The audit under GST is the process of examining records, statements and other documents maintained by a taxpayer. The purpose is to verify the accuracy of the declared turnover, the taxes paid, the refund claimed and the tax credit provided, and to assess compliance with the provisions of GST
The tax on goods and services or GST will be a tax to subsume all taxes. It will bring in the regime of “One nation one tax”. To keep a check and examine if the correct GST is being paid and the refund is claimed, certain taxpayers will be subject to an audit under the GST.
Threshold for Audit
Each person subject to registered taxes whose turnover during a financial year exceeds the prescribed limit [according to the latest GST Rules, the turnover limit is greater than Rs 2 crore] will have their accounts audited by an authorized accountant or a cost accountant You must submit electronically:
- An annual return using the Form GSTR 9B along with the reconciliation statement by 31st December of the next Financial Year,
- The audited copy of the annual accounts,
- A reconciliation statement, reconciling the value of supplies declared in the return with the audited annual financial statement,
- And other particulars as prescribed.
Rectifications after Return Based on Results of Audit under GST
If any person subject to taxes, after submitting a refund discovers some omission / incorrect information (from the results of the audit), it can rectify subject to the payment of interest. However, no rectification will be allowed after the due date to file the tax return for the month of September or the second quarter (as the case may be), after the end of the financial year or the actual filing date of the corresponding annual statement. Come back, whatever it is before.