GST Audit – Know your Numbers and Manage Your Business
Whether you have a GST Audit requirement or a GST return, we offer a wide range of exclusive services. We will help you organize, analyze, and manage your financial documents with quality.
GST – Goods and Services Tax is one tax system to subsume all other taxes. To bring one nation, one Tax into work, the government of India Launched GST. To ensure GST is paid and the refund is claimed by the right person, GST laws came into the picture. GST Audit is a subject under GST that requires individual taxpayers and businesses to Audit their financial documents.
The audit is a procedure to analyze financial records, documents, and other financial data to file taxes and returns. The main aim of performing a GST Audit is to ensure the accuracy of taxes charged, turnover reported, and input tax credit used. To ensure accuracy of rebate received, and to determine the requirements of GST law. Professionals like Chartered accountants, cost accountants, and lawyers can help you comply with GST laws.
Whether you’re an individual or a business, the accuracy of GST Audits can be offered by experts.
GST Audit Limit FY 2022-23
For any business and individual payment of taxes and filing of returns within the due date to avoid any penalty. There are certain limits for GST audits in India:
As per the recent changes in the budget proposal, GST AUDIT(GSTR-9C) is not mandatory for professionals ( effective after Feb 01, 2021). Businesses and individuals can file GST annual return GSTR-9 with self-certification.
GSTR 9/9C filing requirement matrix
Up to 2 crore
2 Crore – 5 Crore
Above 5 Crore
Note: if mandatory, can be filed through self-certification (no professional signature is required)
People who are registered taxpayers and those individuals or businesses who have a turnover of more than 2 Crore in a financial year are liable for GST Audits. It is important/ mandatory for businesses to get their account to be audited by a practicing Chartered Accountant. The GST turnover is the same for all states and UTs for registered taxpayers.
Types of GST Audit applicable and performed by
General Audit: General Audit is needed to give 15 days prior notice on Commission orders. The Audit is performed by a CGST/SGST Commissioner or authorized official.
Turnover Audit: Taxpayers with turnover up to or more than 2 Crore in an FY need to get their books audited by any Chartered Accountant or Cost Accountant.
Special Audit: It is conducted on prior approval of the Commissioner and on the order of the duty Commissioner. It can be performed by any Chartered accountant or cost Accountant nominated by commissioners.
Audit GST is the process of analyzing the financial documents, records, and returns that are maintained as per GST laws in India. As per the CGST act, every registered taxpayer individual whose turnover is more than Rs 2 Crore in a financial year needs their accounting books audited by a Chartered Accountant or by self-certification ( as per the amendment effective on Feb 01, 2021). The individual/tax Payer should submit a copy of audited financial statements in form GSTR 9C. The documents are required by the tax department once a financial year.
Audit under section 35(5) of CGST Act- Turnover-based Audit
If a registered taxpayer has a turnover of more than 2 Crore in a financial year. They need to get their account audited by a Chartered Accountant or cost accountant. The individual or organization can appoint accountants for Auditing.
The financial turnover calculated is PAN-based which means if the turnover under PAN-based calculation is more than 2 Crore, the person or organization is liable for GST Audit.
Special Audit by Tax Authorities under sections 65 & 66 of GST
Under this section, a commissioner or authorized official by him in a general or specific order can undertake an Audit of any registered person. These Audits are generally taken under special cases as specified in the act.
How to do GST Audit
To begin with, you need to appoint a GST auditor. A GST auditor is a professional who will analyze the financial statements and file GST returns. Partner, proprietor, or Board of directors of a company will appoint the auditor at the beginning of FY.
How will the auditor prepare for GST for you?
The auditor or accountant will check your returns and other financial documents monthly and quarterly.
The auditor will reconcile the returns for your organization if you are claiming extra ITC( Input Tax Credit).
They will suggest amendments you need to make in the data gaps.
Check for ITC reversal for non-payment within 180 days.
Comply with some GST rules that you need to follow when filing audits and returns. The rules as specified by the GST department in relation to invoice format.
Check the difference between invoice date and payment date. It should not exceed 180 days.
The payments should match the invoice details including GST.
Evaluation of e-ways bills should be conducted and they should match the invoice. They should match with each other. Any mismatch in the e-way bill and invoice can be canceled within 24 hours. You can also be fined by the auditor if you move your goods without e-bills.
The main aim of the auditor and Audit report is to ensure you comply with all GST provisions and laws in order to avoid legal complications.
Accounts to be reviewed by GST auditor for audit report
Input tax credit utilized and availed.
Purchase register and expenses ledger.
E-way bills generated.
E-invoices, IRN generated, and recorded.
Copy of credit notes and debit notes.
Financial statements audited by a chartered accountant.
GSTR 3B, GSTR1, GSTR-2A for all months.
Job work invoices.
TRANS-01 and TRANS-02 copies if applicable.
RCM challan Copy, Delivery Challan copy.
Any documents that have communication with the GST department in the concerned year.
Know your financial numbers with GST Audit Services in Delhi
We at Lax n Tax Associates offer excellent and efficient quality GST return and Audit services in Delhi. From individuals to businesses in all industries, we offer our top-notch services. We have a strong, well-experienced, and passionate team ready to take on complex GST requirements. We strongly believe that if you do not understand your numbers, you cannot know your business. Lax N Tax is here to help you understand your numbers. Get your GST Audit Services in Delhi Now.
Mandatory GST Audit checklist that we follow at all costs:
Auditing and checking of GSTR3B concerning GSTR 1 & GSTR 2A which include interest and penalties in GST, Amendment in GSTR.
Checking, analyzing, and Verifying the invoice details.
Evaluation of e-way bills and their matching with invoices.
Input tax credit reversals for non-payment within 180 days.
Cross-analysis of pending stock lying with job workers
Why choose Lex N Tax Associates?
1. We offer a Solution based approach
Our experience in accounting and financial expertise with GST. We have been offering our solutions to a wide range of clients over the years. which allows us to use our expertise for finding the right solutions. We work with our clients to offer effective solutions that fit their needs. We analyze the business requirements and provide accuracy in our accounting services. Enabling your business to grow, take the right decisions, and avoid any legal complications. We are offering solutions for complex GST requirements for businesses in different industries.
2. We make GST filing and Auditing simple
A GST Audit is not a box full of dread. You don’t have to be worried about your GST returns and Auditing. We provide GST returns and audits in the simplest way. For individuals and businesses, our tax preparation is organized and carefully reviewed. We ensure you develop strong financial stability throughout the year.
3. We value relationships with Lex N Tax Associates
While Most firms are happy to make professional relations, we treat our clients as family. We understand your business requirements as our own and work with passion and consistency. Our team at Lex N Tax believes in building long-term relationships with clients rather than one-time service. At Lax N Tax Associates we enjoy collaborating with our clients and delivering efficient work with passion. We try to understand our client’s issues, resolve questions, and help you overcome your hurdles proactively with the right solutions.
4. We offer Transparency
We believe in offering transparency to our clients. Our packages are customizable and personalized to fit your business needs. We offer upfront and fixed pricing for our services. To ensure we have a clear understanding of what they are getting, and what they will pay. Our services and prices will not have surprises, you will receive what you were promised.