The GST law requires audit of the monthly compliances by way of an audit attached to the Annual Return. It is critical to for the taxpayers to start focusing on the audit of compliances under GST law and input and output reconciliations form a critical part of the GST audit certification. The audit of Annual return (also known as GST audit) lays the foundation for the first external verification / assessment under the GST law.
We, at Tax Assist believe in offering qualitative value added services encompassing a comprehensive review of all GST records along with our recommendations on strengthening internal controls for appropriate data entry, data recording, data analysis and data requirements for compliance.
Why GST Audit is Required?
- All Entities require GST Auditing whether it is a Private limited company, Individual company (Proprietorship), Partnership, The firm, Limited Liability Partnership, Society etc.
- Turnover Limit: Pan India Turnover across all GSTIN exceed: 2 CRORE RUPEES is required to get his records audited by a CA (Chartered Accountant) or a CMA (Cost and Management Accountant).
- The assessee who is required to get his records audited contained under section 35(5) will file the Annual Return electronically alongside audited report and the comprehensive explanation, accommodating the estimation of provisions expressed in the audit report for the financial year with the audited yearly fiscal summary, another report of audited yearly records in Form GSTR-9C with GSTR 9 will also be required to be filed.
Things Required While GST Auditing
Each assessee enlisted under GST will keep up his records to demonstrate the record:
- Assembling or generation of product / service
- Outward supply (Sales)
- Inward supply (Purchase)
- Input Tax Credit (ITC) availed and realized
- Place of Supply provisions
- GST payable and paid
- Eway Bill Provisions (Applicable for FY 2018-19)
GST Audit Procedure
Verifying GST Reconciliations such as:
- GSTR 1 Returns vs Books
- GSTR 3B Returns vs Books
- GSTR 1 Returns (Sales Booked) vs GSTR 3B (Liability Paid)
- GSTR 3B Returns vs GSTR 2A (Input Credit Register)
The auditor will conduct the audit of the books and records of the enlisted assesse, they will confirm all the imperative documents, for example, will check the books kept up by the enrolled individual and the arrival and articulations outfitted under the demonstration.