GST Audit
Description
About This Service
According to section 2(13) of the CGST Act 2017, Goods and Service Tax audit means inspection of records, returns & other papers that are maintained or furnished by the registered person under the Goods and Service Tax Acts.
Every registered person needs to get its account audited if the total turnover during the financial year surpasses Rs. 2 crores from the sale of goods or services. Calculation of turnover should be PAN based which means all sale of goods or services should be taken for computation the limit of Rs.2 cr.
However, the GST audit limit is the same for all the registered taxpayers there is no separate limit for special category states of UTIs. The provision for the GST audit is not going to be pertinent in case the Central Government/State Government/Legislative Assembly are subjected to audit by CAG or any other Statutory Auditor chose for examining the accounts of the Legislative Assembly.
Benefits of GST Audit
- GST audit permits recording of the correct time of supply. This helps in reducing the cases of pre-paid as well as post-paid taxes. By paying the tax on time, you can avoid the interest cost.
- GST audit allows you to regulate the correct place of supply like IGST, SGST, and CGST.
- Even if you are having the correct time and place of supply, you must charge and pay taxes under the right GST rates. You also need to keep up with the decreasing or increasing GST rates.
- GST audit also assists you in examining if the HSN codes are correctly determined and filed in GSTR 1 return or not.
- You can also check whether your invoices are raised correctly or not through GST.
Therefore, the GST audit is known for offering great benefits.