Overview of gst audit
Audit has been defined in the CGST Act.2017 as under:
Section 2(13):“audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act 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 to assess his compliance with the provisions of this Act or the rules made there under;
This is Compulsory Audit as defined under the following provisions of the GST Laws:
Section 35(5): Every registered person whose turnover during a financial year exceeds the prescribed limit (2 Crores at present) shall get his accounts audited by a chartered accountant (CA) or a cost accountant (CMA) and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed.
Section 44 (2) Says: Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed.
The prescribed limit as per section 35 (5) is mentioned in Rule 80 (3) which says: Every registered person whose aggregate turnover during a financial year exceeds two crores rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Center notified by the Commissioner.