Good Service Text (GST) Audit
GST Audit is a key compliance requirement under the Goods and Services Tax regime for businesses crossing a prescribed turnover threshold. At CA Shubham Sudhir Gupta &Co, we help you navigate the complexities of GST Audit with precision, professionalism, and peace of mind.
What is GST Audit?
A GST Audit is an examination of records, returns, and other documents maintained by a registered taxpayer to verify the correctness of turnover declared, taxes paid, input tax credit claimed, and compliance with the provisions of the GST Act.
Who Needs to Undergo a GST Audit?
- Businesses with aggregate turnover exceeding ₹5 crore in a financial year (as per previous rules).
- Entities specifically notified by the GST department for departmental audit.
- Businesses that receive notice under Section 65/66/67 for special or departmental audits.
- Note:-Mandatory GST audit by a CA/CMA was abolished in Budget 2021, but businesses can still be audited by the tax department or voluntarily for internal assurance.
Types of GST Returns & Their Purpose
- Statutory GST Audit
(Now removed; previously for businesses with turnover > ₹2/5 crore) - Departmental Audit (u/s 65)
Conducted by GST officers at regular intervals. - Special Audit (u/s 66)
Directed by tax authorities, conducted by a Chartered/Cost Accountant nominated by the Commissioner. - Voluntary/Internal GST Audit
Businesses may opt for internal audit to ensure compliance and avoid future disputes.
Why GST Audit is Essential for Every Business
- Ensures correctness of tax paid and ITC claimed
- Helps avoid penalties and legal scrutiny
- Builds confidence in records and compliance
- Prepares business for departmental or special audits
- Identifies opportunities for cost savings & process improvements
Documents Required for GST Audit
- GST returns (GSTR-1, GSTR-3B, GSTR-9, etc.)
- Books of accounts and trial balance
- Invoices (sales & purchases)
- Debit/Credit notes
- Reconciliation statements (books vs returns)
- Input tax credit register
- Stock and inventory records
- GST registration and amendment certificates
- Challans for tax payments
- Previous audit reports (if any)
Consequences of Non-Compliance
- Notices from GST department
- Penalties for under-reporting or wrong ITC claims
- Legal consequences in case of tax evasion
- Blocking of GSTIN or business restrictions
- Higher scrutiny in future assessments
Our accurate and Transparent GST Audit Process
- Understanding Your Business Operations
We start by analyzing your business model, industry, and GST profile. - Review of Books & GST Returns
Examine your financial records, ledgers, and GST filings for accuracy. - Reconciliation & Compliance Check
Match turnover, input tax credit, and tax liabilities between books and returns. - Identify Discrepancies & Risks
Highlight any inconsistencies, non-compliances, or potential exposure to notices. - Prepare Audit Report & Recommendations
Draft a detailed GST audit report with findings and corrective action plans. - Assistance in Departmental Audits
Represent your case during audits initiated by GST authorities and handle follow-ups.