Auditing account

There are three type of audit in GST, 

Audit by Chartered Accountant or Cost Accountant – every registered person whose turnover during the financial year exceeds the prescribed limit i.e. Rs. 1Crore shall get his accounts audited by Chartered Accountant or Cost Accountant and shall submit a copy of audited annual accounts, the reconciliation statement and other documents along with the GST annual return.

Audit by tax authorities – the Commissioner or any officer authorized by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed. Audit may be conducted at the place of business of the registered person or in the office of the Commissioner or officer authorized by him. A notice will be sent to the registered person at least 15 days prior to the conduct of the audit. The audit shall be completed within a period of 3 months from the date of commencement of the audit. The Commissioner can extend the audit period for a further period of 6 months with reasons recorded in writing.

During course of audit, the authorized officer may require the registered person –

1. To afford him the necessary facility to verify the books of account or other documents as he may require.

2.To furnish such information as he may require and render assistance for timely completion of the audit.

On conclusion of an audit, the officer shall inform the registered person within 30 days about the findings, his rights and obligations and the reason for such findings. Where the audit conducted results in detection of unpaid/short paid tax or wrong refund or wrong input tax credit availed, then demand and recovery actions will be initiated.

Special Audit – if at any stage of scrutiny, inquiry, investigations or any other proceedings, if department is of the opinion that the value has not been correctly declared or credit availed is not with in the normal limits, department may order special audit by Chartered Accountant or Cost Accountant nominated by department.