Audit Under GST

1. AUDIT UNDER GST

2. Audit Under GST
Annual Audit by Chartered
Accountants/CMA(Section
35(5) of CGST Act
Audit By Tax
Authorities.(Section 65 of
CGST Act)

3. Annual Audit By Chartered Accountants/CMA
.
 According to Section 35(5) of the CGST Act:
 Every registered person whose turnover during a financial year exceeds the
prescribed limit (presently 2 crore rupees) shall get his accounts audited by
a Chartered Accountant or a Cost Accountant.
 and shall submit
 a copy of the audited annual accounts
 a reconciliation statement under section 44(2) in GSTR-9C and
 such other document in such form and manner as may be prescribed
 Contents of the audit report and other particulars to be prescribed under the CGST Rules.
 Audited Report and Audited Annual Accounts to be submitted along with annual return
on or before 31st December following the end of financial year.

4. Main FOCUS Area/Reconciliation required
for Audit.

5. Sr.No
.
Description Point No.
in GSTR-3
Point No. in
GSTR-1
1 Outward taxable supplies other
than
zero rated, Nil rated and
3.1a 4, 5, 7 +
9 , 10
2 Zero Rated Supplies 3.1b 6/6A
3 Nil rated and exempted Supplies 3.1c 8
4 Non‐GST Outward supplies 3.1d 8

6. Description Point No.
in Form ‐
3B
To be reconcile With
ITC Available
Import of goods 4A(1) Ice Gate
Import of services 4A(2) GSTR-2A
Inward supplies liable to reverse
charge (other than 1 & 2 above)
4A(3) On the basis of
Inward supplies from ISD 4A(4) GSTR-2A
All other ITC 4A(5) GSTR-2A
Ineligible ITC 4(D) GSTR-2A

7. RECONCILIATION OF INCOME GSTR-1 and Profit & Loss
Account.
Total Credits in statement of profit and loss xxx
Less Supply covered under Sch.III xxx
Less Sale from April to July xxx
Less Capital Receipt(If Any) xxx
Add Sch. I Supplies like Branch Transfer not in books, but
as per GST Law
xxx
Less Profit on sale of capital assets xxx
Add Taxable Value of Supply of Capital Goods xxx
Add Advance received during the Current Period [if liable to
as per TOS]
xxx
Less Advance of earlier period adjusted during the Current
period
xxx
Total Value in GSTR 1 XXX

8. Reconciliation OF Expense with GSTR-2A
Total debits in statement of profit and loss xxx
Less Schedule III items (Ex: Salary expense) xxx
Less Depreciation and Amortization xxx
Less Accrued expenses and month end provisions, not
credited to
party account
xxx
Add Invoices received and adjusted for Expenses provision
made earlier
xxx
Add Capital Expenses xxx
Total Taxable value in GSTR 2 xxx

9. Reconcilation-Miscellaneous
 Reconciliation of Taxes paid.
 Reconciliation of Refunds
 Ineligible credits
 Calculation of ITC Reversal according to Input tax credit rule.
 Transaction with related party & Distinct Person
 Reconciliation between Monthly GSTR-1 with Annual Return
 Reconciliation of return with financial statement of company.

10. Audit By tax Authorities.
 Audit by Tax Authority (Sec 65]
 Commissioner of CGST / SGST or any officer authorized;
 Audit of any registered person for a particular period, at particular frequency and in particular
manner; at the place of business of registered person or in their office.
 Notice to registered person at least 15 working days prior to audit [Form GST ADT-01];
 Commencement of audit : Later of the following
1. The date on which the records/accounts called for by the audit authorities are
made available to them, or
2.The actual institution of audit at the place of business of the taxpayer
 Audit to be completed within 3 months (can be extended further by 6 months
by Commissioner);

11. THANK YOU
CA Amit Nimal
A.B.Sanwalka & Co.
903,Sector-40 Gurgaon-122001
Mob-9582037028
Email-caamitnimal@gmail.com