my turnover during fy 19-20 is above 1cr is there compalsary to audit my books of accounts.
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Quick Summary
This discussion clarifies when a business audit becomes compulsory. For GST purposes, an audit is mandatory if your aggregate turnover exceeds £2 crore on a pan-India basis. However, for the financial year 2018-19, the requirement to file GSTR-9C was waived for businesses with a turnover below £5 crore. Income Tax audits still apply under Section 44AB regardless of GST thresholds.
As per the Provision of Section 35(5) of the CGST Act 2017 read with Rule 80(3) of the CGST Rules 2017, A person needs to get his Accounts Audited by a Chartered Accountant ( CA ) or a Cost and Management Accountant ( CMA ) and file FORM GSTR-9C ( Reconciliation Statement and Audit Report ) if his Aggregate Turnover "Exceeds Rs. 2 crores".
But for Financial Year 2018-19, the limit has been increased to Rs. 5 Crores by amending the CGST Rules 2017. The Government vide Notification No. 16/2020 - Central Tax, dated 23rd March 2020, has amended the CGST Rules 2017. A new Proviso was inserted to Sub Rule (3) of Rule 80 of the CGST Rules 2017, which states that Filing of FORM GSTR-9C is Mandatory only for those Taxpayers whose Aggregate Turnover "Exceeds Rs. 5 Crores" for FY 2018-19.
The Due Date to file FORM GSTR-9 and FORM GSTR-9C for FY 2018-19 has been extended to "30th September 2020" vide Notification No. 41/2020 - Central Tax, dated 05.05.2020.
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