GST Audit
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GST Auditor and GST Expert in Delhi, Mumbai, Bangalore, Ahmedabad India. We have expertise in GST Auditing services with a team of experts that are highly skilled at filing GST Returns for Multiple Industries. You can also avail the benefit of our GST Services such as GST Consultant’s Charges Pricing, Filing Charges for Multiple Industries, Online Returns Filing & Processing, GST Online Registration Services International, Domestic, Forms Filing Support. Get back GST Audit now on Orders with Risk Free Details and Documents.
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A GST Audit can be a complex and potentially stressful process for businesses in India. Whether your business is approaching the Rs. 2 crore turnover threshold that triggers a mandatory audit, or you’ve been selected for a random audit, ensuring proper preparation and support is crucial.
At ReturnFile.in, our team of Chartered Accountants (CAs) possesses in-depth knowledge of GST regulations and extensive experience guiding businesses through successful GST Audits. We understand the intricacies of the audit process and are committed to helping you navigate it smoothly and confidently.
GST Replaces The Following Indirect Taxes:
- Excise duty at the central level
- Service Tax
- State VAT
- VAT on Central Sales
- Entrance Fees
- Luxury Tax
- VAT on Amusement and Entertainment
- Purchase Tax
- Lottery, betting, and gambling-related taxes
What is a GST Audit?
A GST Audit is a formal examination conducted by the tax authorities to verify a business’s compliance with the Goods and Services Tax (GST) regulations in India. The primary purpose of a GST Audit is to ensure the accuracy of:
- Turnover declared: The audit verifies if the business has accurately reported its total sales and purchases, which directly impact the amount of GST payable.
- Taxes paid: The authorities scrutinise the GST paid by the business against the declared turnover and input tax credit (ITC) claimed to ensure proper tax remittance.
- Input Tax Credit (ITC) availed: The audit examines the validity of the ITC claimed by the business on purchases made, ensuring they are legitimate and follow GST regulations.
When is a GST Audit Mandatory?
In India, a GST Audit becomes mandatory for registered businesses if their aggregate turnover for a financial year exceeds Rs. 2 crore. This threshold is crucial to understand, as it determines whether your business needs to undergo a formal GST Audit. Here’s a breakdown:
- Turnover Below Rs. 2 Crore: Businesses with a turnover below this limit are not obligated to undergo a mandatory GST Audit. However, the tax authorities still have the right to select them for a random audit.
- Turnover Above Rs. 2 Crore: If your business surpasses the Rs. 2 crore threshold in a financial year, you must get your accounts audited by a Chartered Accountant (CA) or Cost Accountant (CMA) as per Section 35(5) of the CGST Act. This audit report, along with a reconciliation statement duly certified by the CA/CMA, needs to be electronically filed through the GST portal (GSTR-9C) along with your annual return (GSTR-9).
- It’s Important To Note: The GST audit calculation considers PAN-based turnover, requiring businesses with a combined turnover exceeding Rs. 2 crore to undergo a mandatory GST audit. Although mandatory filing of GSTR-9C has been waived for businesses with a turnover below Rs. 5 crore, the responsibility for auditing still applies if the threshold is crossed.
What Documents are Required for a GST Audit?
A smooth and efficient GST Audit hinges on proper documentation. Here’s a list of essential documents your business should have readily available for the audit process:
GST Records:
- GSTR-1 (Outward Supplies)
- GSTR-2A (Inward Supplies)
- GSTR-3B (Summary of Inward and Outward Supplies)
- Purchase Invoices/Bills
- Sales Invoices/Bills
- E-way Bills (if applicable)
Financial Statements::
- Audited Financial Statements
- Profit and Loss Account
- Balance Sheet
The GST Audit Process
Understanding the typical steps involved in a GST Audit can help you prepare more effectively. Here’s a breakdown of the key stages:
- Selection Process: GST authorities use criteria such as turnover, discrepancies in GST returns, suspicious activity, and random selection to select businesses for audits. Businesses exceeding the Rs. 2 crore threshold are automatically selected, while those below the threshold can be chosen for random selection.
- Notice for Audit: A GST Audit will be conducted on your business, with a formal notification from the GST Commissioner or authorised officer, typically 15 days before the audit commencement, outlining the date, time, designated officer, and audit scope.
- The Audit Officer’s Role: The appointed GST officer will conduct an audit, examining GST records, financial statements, filed returns, ITC claims, and ensuring GST compliance. Having a Chartered Accountant or tax advisor can facilitate efficient communication.
Why Choose Return File ?
Choosing the right partner for your accounting and tax needs is important. At ReturnFile.in, we make things simple and easy for you. Here’s why we’re the best choice:
- Experienced Team: Our team includes expert accountants who have years of experience. They know how to handle everything from taxes to business setup
- Wide Range of Services: We offer many services, like filing your taxes, helping with GST, and making sure your business follows the rules. We can help both businesses and individuals.
- Customized Solutions: We understand that every business is different. We create solutions that match your specific needs and goals.
- Easy and Convenient: Our platform is simple to use. With just a click, you can get all the professional help you need. We serve clients in Ahmedabad and other major cities in India.
- Quality Service: We are known for our top-quality service in Ahmedabad. We work hard to make sure your business runs smoothly and efficiently.
- Trusted by Many: Our clients trust us because we focus on their needs and deliver reliable services. We have built strong relationships with many satisfied clients.
- Clear Communication: We explain things in a simple way, so you understand everything about your finances and taxes.
- Prepared for the Future: We use the latest technology and methods to ensure our services are not only good for today but also ready for the future.
Frequently Asked Questions
Failing to comply with a mandatory GST Audit can lead to significant penalties and potential legal action from the tax authorities.
Yes, you can generally claim ITC on expenses related to the GST Audit, such as the fees charged by your CA or CMA for conducting the audit.
Develop a habit of maintaining accurate and organised records throughout the year. File your GST returns (GSTR-3B) on time, and keep supporting documents like invoices and bank statements readily accessible. Consider partnering with ReturnFile.in for periodic reviews to ensure continuous compliance, even if an audit isn't mandatory.
We recommend having all your GST records readily available, including GSTR returns, purchase and sales invoices with GST details, e-way bills (if applicable), audited financial statements (if required), and bank statements for the relevant period.
There are certain conditions defined for such taxpayers. At the inception of GST, only suppliers of goods could opt into the composition scheme governed by Section 10 of the CGST Act with annual turnover upto Rs.1.5 crore. From 1st April 2019, service providers are also given an option to join a similar scheme. The annual aggregate turnover limit must be up to Rs.50 lakh.
Upon receiving the notice, contact ReturnFile.in immediately. We can review the notice, assess the scope of the audit, and guide you through the preparation process. We'll also be available to represent you during the audit itself.
