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GST Audit
GST Audit
Aggregate Turnover = All taxable supplies + exempt supplies + export of goods or services + inter or Intra state supplies of person under one PAN. (Excludes central tax, State tax, Union territory tax, integrated tax and cuss. (Exempt supply includes nil rated supplies, specific supplies by notification nontaxable etc.) exempt supply under GST is a broad term which includes nil rate supplies, non-taxable supplies and specific supplies which are notified as exempt from tax.
GST Audit Process
Where turnover for financial year cross Rs. 2 crore such registered person needs to get involved in GST Audit Process. First company need to identify turnover and audit applicability. GST audit certification need to be done by practicing Chartered Accountant or Cost Accountant. GST Audit Process may involve verification of GST returns filed, GST cash and electronic ledger, input tax validity, GST Refund applied, received, reconciliation of different GST ledgers. Validate correctness of GST liability declared, CGST/SGST/IGST cross utilization etc. From company-to-company different GST Audit process can be followed to validate required information.
Penalty Under GST Audit
As per the penalty provisions of GSTR 9C audit return form, the taxpayer has to pay Rs. 200 per day as a penalty in which Rs. 100 consist of SGST and Rs. 100 for CGST. Also, it is to be noted that the total penalty cannot exceed 0.25% of the total turnover on which the said penalty is being levied.
Types of GST Audits
GST Audit by CA or CMA
GST Audit by CA or CMA required for every person whose turnover exceed Rs. 2 Crore rupees during the financial year. They need to get accounts audited by CA / CMA.
Audit by Tax Authorities
GST Audit may be undertaken as prescribed by The Commissioner or any officer for such persons at frequency and manner as mentioned Section 65 of CGST Act.
The Only Owner
Officer of rank above Assitant commissioner is of opinion tha the value has not been correctly declared or the credit availed he may appoint CA / CMA for Special GST Audit.