GST Audit by Tax Authorities

Under GST, the tax authorities have the power to conduct an audit of the books of accounts and records of a registered person. The audit can be conducted for a specific financial year or for multiple years. Here is an overview of GST audit by tax authorities:

1. Who can conduct GST audit: The GST audit can be conducted by either a GST officer or an auditor appointed by the registered person. The officer or the auditor is required to give a prior notice of at least 15 working days to the registered person before conducting the audit.

2. Scope of GST audit: The audit covers a range of aspects including the correctness of turnover declared, the taxes paid, the ITC availed, the refund claimed, and compliance with other provisions of the GST law. The auditors will also verify the maintenance of accounts and records as required under the GST law.

3. Time limit for GST audit: The GST audit must be completed within 3 months from the date of commencement of the audit. The time limit can be extended for a further period of 6 months with the prior approval of the Commissioner.

4. Audit report: Once the audit is completed, the auditor is required to submit a report to the GST officer within 30 days from the date of completion of the audit. The report should include any discrepancies or non-compliance observed during the audit and the recommendations for corrective action.

5. Consequences of non-compliance: If any discrepancies or non-compliance are found during the audit, the registered person will be required to pay the additional tax, interest, and penalty as applicable. The GST officer may also initiate legal proceedings for non-compliance with the GST law.

It is important for registered persons to maintain accurate and complete records to facilitate a smooth GST audit by tax authorities.