GST Audits (Goods & Services Audit)


The biggest reform in the history of India in the field of indirect taxation was brought by 101st Constitutional Amendment. It introduced the Good and Service Tax Act. The introduction of Good and Service Tax Act has replaced many indirect taxes that were levied in the country such as excise duty, service tax, additional Custom duty and State level VAT and Octroi. Like in every law there are some checks and balances, so is in the GST through GST Audit.

GST Audit includes examination of books of accounts, records, returns and other documents maintained by the registered person. It also ensures other compliances of GST act. It helps in ensuring correct assessment of Turnover, ITC claimed, refund claimed and GST paid.

Types of GST Audit

In GST there are 3 types of audit

        1. Audit by Commissioner under sec 66 of the CGST Act 2017

        2. Special Audit under section 66 of the CGST Act 2017

        3. Turnover based audit by Chartered Accountant or Cost accountant under section 35

As per section 35(5) of the Central Goods and Service Tax Act 2017 “Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant…”. Turnover during the financial year includes value of Inter-State as well as intra-state supplies, value of exempt supplies and value of export supplies and value is calculated PAN India basis. The limit prescribed is 5 crore. Generally, the due date for filing of the GST Audit by the professional is 31 Dec of the subsequent financial year.


For conducting a GST audit, a professional would require following records

  1. Purchase Register

  2. Sales Register

  3. Stock of Goods

  4. Input Tax Credit Availed

  5. Output Tax Payable paid

  6. Statement of E-way Bill generated

After receiving all the records, auditor would

        1. Reconcile books of accounts, returns and the annual return filled by the company.

        2. Check whether all GST compliances are followed by the company

        3. Assesse GST liability or refund for the Financial Year

After processing all the data and auditor will prepare reconciliation of turnover, output liability and input credit claimed.

Consequences of Non Filing

If the taxpayer fail to file the GST-9C within due date, then he is liable to fee of Rs. 200/- per day subject to maximum of 0.5% of turnover.