Select Page

GST audits involve the examination of records, returns, and other documents maintained by GST-registered persons.

Additionally, it checks the accuracy of turnover declared, taxes paid, refunds claimed, input tax credits availed, and other such compliance under GST Act.

Are you looking for comprehensive information on the GST Audit limit for FY 2022-23

In this article, we will furnish all the details on GST Audit and by the end of this article, all your related queries will be answered.

Let’s get started! 

Taxpayers, whose annual turnover is more than Rs. 2 crores in a financial year, are required to get audited by CA every year, under Section 35(5) of the CGST Act.

As per the 5th July 2022 meeting, CBIC has exempted GST-registered taxpayers from filing Form GSTR-9 with an annual aggregate turnover of up to Rs.2 crore in FY 21-22.

For certain categories of taxpayers, GST audits are necessary to examine whether GST is being paid correctly and refunds are being claimed.

As guided by the Finance Act, 2021, the requirement of GST audit and submission of GSTR-9C by CA was removed

When GSTR 9C is mandatory?

GSTR 9C is mandatory for taxpayers with a turnover exceeding Rs. 5 crores in the previous financial year on a self-certification basis.

GST Auditor must digitally sign GSTR-9C and report any discrepancies or liabilities in GST returns filed during the financial year.

The GSTR-9C is a reconciliation statement between:

  • GSTR-9 Annual Returns filed for an FY, and
  • the figures as per the audited annual Financial Statements of the taxpayer.

There are two main parts of GSTR-9C: 

  • Part-A: Reconciliation Statement 
  • Part-B: Self-certification

Who is eligible for GSTR 9 and 9C?

Under GST, all registered taxable persons must file the GSTR-9 form annually.

GST reconciliation Statement for a particular FY on or before 31st December is the GSTR-9C. 

Companies with a turnover of more than 5 crores must also have the reconciliation certified by a CA.

Difference between GSTR-9 and GSTR-9C are:

GSTR-9GSTR-9C
TYPEGSTR 9 is a Return FormGSTR-9C is a Reconciliation Statement
GST ACTPrescribed in Rule 80 of under Section 44 of the CGST ActPrescribed in Section 35(5) of Section 44 of the CGST Act
PARTSGSTR-9 has Six Parts.GSTR 9CPart A – Reconciliation Statement-five parts part B – Certificate-two parts.
Prescribed under a StatutePrescribed under a Statute
ELIGIBILITYTo be filed by all Registered Taxpayers under Goods and Services TaxOnly For FY 2021-22T.O. Up to 2 Cr – OptionalMore than 2Cr. – 5 Cr – MandatoryMore than 5Cr – MandatoryTo be filed if the turnover in an FY exceeds Rs 2CrOnly For FY 2021-22T.O. Up to 2 Cr – N/AMore than 2Cr. – 5 Cr – OptionalMore than 5Cr – Mandatory
SIGNATUREDigitally signed by the Registered Taxpayer.Digitally signed by the GST Auditor (CA/CMA)
THRESHOLDNo ThresholdSubject to Threshold
ANNEXURESFinancials need not be annexedFinancials need to be annexed
GSTR-9 Must be filed before GSTR-9CGSTR-9C has to follow the GSTR-9 annual return
DUE DATEMust be filed on or before 31st December subsequent For FY 2021-22Same as GSTR-9 For FY 2021-22
LATE FEESThe minimum is Rs 100 under CGST & 100 under SGST i.e Total Penalty is Rs 200 per day. The Maximum penalty can be a quarter percent of the taxpayer turnoverSection 125 of CGST Act, 2017 states a penalty of up to Rs 25,000/- for not getting the accounts audited

What is tax audit in GST?

A tax audit in GST is all about checking and verifying the financial documents maintained and submitted to the tax authority under GST. 

According to the GST Act, 2017, registered taxpayers are required to have their account books audited.

There are three types of audits:

TypesPerformed ByWhen Initiated
Turnover based AuditChartered Accountant or Cost Accountant appointed by the taxpayerAs per the CGST Act, if the Turnover exceeds 2 crores,^ the taxpayer has to get his accounts & records audited
Normal audit/General AuditCommissioner of CGST/SGST or any Officer authorized by himOn the order of the Commissioner by giving 15 days prior notice
Special auditA Chartered Accountant or Cost Accountant, nominated by CommissionerOn the order of the Deputy/Assistant Commissioner with prior approval of the Commissioner

What is the turnover limit for GST audit for FY 2020-21?

The turnover limit is Rs. 2 crores. As per CBIC, GST-registered taxpayers with annual aggregate turnover up to Rs. 2 crores in FY 21-22 from filing Form GSTR-9.

Frequently Asked Questions (FAQs):

Who is exempt from tax audit?

Businesses whose total sales, turnover, or gross receipts do not exceed Rs 2 crore in a financial year are not subject to a tax audit.

When GST audit is done?

GST audit is conducted by the Commissioner or any officer authorized on this behalf. 

Notice shall be given to the registered person at least 15 days prior to the conduct of the audit.

The time limit to complete the audit is three months from its commencement date.

What is turnover limit for GSTR 9C?

The turnover limit is Rs. 2 crores. It is mandatory to file GSTR 9C, whose annual aggregate turnover exceeds Rs. 2 crores.

Wrapping Up

We hope the comprehensive information provided in this article on GST Audit limit for FY 2021-22 will be a complete guide for you and that your all queries will be answered.

Still, if you have any queries related to this topic, feel free to comment in the comment section below.

Recommended Articles:-

TDS and TCS in GST (Complete Detail)

TDS Entry In Tally With GST (Journal Entry)