Audit | Goods and Services Tax (GST) - B Com PDF Download

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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 2 Crore] shall get his accounts `
audited by a chartered accountant or a cost accountant. He shall electronically file: 
• an annual return using the Form GSTR-09B along with the reconciliation statement by 
31st December of the next Financial Year 
• the audited copy of the annual accounts 
• a reconciliation statement, reconciling the value of supplies declared in the return with 
the audited annual financial statement 
• And other particulars as prescribed. 
 
Audit under GST 
 
  
 
                      Audit by                 Audit b GST   y 
                    Taxable Person                                                                         Tax Authorities 
       
             
            File Audited + Audited                  General Audit (order        Special Audit by a CA                                 
            Accounts + Reconciliation              order by                            nominated by                               
            Statement                                         Commissioner)                Commissioner                                             
 
 
A. Audit by Registered Dealer 
Every registered dealer whose turnover during a financial year exceeds the 2 Crore has to get `
his accounts audited by a CA or a CMA. 
B. Audit by Tax Authorities 
General Audit 
The Commissioner or a person authorized by him may undertake an audit of a registered person 
for the period, frequency and manner prescribed. 
• Audit can be carried out either in the premises of the registered person or may also be 
done at the office of the proper officer, by calling for information and documents 
• 15 days clear notice shall be provided to the person before initiation of such an audit 
• The audit proceedings have to be closed within 3 months from the date of initiation of 
audit (Where the date of commencement of audit shall be the date on which all the 
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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 2 Crore] shall get his accounts `
audited by a chartered accountant or a cost accountant. He shall electronically file: 
• an annual return using the Form GSTR-09B along with the reconciliation statement by 
31st December of the next Financial Year 
• the audited copy of the annual accounts 
• a reconciliation statement, reconciling the value of supplies declared in the return with 
the audited annual financial statement 
• And other particulars as prescribed. 
 
Audit under GST 
 
  
 
                      Audit by                 Audit b GST   y 
                    Taxable Person                                                                         Tax Authorities 
       
             
            File Audited + Audited                  General Audit (order        Special Audit by a CA                                 
            Accounts + Reconciliation              order by                            nominated by                               
            Statement                                         Commissioner)                Commissioner                                             
 
 
A. Audit by Registered Dealer 
Every registered dealer whose turnover during a financial year exceeds the 2 Crore has to get `
his accounts audited by a CA or a CMA. 
B. Audit by Tax Authorities 
General Audit 
The Commissioner or a person authorized by him may undertake an audit of a registered person 
for the period, frequency and manner prescribed. 
• Audit can be carried out either in the premises of the registered person or may also be 
done at the office of the proper officer, by calling for information and documents 
• 15 days clear notice shall be provided to the person before initiation of such an audit 
• The audit proceedings have to be closed within 3 months from the date of initiation of 
audit (Where the date of commencement of audit shall be the date on which all the 
documents and information called for are provided or audit actually initiated at the 
business premises, whichever is later). 
• Also, if the Commissioner is satisfied that the audit cannot be completed in 3 months, 
he can record the reasons in writing and extend the time for a further maximum period 
of 6 months. 
• The registered person is obliged to provide all necessary details, documents and 
information required for completion of an audit. 
• On conclusion of an audit, the proper officer shall, within thirty days, inform the 
registered person, whose records are audited, about the findings, his rights and 
obligations and the reasons for such findings. 
• Once the above are done, the proper officer may determine tax payable and interest and 
penalty, if any, thereon, and also initiate collection proceedings. 
Special Audit 
• During any stage of any investigation, scrutiny, assessment or any other proceedings 
under this act, if the proper officer, not below the rank of Assistant Commissioner, with 
the prior approval of Commissioner, may get the books of accounts audited by a CA or 
Cost Accountant nominated by the Commissioner, if so required in interest of revenue 
keeping in view of the complexity of transactions or business or claim of input credit 
• Such CA or Cost Accountant is required to submit duly signed and certified report within 
90 days to such Assistant Commissioner, extendable to further period of 90 days in case 
of an application in writing by such CA or Cost Accountant or for a sufficient reason 
• Such audit report is subject to principle of natural justice, wherein, an opportunity to be 
heard shall also be provided to the registered person 
• Remuneration or fee of such nominated person shall be decided by the commissioner 
and his decision shall be final 
• All other provisions of tax, interest, penalty and collection shall apply to audit under this 
section too. 
Findings of Audit 
On conclusion of an audit, the officer will inform the taxable person within 30 days of: 
• the findings, 
• their reasons, and 
• the taxable person’s rights and obligations 
If the audit results in detection of unpaid/short paid tax or wrong refund or wrong input tax 
credit availed, then demand and recovery actions will be initiated.