Provisional statement

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An auditor has issued a provisional statement showing a GST liability of £12 lakh, significantly higher than the actual liability of £2 lakh. This discrepancy arose because the auditor mistakenly used an 18% GST rate instead of the correct 3% due to a communication issue. The client has paid the correct £2 lakh liability, but the auditor is reluctant to finalise the accounts with the correct figure. The advice is to resolve the communication problem by clearly informing the auditor of the correct GST rate.

shinu

shinu (Querist)
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29 October 2020 Sir,
A provisional statement was signed by auditor showing gst liability 12 lakh but actually the gst liability was 2 lakh.. And they paid the amount 2 lakh. But while finalising the accounts the actual gst liability to be show as 2 lakh but auditor is not willing to finalise the same with 2 lakh. The difference in gst liability risen was due to the gst rate.. What to do with the same.