FAQs Regarding GST Audit

Businesses and individuals are curious about the criteria for a GST audit and whether they are subject to it. They also want clarification on the triggers for an audit. Moreover, businesses may want to know about audit consequences and penalties. Understanding the procedures, such as document verification, helps businesses prepare efficiently. By knowing these FAQs, companies can ensure compliance and handle audits confidently.

Companies can ensure compliance and handle audits confidently by knowing common questions about GST Audits. Read to understand the procedures.

GST Audit

GST Audit

No, there is no such requirement to conduct GST audit by professional.

The audit under GST Law is conducted by Tax Authorities wherein tax authority will issue Form GST ADT-01

The GST Department can also authorize a Chartered Accountant or a Cost Accountant to conduct GST Audit which is known as a Special Audit.

In such a case, the taxpayer can himself voluntarily on or ascertainment of the department, pay the outstanding tax with applicable interest by declaring the same in subsequent GSTR 3B or by way of form DRC 03. In some cases the tax authority will issue Form GST DRC-01, after that taxpayer shall either pay the tax if satisfied with findings; and if Taxpayer is not satisfied with findings, then Taxpayer can go with litigation procedure.

The audit report is issued under form GST ADT-02.

The statutory audit is of Financial Statements as a whole while GST Audit is conducted for all the transaction attracting GST in order to ensure that the Tax has been appropriately declared and paid.

The Tax authority consider the significance and materiality of the transactions, the deviation in amount of tax declaration, any kind of irregularity, the nature of goods and services supplied, volume of tax refund, significance difference in GSTR-01 and GSTR-003B returns, mismatch in the amount of export declared in GSTR-01 and details lodged on ICEGATE, etc.

These are major indicators that ignite the requirement of GST Audit by Tax Authority.

A special audit is been conducted by a CA or CMA on the direction of Commissioner while GST Audit under Section 65 is being conducted by officer itself on order of GST Commissioner.

As per GST law, audit has to be concluded within 3 months from the day the audit is deemed to start.

GST Auditor can request the Commissioner for further extension of GST Audit for 90 days.

GST Audit is usually conducted at registered place of business.

During an audit, the Officer conducting the audit has powers to verify books, records, returns, statements, inventory, deductions, availment of the input tax credit, the rate of GST tax applied and other aspects pertaining to GST.

Any person permitted by Taxpayer can represent him during the process of audit.