Registration karwalo

GST AUDIT

Valuable advise is play the most important role for businessman

What we do

The introduction of the Goods and Services Tax is a major transformation in our national taxation system which will drastically affect and impact the businesses.

GST AUDIT

Get in touch

AN OVERVIEW OF “PROVISION OF AUDIT UNDER GST” AS PER MODEL GST LAW

 

The introduction of the Goods and Services Tax is a major transformation in our national taxation system which will drastically affect and impact the businesses. In order to ensure compliance with the various GST provisions and to ensure performance of audits in systematic, transparent and fair manner, audit provisions have been incorporated under the Model GST Law. GST is a trust based taxation regime wherein the assesse is required to self-assess his returns and determine tax liability without any intervention by the tax official. Therefore a tax regime that relies on self-assessment has to put in place a robust audit mechanism to measure and ensure compliance of the provisions of law by the taxable person.

 

“Audit” has been defined in section 2(13) of the CGST Act, 2017 and it means the examination of records, returns and other documents maintained or furnished by the registered person under the GST Acts or the 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, and toassess his compliance with the provisions of the GST Acts or the rules made thereunder.

 

TYPES OF GST AUDIT

  1. Audit by Tax authorities
  2. Special Audit

 

Audit by Tax authorities

 

1. Who is authorised to order audit of any taxable person for any period?

According to sub-section (1) of section 65 of the Act, the commissioner of or any officer authorized by him, by way of a general or a specific order, may undertake audit of any taxable person for such period, at such frequency and in such manner as may be prescribed.

2. At which place the tax authorities are required to conduct the audit?

According to sub-section (2) of section 65 of the Act, the tax authorities referred to in sub-section (1) of section 65 of the Act may conduct audit at the place of business of the taxable person or in their office.

 

3. Whether the taxable person is required to be intimated for the purpose of audit under section 65 of the Act?

According to sub-section (3) of section 65 of the Act, the taxable person shall be informed, by way of a notice, not less than fifteen working days, and prior to the conduct of an audit in the manner as may be prescribed.

 

4. What shall be the time period for completing the Audit ordered under sub-section (1) of section 65 of the Act?

According to sub-section (4) of section 65 of the Act, the audit shall be completed within three months from the date of commencement of audit.

 

5. Can the time period specified for conducting an audit be extended?

Where the commissioner is satisfied that audit in respect of such taxable person cannot be completed within three months from the date of commencement of audit, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six months.

 

6. What is meant by the term “commencement of audit”?

For the purpose of sub-section (4) of section 65, ‘commencement of audit’ shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the taxable person or the actual institution of audit at the place of business, whichever is later.

 

Whether the taxable person is required to facilitate to authorized officer who is conducting the audit under section 65 of the Act?

According to sub-section (5) of section 65 of the Act, during the course of audit, the authorized officer may require the taxable person—

(i) To afford him the necessary facility to verify the books of account or other documents as he may require,
(ii) To furnish such information as he may require and render assistance for timely completion of the audit.

 

7. Whether officer is required to intimate the findings during the course of audit?

According to sub-section (6) of section 65 of the Act, on conclusion of audit, the proper officer shall within thirty days inform the taxable person, whose records are audited, of the findings, the taxable person’s rights and obligation and the reasons for the findings.

 

8. Under what circumstances the officer may take action under section 66 or 67 on detection of dues from a taxpayer?

According to sub-section (7) of section 65 of the Act, where the audit conducted under sub-section (1) of section  65 of the Act, results in detection of tax not paid or short paid or erroneously refunded, or input tax credit erroneously  availed  or utilized, the proper officer may initiate action under section 73 or section 74.

 

Special audit

 

1. Who will be required to get their accountants audited during the stage of scrutiny, enquiry, investigation or any other proceedings?

According to sub-section (1) of section 66 of the Act, if at any stage of scrutiny, enquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant commissioner having regard opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the commissioner, direct such taxable person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated  by the commissioner.

 

2. Whether time-limit for submitting the reports by the CA/CMA may be extended?

According to provision of sub-section (2) of section 66 of the Act, the proper officer may, on an application made to him in this behalf by the taxable person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by another ninety days.

 

3. Whether the taxable person has to get his accounts audited under section 66 of the Act even if his accounts have been audited under any other law?

According to sub-section (3) of section 66 of the act, the provision of sub-section (1) of section 66 of the Act shall have effect notwithstanding that the accounts of the taxable person have been audited under any other provision of this Act or any other law for the time being  in force or otherwise.

 

4. Whether the taxable person may be given the opportunity of being heard?

According to sub-section (4) of section 66 of the Act, the taxable person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub-section (1) of section 66 of the Act which is proposed to be used in any proceedings under this Act or rules made thereunder.

 

5. Who shall bear the expenses of the examination and audit of records of the taxpayer under section 66 of the Act?

According to sub-section (5) of section 66 of the Act, the expenses of, and incidental to, the examination and audit of records under sub-section (1) of section 66 of the Act, including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the commissioner and that such determination shall be final.

 

6. Can the officer initiate action under section 66 or 67 on detecting of dues from a taxpayer?

Where the special audit conducted under sub-section (1) of section 66 results in detecting of tax not paid or short paid or erroneously refunded, or input tax credit  wrongly availed or utilized, the proper officer may initiate action under section 73 or section 74

 

Audit under GST is the process of examination of records, returns and other documentsmaintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST.

 

Every registered taxable person whose turnover during a financial year exceeds the prescribed limit [as per the latest GST Rules, the turnover limit is above Rs 1 crore] shall get his accounts audited by a chartered accountant or a cost accountant. He shall electronically file:

  1. an annual return using the Form GSTR 9B along with the reconciliation statement by 31st December of the next Financial Year,
  2. the audited copy of the annual accounts,
  3. a reconciliation statement, reconciling the value of supplies declared in the return with the audited annual financial statement, And other particulars as prescribed.
GST AUDIT
Download File

Registration karwalo IS THE ONLY ONE ONLINE PLATFORM WHICH ALSO PROVIDE FACE TO FACE CONSULTATION

Registration karwalo
  • Quick advise by qualified professional
  • Maintain Confidentiality for clients data
  • Secure online payment and money back as per refund policy
  • Maintain 99% accuracy in work

Fill below form, arrange free expert call now!!!

Why Registration karwalo?

Client Satisfaction

Data confidentiality

Quality Services

Reasonable Price

Secure Online Payment

Dedicated Team