GST Audit
GST audit involves examining the various documents, records, and returns maintained by a registered taxpayer to verify the accuracy of their reported turnover, taxes paid, input tax credits claimed, and refunds requested. The purpose of this audit is to ensure compliance with the regulations and provisions of the GST law.
GSTR-9 annual return:
- The GSTR 9 is an annual return that GST-registered taxpayers must submit each year.
- It includes information on the outbound and inbound supplies made or received during the relevant prior year under several tax headings, such as CGST, SGST, and IGST, as well as HSN codes.
- It combines all of the quarterly and monthly returns (GSTR-1, GSTR-2A, and GSTR-3B) submitted during that year. Despite its complexity, this return aids in the thorough data reconciliation required for completely transparent disclosures.
What are the details required to be filled in the GSTR-9?
- Six segments and nineteen sections make up GSTR-9. The information requested for each section can be found readily in your books of accounts and previously filed returns.
- Typically, this form requests the report of annual sales, broken down into tax- and non-tax-exempt situations.
- The annual value of inbound supplies and the ITC that was applied thereon is to be disclosed on the purchase side.
- These purchases also need to be classified as capital goods, input services, and inputs. Information about ITCs that must be reverted owing to ineligibility must be entered.
Essentials of GST Annual Return & GST Audit
- GSTR-9 must be filed by every registered person whose annual revenue exceeds INR 2 crore. The registered individual must file GSTR-9C in addition to GSTR-9 if their annual revenue exceeds INR 5 crore.
- Form GSTR-9C is used to submit the annual reconciliation statement for GST. GSTR-9A is the annual return to be filed by individuals who have chosen the GST Composition Scheme, and GSTR-9A is the statement of reconciliation between GSTR-9 and the audited annual financial statement.
- An audit involves the inspection of the registered person’s records, returns, and other papers. Additionally, it guarantees the accuracy of the declared turnover, taxes paid, and refunds requested. A GST auditor should be hired at the start of the fiscal year by a proprietor, partner, or board of directors in the case of a company.
- GSTR-9C statement of reconciliation between the figures in the taxpayer’s audited annual financial statements and the annual return in GSTR-9 filed for the financial year
How SalahKaro Helps?
- Assistance with downloading the required GSTR-1, 2A, 2B, and 3B forms and checking for inconsistencies by comparing them to books of accounts.
- GSTR-99C to GSTR-1, 2A, and 3B invoice-level audit trail
- Creation of a checklist to find discrepancies and calculate the net tax due.
- During departmental audits, offer technical support and representation services.
- Annual returns through FORM GSTR-9 & 9C are prepared and filed.
FREQUENTLY ASKED QUESTIONS
A threshold limit has been decided for the applicability of GST annual return and audits. GST annual return shall be filed by taxpayers whose turnover exceeded Rs. 2 crores in a financial year. GST audit has been removed from the GST law. However, the GSTR-9C reconciliation statement is still applicable to taxpayers on a self-certification basis. Taxpayers whose turnover exceeded Rs. 5 crores are required to file GSTR-9C on a self-certification basis.
GSTR-9 is the annual return (for regular taxpayers) whereas GSTR-9C is a reconciliation statement. The GST annual return is nothing but a consolidated summary of the turnover, ITC, tax paid, and late fees paid during the financial year along with the amendments carried out after the end of the financial year. GSTR-9C functions as a reconciliation statement for the turnover, tax paid, ITC, etc., and the reasons for the mismatch, if any.
Taxpayers are required to file the GST annual return and reconciliation statement within 9 months after the end of the financial year. Therefore, for the financial year ended on 31st March 2022, the GST annual return filing due date as well as the reconciliation statement in GSTR-9C shall be filed on or before 31st December 2022.
No. GSTR-9 is the annual return only for regular taxpayers. For composition taxpayers, GSTR-9A acted as an annual return. However, after the introduction of GSTR-4, GSTR-9A has been disabled. Further, GSTR-9B acts as the annual return for e-commerce operators.
