GST Audit

What is a GST Audit?

A GST Audit is an examination of records, returns, statements, and documents submitted by a registered taxpayer to verify whether:

  • Reported sales, taxes paid, refunds claimed, and ITC availed are accurate and fair.
  • The taxpayer complies with provisions under GST law.

GST Audit involves the reconciliation of audited financial statements with the Annual Return (GSTR-9) and reporting via GSTR-9C.

Who Needs a GST Audit?

Under Section 35(5) of the CGST Act, 2017, a GST audit is mandatory for every registered person whose aggregate turnover exceeds ₹2 crores in a financial year.

Such taxpayers must submit the following along with their annual return:

  1. Audited financial statements
  2. GSTR-9C (Reconciliation Statement)
  3. Other prescribed documents

Note: Aggregate turnover includes all taxable, exempt, export, and inter-state supplies under the same PAN. It excludes GST taxes and inward supplies liable under RCM.

Scope of GST Audit Services

Our team provides a comprehensive set of GST audit deliverables, including:

  • Monthly reconciliation of Input Tax Credit (ITC)between books and GST returns
  • Identification and rectification of ITC mismatches or discrepancies
  • Review of output tax liabilities
  • Consultancy on ITC eligibility, reversals, and reclaims
  • Reconciliation of annual return valueswith audited financial statements
  • Analysis and treatment of Reverse Charge Mechanism (RCM)transactions
  • Recommendations to improve internal controls
  • Preparation of cost of non-compliance matrix
  • Timely delivery of mandatory reports and statementsunder GST

Penalty for Not Filing GST Audit Report

While no specific penalty is prescribed, a general penalty of ₹25,000 may apply for failure to comply with GST audit requirements.

Reach Out for GST Audit Service

LegalTax Coin is your trusted GST audit firm. We serve businesses across industries with expert audit services, compliance support, and actionable insights.

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Let LegalTax Coin ensure your GST compliance is accurate, timely, and audit-proof.