GST Audit


GST Audit is a crucial part of the Goods and Services Tax compliance mechanism in India. It involves the examination of records, returns, and other documents maintained by a registered taxpayer. The primary purpose of a GST Audit is to ensure the correctness of turnover declared, taxes paid, input tax credit claimed, and the compliance with the provisions of the GST Act.

Every registered taxpayer whose aggregate turnover exceeds the prescribed limit during a financial year is liable to get their accounts audited by a Chartered Accountant or Cost Accountant.

 

Scope of Work for GST Audit

Our GST Audit Services cover a comprehensive review of your GST compliance, including:

  • Verification of GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C).

  • Reconciliation of turnover and Input Tax Credit (ITC).

  • Cross-verification of books of accounts with GST returns.

  • Review of invoices, debit/credit notes, and e-way bills.

  • Checking reverse charge mechanism (RCM) compliance.

  • Verification of exemptions claimed and GST rates applied.

  • Review of transitional credit claimed under GST.

  • Identification of GST liabilities not disclosed or short paid.

  • Preparation and filing of annual GST return (GSTR-9).

  • Certification and filing of GST Audit Report (GSTR-9C).

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    Documents Required for GST Audit

    To conduct a thorough and error-free GST Audit, the following documents are required:

    1. GST Registration Certificate

    2. PAN Card & Aadhar Card of Proprietor/Partners/Directors

    3. Monthly GST Returns (GSTR-1, GSTR-3B)

    4. Annual GST Return (GSTR-9)

    5. Books of Accounts – Sales Register, Purchase Register, Ledger

    6. Input Tax Credit Register

    7. Details of inward and outward supplies

    8. Reconciliation statements (books vs returns)

    9. E-way Bills and Transport Invoices

    10. Trial Balance, Profit & Loss Account, and Balance Sheet

    11. Credit/Debit Notes issued and received

    12. Tax Invoices and Expense Invoices

    13. RCM related transactions with supporting invoices

    14. Details of exempted and nil-rated supplies

    15. Copy of previously filed GST Audit Reports, if any

 

Process of GST Audit

Our GST Audit process is streamlined and professional:

Step 1: Data Collection

We collect all relevant financial documents, GST returns, and registration details.

Step 2: Books Review

Detailed review of financial statements, ledgers, and invoice records.

Step 3: Reconciliation

Reconciliation between GST returns and books of accounts.

Step 4: Verification

Verification of Input Tax Credit claims, outward supplies, exemptions, and reverse charge.

Step 5: Drafting GSTR-9 & GSTR-9C

Preparation and review of GSTR-9 (Annual Return) and GSTR-9C (Audit Report).

Step 6: Submission & Filing

Filing of GST Audit report on the GST portal with digital signature.

Step 7: Audit Closure

Final audit report is shared with the client with observations and recommendations.

 

Why GST Audit is Important?

  • Ensures compliance with GST laws

  • Helps avoid penalties and notices from GST department

  • Identifies errors in returns and ensures timely corrections

  • Ensures accurate claim of ITC

  • Builds confidence with authorities in case of scrutiny or inspection

  • Necessary for financial transparency and tax planning

 

Frequently Asked Questions (FAQs) on GST Audit

Q1. What is the turnover limit for GST Audit?
A: GST Audit is mandatory if the aggregate turnover exceeds ₹5 crores during the financial year.

Q2. Who can conduct a GST Audit?
A: A Chartered Accountant or Cost Accountant authorized by the taxpayer.

Q3. Is GST Audit required for every taxpayer?
A: No, only those whose turnover exceeds the specified limit are required to undergo a GST Audit.

Q4. What is the due date for filing GSTR-9C?
A: The due date is typically December 31st following the end of the financial year, but it may vary based on government notifications.

Q5. What is the penalty for not conducting a GST Audit?
A: Non-compliance can attract a penalty of ₹25,000 under CGST and ₹25,000 under SGST.

Q6. What is the difference between GSTR-9 and GSTR-9C?
A: GSTR-9 is the annual return; GSTR-9C is the reconciliation statement and audit report.

Q7. Can GST Audit be conducted online?
A: Yes, document sharing, review, and filings can be managed digitally.

Q8. Is reconciliation mandatory in GST Audit?
A: Yes, reconciliation of books with GST returns is a key component of the audit.

Q9. Are exempted sales included in turnover for GST Audit?
A: Yes, exempted and non-GST supplies are included in aggregate turnover.

Q10. What happens if errors are found during GST Audit?
A: Errors are highlighted, and corrections are recommended. Voluntary disclosures can be made to avoid penalties.

Q11. What if GSTR-9C is not filed on time?
A: Late filing attracts penalties and could result in notices from GST authorities.

Q12. Can a tax consultant conduct GST Audit?
A: Only a practicing Chartered Accountant or Cost Accountant can conduct the audit.

Q13. What is the role of a GST Auditor?
A: The GST Auditor verifies financial statements, reconciles GST returns, and ensures tax compliance.

Q14. Can the department conduct a GST Audit?
A: Yes, the GST Department can also conduct its own departmental audit.

Q15. Is GSTR-9C applicable for composition scheme taxpayers?
A: No, GSTR-9C is not applicable to taxpayers under the composition scheme.

 

Our GST Audit Services

We at [Your Company Name] provide expert GST Audit services to ensure that your business remains compliant and audit-ready. With a team of experienced Chartered Accountants, we ensure a smooth and professional GST Audit process.

Key Highlights:

  • Hassle-free documentation process

  • Complete GST compliance support

  • Timely filing of GSTR-9 and GSTR-9C

  • Post-audit support and representation

  • Affordable GST Audit packages

 

Get in Touch for Professional GST Audit Services

Ensure GST compliance with expert GST Audit services today!