GST AUDIT
A GST Audit refers to the detailed examination of the books of accounts, GST returns, and other related records of a registered person to ensure compliance with the Goods and Services Tax (GST) laws. The objective is to verify the accuracy of turnover declared, input tax credit (ITC) claimed, taxes paid, and refunds availed, and to assess overall compliance with the provisions of the Central Goods and Services Tax Act, 2017 and allied rules.
Applicability of GST Audit
As per the original provisions of Section 35(5) of the CGST Act, a GST audit by a Chartered Accountant or a Cost Accountant was required if a registered person’s aggregate turnover exceeded ₹2 crore in a financial year. However, this was later amended.
Revised Audit Threshold (as per Finance Act, 2021):
- The requirement of mandatory audit under Section 35(5) has been omitted from Financial Year 2020–21 onwards.
- Instead, taxpayers with an aggregate turnover exceeding ₹5 crore in a financial year are required to self-certify the reconciliation statement in Form GSTR-9C and submit it along with annual return in Form GSTR-9.
Scope and Objectives of a GST Audit:
- Verification of GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C, etc.)
- Reconciliation of turnover and tax paid as per GST returns and financial statements.
- Review of Input Tax Credit (ITC) claimed and eligibility as per GST rules.
- Identification of errors, omissions, or non-compliance with GST provisions.
- Ensuring proper classification of goods/services and application of the correct tax rate.
- Examination of tax invoices, debit/credit notes, e-way bills, and stock records.
- Advising management on risk areas and areas of potential tax exposure.
- Preparing the entity for GST departmental audits, assessments, or show cause notices.
Areas of Practice – GST Audits and Indirect Taxation Services Offered by Our Firm
Our firm provides comprehensive GST and indirect taxation services to ensure complete compliance, reduce litigation risk, and optimize tax positions. We assist clients across all stages—from GST registration to filing, audit, and representation before authorities.
We specialize in the following services:
Classification, rate applicability, bundled services, composite vs. mixed supplies, and place of supply analysis.
Timely and accurate filing of all periodic and annual GST returns.
Voluntary and management-requested audits to identify tax risks, validate ITC claims, and reconcile turnover.
Assistance during scrutiny, show-cause notices, departmental audit, and appeal proceedings under GST law.
Support in migration from legacy tax regimes, ERP changes, invoicing compliance, and system setups.
End-to-end assistance in obtaining GST registration across states, including amendments and cancellations.
Assistance in applying for LUTs for zero-rated supplies without payment of IGST and other export documentation.