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Complying with various tax laws and regulations can be challenging for a business owner. One such regulation is the Goods and Services Tax (GST), introduced in India in 2017. GST has revolutionized the tax system in India and has brought about a lot of changes in the way businesses operate. One of the crucial aspects of GST compliance is the GST Audit, which every registered company has to undergo. This blog post will demystify GST Audit and provide a comprehensive guide for a hassle-free experience.
What is GST Audit?
GST Audit is an annual process that verifies the accuracy and completeness of the GST returns filed by a registered business. It is conducted by GST Audit consultants In Delhi, whom the business owner appoints. The GST Audit is carried out to ensure that the registered company is compliant with the GST laws and regulations and has filed accurate returns. It also helps to identify any errors or discrepancies in the returns filed and take corrective action.
Who needs to undergo GST Audit?
All businesses registered under GST are required to undergo GST audits. However, the following companies are exempted from GST Audit:
- Organizations having yearly revenues under two crores of rupees
- Input Service Distributors (ISD)
- Persons registered under the GST composition scheme
- Casual taxable persons
- Non-Resident taxable persons
- Companies that are required to file GSTR-9A
- Persons who needed to deduct TDS – tax at source under section 51 of the CGST Act
- Persons who needed to collect TCS- tax at source beneath section 52 of the CGST Act
It is important to note that even if a company falls under any of the above categories, it may still be required to get its accounts audited under other applicable laws or regulations.
How to prepare for GST Audit?
To prepare for GST Audit, a business must maintain accurate records of all transactions and have all the relevant documents readily available. The company must ensure that all the GST returns are filed on time and accurately. The GST Audit Consultants in Delhi will verify the accuracy of the returns filed and match them with the records maintained by the business.
What are the consequences of non-compliance?
Non-compliance with GST audits can result in penalties and fines levied by the tax authorities. The amount of liability and fine varies based on the severity of the non-compliance. It can range from a monetary penalty to cancellation of GST registration.
To avoid the consequences of non-compliance, it is advisable to seek the services of a professional GST registration company that offers Business Advisory Services in Delhi. They can provide expert guidance and help you comply with the GST laws and regulations.
Conclusion
GST Audit is an essential process that every registered business must undergo to ensure compliance with GST laws and regulations. By following the guidelines in this comprehensive guide, you can prepare for the GST Audit and have a hassle-free experience. Seeking the services of professional GST Audit consultants In Delhi and Business Advisory Services in Delhi can help you comply with the GST laws and avoid the consequences of non-compliance.