- Section: Section 35(5) and Section 44 of the Central Goods and Services Tax Act, 2017
- Purpose: The purpose of GST annual audit is to ensure that taxpayers have accurately reported their GST liability and availed the eligible Input Tax Credit during the financial year.
- Applicability: Every registered person whose aggregate turnover during a financial year exceeds Rs. 2 crores is required to get their accounts audited and submit an audited annual return in FORM GSTR-9C.
- Timeline: The annual audit must be conducted by a Chartered Accountant or a Cost Accountant, and the audited annual return in FORM GSTR-9C must be submitted by December 31st of the subsequent financial year.
- Exemption: Registered persons whose aggregate turnover during a financial year is up to Rs. 2 crores are exempted from the requirement of GST annual audit.
- Penalty for not doing: If a registered person fails to furnish the annual return in FORM GSTR-9C within the due date, they will be liable to pay a late fee of Rs. 200 per day of delay, subject to a maximum of 0.25% of their aggregate turnover.
- Due Date: The audited annual return in FORM GSTR-9C must be submitted by December 31st of the subsequent financial year.
- Forms: The audited annual return in FORM GSTR-9C must be submitted.
- Reporting Authority: The audited annual return in FORM GSTR-9C must be submitted to the GST department.
- Other Details: The GST annual audit includes verifying the accuracy of the taxpayer's GST returns, the correctness of the Input Tax Credit availed, and the reconciliation of the tax paid and tax liability as per the books of accounts. The auditor is also required to provide an opinion on the accuracy and compliance of the financial statements and GST returns of the registered person.
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