Audit under GST: When Might You Get Audited by Tax Officers?
GST audits play a crucial role in ensuring the accuracy of tax payments and refunds, particularly for specific taxpayer categories. Here’s an in-depth look at GST audits, recent updates, and key points to understand:
Recent Updates on Audits under GST:
29th December 2021: Extension of due date for filing GSTR-9 & self-certified GSTR-9C for FY 2020-21 to 28th February 2022.
28th May 2021: Outcome of the 43rd GST Council meeting regarding GSTR-9 and GSTR-9C for taxpayers with turnover thresholds.
1st February 2021: Amendments related to GST audit requirements in the Union Budget 2021.
Introduction to GST Audit:
GST audit involves examining records, returns, and other documents to ensure compliance with GST provisions.
Different types of GST audits exist, as illustrated in the provided flowchart.
Threshold Limit for Audit under GST by CA/CMA:
Taxable persons with turnovers exceeding a prescribed limit are subject to audit.
The prescribed limit is currently set above Rs. 2 crore, with specific requirements for filing GSTR 9, annual accounts, and reconciliation statements.
Rectifications to Returns After GST Audit:
Taxpayers can rectify errors discovered after filing GST returns, subject to certain conditions.
However, there are limitations on the timing of rectifications after the due date for filing relevant annual returns.
Audit by Tax Authorities:
Tax officers, authorized by the Commissioner of CGST/SGST, conduct audits with prescribed frequency and procedures.
Obligations of auditees include providing necessary facilities and information for audit completion.
Findings of Audit:
Upon conclusion of an audit, the officer informs the taxable person of the findings, reasons, and associated rights and obligations.
Detection of discrepancies may lead to demand and recovery actions.
Special Audit under GST:
Initiation of special audits by the Assistant Commissioner is based on case complexity and revenue interest.
Procedures, including ordering, conducting, and extending the audit period, are outlined.
The Commissioner determines and pays audit expenses, and the taxable person has an opportunity to respond to audit findings.
For further insights, explore our articles covering turnover-based audits, GSTR-9C reconciliation statements, and assessments, advance rulings, and demand and recovery processes.
