Submission of Audited Financial Statements to Service Tax authority.

There is no statutory requirement to submit audited financial statements directly to the "Service Tax Authority" for a sole proprietorship.

Service tax in India has been subsumed under the Goods and Services Tax (GST) regime since July 1, 2017. Under the current GST framework, the mandatory requirement for a CA/CMA-certified audit (formerly Form GSTR-9C) based on turnover thresholds has been removed. Taxpayers are now required to self-certify their reconciliation statements.

Key Clarifications for Your Situation:

• Income Tax vs. Indirect Tax: It is common for taxpayers to conflate requirements. While you may be required to get your books audited under the Income Tax Act (Section 44AB) if your turnover exceeds the prescribed limits (₹1 crore for businesses with limited cash transactions, or ₹50 lakh for professionals), that audit report (Form 3CA/3CB and 3CD) is submitted to the Income Tax Department via their e-filing portal, not the Service Tax/GST authority.

• "G Form" and KVAT: You mentioned filing a "G Form" under KVAT (Kerala Value Added Tax). Please note that VAT (except for petroleum products and liquor) has also been replaced by GST. You should verify if you are referring to a legacy requirement or a specific state-level compliance that is still active for your business sector.

• Departmental Audits: While you do not need to "submit" your audited financial statements as a routine filing, the GST authorities do have the power to conduct a departmental audit (Section 65) or a special audit (Section 66) of a registered person’s records, returns, and financial statements if they deem it necessary. In such a case, you would be notified directly by the authorities.

Recommendation:

If you are concerned about your specific filings, please consult with your local Chartered Accountant to confirm:

1. Which specific state-level or central compliance requires the "G Form" you mentioned.

2. Whether your current business turnover mandates an audit under the Income Tax Act for the current financial year.

3. That your GST filings are fully updated and compliant, as "Service Tax" is no longer the applicable law for ongoing business operations.

Summary: There is no requirement to submit audited financial statements to Service Tax authorities. Ensure your Income Tax Audit (if applicable by turnover) is filed on the Income Tax portal and that your GST records are maintained and updated for potential departmental scrutiny.