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There are Two types of an order under GST:
An Audit by a Taxable person
The audit will be done on the basis of the return filed, audited accounts and reconciliation statements
An audit by the tax authorities
- General Audit to be conducted on the basis of an order issued by the commissioner
- The special audit by CA nominated by the commissioner.
Threshold limit for Audit :
- Every Registered taxable person whose turnover during the financial year exceeds the limit of Rs. 1 crore shall be liable to get his accounts audited by a Chartered Accountant or a Cost Accountant.
- The returns are to be filed electronically in Form GSTR 9 Balong with reconciliation, audited copy of annual accounts, or other particulars as may be prescribed by 31st December of the financial year.
An Audit by Taxable Person:
- The commissioner (CGST/SGST) or any other person authorized by the commissioner may conduct the audit and intimate the taxpayer by sending a notice 15 days before the commencement of the audit.
- The audit shall be completed with 3 months from the commencement of the audit.
- The commissioner may extend the audit period further for 6 months if there is a valid reason for such an extension.
- The auditee shall provide the commissioner with the facility to verify his books of accounts and the record as required and also provide assistance in the timely completion of the audit under GST.
- On the basis of the finding of the audit the commissioner shall within 30 days inform the taxable person. If there is tax liability arising due to unpaid or short paid tax, the refund has taken wrongly, then demand and recovery action will be initiated.
An Audit by Taxation authorities Under GST
- A prior notice of 15 days will be sent to the taxable person before the audit is conducted.
- The audit has to be completed within 3 months from the commencement of the audit.
- The audit period can be further extended for a period up to 6 months with the prior approval of the commissioner.
- On the conclusion, the proper officer shall within 30 days about his findings and reasons for the same.
- The assistant commissioner may initiate the special audit if the case of the particular taxpayer is complex and it is in the interest of the revenue and if at any stage of any scrutiny, inquiry or any the proceedings.
- The Special audit can be ordered even if the books of accounts have been audited earlier.
- The assistant commissioner with the prior approval of the commissioner may order a special audit in writing.
- The Special audit is to be conducted by a Chartered Accountant or a Cost Accountant.
- The auditor has to submit the audit report within 90 days of the order issued. This period can be further extended for 90 days with the prior approval of the concerned officer, the application for the same shall be made by the taxpayer himself or by the auditor.
- The expenses related to audit including the auditor’s remuneration shall be paid by the commissioner.
- The taxable person shall be given an opportunity of being heard after which the special audit will be concluded.
- If the result of the special audit leads to the unpaid amount or short payment of tax liability arises, then demand and recovery actions will be initiated against the taxable person.