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 1st 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.
