GST Audit

GST or Goods and Services Tax is a one-stop solution for the tax payment in India. The GST is largely driven by the latest technology. It is so because to eliminate any human error, machine error, any sort of fraud and incomplete information regarding taxes.

The sole purpose of the GST tax system is to bring the nationwide multi-tax system under one umbrella.

The purpose of the GST audit is to examine the returns, records and to maintain the filings made under the GST. You can check the taxes paid, the turnover declared, filings were done, input tax credit gained and the compliance rating availed from the GST.

The Auditing Processes

All the registered taxable individual whose income in a financial year is more than 1 crore has to get his accounts audited through practising cost accountant and a chartered accountant and also need to give the audit report in the form of GSTR9B. the individual also needs to submit the annual return of the GST09. The purpose if this audit along with the return is to give the brief view of the doings of the taxpayer. He needs to file electronically a number of documents:

  • An annual return submission using the form GSTR 9B with the settlement statement by 31st December, of the following monetary year,
  • The reviewed copy of the yearly accounts
  • An understanding statement, settling the value of all the supplies that have been declared with the return as annual monetary statement.
  • All the other data are given by the GST law.

Normal Audit- The audit done by the Tax Authorities

The official of the SGST or CGST or any officer legalized by him may do the audit of any tax giving person. The audit shall be directed at the corporate place of the recorded tax giving person. The recorded tax giving person needs to be informed at least 15 days before.

The audit will be done within three months from the date of the starting. If due to any reason the commissioner is pleased with the fact that the audit cannot be completed in 3 months, then he can give the permission to extend it to six months by giving a writing consent.

Special audit

A distinct audit can be done under unavoidable situations. Special audits are initiated when the officer who is not below the rank of the assistant commissioner or deputy commissioner feels any sort of questions regarding the revenue if he feels that the given documents are incorrect or there is a probability of incorrect information. in these sort of cases, the officer may force the tax giving person to get his record including the books of accounts that have been audited by a practising chartered accountant under the approval of the commissioner.

Within 90 days of starting the chartered accountant needs to submit the report signed by the deputy commissioner. During the whole time, the expenditure of the audit will be paid by the authority.

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