Answer By law4u team
What is a GST Audit? A GST audit is the process of examining a taxpayer’s records, returns, and financial statements to ensure compliance with the Goods and Services Tax (GST) Act in India. It verifies whether the tax liability has been correctly declared and paid. Who is Required to Undergo a GST Audit? Turnover-Based Audit (Section 35 of CGST Act, 2017 - Now Removed) Previously, businesses with an annual aggregate turnover exceeding ₹2 crore in a financial year had to get their accounts audited by a Chartered Accountant (CA) or Cost Accountant (CMA). However, this provision was removed in Budget 2021, and self-certification of reconciliation statements is now required. Departmental GST Audit (Section 65 of CGST Act, 2017) The GST Commissioner or an authorized officer can conduct an audit of any taxpayer. The taxpayer must be informed at least 15 days in advance. The audit must be completed within 3 months, extendable by another 6 months. Special Audit (Section 66 of CGST Act, 2017) If the tax officer believes a taxpayer has undervalued their tax liability, a special audit can be ordered. This is conducted by a Chartered Accountant (CA) or Cost Accountant (CMA) nominated by the GST department. The report must be submitted within 90 days, extendable by 90 more days. Documents Required for GST Audit GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C) Tax invoices, purchase invoices, and expense records Input Tax Credit (ITC) details E-way bills, stock registers, and reconciliation statements
