E India CA

Professional Updates for Chartered Accountants


What are the limits provided for Audit under GST?

When Audit under GST is required?

1. If Turnover of the registered person crosses the threshold limit for audit under GST i.e. Rs. 2 cr in a financial year

2. An audit by Tax Authorities

  • General Audit
  • Special Audit

Audit under GST

What is the GST audit limit under GST for a financial year?

The limit prescribed under the GST law for a taxpayer to get his books of account audited is Rs. 2 crores, Therefore, every registered person under GST with an aggregate turnover exceeding Rs. 2 crores is required to get his books of accounts audited by a qualified Chartered Accountant or a Cost & Management Accountant.

In this case, the registered taxable person is required to file:

  • An annual return (by using GSTR 9B Form) together with the reconciliation statement. Both of them is required to be filed by 31st December of the next Financial Year.
  • The audited account statement and the reconciliation statement, reconciling the value of supplies stated in the return furnished for the financial year with the audited annual financial statement,
  • A copy of audited annual accounts duly certified in Form GSTR 9C

Rectifications after Return Based on Results of Audit under GST

In a case where any registered person, after the submission of the return discovers any incorrect details /error/omission (from results of audit), then the registered person can rectify such incorrect details/error/omission subject to payment of interest. However, the registered person will not be allowed to rectify any error/incorrect details/omission after the due date for filing of return for the month of September or the date of filing o the relevant annual return, whichever is earlier.

For an example, during the audit, Mr. Y found that he has made an error in October 2017 return. Mr. Y furnished an annual return for Financial Year 2017-18 on 31st August 2018 along with audited accounts. Mr. Y can rectify error within-

20th October 2018 (last date for filing return for September month)


31st August 2018 ( the actual date of filing of relevant annual return)

 -earlier, i.e., the last date on which rectification can be done is 31st August 2018.

The audit by Tax Authorities

The Commissioner of the CGST/SGST or any officer authorised by him may conduct the audit of any taxable person in such manner as may be prescribed in a general or a specific order. A 15 days notice shall be given to the registered person before the conduct of the audit in Form GST ADT-01. The time period prescribed under the act for the completion of the audit is three months and the same shall be reckoned from the date of commencement of the audit. The period can be extended further for a period not exceeding six months by the commissioner.

During the course of GST audit, the proper officer may require the auditee,—

  • To give the information required by the tax authorities which may require for the conduct of the audit, and
  • To provide the facility for the verification of accounts/records requisitioned or available by the tax authorities, and
  • To provide assistance for the timely completion of the audit.
  • The authorized officer may inform the person whose records are audited any discrepancies noticed if any, and the said registered person may file his reply and the proper officer shall finalise the findings of the audit after considering the reply furnished.

Time limit for completion of the GST audit

The audit under the GST needs to be completed within three months from the date of commencing the audit. However, such period can be extended for a further period of 6 months by the Commissioner.


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