GST audit is required to be conducted under section 35(5) along with drawing-up/ certification of reconciliation statement in Form GSTR 9C as per provisions of Section 44(2) in the cases where taxpayers are having turnover above Rs. 2 Crores.
Accordingly, the ICAI has released ‘Technical Guide on Annual GST Audit’ under the CGST Act/ Rules 2017 for guidance of the Members in preparation of the certified/ audited Reconciliation Statement in Form GSTR 9C, which is required to be submitted latest by 30 June 2019, for the Financial Year 2017-18.
It may be noted that every registered person whose turnover during the financial year exceeds the prescribed limit i.e. Rs. 2 Crore shall have to get his accounts audited by Chartered Accountant or Cost Accountant and shall have to submit a copy of audited annual accounts, the reconciliation statement duly certified, in Form GSTR 9C. This being the first year of GST audit, due date for filing the returns now stands extended to 30th June 2019 for the financial year 2017-18, giving taxpayers more time to understand the nitty-gritties of compiling the annual returns and getting their GST audit conducted in a smooth manner.
To help in conducting GST audit and in order to facilitate a clause by clause analysis of Form GSTR 9C by members and other stakeholder, GST & Indirect Taxes Committee has brought out this Technical Guide on GST Audit.