Standardised PPT on GST Indirect Taxes Committee The Institute of Chartered Accountants of India

Disclaimer and Copy right This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at idtc@icai.in © The Institute of Chartered Accountants of India This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI. © Indirect Taxes Committee, ICAI

Audit under GST © Indirect Taxes Committee, ICAI

What is Audit? Section 2(14): “Audit” means: the examination of records, returns and other documents maintained or furnished by the registered person under this Act or rules made thereunder or under any other law for the time being in force to verify; the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed; and to assess his compliance with the provisions of this Act or the rules made thereunder. © Indirect Taxes Committee, ICAI

Kinds of Audits under GST Audit by tax authorities Special Audit Annual Audit by CA / CWA CAG Audit © Indirect Taxes Committee, ICAI

Audit by Tax Authorities Commissioner of CGST / SGST or any officer authorized; Audit of any registered person for a particular period, at particular frequency and in particular manner; At the place of business of registered person or in their office; Notice to registered person at least 15 working days prior to audit [Form GST ADT-01]; Audit to be completed within 3 months (can be extended further by 6 months by Commissioner); Registered person to provide the required information and facility; Result of audit to be intimated within 30 days [Form GST ADT-02] and further action will be taken. © Indirect Taxes Committee, ICAI

Special Audit Proceedings must be pending before Asst. Commissioner or any officer above his rank; Nature and complexity of the case and interest of revenue to be considered; Opinion : Correct value not declared and / or ITC claimed not within normal limits; Prior approval of the Commissioner of CGST / SGST; Direct registered person to get his records and books of a/c audited [Form GST ADT-03]; Audit to be done by CA / CWA nominated by the Commissioner of CGST / SGST; Audit Report to be submitted within 90 days (can be extended by further 90 days); Opportunity of hearing given to registered person and further action taken by proper officer; Expenses of audit including remuneration to be determined and paid by the Commissioner. © Indirect Taxes Committee, ICAI

Annual Audit According to Section 35(5) of the CGST Act: Every registered person whose turnover during a financial year exceeds the prescribed limit (presently one crore rupees) shall get his accounts audited by a Chartered Accountant or a Cost Accountant and shall submit a copy of the audited annual accounts along with a reconciliation statement (reconciling the value of supplies declared in return with audited annual financial statements) Contents of the audit report and other particulars to be prescribed Audited Report and Audited Annual Accounts to be submitted along with annual return on or before 31st December following the end of financial year. © Indirect Taxes Committee, ICAI

CAG Audit Power of Revisional Authority: The Government or the authority specified by it; shall maintain proper record in relation to fund (for the welfare of the consumer); and prepare an annual statement of accounts in such form and manner as may be prescribed; in consultation with the Comptroller and Auditor-General of India. The Comptroller and Auditor-General of India shall have the power to inspect the accounts of such Government or authority by virtue of powers vested in it by other law. © Indirect Taxes Committee, ICAI

Thank You For any Clarification, Please Contact Indirect Taxes Committee of ICAI Email: idtc@icai.in, Website: www.idtc.icai.org © Indirect Taxes Committee, ICAI