As per section 2 (13) of CGST Act 2017, GST Audit means the examination of records, return & other documents maintained or furnished by registered person under the GST Act. Audit is done to verify the correctness of turnover declared, taxes paid, refund claimed and ITC availed.
GST has been implemented in India from 1st July 2017. Under GST, an audit of the taxpayer can be ordered by concerned authorities under various circumstances.
GST Audit is required under the following 3 circumstances
- Audit by CA if Turnover exceeds 2 crores.
- Normal Audit by the commissioner.
- Special Audit.
If Turnover Exceeds INR 2 Crores :
If turnover exceeds INR 2 crores during the financial year, the tax payer is required to get his books audited by Chartered Accountant or a Cost Accountant and furnish a copy of the audited annual accounts and reconciliation statements with duly certified.
Normal Audit by the commissioner:
The CGST/SGST Commissioner or any officers authorized by him can can undertake audit of any registered person at such frequency and in such manner as may be prescribed.
Special Audit In GST:
The taxpayer can be directed by the department to get his records including the book accounts examined and audited by a chartered accountants during any stage of scrutiny, inquiry, investigation, or any other proceeding on the complexity of any case.