GST Audit u/s 35 of CGST Act 2017, Turnover Limit

CGST 743 views 4 replies
What is the turnover limit for GST Audit for FY 2017-2018?
Is it Rs 1.5 crores right, based on proportion of 9 months from 1st July 2017 to 31st March 2018?
If yes, kindly provide notification.

Or Rs 2 crores?
Replies (4)
Rule 80(3) of CGST Rules 2017 prescribed limit of 2 crore to conduct audit u/s 35.

It is to be noted that though in Section 35(5) the term “turnover” has been used, it shall mean “aggregate turnover”. Which is defined as under Section 2(6) of the CGST Act/SGST Act: Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

So it can be said that while calculating turnover under Rule 80(3) turnover of all units of taxpayer to be considered even though these units located in different states.(Until any clarity comes from department on calculation of turnover for audit purpose we can follow this approach).

Hope its clear that limit is 2 crore and not 1.5
Thanks for the valuable reply

Yes turnover limit is 2 crores.

What about the turnover made during the 1st quarter of 2017-18? Will it form part of aggregate turnover for the purpose of GST Audit?


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