What are the Different Types of GST Audits conceptualized under GST Laws?

There is one requirement that has become a must to do step in India i.e., GST audits. The regime of GST promotes the point of self-assessing. The basis of the functioning of such a type of tax system includes old laws related to indirect taxes as well as audits done of the records of taxpayers. There are several auditing firms that provide up-to-the-mark professional services.

Are you aware of the term "Audit"? If no, then in simple terms, it means scrutinizing all the chronicles, including the records maintained by the registered person. The following things are inspected while doing through the whole examining process:

  1. Whether the turnover which is declared is correct or not.

  2. Utilization of ITC as well as its availing process.

  3. What is the number of exemptions and deductions asserted by the registered person?

  4. What is the tax rate practiced for the supply of goods, etc.?

The statutory audit services nclude the clear-cut review of the accurate representation of the company's financial position. All the transactions in the financial statements will be considered during examination. The most important question here is, "what are the different types of GST audits?"

1. The first type comes under section 35, in which the registered person is required to get his accounts audited by a Chartered or Cost Accountant if his/her cumulative turnover surpasses Rs. Two crores in a particular financial year. 
If all the registrations that are included are under the same PAN, then he/she is liable for this audit.

2. The second type of GST audit comes under section 65, in which a commissioner or someone accredited by him conducts the audit of that particular registered person's records. The unregistered person can't get his/her accounts audited under this type, even if he/she is eligible to get registered.
Before initiating the audit, a notice is sent to the registered person 15 days before beginning it. The auditor makes sure to consider all the things mentioned above. This audit continues for three months, and it may extend as per the commissioner.
At the end of the audit, the commissioner reveals the inconsistencies and errors to the registered person, and after regarding his/her answers; the auditor finalizes the concluding facts.

3.  The third type is a special direction given regarding GST audit, and it comes under section 66. This special direction is passed only when any course of action concerning the registered person is pending before him. He may have his opinion while considering the complexities of the case that the value may not have been declared right or the ITC claimed is not with the limits.

Keeping everything in view, the officer sends the notice to the registered person to have his/her accounts audited by the cost accountant or chartered accountant designated by the commissioner.

The nominated auditor then submits the report within 90 days after completion of the audit.

So, if you are looking for company auditors, look for reputed firms that have the best auditors around to complete the audit within the time and conduct it professionally.

For more enquiry  get in touch with us.


Sachin Gujar & Associates,
Chartered Accountants
47/22, Erandwana, Law College Road,
Ekta Apts, 3rd Floor, Above Nirmitee Furniture,
Pune - 411004

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