GST Audit

What is GST Audit ?

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
(Applicable Section : Section 2(13) of the CGST Act, 2017)

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.
  • Period for Computing Aggregate Turnover - Clarification awaited
  • On whom it applies to?

    What You Need To File?

    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.


    Early notice of Discrepancies

    Corrective measures in a timely manner

    Maximization of credit availment

    Minimization of tax, interest & Penalty




    Delay in filing Annual Return

    Rs. 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 Audited

    Penalty 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 ?

    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.
      Data Collection

      • 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.
      GST Audit Report

      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 ?


      To Stay on Top, Contact For Free Consultation

      Gaurav Shukla
      Amit Thakur

      Have a query?
      Contact Us