Initial Steps For Auditing In GST And By Whom It Is Conducted?

GST Audit in Delhi

GST (Goods and Services Tax) is a trust-based taxation system in which the GST registered dealer is expected to file GST returns on a monthly as well as annual basis as per their business’ sales and purchases.

The purpose of the GST Audit in Delhi is to ensure that the registered person has paid the taxes accurately and that his business fully complies with the provision of the GST Act.

You guys know that the Goods and Services Tax law system has become a very big tax system in India which has contributed significantly to the development of India’s economy to a great extent. Due to this, there is a complete ban on fraud in the business. (Read More: Important Rules Related To Registration Based On Turnover In GST)

But some people still leave no stone unturned to do scams. That is why the Government of India keeps on bringing new laws every day to prevent such facts.

The audit procedure in GST is also a similar law. In this article, we will learn about the audit process in GST. Initial Steps for GST Audit and we will try to know in detail about some of the related facts.

Any person who is registered for GST and is taxable and has a turnover of more than 2 crores in a financial year is required to have a GST Audit. This Audit is generally conducted by Chartered Accountants or Cost Accountants.

Some of the initial steps to do the audit are as follows.

  • An annual return must be submitted by 31st December of the next financial year using Form GSTR 9.
  • There should be an audited copy of the annual financial records.
  • There should also be the form GSTR-9C which covers the supply value mentioned in the GST returns attached with audited yearly financial reports

Who conducts a GST Audit?

We have divided the GST Audit process into 2 parts so that it will be easy for you to understand. Let’s read about them one by one below.

  1. Audit by Registered Dealer/Person

    Any registered taxable person having a turnover exceeding the limit of Rs. 2 crores during a financial year have to get his accounts audited by CA or CMA.
  2. GST Audit by Tax Authorities

The CGST/SGST Commissioner or any other officer is chosen by him can conduct a GST audit of a registered person. The tax authorities send a notice at least 15 days before auditing the records of the taxpayer.

Responsibilities of Audit Officer in GST

At the end of the audit in GST, the officer must inform the following things to the taxable person in 30 days.

  • Conclusion/findings of audit.
  • Reasons behind these conclusions
  • Rights and obligations of a taxable person.
  • If the audit detects unpaid/short paid tax or wrong refund or ITC, based on the registered person, thereafter, the officer will take a demand and recovery action.

If you want to know about GST in detail, then by contacting the team of CAC, you can get more information and required assistance for GST registration and GST Audit.

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