GST audit - ensure full compliance with GST law

GST audit is an examination of GST records, returns, and documents by a CA or Cost Accountant appointed by the taxpayer. It verifies the correctness of GST returns, ITC claims, and compliance with GST law under Section 65.

A Chartered Accountant or a Cost Accountant can conduct a GST audit. The auditor must hold a valid Certificate of Practice and have a GST registration.

GST audit is mandatory for registered persons with aggregate annual turnover exceeding ₹2 crore. For FY 2019-20, the threshold was ₹5 crore, but it has been reduced to ₹2 crore from FY 2020-21.

The GST audit report must be filed by 31 December following the close of the financial year. This is before the annual return (GSTR-9) due date of 31 December.

You need GSTR-1, GSTR-3B, GSTR-2A/2B, purchase and sales registers, e-way bills, e-invoices, input tax credit records, and supporting invoices for the financial year.

Form ADT-01 is the GST audit report form. It consists of Part A (statements of opinion) and Part B (observations, discrepancies, and recommendations).

Failure to conduct GST audit can result in penalties under Section 125 of CGST Act, including a fine of 100% of the tax evaded or a minimum of ₹10,000. The GST department may also issue show-cause notices.

No, GST audit must be completed and filed within the prescribed timeline. Late filing attracts penalties. However, if genuine difficulties exist, you can approach the jurisdictional GST officer.

GST audit is conducted by a taxpayer-appointed CA for self-verification. GST inspection is conducted by GST officers for enforcement purposes. The former is preventive; the latter is enforcement.

No. Only registered persons with aggregate turnover exceeding ₹2 crore need a GST audit. Others need to maintain proper records and file regular returns.

Yes, the same CA can conduct both statutory and GST audits. However, ensure the CA has adequate GST expertise and keeps up with GST notifications and rules.

Common findings include ITC claimed on ineligible supplies, mismatched GSTR-2A/2B and GSTR-3B ITC, incorrect place of supply, wrong GST rates, missing invoices, and non-reversal of ITC on exempt supplies.

GST audit costs typically range from ₹4,999 to ₹29,999 depending on business size and turnover. Basic audits for small businesses start at ₹4,999, while comprehensive audits for large multi-state businesses can cost up to ₹29,999.

GST audit is the final step in GST compliance. It verifies that all returns are correctly filed, ITC claims are legitimate, and the business has complied with all GST provisions. It helps identify discrepancies before the tax department does.

Yes, a CA or Cost Accountant can conduct both GST audit and statutory audit. However, ensure the auditor has specific GST expertise and stays updated with GST notifications, rules, and rate changes.