Ques 1 Who is required to get his accounts audited for GST purposes?
Ans Section 35(5) says, every registered person whose turnover during a financial year exceeds the prescribed limit i.e. more than Two crore rupees shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed.
Ques 2 How many Types of audits are there in GST?
Ans Audit can be done by chartered Accountants/ Cost Accountants or by Department itself.There are three types of Audit:-
- Audit by Chartered Accountants / Cost Accountants u/s 35[5] of the CGST Act.
- Audit by Department u/s 65 of the CGST Act.
- Special Audit by Chartered Accountants / Cost Accountants u/s 66 of the CGST Act.
Ques 3 What are the key aspects for filing of GST audit report?
Ans Key aspects in filing GST Audit Report – FORM GSTR 9C for the FY 2017-18
- Complete filing of all pending returns – GSTR 1 and GTSR 3B from July 2017 to March 2018 (Reach out to GSTN help desk for any technical glitch in filing)
- File Annual Return in Form GSTR 9 – Annual Return in Form GSTR 9 for is to be filed before filing GST Audit Report in Form GSTR 9C.
- Keep the figures for Annual Return handy (keep soft copy or print out) – Since the Audit report requires details of annual return to be provided in GSTR 9C, keeping the same ready shall come handy
- Scan and keep a copy of Profit & Loss (or Income and Expenditure Statement) and Balance Sheet – Scan the reports in PDF or JPEG format (Max size of each file 5 MB)
- Re-check all details before filing – Remember, Audit Report once filed cannot be amended. Hence it is advisable to cross check all figures before proceeding to file Audit report
Ques 4 What are the system requirement for preparing and filing GST Audit Report?
Ans a) Operating System – MS Windows 7 or above
b) Microsoft Excel 2007 and above
Ques 5 What are the pre-requirement for filing Form GSTR 9C?
Ans Before you proceed to file GST Audit Report, below details, data or requirement is to be prepared and handed over to Auditor for conclusion of Audit
a) Bifurcate the books of accounts for each – If you operate in multiple locations having more than one GST Registration, books of accounts is to be prepared for each – Outward supplies, ITC, Payment, Expenses, etc.
b) Invoice-wise outward supply Statement – Reconcile outward supply turnover of books and returns.
c) ITC details(GSTR 2A, Books of Accounts and GSTR 3B ) – Reconcile Input Tax Credit availed as per returns and those appearing in books and those auto-populated in GSTR 2A .
d) Expense head wise ITC details – Prepare statement containing basic value, ITC and Eligible ITC for the list of expenses provided in the audit report. This is to be prepared for each.
e) Details of all payments made under each rate of tax – Under Forward Charge and Reverse Charge.
f) Reasons for Differences – Identify any difference in Annual return and Books of Accounts for Total Turnover, Taxable Turnover and ITC and prepare reasons for same to be handed over to Auditor.
g) Pay the Recommended Liability – In case of any liability suggested by Auditor and accepted by the entity, please pay the same by using the form DRC 03. Facility to pay the same before filing Audit Report is also available in the login
h) The link to download the detailed FAQ and User Manual is https://www.gst.gov.in/download/gstr9
Ques 8 What is Special Audit under GST?
Ans If at any stage of scrutiny, inquiry, investigation or any other proceeding, the officer not below the rank of Asst. Commissioner, where he finds that value has not correctly declared, credit availed is not within limits, may with the prior approval of commissioner, direct the registered person by communication in writing to get his records and books audited by Chartered Accountant or Cost Accountants as nominated by commissioner.