GST Audit

As per section 35(5) of the CGST act, every registered taxpayer whose turnover is more than Rs 2 Crores in a particular financial year needs to get their books of accounts audited from a practicing-chartered accountant or cost accountant. Registered taxpayer needs to submit copy of audited financial statements & reconciliation statement in form GSTR 9C. It is required by the tax department once in a financial year.

Persons who are registered taxpayers and whose turnover exceeds GST limit of Rs 2 Crores in a particular financial year are liable for GST audit. It is mandatory for such persons to get their accounts audited from a practicing-chartered accountant or a cost accountant. GST turnover limit of Rs 2 Crores is same across all states & UT’s for registered taxpayers.

It is the process of analyzing the records, documents and returns maintained by taxpayers as per GST laws. The main purpose of doing audit under GST is to verify accuracy of turnover, payment of taxes, claiming of refunds and availing of input tax credit under GST provisions laid down by the central government. It is also considered as first external assessment undertaken by the auditors under GST law.