GST Audit

GST Audit

A GST audit is required under the following circumstances:

  • Turnover Threshold: If a business has an annual turnover exceeding 2 crores (as per the latest guidelines), an audit must be conducted.
  • GST Audits by Tax Authorities: The GST authorities may also initiate an audit if they suspect any irregularities or discrepancies in the filed returns or tax payments.
  • Mandatory for Certain Businesses: Some specific businesses (like export-oriented businesses, e-commerce operators, etc.) may also be subject to mandatory audits, even if they fall below the turnover threshold.

Overview of GST Audit

A GST Audit is an examination of records, returns, and other documents maintained by a registered person under the Goods and Services Tax (GST) laws. The objective is to ensure the correctness of turnover declared, taxes paid, input tax credit claimed, and compliance with GST provisions.

While the mandatory audit requirement under GST was removed in recent amendments, the authorities may still conduct audits under Section 65 or Section 66 of the CGST Act. Businesses must maintain accurate records and be prepared for scrutiny to avoid penalties, interest, or compliance issues.

GST audits help identify inconsistencies, ensure proper tax practices, and improve financial transparency.

Issues Found During GST Audits

  1. Incorrect ITC Claims: Ineligible credits claimed.
  2. Non-Reporting of Sales: Sales not reported in GSTR-1.
  3. Mismatch Between GSTR-1 and GSTR-3B: Discrepancies in reported sales and taxes paid.
  4. Failure to File Returns on Time: Late filings leading to penalties.
  5. Incorrect Tax Payments: Underpayment or overpayment of taxes.

How TaxMyles Resolves Your GST Audit Challenges

  1. Correcting ITC Claims: Ensures only eligible credits are claimed.
  2. Accurate Sales Reporting: Helps report all sales correctly in GSTR-1.
  3. Reconciling GSTR-1 and GSTR-3B: Resolves discrepancies between the two returns.
  4. Timely Filing: Ensures on-time filing of returns to avoid penalties.
  5. Accurate Tax Payments: Verifies correct tax payments and helps make necessary adjustments.

GST Audit Services at TaxMyles

  1. Audit Consultation: TaxMyles provides expert advice to assess if an audit is necessary based on turnover and other factors.
  2. Document Collection & Preparation: We assist in gathering and organizing all required documents like GST returns, invoices, and financial records.
  3. Audit by Chartered Accountants (CA): Qualified CAs conduct the audit, verifying the accuracy of returns, tax payments, and ITC claims.
  4. Reconciliation & Report: We at TaxMyles reconcile your financial statements with GST returns and prepares an audit report highlighting discrepancies.
  5. Filing of GSTR-9C: For businesses above the threshold limit, TaxMyles assists in filing GSTR-9C after the audit.
  6. Support with GST Compliance: TaxMyles ensures compliance by rectifying errors and submitting corrections.
  7. Audit Conclusion & Filing: After the audit, we file the final report and guide your business on further steps, including tax payments or penalties.

Why Choose TaxMyles for GST Audits?

  • Expert Support: Assistance from experienced Chartered Accountants.
  • Timely Compliance: Ensures your business meets all GST audit requirements.
  • Minimized Risk: Identifies and rectifies issues before penalties arise.
  • Seamless Process: Comprehensive support from documentation to filing.