Last updated on December 3rd, 2022 at 07:51 pm
GST Audit
Goods & Service Tax is a trust-based tax regime structured in a manner to collect tax efficiently & reduce corruption from the economy. Under this system, an assessee is supposed to self-assess returns and determine the tax liability without any intervention by the tax official. As it relies on the self-assessment of the taxpayer/assessee, there is a robust audit mechanism in place to ensure compliance with law.
What is Audit under GST Act?
Section 2(13) of CGST Act,2017 – an Audit is the process of examination of
- records,
- returns and
- other documents
which are maintained or furnished by the taxpayer/assessee under the GST. The above documents are properly assessed & examined to verify the correctness of
- turnover declared,
- taxes paid,
- refund claimed,
- input tax credit availed and
- compliance with the provisions of the GST Acts or the GST Rules.
Form GSTR 9C – Reconciliation Statement/GST Audit
Who needs to get accounts audited under the GST regime? | What is the threshold limit for GST Audit (Form GSTR 9C)?
For FY 2017-18 – If the annual aggregate turnover of a registered taxable person exceeded Rs 2 crores then GST Audit was applicable.
From FY 2018-19 and onwards – If the annual aggregate turnover of a registered taxable person exceeds Rs 5 crores then GST Audit was applicable. [ CGST Notification no. 16 dated 23rd March 2020 ]
Who can conduct the GST audit? |Certified Reconciliation Statement vs Self-Certified Reconciliation Statement
Certified Reconciliation Statement by Chartered Accountant or a Cost Accountant
For FY 17-18, FY 18-19, and FY 19-20:- The Annual Reconciliation Statment in Form GSTR 9C was required to be certified by a Chartered Accountant or a Cost Accountant. They reconciled the values declared in the monthly/quarterly GST returns furnished for the financial year with the audited financial statements and reported the differences with reasons after reconciliation.
Self-Certified Reconciliation Statement
For FY 20-21 and onwards:- The Annual Reconciliation Statment in Form GSTR 9C was required to be self-certified by the registered taxpayer. The taxpayer will reconcile the values declared in the monthly/quarterly GST returns furnished for the financial year with the audited financial statements and report the differences with reasons after reconciliation. [CGST Notification no. 29 dated 30th July 2021]
How to file Form GSTR 9C?| What all documents are required for GSTR 9C?
Form GSTR 9C is to be filed electronically on the GST portal using DSC or EVC.
Documents to be filed along with GSTR 9C
⇒ Annual Return in Form GSTR -9
⇒ Audited copy of the annual accounts
⇒ A reconciliation statement in Form GSTR -9C, by reconciling the value of supplies declared in the return with the audited annual financial statement
⇒ And other particulars if prescribed.
Can Form GSTR 9C be filed before filing Form GSTR 9?
NO. Tab for filing Form GSTR 9C
Can Form GSTR 9C be revised?
NO. Form GSTR 9C cannot be revised after it is filed once.
What is the due date of Form GSTR 9C?
The due date for filing the annual reconciliation statement in Form GSTR 9C is 31st December following the end of the financial year.
Check ⇒ Updated/extended due date for Form GSTR 9C
What is the applicable late fee if GSTR 9C is not filed within the due date?
Check ⇒ Late fees applicable for Form GSTR 9C
Is GSTR 9C to be filed for all GSTIN under the same PAN?
If the taxpayer has obtained more than one GSTIN under one PAN, then the threshold limit for applicability of GSTR 9C will be checked at the PAN level. If the aggregate turnover of all the GSTINs crosses the threshold limit, GSTR 9C is to be filed for all the GSTINs.
Can additional taxes be paid with GSTR 9 or GSTR 9C?
NO. The payment of additional taxes or interest is not admissible while filing GSTR 9 or GSTR 9C. If while reconciling or filing an annual return, a declaration of the difference in turnover/taxes/ITC would simply be construed as providing information to the proper officer about the same. An additional payment of taxes in such cases can be done by filing FORM GST DRC-03 (for payment of tax and interest thereon).
Provisions & Rules relating to GSTR 9C up to FY 2019-20
Section 35(5) – Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed.
Section 44 (2) – Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed.
Rule 80(3) – Every registered person other than those referred to in the proviso to sub-section(5) of section 35, whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
Provisions & Rules relating to GSTR 9C from FY 2020-21
Section 44 – Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person, and a non-resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year electronically, within such time and in such form and in such manner as may be prescribed:
Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt any class of registered persons from filing annual returns under this section:
Provided further that nothing contained in this section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.
Rule 80(3) – Every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, whose aggregate turnover during a financial year exceeds five crore rupees, shall also furnish a self-certified reconciliation statement as specified under section 44 in FORM GSTR-9C along with the annual return referred to in sub-rule (1), on or before the thirty-first day of December following the end of the such financial year, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
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- 50th GST Council Meeting - 11/07/2023
- GST Compliance Calendar of October 2023 - 01/04/2023
- GST sections amended in Finance Act 2023 - 27/03/2023
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