Under CGST Act Section 35, 2017, every registered dealer with an aggregate turnover of more than Rs. 2 crore in one financial year, is eligible for getting accounts audited. Aggregate turnover includes values of all taxable and exempt supplies (except inward supplies), interstate supplies, and exports made under the same PAN throughout India.
The job of an auditor is to examine every possibility of tax evasion. Thus, auditors have to work as watchdogs of the taxation system to ensure that everything is done under compliance. To formulate a constructive approach, auditors can include parameters like:
• Is GST paid in the right manner?
• Is ITC availed in the right way?
• Are documents and records maintained correctly?
• Are returns filed accurately?
• Are exhaustive reconciliations of purchases and supplies in place?