Mandatory GST AUDIT by professionals (U/s 35(5) of CGST Act 2017 read with rule 80 of CGST Rule 20177.)

This GST Audit is applicable till 01/08/2021 (Notification no. 29/2021 Central Tax Dated 30/07/2021) If the annual turnover of a registered taxpayer is more than Rs.5 crore in a financial year, he is required to get his accounts audit every year. Business with an annual turnover of More than Rs 5 crore, filing of GSTR-9C. Registered person is required to furnish electronically through the common portal along with annual return (GST-9).

• Audited annual accounts.
• A reconciliation statement, duly certified, in prescribed FORM GSTR-9C.
• Aggregate turnover= value of all taxable (interstate and intra state supplies) + exempt supplies + export supplies of all goods and services. The total turnover calculation must be PAN-based, which means that once the turnover under the PAN is more than Rs 5 crore, filing of GSTR-9C.

Departmental GST Audit by tax Authorities (U/s 65 of CGST Act 2017 read with rule 101 of CGST Rule 2017)

The place of business of registered person or in tax office. The commissioner or any officer authorized (CA/CMA) by him. The registered person shall be informed by way of a notice 15 working days prior to the conduct of audit in FORM GST ADT-01. The audit by tax authorities shall be completed within a period of 3 months from the date of commencement of the audit, and such period is further extendable for a period of 6 months by commissioner for the reasons to be recorded in writing. The proper officer shall, within 30 days, inform the registered person, whose records are audit, about. The findings, His rights and obligations and The reasons for such findings in FORM GST ADT-02.

Special Audit by Tax Authorities (U/s 66 of CGST Act 2017 read with rule 102 of CGST rule 2017)

During the scrutiny, inquiry, investigation or any other proceedings of a registered person, the Assistant Commissioner, or any officer senior to him, having regard to the nature and complexity of the case and the interest of revenue, might be of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits. In such cases, with the prior approval of the Commissioner, the Assistant Commissioner, or any officer senior to him can direct the registered person in FORM GST ADT-03 to get his records including books of account examined and audited by a specified chartered accountant or a cost accountant. The chartered accountant or a cost accountant will be nominated by the Commissioner. The provisions of special audit shall have effect even if the accounts of the registered person have been audited under any other provisions of the GST Act or any other law for the time being in force. The CA/CMA has to submit a report of the audit within 90 days. The assistant commissioner can also extend the period over 90 days for the application person for any sufficient reason. In this procedure results in Determination of Taxable Turnover Detection of tax not paid or Short paid ITC wrongly availed or utilized. On conclusion of the special audit, the registered person shall be informed of the findings of the special audit in FORM GST ADT-04. Where the special audit results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the process of demand and recovery will be initiated against the registered person. The taxable person will be given an opportunity of being heard in the findings of special audit. If the result in detection of unpaid/ wrong refund etc. The recovery will start against the registered person after this auditing.

ADVANCE RULINGS

“Advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 of the CGST Act, 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. The definition of Advance ruling given under the Act is a broad one and an improvement over the existing systems of advance rulings under Customs and Central Excise Laws. Under the present dispensation, advance rulings can be given only for a proposed transaction, whereas under GST, Advance ruling can be obtained for a proposed transaction as well as a transaction already undertaken by the appellant.

The broad objectives for setting up a mechanism of Advance Ruling include:

• provide certainty in tax liability in advance, in relation to an activity proposed to be undertaken by the applicant;
• attract Foreign Direct Investment (FDI);
• reduce litigation; iv. pronounce ruling expeditiously in transparent and inexpensive manner;