needs to be reviewed as they may open the gate of unnecessary and avoidable litigation
Audit under GST is mandatory and every specified dealer must comply with this requirement to avoid future penalties and punishment. We at TaxMuneem help registered dealers to easily get their books of accounts audited as per the provisions of Goods and Services Tax law without any hassel.
Audit of Books of account and filing necessary related forms.
Facilitation by TaxMuneem to Auditor.
Any other services as per the package
Any interest/late fee or government fee
Filing of returns not mentioned in package
GST Returns including Annual return
Books of accounts
Any other information required.
2- 3 weeks’ time on the basis availability of documents
GST Audit in Bangalore
Turnover for the purpose of GST Audit shall include following
- Value of all taxable supplies
- Value of all exempt supplies viz, nil rated supplies, non taxable supplies, exempted supplies
- Value of export of goods and services
- Value of supplies to the branches registered in other states having same PAN
The term turnover shall exclude the following:
- Value of inward supplies on which recipient is liable to pay GST under Reverse Charge mechanism
- Value of central tax, State tax, Union territory tax, integrated tax and cess
The last date for submission of annual audited accounts along with the reconciliation statement in Form GSTR-9C is 31st December following the end of such financial year. The late date for submission of audited accounts and reconciliation statement for the FY 2017-18 is 31.12.2018. However, considering the first audit report since implementation of Goods and Services Tax, the date has been extended till 30.06.2019.
The turnover shall be considered PAN wise on all India basis but excluding central tax, State tax, Union territory tax, integrated tax and cess.
The audit of books of account will be done by independent auditors on the panel of TaxMuneem and TaxMuneem help the client to provide documents and other information required by the auditor time to time.
In the absence of any clarification and provisions regarding aggregate turnover specified in GST Act, it is safe to assume that turnover limit of Rs. 2 Crore shall determined for complete financial year i.e. 01.04.2017 to 31.03.2018
Yes, as per the provisions of GST Act, every registered person shall furnish annual return, reconciliation statement and audited accounts.
All the respective state GST Acts provides for audit of books of accounts and furnishing of Form GSTR-9C. Therefore every assessee who is having multiple registrations is required to get his books of accounts audit for each registration and also furnish annual return and reconciliation in Form GSTR-9C for such state.
There is no provision in the GST law which provides for revision of form GSTR-9C.
As per SI No. 5A, an assessee is required to mention the turnover as per audited financial statements. Any assessee who is having multiple registration was under the doubt that whether the turnover of each registration is required to be disclosed or turnover of the organization. GST department has clarified that only the turnover of the respective GSTIN needs to be mentioned here.
Any registered person who fails to furnish the audited accounts, annual return and reconciliation statement shall be subject to pay a late fee of Rs. 100 per day during which such failure continues subject to the maximum of 0.25% of the turnover in the state. The aforesaid penalty shall be imposed under CGST Act and SGST/UTGST Act meaning a late fee of Rs. 200 per day subject to maximum of 0.50% of the turnover in the state.