GST Audit#
Legal Framework#
- Section 35 of CGST Act
- GST Audit Rules
- Rule 80(3) of CGST Rules
Applicability#
GST audit is mandatory when:
- Turnover exceeds ₹2 crore (if opted for regular GST audit)
- Required by department
- Voluntary for all registered persons
Types of GST Audit#
1. Regular Audit
- By tax authorities
- Once in 5 years
- All registered persons
2. Special Audit
- By Chartered Accountant or Cost Accountant
- On order by Commissioner
- For detailed examination
Process#
- Notice from department
- Appointment of auditor
- Verification of records
- ITC reconciliation
- Report submission
Areas of Focus#
- Input Tax Credit verification
- Output tax liability
- Tax payments
- E-way bill compliance
- Anti-profiteering
- Composition scheme compliance
Documentation Required#
- GSTR-1, GSTR-3B
- E-way bills
- Purchase and sales registers
- Input tax credit availed
- Tax payment challans
GSTR-9C (Reconciliation Statement)#
- Annual return reconciliation
- Reconciliation of ITC
- Certified by CA/CMA
- Filing due date: December 31