Form E Services

What is GST Audit?

Audit under GST involves an examination of records, returns, and other documents maintained by a GST registered person. It also ensures the correctness of turnover declared, taxes paid, refund claimed, input tax credit availed, and assesses other such compliances under GST Act to be checked by an authorized expert.

Since GST is self -an assessment tax regime, an audit of the records of taxpayers is the bedrock for the proper functioning of a self-assessment-based tax system to ensure the accuracy of self-assessed tax liability, the tax paid, amount of refund claimed and input tax credit availed.

Types	Performed By	When Initiated
Turnover based Audit	Chartered Accountant or Cost Accountant appointed by the taxpayer	As per the CGST Act, if the Turnover exceeds 2 crore,^ the taxpayer has to get his accounts & records audited
Normal audit/General Audit	Commissioner of CGST/SGST or any Officer authorized by him	On order of Commissioner by giving 15 days prior notice
Special audit	A Chartered Accountant or Cost Accountant, nominated by Commissioner	On order of Deputy/Assistant Commissioner with prior approval of Commissioner

Types

Performed By

When Initiated

Turnover based Audit

Chartered Accountant or Cost Accountant appointed by the taxpayer

As per the CGST Act, if the Turnover exceeds 2 crore,^ the taxpayer has to get his accounts & records audited

Normal audit/General Audit

Commissioner of CGST/SGST or any Officer authorized by him

On order of Commissioner by giving 15 days prior notice

Special audit

A Chartered Accountant or Cost Accountant, nominated by Commissioner

On order of Deputy/Assistant Commissioner with prior approval of Commissioner

What is GST Return?

GST return filing is done to maintain financial accounts per year. GST return is a document that contains the details of the income of the taxpayer. This document needs to be filed with the tax authorities.

Under GST, a registered dealer has to file GST returns that broadly include:

Purchases
Sales
Output GST (On sales)
Input tax credit (GST paid on purchases)

Return Form	Particulars	Frequency	Due Date
GSTR-1	Details of outward supplies of goods and services	Monthly	11th of the next month
GSTR-2	Details of inward supplies of goods and services affected	Monthly	15th of the next month
GSTR-3	Monthly return, in the case of finalization of details of outward supplies and inward supplies along with the payment of tax.	Monthly	20th of the next month
GSTR-3B	It is a simple return in which the summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by the taxpayer.	Monthly	20th of the next month
GSTR-4	For all the taxable person registered under the composition levy.	Quarterly	18th of the next month after the quarter
GSTR-5	Returns for a non-resident foreign taxable person	Monthly	20th of the next month
GSTR-6	Returns for an input service distributor	Monthly	13th of the next month
GSTR-7	Returns for authorities deducting TDS	Monthly	10th of the next month
GSTR-8	Details of supplies effected through the e-commerce operator and the amount of tax collected	Monthly	10th of the next month
GSTR-9	Annual return for a normal taxpayer	Annually	31st December of the next financial year
GSTR-9A	The annual return of a taxpayer registered under the composition levy anytime during the year	Annually	31st December of the next financial year
GSTR-10	Final return	Only once, when GST registration is canceled or surrendered	Within 3 months of the date of cancellation or the date of cancellation of the order, whichever is later
GSTR-11	Details of inward supplies to be furnished by a person having UIN and claiming a refund	Monthly	28th of the following month for which the statement is filed

Return Form

Particulars

Frequency

Due Date

GSTR-1

Details of outward supplies of goods and services

Monthly

11th of the next month

GSTR-2

Details of inward supplies of goods and services affected

Monthly

15th of the next month

GSTR-3

Monthly return, in the case of finalization of details of outward supplies and inward supplies along with the payment of tax.

Monthly

20th of the next month

GSTR-3B

It is a simple return in which the summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by the taxpayer.

Monthly

20th of the next month

GSTR-4

For all the taxable person registered under the composition levy.

Quarterly

18th of the next month after the quarter

GSTR-5

Returns for a non-resident foreign taxable person

Monthly

20th of the next month

GSTR-6

Returns for an input service distributor

Monthly

13th of the next month

GSTR-7

Returns for authorities deducting TDS

Monthly

10th of the next month

GSTR-8

Details of supplies effected through the e-commerce operator and the amount of tax collected

Monthly

10th of the next month

GSTR-9

Annual return for a normal taxpayer

Annually

31st December of the next financial year

GSTR-9A

The annual return of a taxpayer registered under the composition levy anytime during the year

Annually

31st December of the next financial year

GSTR-10

Final return

Only once, when GST registration is canceled or surrendered

Within 3 months of the date of cancellation or the date of cancellation of the order, whichever is later

GSTR-11

Details of inward supplies to be furnished by a person having UIN and claiming a refund

Monthly

28th of the following month for which the statement is filed

Eligibility for Return Filling

Registered persons taxable under GST has to file 3-monthly returns and 1-annual returns.
But all the businesses who have not exceeded the exempted limit, which is Rs.2 lakhs all over India and Rs.10 lakhs in Northeastern and Hill States, are not eligible.
All those businesses that exceed this limit, need to file a GST return
This should be applicable, even if an entity makes no sale during a given year in the form of NIL returns.
A company having a turnover of more than Rs.1.5 crore needs to file returns monthly. And if the company has a turnover of more than Rs.1 crore then, it should be filled annually as well. Below this threshold limit, an enterprise has an option to file it according to their needs.

Penalties of Non-Compliance

All GST Returns must be filed by the 20th of the following month. There are strict laws under the GST Act for non-compliance with the Rules & Regulations.
Penalty for Not Getting GST Registration, when a business is coming under the purview. The penalty is 100% of the tax amount if the offender has not filed for GST registration and intends to purposefully avoid it. The amount is the tax as applicable. Or Rs. 10,000, whichever is higher.
A penalty of 100% tax due or Rs. 10,000, whichever is higher, is also applicable to those who choose Composition Scheme despite not being eligible to it.
Any offender not paying his due tax or making short payments (genuine errors) is liable to pay a penalty of 10% of the tax amount. This amount cannot be less than Rs 10,000.
A person guilty of not providing the GST invoice is liable to be charged 100% tax due or Rs. 10,000. Whichever is higher.
An offender will be charged a fine of Rs. 25,000 for incorrect invoicing.
If a person has not filed for unpaid tax, there is a penalty of Rs. 50 per day. Rs. 20 per day if he was to file for NIL returns. And the maximum amount must not exceed Rs. 5,000.
There is also a provision of the penalty by a jail term for tax offenders to commit fraud.

Goods And Services Tax Best Services in Rajkot

What is GST Audit?

What is GST Return?

Goods And Services Tax
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