GST Audit

When GST registration is required: Business having turnover more than 40 L in year in trading and manufacturing, require to get registration in GST whereas 20 L limit is available for service provider to get GST registration since 1^st April 2019.  

When GST Audit is required: As per Section 35 of GST Act, GST audit is compulsory audit and based on turnover like Tax audit. Every registered GST business owner having turnover exceeding Rs 2 Cr during year is required to get GST audit by CA or Cost Accountants.

To start GST Audit, auditors require various documents to complete GST Audit. Following Documents are required for GST Audit

Ø  Sales Invoices

Ø  Purchase and other service invoices

Ø  GST Input Register

Ø  GST 3B

Ø  GST 1

Ø  GST 9A

Ø  HSN wise summary for sale and purchase

Ø  Ledger of reverse charge

Ø  Debit and credit note file

Ø  Bank Statements

Ø  Financial Statements

Ø  ITR

Necessary Steps GST Audit:

Step 1: Reconciliation of GST 3B with GST 1

Step 2: Reconciliation with GST 3B, GST 1 with financial statements for year

Step 3: Checking of GST input weather it is eligible for input or not

Step 4: Reconciliation with payments of debtors or creditors as payments is required to pay within 180 days from date of invoice

Who can be GST Auditors?

As per GST ACT, CA or cost Accountants can be GST auditors for any firm or company. Its suggestion to every business owner to engaged as GST auditors other than statutory auditors or regular consultant who is engaged in GST filling etc.

Other Independents Auditors can audit with different angel and provide best of result which will be beneficial for business. Example: Company has taken input of hotel, Car etc which is not allowed as per GST Act.

It’s better to identify such input and pay GST amount to departments before they will identified and levy penalty.