GST Audit will apply every year for those GST registered business (GSTIN) having turnover more than Rs 2 crores, by the sale of goods or services in the financial year.
GST Audit and meaning
Audit under GST involves examination of records, returns and other documents maintained by a GST registered person. It also ensures correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess other such compliances under GST Act to be checked by an authorized expert.
GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns. Thus, to ensure whether the taxpayer has correctly self -assessed his tax liability a robust audit mechanism is a must. Various measures are taken by the government for proper implementation of GST and audit is one amongst them
Types of Audit
- Turnover Based Audit
Performed by Cost Accountant Or Chartered Accountant Appointed by tax payer, If the Turnover exceeds 2 crores the taxpayer has to get his accounts & records audited.
- Special Audit
A Chartered Accountant or Cost Accountant, nominated by Commissioner, On order of Deputy/Assistant Commissioner with prior approval of Commissioner.
Qualification of GST Auditor & Eligibility
Only a Cost Accountant or a Chartered Accountant can perform a GST Audit Under Section 35.
Points to Note:
- An internal auditor cannot parallelly be appointed as a GST Auditor.
- The GST Act does not allow a GST practitioner to perform the audit. The power to audit is granted only to a Chartered Accountant or Cost Accountant who is in practice or is an employee of a firm of Chartered Accountants or Cost Accountants. Therefore, a Chartered Accountant must not be registered as a GST practitioner for the purpose of issuing the Audit Report.
3. Where an organisation or an entity has multiple branches registered under GST in different states/UTs, the total aggregate turnover of all such branches is considered while calculating the threshold limit of Rs. 2 crores. So, if the cumulative turnover of all the branches exceeds Rs. 2 crores, then the GST audit is applicable to each of these branches, irrespective of whether the turnover of a particular branch is less than the threshold. In such cases, one can appoint either one dedicated auditor for all branches or separate auditor for each branch. Where multiple branches have different auditors, the Standards on Auditing: SA 299 — Responsibility of the Joint Auditors may apply for the purpose of reporting GST Audit observations & Reporting.
GST ANNUAL RETURN
What is GST-9?
Every registered person, other than an Input Service Distributor, a person paying tax (TDS) under Section 51 or Section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return electronically in FORM GSTR-9 through the common portal either directly (https://www.gst.gov.in/) or through a Facilitation Centre notified by the Commissioner.
GSTR-9 is an annual return, to be filled by registered dealers, which contains a consolidated summary of all monthly returns, i.e. GSTR-1, 2A, and 3B under CGST, SGST and IGST during the entire year, along with turnover and audit details for the same. Thus, GSTR-9 can be called a compilation return for all the supplies made and received during the year under different tax heads.
What is the Different Sub Categories under GSTR-9?
GSTR-9
This is an annual return to be filed by all registered dealers except:
a. Composition Dealers
b. Casual Taxable Persons
c. ISDs
d. Non-resident Taxable persons
e. Persons paying TDS (Section 51 of CGST Act)
Due Date- 31st December of the preceding year
GSTR-9A
This is an annual return to be filed by Composition Dealers and is a consolidation of all quarterly returns filed by 31st December of the preceding year the dealer.
GSTR-9B This is an annual return to be filed by e-commerce
operators who have filed GSTR-8 during the Financial Year. Herein, a
reconciliation form is to be certified by a CA/CMA in case the turnover of
the registered dealer is more than 2 Crores INR during the year.
Due Date – 31st December of the preceding year
GSTR-9C – GSTR-9C is an annual return to be filed by all dealers whose turnover for the year exceeds 2 crores INR. It is a reconciliation statement
between audited financial statements of the year and GSTR-9, with regards
to tax already paid and tax payable as per the auditedfinancial statements. Due Date – 31st December of the preceding year
# Updated due date to file GSTR-9 and 9C for FY 18-19:
The date for filing GST annual returns of FY 18-19, which is due on 31st March 2020 has been further extended till 30th September 2020.
Who is required to file GSTR-9?
You must meet the following conditions:
1. You must be a registered taxpayer under the GST regime and have a 15-digit PAN-based GSTIN.
2. The aggregate turnover of your business must be more than 20 lakhs INR.
3. You must capture the transactions of the entire year, at an invoice level. This includes:
a. Intra-state and inter-state transactions
b. B2B and B2C transactions
c. Transactions associated with exempted items
d. Non-GST supplies
e. Stock transfers between your business locations that are located across different states
# Please note that this return applies to all the registered taxpayers excluding those who have a Unique Identification Number (UIN) and non-resident taxpayers.
What is the late fee, interest, and penalty for not filing GSTR-9?
Late fees for GSTR-9 and GSTR-9A is Rs. 200 (Rs. 100 for CGST and Rs. 100 for SGST) per day up to a maximum of 0.50% (0.25% for CGST and 0.25% for SGST) of turnover in the relevant state or union territory. There is no late fee under IGST as of now.