Audit under GST involves examination of records, returns and various other documents kept by a GST signed up person. It also guarantees the accuracy of turnover stated, taxes paid, reimbursement claimed, input tax credit availed and also assess various other such conformities under the GST Act to be checked by an authorized professional.

GST is a trust-based taxes regime in which a taxpayer is called for to self-assess his tax liability, pay tax obligations and documents returns. Thus, to guarantee whether the taxpayer has correctly self -evaluated his tax liability a robust audit system is a must. Various steps are taken by the government for proper implementation of GST and audit is one amongst them.

Turnover-based Audit under Section 35( 5) of CGST Act
If the annual turnover of a signed up taxpayer is even more than Rs. 2 crores in a financial year, he is needed to get his accounts examined by a Chartered Accountant or Cost Accountant annually.
A financial year covers the 12-month duration starting from April of a schedule year to March of the following calendar year.
Special Note: For the purpose of figuring out the turnover limit for Financial Year 2017-18, it consists of the first quarter of 2017-2018 i.e. 1st April 2017 to 30th June 2017, before GST was applied.
If the annual turnover of a signed up taxpayer is greater than Rs. 2 crores in a fiscal year, he is called for to obtain his accounts examined by a Chartered Accountant or Cost Accountant every year.
A fiscal year covers the 12-month duration starting from April of a schedule year to March of the following calendar year.
Special Note: For the objective of learning the turnover limitation for Financial Year 2017-18, it consists of the initial quarter of 2017-2018 i.e. 1st April 2017 to 30th June 2017, before GST was carried out.
Aggregate turnover is calculated as follows:
Accumulated turnover = Value of all taxable (inter-state and intra-state) materials + excluded products + export products of all items and also solutions
The complete turnover computation should be PAN-based, which indicates that once the turnover under the PAN is greater than Rs. 2 crores all business entities signed up under GST for that PAN will certainly be responsible for GST audit for a fiscal year.
Compliances for GST Audit :
Credentials of GST Auditor & Eligibility
Just a Chartered Accountant or a Cost Accountant can carry out a GST Audit u/s 35.
Indicate Note:
An internal auditor can not parallelly be appointed as a GST Auditor.
The GST Act does not allow a GST specialist to carry out the audit. The power to audit is provided just to a Chartered Accountant or Cost Accountant that is in the method or is an employee of a company of Chartered Accountants or Cost Accountants. Therefore, a Chartered Accountant has to not be signed up as a GST professional for the objective of issuing the Audit Report.
Where an organization or an entity has numerous branches signed up under GST in various states/UTs, the overall aggregate turnover of all such branches is considered while computing the threshold restriction of Rs. 2 crores. So, if the advancing turnover of all the branches goes beyond Rs. 2 crores, then the GST audit applies to each of these branches, irrespective of whether the turnover of a particular branch is much less than the threshold. In such situations, one can designate either one dedicated auditor for all branches or different auditor for every branch. Where multiple branches have different auditors, the Standards on Auditing: SA 299-- Responsibility of the Joint Auditors may apply for the objective of reporting GST Auditmonitorings & Reporting.
Conducting GST Audit & Issue of GST Audit record
Visit of GST Auditor:
A proprietor, companion or Board of Directors in case of a Company must appoint a GST Auditor at the start of the financial year.
The entry of GST Audit report & Annual return:
The settled GSTR-9C can be certified by the same CA who conducted the GST audit or it can also be certified by any other CA who did not conduct the GST Audit for that specific GSTIN.
The adhering to must be reported and accredited by the GST Auditor or the certifier:
Whether all the requisite accounts or records are preserved.
Whether or not the Financial Statements are prepared based on guides of accounts kept at the principal business or additional workplace of the taxpayer.
License the precision of info in GSTR-9C.
To note down the audit observations or bookings or remarks, if any.
Review our article on Contents of GSTR-9C for additional information.
Due dates for entry of GST Audit record:
GSTR-9 and GSTR-9C are due on or before 31st December of the succeeding.
Special Note: For FY 2017-18, the due date for filing GSTR 9 and GSTR-9C is reached 30th June 2019, through an order.
Charge for not submitting GST Audit record:
There is no particular arrangement. For this reason, it goes through a basic penalty of Rs.25,000