Taxpayers under gst act- legalsalaah
Taxpayers under gst act- legalsalaah


 As we all know audit is important for every business or organization (registered under GST), because of clear accounts maintenance. Accounts are the first priority of the owner because the complete transaction or the business records maintained under the accounts and that’s why the audit is being required for the organization and the taxpayers. In this article, we are going to read all about the taxpayers who require audit.

What is an audit?

 If you are an accounting student and an owner of a company/ organization/business then it is important for you to know about the audit. An audit is meant to examine the financial accounting risk that is checked to verify your financial account.

Your company or institution audit is done by either a chartered accountant appointed by you or the Income Tax Department can also audit your institution once a year. The audit is conducted once in every financial year i.e. every year.

What is the meaning of audit under GST?

Under the Act, The Records, Returns, and other documents maintained or deposited by the registered person in the GST as per the GST Act are checked, this process is called auditing the accounts of the registered person.

Registered Person's accounts are audited to verify that the turnover declared by that person, payment of tax, claimed a refund, and input tax credit received is correct.

Apart from this, it is also seen in the GST Audit that the Registered Person has complied with all the provisions of the GST Act.

How many types of an audit are done in GST?

GST audits are of three types, which are done in different sections. This is AUDIT -

  • Turnover based GST Audit (Section 35 (5))
  • General Audit (Section 65)
  • Special Audit (Section 66)

What is the meaning of turnover based audit under GST?

  • This audit is performed by the CA or CMA. This is done in the case when the turnover of the registered person in the GST exceeds 2 crores.
  • When the turnover of the registered person exceeds 2 crores, the person has an obligation to get his accounts audited and submit a copy of the audited accounts, Reconciliation Statement in Form 9C and other documents online. 
  • These documents will be submitted along with the annual return of the registered person. All these documents will be submitted by 31 December of the next financial year.

What is the meaning of General Audit under GST?

General Audit - Audit by Tax Authority

General Audit - Audit by Tax Authority

  • This audit is conducted by the GST Authority. The GST Authority for this audit includes a GST commissioner or an officer authorized by him.
  • But to do the General Audit, the Person who has GST registration needs to be given at least 15 days' notice. This notice will be given in the GST ADT 01 form.
  • The General Audit can be done in the registered person's office of the Place of Business or GST Authority. It is necessary to finish it within 3 months from the date of the commencement of the audit.
  • But if the commissioner feels that the audit cannot be completed in 3 months, then it can extend it further by 6 months.
  • The person being audited is assigned to the Authorized Officer
  • The necessary facility will have to be provided to verify Books of Accounts and other documents;
  • Information is sought by that officer and assistant will have to be made available to complete the audit on time.
  • Within 30 days of the conclusion of the audit, the person registered in the form GST ADT 02 by the proper officer must give reasons for his rights, obligation, and audit.

What is the meaning of Special Audit under GST?

 Special Audit under GST

  • This audit has to be done by the GST Authority on ordering the person who has GST Registration.
  • If the GST officer who is not below the rank of Assistant Commissioner feels scrutiny, inquiry, investigation or any other action, that no value has been declared correctly by the registered person or the input tax credit is taken out of the normal limit. He can order for audit.
  • Before the order of audit by the Assistant Commissioner, approval of the Commissioner has to be taken.
  • The Special Audit will be done by Ca or CMA and the audit report will be given directly to the Commissioner. This report will be given by the auditor within 90 days of the completion of the audit. This period can be further extended up to 90 days if there is sufficient cause.
  • The expenses associated with this audit, fees to CA or CMA will be borne by the commissioner. At the conclusion of the special audit, the registered person will be informed in the GST ADT 04 form.

What is the qualification of an auditor under GST?

  • Parallel internal auditor cannot be appointed as GST auditor. 
  • A GST practitioner is not allowed to conduct an audit under the GST Act. Only a Cost Accountant or Chartered Accountant who is in practice or is an employee of a Cost Accountant or Chartered Accountant's firm is given the power to audit.
  • Audit in case of multiple branches
  • At the time of calculation of the limit of Rs. 2Cr, then the turnover of all branches of a company/business/organization is considered and if the cumulative turnover exceeds the limit of Rs. 2 Cr. Therefore every branch will be responsible for the GST audit, despite the fact that their individual business does not exceed the specified limit.
  • The organization may appoint a single auditor for all branches or a separate auditor for each branch.


What kind of accounts information required at the time of Audit?

Accounts to be reviewed under GST audit-

  • Register of purchase 
  • Sales Register of sales
  • Stock Register of stock
  • GST expenses of GST
  • Availed and used to give details of input tax credit
  • Output tax invoice
  • Details of e-way bill generated during the period
  • Any change under GST during the period

What kinds of Form required to filed under GST Return?

  • The form GSTR-9 for filing annual return under GST
  • And Form GSTR-9C for Certificate Reconciliation Statement

What is the due date of GST Audit and penalty for late filing of GSTR-9C?

GST audit and penalty due date for late filing of GSTR 9C

As per the GST Act, the due date of annual return and audit is specified by December 31 of the forthcoming financial year and no specific penalty has been prescribed in case of failure to comply with it. So it will be covered under the head of the general penalty of Rs. 25000.