All you need to know
Whom it applies to?
Who will do it?
When it is to be done?
What all it covers?
Examination of records and other documents maintained or furnished by the registered person under this Act or rules made there under or under any other law for the time being in force to:-
- verify the correctness of turnover declared,
- taxes paid, refund claimed and input tax credit availed,
- assess GST Compliances with the provisions of this Act or the rules
A Registered Person under GST whose Aggregate Turnover* during a financial year exceeds the prescribed limit of Rs.2 Crore is liable to get his accounts audited by a Chartered Accountant or a cost accountant.
You need to file following on or before 31st Dec 2018
- Audited Annual Accounts
- Reconciliation Statements* under GSTR-9C
- Annual Return
- GSTR 9 : Normal Taxpayer
- GSTR 9A : Composition Suppliers
- GSTR 9B : E-commerce Operators
GST Audit is a review mechanism which is undertaken periodically to find out the discrepancies & take corrective measures.
Delay in filing Annual ReturnRs. 100 per day during which such failure continues subject to a maximum of a quarter percent (0.25%) of the turnover in the State/UT
Not Getting Accounts AuditedPenalty up to 25,000/ for not getting accounts audited by Chartered Accountant or Cost Accountant
What You Need To Prepare
Accounts & Records :
- Details of Inward & Outward supply, Stock of goods - in value and quantity with description, ITC claimed , Output Tax Payable and paid, details of advances paid/received with documentation proof of all (like Invoice, Debit Note, Credit Note, Receipt Voucher, Payment Voucher, Refund Vouchers.
- The names and complete addresses of suppliers and recipients and the complete address of the premises where goods are stored
- Manufacturer shall maintain monthly production accounts
- Owner or operator of warehouse / godown / other storage spaces, and every transporter, shall maintain records of the consigner, consignee and other relevant details of the goods, even if he is not a registered person.
- Records to be maintain in the respective places which are appearing in the certificate of registration
What May Be Challenging You ?
KnowledgeLack of clarity in the GST law :
- over 300 Notifications + several FAQs, Orders, Circulars, clarifications, flyers, press releases & tweets & Law is still evolving
- Business Understanding
- Complete audit till September with in a fair manner with Correct information otherwise ITC would lapse in September of the following year.
- Whereas the annual return can be furnished by the end of December of the following year.
- Where any discrepancies are noted during the course of the GST audit post September, it appears that no recourse would be available to the auditee
- Errors in Transitional credit claims due to mismatch in GSTIN
- Discrepancy with the amount of credit / cash being utilized to off-set the liability
- Duplication in invoices
- Transactions not appearing in the financial accounts : stock transfers, free samples, free supplies
- Separate Audits for distinct registrations under the same PAN
- Maintenance & Review of Various Records
- conversant with various software's for GST Audit.
- DSC Issues
- Connectivity of Internet
- IT Infrastructure
- Untraceable Errors are bound to have been committed by registered persons while filing the returns
How We Do It ?
- Understand the nature and complexity of the business / operations of the auditee.
- Understand current Processes, Software's, IT Infrastructure of auditee.
- Prepare a standard questionnaire in order to become familiar with the business etc.
- Registration details, additional places of business, registrations in other States, details of authorized signatories / persons in charge.
- List of accounts and records maintained, and information on software used.
- Analyzing and understanding the contracts, transition issues, ITC mechanism, restrictions, blocked credits, supplies, etc.
- Analyze the analytical ratios & Processes
- Check the transaction not appearing in the financial accounts.
- Record the findings on the basis of data shared.
Prepare GST Audit Report
(Section 35 (5) and Section 44 (2) of the CGST Act, 2017 read with Rule 80 of the CGST Rules, 2017)
Why Us ?
20,000 Man hours of experience of GST implementation (impact assessment, transition, and post implementation support)
Industry specific knowledge & expertise across:
- Manufacturing (Process & Discrete)
- Consumer Durables
- Professional Services
- Liquor Manufacturing & Distribution
- Utility etc…..