GST Audits

A GST audit is a critical process that ensures businesses comply with the Goods and Services Tax (GST) regulations. It involves a thorough examination of a business's GST returns, records, and financial statements to verify accuracy and compliance.

Common GST Audit Issues:

• Inaccurate GST Returns: Errors or discrepancies in GST returns.
• Insufficient Documentation: Inadequate or missing documentation.
• Non-Compliance: Failure to comply with GST regulations.
• Tax Evasion: Intentional evasion of GST payments.

Who are required to undergo a GST audit?

• Taxpayers with high turnover: Those with a turnover of ₹5 crore or more in a financial year.
• Taxpayers under the composition scheme: Those with a turnover exceeding ₹1 crore in a financial year.
• Taxpayers with significant input tax credit or refund: Those who have claimed input tax credit of ₹25 lakhs or more or paid a refund of ₹25 lakhs or more in a financial year.
• Selected taxpayers: Those selected for audit by the GST authorities, regardless of turnover or input tax credit.
• High-risk taxpayers: Those identified as high-risk taxpayers by the GST authorities.

When is the GST audit due?

The GST audit is typically done after the financial year ends, and the audit report must be filed by December 31st of the subsequent year. For instance, the audit for FY 2024-25 will need to be completed and submitted by December 31, 2025.

Can GST audit be conducted if the turnover is below the threshold limit?

Yes, businesses with turnover below the threshold limit (₹2 crore) can still undergo GST audit voluntarily to ensure compliance and verify that their tax filings are accurate.

How can businesses prepare for a GST audit?

Businesses should maintain accurate records, verify GST returns, comply with GST regulations, and seek professional advice.